News - 08/08/2018

Warner sells its entire stake in Spotify and artists get $126m of the money

Warner sells its entire stake in Spotify and artists get $126m of the money

Warner on August 7 confirmed it's no longer a stakeholder in Spotify. Indeed, Warner Music Group just sold all its shares in Spotify for more than $500,000.

The major is allocating 25% of this money to its artists - but, unlike Sony, it will take account of unrecouped balances (meaning that a significant proportion of this cash will actually remain at WMG).

WMG CEO Steve Cooper told investors that Warner realized $504m in proceeds from selling 100% of its Spotify stock in the quarter ending June 2018:

I’m pleased to say that, in connection with the sale of our Spotify equity, an estimated $126 million will be credited to artist accounts on their June 30 royalty statements which are issued around the world in August and September.

That $126m equates to exactly a quarter of the $504m.

According to "Music Business Worldwide", $126m includes payments to Warner/ADA-distributed labels - but Warner is only sharing Spotify proceeds with its partner labels when obligated to do so by individual contracts.

© 2024 All rights reserved. Rockol.com S.r.l. Website image policy

Rockol

  • Rockol only uses images and photos made available for promotional purposes (“for press use”) by record companies, artist managements and p.r. agencies.
  • Said images are used to exert a right to report and a finality of the criticism, in a degraded mode compliant to copyright laws, and exclusively inclosed in our own informative content.
  • Only non-exclusive images addressed to newspaper use and, in general, copyright-free are accepted.
  • Live photos are published when licensed by photographers whose copyright is quoted.
  • Rockol is available to pay the right holder a fair fee should a published image’s author be unknown at the time of publishing.

Feedback

Please immediately report the presence of images possibly not compliant with the above cases so as to quickly verify an improper use: where confirmed, we would immediately proceed to their removal.