Two weeks ago, electronic musician Four Tet, (Kieran Hebden) resolved a UK legal dispute with Domino Records over a deal he signed with the label in 2001.
Domino was paying Hebden 18% of revenues generated by his records on streaming platforms, but he claimed that he should get 50% as per the terms of the contract.
In a document published by Hebden on Twitter showing a settlement offer from Domino, the music company offered to pay the artist a settlement of GBP £56,921.08 and also offered to pay a royalty rate of 50% “on all streaming and download income in respect of which [Domino] has not yet accounted to [Hebden]”.
Meanwhile, behind the scenes, Domino has been generating healthy revenues, driven by strong catalog sales.
The independent label, currently home to the likes of British rock stars Arctic Monkeys and breakout British duo Wet Leg, grew its turnover by 31.6%, from £15 million ($19m) in 2020, to £19.8 million (approx $27.2m) in 2021 (see below).
That’s according to new documents filed on Companies House in the UK for Domino Recording Company Limited.
According to the company’s strategic report, included within the results filed for its fiscal year ended August 31 2021, Domino’s revenue growth was driven by “cyclical factors”.
Domino noted specifically that, “2021 saw a stronger album release schedule with one of the company’s more established artists having an album release in the year”.
Adds the filing: “The stronger album release schedule was supported by strong back catalog sales as a result of continued growth of streaming services revenues globally.”
Domino’s strong catalog sales in 2021 saw AM, the 2013-released fifth album from Arctic Monkeys, become the UK’s No.1 independent album (in terms of sales plus streaming) last year.
Arctic Monkeys’ debut album, Whatever People Say I Am (That’s What I’m Not), also released via Domino, in 2006, was the sixth biggest indie album in the UK in 2021.
Arctic Monkeys also scored two of the Top 10 biggest indie singles in 2021, including Do I Wanna Know and Why D’you Only Call Me When You’re High (Domino Recordings). Both singles were taken from the band’s 2013 album AM.
Domino reports that it released 23 albums in 2021 versus 34 in 2020.
The company also reveals in the filing that its operating profit grew to £3.27 million ($3.96m) in 2021, up from £1.75 million ($2.24m) in 2020 (see above).
Elsewhere in Domino’s filing, the company notes that, “in common with other businesses serving the music distribution sector”, it is currently “benefiting from the continued global growth and increased consumption due to the success of streaming services”
“The company, in common with other businesses serving the music distribution sector, is benefiting from the continued global growth and increased consumption due to the success of streaming services”
Domino adds that, “whilst the directors believe that this growth will continue for the foreseeable future they have also recognized that there is a considerable threat posed by future technological legislative developments”.
The statement continues: “Whilst these developments could lead to an improvement in the artistic process they may also lead significant changes in the way music is distributed and consumed and therefore adversely affect our revenues and profitability”.Music Business Worldwide