Spotify Artist Agreement

UMG`s contract with Spotify is a multi-year worldwide licensing agreement; financial terms and duration of the agreement were not disclosed. The majors, as we have confirmed, now receive 52% of the pro-rated net sales that their artists generate on Spotify. The agreement also gives publishers and songwriters the ability to see all their songs and correct all data problems to unleash payments (past and future). But the last part will be the most controversial: the letter states that after a certain period of time, all unclaimed royalties will be distributed between publishers and songwriters participating in the NMPA, even if the royalties do not belong to them. In this scenario, the label would keep $4,160 of the $5,200 Spotify has in common – so the artist has $1,040… Almost one-fifth the size of the cheque they would have received from Spotify`s direct distribution option. With a sales contract of 15/85 without frills, 52% ($5,200) of net sales of $10,000 ended up at the distributor. (You`ll see that this figure is higher than the $5,000 Spotify would pay directly to an artist.) In a statement to Billboard, Spotify CEO and CEO Daniel Ek said his company`s mission is to “enable creative artists to live off their art and allow fans to live and learn from it,” adding, “Our marketplace strategy — and the tools and services we develop to help developer teams take care of their fan community, grow and better monetize them — are essential to that mission.” While it is possible that Sony Music may use this advertising space to promote its own artists, Section 14 (e) gives the label “the right to resell the inventory credited at prices determined by the label at the sole discretion of the label.” Section 14 (a) also requires Spotify to provide Sony Music with additional announcements worth $15 million at a discounted price. Sony Music could indeed sell the free ads that there have been for millions, and turn around to buy more ads at a discounted price. But that`s not all – in section 14 (p), the contract stipulates that Spotify Sony Music must offer a free portion of its unsold advertising inventory available to allow the label to promote its own artists. With a Spotify direct deal, which pays 50% of net sales, the artist apparently finds himself at half of the 10k (or $5,000). Let`s assume, for simplicity`s sake, that Spotify calculated that in one month, an artist generated a pro-rata of $10,000 in net sales on his service.

However, please note that some aspects of your use of the Spotify service may be settled by additional agreements. This could include, for example, access to the Spotify service as a result of a gift card, free or discounted trial versions, or with other services. If an offer is submitted to you for such aspects of your use, you will receive an additional agreement and you will have the option to accept additional conditions. Some of these additional terms are listed on Spotify`s website. To the extent that there is an irreconcilable contradiction between the additional conditions and these conditions, priority is given to the additional conditions. Spotify has agreed to continue broadcasting music from Universal Music Group, the world`s largest label, the company said on Wednesday. In addition to the fact that all UMG artists and recordings are kept on Spotify, the companies said Universal would work with Spotify to develop tools that market artists and their music, a newer sector of Spotify that makes money beyond just royalties. A direct sales contract with Spotify gives artists an important new option on the world`s largest subscription streaming platform. No one forces artists to sign this agreement or to be on Spotify.

It`s a choice. We may, at any time, change the terms of Spotify for Artists at our sole discretion by publishing a revised version of Spotify for Artists` terms within Spotify for Artists or by sending you a notice to E related to your account

Comments are closed.