Sony's Secret Contract With Spotify Is Uncovered

Streaming has become the most popular way to consume music, and throughout the year, we’ve seen an ongoing battle between different companies. In the last few months, JAY Z’s TIDAL has attempted to step up to Spotify, and Apple’s forthcoming revival of Beats Music will further add to the competition. Although these platforms have made music listening the most accessible and convenient it has ever been, they have been criticized by users and artists for ongoing issues such as unfair payment, hidden corporate agendas and more. Recently, Sony‘s contract from January 2011 with Spotify, which was top-secret until now, has been unearthed to the public via The Verge. According to the 42-page document, Spotify had to pay Sony over $42.5 million in advances for a three-year deal. How the money was divided is not clear, but Rich Bengloff, the president of the American Association of Independent Music and a close source to the online publication has shared that the record companies pockets most, if not all of it. He claims: “I’ve worked at the major labels, and I’ve worked at the indies, so I’ve seen both sides of the business. A lot of the time, money that is paid outside of the direct usage doesn’t end up getting shared.” Check out the full report here and let us know your thoughts on it.