In February last year, Warner Music Group, the world’s third-largest music rights company, confirmed that it would be introducing a “legacy unrecouped advances program”, to go into effect on July 1, 2022.
In a statement issued by WMG in February 2022, the company said: “[We’ve] announced a legacy unrecouped advances program where, for our artists and songwriters who signed to us before 2000 and didn’t receive an advance during or after 2000, we won’t apply their unrecouped advances to royalty statements for any period beginning July 1, 2022 or after.
“The program will also benefit other artist royalty participants such as producers, engineers, mixers and remixers.”
(Universal Music Group also announced, in March last year, that it would be disregarding unrecouped balances for heritage artists).
Warner has now provided an update on its legacy unrecouped advances program, revealing that the program saw around 4,500 artists and related producers benefit globally in its first year. The company says it expects this number to grow “as we connect with all eligible participants”.
Additionally, WMG says that it has “also begun to reach out to [Warner Chappell Music] WCM songwriters who could benefit from this program, with over 1,600 accounts eligible globally”.
These updates were included within the company’s 2022 Environmental, Social, Governance (ESG) report, which shares progress in areas including employee experience, social impact, diversity, equity, and inclusion (DEI), and climate change, while setting new targets for 2023 and beyond.
“As we chart the next phase of our long-term growth, we’re committed to our ESG efforts as a critical part of our plan for WMG as a more dynamic, inclusive, and sustainable company.”
Commenting on the report, Robert Kyncl said: “Music is a powerful and positive force, and WMG is filled with passionate change-makers and champions of culture.
“This report highlights the strong foundation for the company’s continued evolution that’s been built under Steve’s leadership.
“As we chart the next phase of our long-term growth, we’re committed to our ESG efforts as a critical part of our plan for WMG as a more dynamic, inclusive, and sustainable company.”
The launch of WMG’s unrecouped advances program followed other artist and writer-minded updates made by Warner to its streaming terms over the past 15 years.
Notably, since 2009 WMG has been sharing all advances and minimum guarantees from streaming services with artists – “treating breakage like other digital revenue”.
Within the report, Warner notes: “Since the advent of streaming, there’s been an increasing need to push for equitable and transparent payments for artists and songwriters.
It adds: “We believe WMG was the first major music entertainment company to implement a digital breakage policy to credit artists with royalties on unrecouped advances and minimum guarantees (2009), and WMG was the first to announce an equity proceeds sharing policy to credit artists with royalties on any proceeds from our sale of equity received by us from digital services as consideration for entering into a license agreement (2016).
“In 2022, we launched our legacy unrecouped advances program, meaning we no longer apply unrecouped advances to the future royalty earnings of eligible artists and songwriters who signed with us before 2000 and didn’t receive an advance during or after 2000.
“In its first year, the program has seen approximately 4,500 artists and related producers benefit globally, and we expect this number to grow as we connect with all eligible participants.
“We’ve also begun to reach out to WCM songwriters who could benefit from this program, with over 1,600 accounts eligible globally.”Music Business Worldwide
