Musicians are increasingly suspicious of the money and equity - TopicsExpress

Musicians are increasingly suspicious of the money and equity changing hands between streaming services and record labels... Spotify gave $500 million in advances to several major labels in the US for the right to license their catalogs. That was an advance against income – so theoretically its not the labels money to pocket. Another chunk of change is soon to follow. The labels also got equity; so they are now partners and shareholders in Spotify, which is valued at around $3bn. That income from equity, when and if the service goes public, does not have to be shared with the artists. It seems obvious that some people are making a lot of money on this deal, while the artists have been left with meager scraps. The major labels are happy, the consumer is happy and the CEOs of the web services are happy. All good, except no one is left to speak for those who actually make the stuff. _ David Byrne 10.11.2013

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