Latest in Gear

Image credit: Reuters/Dado Ruvic

Spotify offers advances to indie artists who directly license music

They'd get a larger cut in return for skipping the publishers.
271 Shares
Share
Tweet
Share
Save

Sponsored Links

Reuters/Dado Ruvic

Apple might not be the only streaming music giant eager to cut out the middle managers. Billboard sources claimed that Spotify has offered advance fees to indie artists and managers in exchange for licensing some of their songs directly to Spotify. They'd get 50 percent of the per-stream revenue. That's less than the 54 percent under conventional arrangements, but the absence of a publisher would give them dramatically more money. Right now, they typically only receive 20 to 50 percent of the label's share -- they'd get a pay raise even as Spotify took a larger slice of the pie.

The deals wouldn't be exclusive or otherwise hand over important rights. Musicians could still license their tracks to Apple or other platforms, and they'd still own their recordings. They'd just have to negotiate separate deals with other services. Spotify couldn't do this with major artists as it would represent direct competition with big labels and violate their licensing agreements.

Spotify didn't have a comment on the report. However, this would potentially save the service some cash even as it offered indies yet another incentive to sign up. It could simultaneously increase the chances that Spotify strikes gold. If an up-and-coming indie proved to be successful, Spotify would both reap extra rewards and give that artist a financial reason to stick around.

Source: Billboard
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
271 Shares
Share
Tweet
Share
Save

Popular on Engadget

Logitech's newest lag-free gaming mouse is loaded with thumb buttons

Logitech's newest lag-free gaming mouse is loaded with thumb buttons

View
Amazon's search could push customers toward in-house products

Amazon's search could push customers toward in-house products

View
'Mario and Sonic at the Olympic Games' will feature three 'Dream Events'

'Mario and Sonic at the Olympic Games' will feature three 'Dream Events'

View
'Seinfeld' is moving to Netflix in 2021

'Seinfeld' is moving to Netflix in 2021

View
Amazon Prime Video is coming to Optimum set-top boxes

Amazon Prime Video is coming to Optimum set-top boxes

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr