Sony: ‘We (Really) Do Share Multi-Million Spotify Advances With Artists’

Responding to the wave of criticism that followed the leak of a contract between Sony Music and Spotify that revealed $42.5 million in advances, $9 million in advertising trade and deductions for digital "breakage," Sony has responded.

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Yes, we do share advances and other payments with all artists "under digital catalogue distribution agreements," said Sony Music responding to the outcry that followed the leak of a contract between the world's second largest music group and Spotify.

But exactly what the requirements of their contracts are or how the money is divided among thousands of artists remains… unclear.

Sony Music's statement:

“Sony Music historically has shared digital breakage with its artists, and voluntarily credits breakage from all digital services to artist accounts.
Under the Sony Music ‘Breakage Policy,’ SME shares with its recording artists all unallocated income from advances, non-recoupable payments and minimum revenue guarantees that Sony Music receives under its digital distribution deals.
This applies to all revenue under digital catalogue distribution agreements, whether or not the guarantees, advances or ‘flat’ payments can be associated with individual master transactions.”