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Warner to pay artists $171 million after promoting Spotify stake, Entertainment News & Top Stories

NEW YORK • Major music label Warner mentioned on Tuesday it will give again US$126 million (S$171 million) to artists after it bought its stake in streaming chief Spotify.

Warner Music Group mentioned the share sale from Spotify, which efficiently listed on the New York Stock Exchange earlier this yr, earned the company US$504 million, or US$317 million after paying taxes.

Announcing its newest earnings, Warner mentioned it will share the spoils of Spotify with artists on its labels – whose most well-known names embody Coldplay, Ed Sheeran and Neil Young.

“I’m pleased to say that in connection with the sales of Spotify equity, an estimated US$126 million will be credited to artists’ accounts,” Warner chief govt Stephen Cooper informed monetary analysts on a conference name concerning the outcomes.

He mentioned that artists would discover the Spotify proceeds on their newest royalty statements being distributed this month and subsequent month, with out particulars on how the sum could be divided.

Mr Cooper recalled that Warner in 2016 turned the primary main label group to pledge to share the cash from streaming transactions with its artists.

Rival Sony Music mentioned in May that it had bought half its US$750-million stake in Spotify, whereas unbiased group Merlin totally divested its US$125-million share.

Both firms additionally mentioned they’d cross alongside the proceeds to artists and members.

Universal Music Group, the world’s largest conglomerate, has stood aside by conserving its stake in Spotify.

Last month, mother or father company Vivendi mentioned it was contemplating promoting as much as half its stake in Universal Music.

Streaming has shaken up the music trade, with fast-growing subscriptions to Spotify and its rivals contributing to the primary stable development within the business since CD gross sales began plummeting within the late 1990s because of the Internet.

Artists have continuously complained that they see little of the windfall of the brand new know-how, though few musicians nonetheless make good on threats to boycott streaming.

AGENCE FRANCE-PRESSE

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