exclusive News March 8, 2018

Aussie Indies watch as global sector asks for a slice of Spotify’s equity payout to major labels

Australian independent labels are watching closely as global industry sector groups push to get a piece of the pie when Spotify lists publically.

Earlier this week, Universal Music became the third of the major record companies to announce it will share the spoils of Spotify stock with their artists.

Now the global indie sector has asked them a pointed question.

Will this distribution of money to their artists also extend to the artists signed to the independent labels distributed by the majors?

Some indies will already benefit from share sales when Spotify goes public, thanks to a equity stakes negotiated by indie trade body Merlin.

Alison Wenham, CEO of the Worldwide Independent Network (WIN) – the umbrella organisation that brings together a raft of territory-specific independent music trade bodies – said that under the terms of The Fair Digital Deals Declaration from July 24, 2017, the independent sector is obliged to get a commitment from the majors.

The Fair Digital Deals Declaration was a voluntary commitment made by indie labels around the world to treat their artists fairly, and be transparent, when it comes to the digital exploitation of work in recorded music agreements with third parties.

Last year 700 labels signed up, including XL Recordings, the Beggars Group (which also represents 4AD, Matador and Rough Trade). Vinyl Cooking, Epitaph, Glassnote, Sub Pop and Domino.

That figure has since swelled to 1000 labels from 29 countries.

34 are from Australia (see list below).

WIN is encouraging more to sign up over the coming weeks before Spotify’s listing.

Wenham said, “With the forthcoming Spotify listing, which will value the company at an estimated $19 billion, (indie labels) have the perfect opportunity to reiterate their position (of the Declaration).

“We are fully focused on ensuring a sustainable economic relationship between the independent recorded music industry and the artists it represents.”

Martin Mills, founder of the Beggars Group and newly appointed WIN chair, added: “It is entirely appropriate that independents, who have given birth to every significant new musical movement over the last 70 years, should take the lead in committing to fair and reasonable treatment of all artists and application of contract terms as the digital era continues to move into uncharted waters.”

According to WIN, the Australian labels which signed The Fair Digital Deals Declaration are:

ABC Music

All Killer Music

At Home Records

Cooking Vinyl

Create/Control

Future Classic

Head Records

Hub Artist Services

Inertia

MGM

Mushroom Group