AIM welcomes Sony’s recent announcement that the company will be sharing the windfall from the sale of some of its stake in Spotify with its distributed labels.
In March 2018 Universal Music Group announced that it would be sharing some of the proceeds from its own Spotify stake with its artists, after Sony and Warner’s similar commitments in 2016. Since then however there has been uncertainty around whether labels distributed by the majors would share in that windfall.
Global digital rights agency Merlin led the way in announcing that it would be redistributing its Spotify shares directly to independent labels and their artists after it sold all of its Spotify shares in May, and passed 100% of the liquidated equity on to its members.
In Sony’s letter to its distributed labels it has now stated that they will pay the proceeds of sale of its Spotify stake through to distributed labels and the payment won’t be offset against recoupment. This is welcomed as a great sign of goodwill and a recognition by Sony of the valuable role that its distributed labels have played in the company’s success.
Paul Pacifico, CEO of AIM commented “We are delighted to hear that Sony will be sharing the income from its Spotify equity sale with its artists and its distributed labels. The move goes to show the value that Sony places on the independent sector. We hope to see similar announcements from Universal and Warner following the example Merlin and Sony have set.”