Taylor Swift Does It Again
Taylor Swift has done it again, striking a deal with UMG that includes a commitment to share proceeds from Spotify stock sales with artists, even if they are not recouped (didn't generated enough revenue to pay off the balance of their advance which makes them ineligible to earn royalty income).
Taylor Swift puts another notch in her belt from the 2015 move to persuade apple to pay artists for Apple Music Trials.
Swift's influence will serve both Apple and Universal well, allowing them to be seen as corporations who are listening to the voice of artists. An impressive way of 'thinking out of box'.
Label Services Movement
The old business model of creating a large repository copyrights is being replace, slowly due to the increase of label services. The 60 to 70 year label ownership of master recordings from artists is evolving into full ownership by artists.
What about the Major labels
Major labels remain and will continue to be the predominate players in the music business because they know how to embrace, pressurize, and remodel innovation from the independents. All of the majors have their own label service and are buying up others, because label services are proving to be an exceptional asset for them.
Catalogue revenues are going to undergo big change. big catalogs are not where the action is anymore. Tracks from the 1960s are just 6.4% of all UK catalog streams, while 2000s were reported a 60% accountability from the UK in 2017. Creating a long term label service type deal Universal, securing Swift's signature, will benefit from the main catalog with the opportunity for first releases without actually owning the catalog.
Label services have come a long way and have created a place in the music industry.