European Knight
06-27-2015, 05:20 PM
While many blame Spotify for paying out low streaming royalties to artists, there’s always been plenty of blame left to go around for the other side of the equation: the record labels themselves. In a new lawsuit, American Idol artists Carrie Underwood, Kelly Clarkson and the entertainment company 19 Recordings are suing Sony Music, claiming the label worked a deal with Spotify to shortchange its artists.
As reported by The Tennessean, the plaintiffs claim they were “to be paid a royalty rate that is substantially below fair market value so that [Sony] can receive other compensation that it does not have to share with 19 and its artists.”
The plaintiffs claim that Sony — which owns a minority stake in Spotify — wasn’t negotiating in “good faith” when it made deals with the streaming service. The lawsuit explains that Sony negotiated a lower royalty rate for its artists in exchange for a larger share of advertising and other revenue from Spotify, which it did not have to share. Further, the artists claim that Universal and Warner — both of which also own minority stakes in Spotify — may be engaging in the same practices.
Read more: http://www.digitaltrends.com/music/sony-music-label-sued-for-unfair-royalty-deals-with-spotify/
http://icdn8.digitaltrends.com/image/carrie-underwood-640x0.jpg
As reported by The Tennessean, the plaintiffs claim they were “to be paid a royalty rate that is substantially below fair market value so that [Sony] can receive other compensation that it does not have to share with 19 and its artists.”
The plaintiffs claim that Sony — which owns a minority stake in Spotify — wasn’t negotiating in “good faith” when it made deals with the streaming service. The lawsuit explains that Sony negotiated a lower royalty rate for its artists in exchange for a larger share of advertising and other revenue from Spotify, which it did not have to share. Further, the artists claim that Universal and Warner — both of which also own minority stakes in Spotify — may be engaging in the same practices.
Read more: http://www.digitaltrends.com/music/sony-music-label-sued-for-unfair-royalty-deals-with-spotify/
http://icdn8.digitaltrends.com/image/carrie-underwood-640x0.jpg