Warner Music Group has pledged to share its portion of a recent $210m Sirius XM settlement with its artists, paid via SoundExchange.
The news quashes the possibility that the money would go straight to the major’s bottom line.
The money is due to be paid to major labels plus ABKCO – the owner of classic Rolling Stones copyrights – by the US satellite/digital radio giant.
The plaintiffs accused Sirius of playing pre-1972 recordings in the States without permission, and without paying royalties.
Warner has confirmed that the allocation of the settlement amongst the majors and ABKCO is yet to be determined.
It’s also promised to share its portion of the proceeds with artists on the same basis as it usually shares royalties from Sirius, which means the cash will be paid to artists via SoundExchange.
We’ll find out how much of a share of the Sirius money that Warner has received later in the year, when it records the figure in its fiscal numbers.
As part of the settlement, Sirius has the right to enter into a license with each plaintiff to reproduce, perform and broadcast its pre-1972 recordings from January 1, 2018 through December 31, 2022.
That license should ensure that the majors are compensated for the performances of pre-1972 copyrights on Sirius in the States within the five year period.
Warner told MBW earlier this year that it shares ‘breakage’ income from digital music services with artists as standard practice – and has done so for six years.
Sirius XM offers three monthly subscription packages to consumers: XM Select (140+ channels for US $14.99 per month), XM All Access (150+ channels for $19.99) and XM Mostly Music (80+ channels for $9.99).
The current contract of its star DJ, Howard Stern (pictured), expires later this year.Music Business Worldwide
