Following Warner and Sony’s decision to share revenue from equity stakes in streaming services with its artists, the Music Managers Forum has called for Universal to make the same pledge.
Warner Music Group CEO Stephen Cooper told investors yesterday (February 4) that, in the event that the company does receive cash proceeds from the sale of its equity stakes in streaming services, it will share the revenue with its artists on the same basis that it shares revenue from actual usage and digital breakage.
Sony Music made the same promise just hours later.
Annabella Coldrick (pictured), chief executive of the MMF, said: “Record companies taking an equity stake in streaming services has become increasingly prevalent and it is essential artists see the value as well. Warner and Sony are demonstrating industry leadership and aligning their interests with artists by committing to share proceeds from the sale of Spotify shares. This is a positive development for the long term health of the industry. We call upon Universal to follow suit. See our Dissecting The Digital Dollar report for a full exploration of the issues around streaming.”
Dissecting The Digital Dollar is a major new report commissioned by the MMF which sets out to explain how streaming services are licensed and how digital income is shared between each stakeholder in the wider music community.