Spotify Offers Managers, Artists Advances to License Music Directly

Hannah Karp, writing for Billboard:

Under the terms of some of the deals, management firms can receive several hundred thousand dollars as an advance fee for agreeing to license a certain number of tracks by their independent acts directly to Spotify. Then, in at least some cases, the managers and acts stand to earn 50 percent of the revenue per stream on those songs on Spotify. That’s slightly less than the 54 percent of revenue the major record labels in the U.S. get per stream, on average, according to Billboard’s calculations, but major-label artists and their managers typically receive only 20 percent to 50 percent of the label’s share, depending on an act’s individual royalty rates, and don’t usually get to own their master recordings.

Jason Tate
Jason Tate Jason Tate is the founder and editor-in-chief of chorus.fm. He can also be found at @jason_tate on Twitter and on Facebook.