Sony Music has told MBW that it will share any windfall from the sale of its 5.7% stake in Spotify with the independent labels it distributes.
The news comes a day after the Worldwide Independent Network (WIN) questioned whether the majors would pass their independent label partners – and therefore the artists signed to them – a portion of the money.
“Sony Music will be sharing with its distributed labels,” said a spokesperson. The company’s stake in Spotify is thought to be worth more than $1bn at current valuations.
Sony owns The Orchard, which acts as a distribution and services partner to a raft of independent labels and artists.
Universal Music Group confirmed on Monday (March 5) that it would be sharing some of the prospective proceeds from its own Spotify stake with its artists.
“Sony Music will be sharing with its distributed labels.”
In doing so, it became the third major label to commit to passing its acts cash raised from its equity in the streaming service.
Both Warner and Sony made similar commitments in 2016.
In its statement WIN said, “All three major labels have committed to sharing revenues from the sales of Spotify shares with the artists directly signed to their companies but WIN has further called on Sony Music Entertainment, Warner Music and Universal Music Group to give the independent labels distributed by them, and therefore those artists they represent, their corresponding share of any payout received.”
Theoretically, if all three majors own stakes in Spotify amount to more than $2bn, and indie labels distributed by them make up 5% of that market share, the indies could claim $100m+ from the proceeds of the stock sale.Music Business Worldwide