Sony Music Entertainment has announced that it will begin paying royalties to historic artists and producers who signed with the company before 2000 and have yet to recover their record advances, Music Business Worldwide reports. Sony reportedly made the announcement in a letter the company sent to thousands of artists today; the new policy, dubbed the “Legacy Unrecouped Balance Program”, is part of a new Sony initiative called “Artists Forward”, aimed at improving communication and transparency with creators.
The nature of record deals and record breakthroughs – especially contracts signed in the 20th century – has made it quite common for artists to be unable to collect royalties decades after signing their contracts for the first time. MBW reports that Sony’s new policy – a first among the majors – will not erase unrecovered debt, but “will pay off existing unrecovered balances to increase the ability of those who qualify to receive more money from the bank. use of their music. “
The policy will retroactively impact royalty income from January 1, 2021. According to Sony, artists, producers and other qualified participants will be notified of their eligibility for the Legacy Unrecouped Balance program in the coming weeks.
As streaming has reshaped the way music fans consume music and the way royalties are generated, many players in the music industry have called on the biggest labels to institute policies similar to the ‘program. ‘inherited unrecovered balance’.
Beggars Group, the independent label group that includes 4AD, Matador, XL and others, clears all outstanding debts on artist advances 15 years after an artist’s last contract album. Beggars founder Martin Mills called on major record companies to implement such a policy during a speech in 2016.
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