Music giant Warner Music Group sold around three-quarters of its total equity of Spotify shareholding - that's to say $400m.
WMG boss Steve Cooper told the major music company’s investors that the firm had “sold about 75% of our Spotify equity for approximately $400m”. Warner’s share sale transaction was either made in April or the first few days of May (after the major’s last fiscal quarter), according to Cooper.
Speaking on a quarterly earnings call today (May 7), Cooper tackled the thorny issue of what will now happen to the Spotify equity banked by his company. The exec confirmed what Warner’s distributed label partners can expect as a result:
We’ll share these proceeds [the same way] we share revenue from actual streams and so-called digital breakage. In addition, we will be sharing equity proceeds with distributed labels – if [this is] included in their agreements with us.
According to "Music Business Worldwide", Warner’s digital breakage policy sees the major commit to paying out these ‘extra’ digital revenues to individual artists in accordance with their contractual royalty percentage.
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