Beyond the glitz and glamor, the business side of music can be tough for artists.
For, acts are typically tasked with recouping the label’s spend on their projects by way of sales. As such, if they don’t meet this commercial marker, they’re effectively indebted to the label – even when they move on. So much so that music royalties may not be paid to artists, but instead, go towards settling the debt.
In a seismic move, Sony Music has announced a game-changing pivot on this practice; one that will unquestionably impact the industry in a major way.
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The recording giant has announced that it has wiped off the debts of thousands of acts that signed to its labels before the year 2000.
This has several benefits for musicians.
It means said artists will be paid royalties from January 2021 onwards (as such, there will be back payment too).
Furthermore, the move means that said acts will be able to receive income from streams of their music. Notable, as streaming is now the primary way music is consumed in the contemporary climate.
Crucially, many contracts of acts signed before 2000 did not specify concepts such as streaming. Instead, they focussed on the formats of that time such as CDs and cassettes. A costly technicality for many performers.
Hence why this new measure is being praised for effectively unlocking sizeable streaming royalties for artists.
A statement from Sony read:
“We are not modifying existing contracts, but choosing to pay through on existing unrecouped balances to increase the ability of those who qualify to receive more money from uses of their music.”
As one of the world’s leading major labels (with megastars such as Beyonce and Adele on its roster), many feel Sony’s move will cause its rivals to follow suit. All of which serves as a major win for artists.
Hmmm, that was very NICE of them which leads me to believe that there is a tax incentive in it for them so paying the royalties won’t mean much of a dent in their CORPORATE wallet. This is the music BUSINESS after all.
I was gonna say this
It was legal reasons. They were about to be sued for money off streaming and not paying artists under a contracts that do not specify the disbursement of streaming royalties. They knew they were gonna lose.
BINGO❗
Can someone check in on puffy, And LA Reid Because this is going to mess with the money they have been stealing from artist for years!
TLC & Toni about to get some money finally
As HELLOKITTY said, there’s some money in it for them because otherwise this would’ve been done once streaming became a “thing”. But, of course, the music industry is basically only lucrative if you’re on the top or know ppl on the top. Trust and believe, this is nothing more than a handout because something bigger is brewing!
What is hidden behind that decision ? Was there a huge lawsuit coming or else ?
Neither were signed to Sony. And bankruptcy 7 clears debts, so they started making money before u were born.
Sony owns Arista sissy