“As part of my new contract with Universal Music Group, I asked that any sale of their Spotify shares result in a distribution of money to their artist, non-recoupable,” Swift wrote in an Instagram post. While sources declined to give financial details, citing the still-hypothetical nature of the matter, Swift said in her announcement that the Spotify provision involves “much better terms” than what Sony and Warner offered. But according to sources, Swift’s deal on Monday specifies that the hypothetical equity sale will result in payments to Universal’s artists regardless of their account status, meaning they’ll receive money even if they’re in the red with the company for unrecovered advances. (Sony gave those terms to its artists when it cashed out in Spotify shares earlier this year, but Warner declined to ignore artist balances, meaning that much of the money Warner gave out just went back to the label.)Ī source close to the matter tells Rolling Stone that Swift’s alignment with UMG chairman/CEO Sir Lucian Grainge’s approach to artist payments - specifically, his interest in offering Spotify equity to artists without withholding any money owed - was instrumental in the singer’s decision to sign a deal with Universal over the other labels. Universal, the last of the three to make such a commitment, announced in March right before Spotify’s public-company debut on the New York Stock Exchange that artists will “share in the proceeds” from a share sale. All three “Big Three” record labels - Universal, Sony and Warner - took shares in Spotify a few years ago, and all of them promised at some point that artists would benefit if the labels sold their stakes in the Swedish music-streaming company. Not just to Swift, but to all its artists. When Taylor Swift announced her new record deal on Monday with Universal Music Group and Republic Records, she coupled the long-awaited deal with an unusual provision: As part of her joint contract with the label, UMG must promise to hand over to artists, on a non-recoupable basis, a portion of the windfall from its Spotify shares in the future.
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