NEW YORK (Hypebot) – Details regarding a recent lawsuit filed by several artists associated with American Idol have revealed some rather alarming details about the manner in which Sony is able to negotiate its contracts with third parties such as Spotify, effectively stating that Sony has the right to act in the interest of its own profit, regardless of potential financial detriment to artists.
By Mike Masnick of Techdirt.com
For quite some time now, we've been pointing out that the hatred directed at Spotify and other music streaming services in some circles is misplaced. Spotify is paying out a ton of money to the copyright holders (approximately 70% of its revenue). The problem is that much of that money is staying with the labels rather than being passed on to the artists. Earlier this year, in fact, we wrote about a detailed report by Ernst & Young, in cooperation with a European music label trade group, that revealed just how lopsided some of these deals end up being