Warner’s dismissal of legacy unrecouped advances has already increased earnings of 4,500 artists and producers globally

In February last year, Warner Music CorporationThe world’s third-largest music rights company, has confirmed that it will introduce a “legacy non-refundable advance program,” which will take effect on July 1, 2022.

In a statement issued by WMG in February 2022, the company said: “[We’ve] announced a legacy uncollectible advance program where, for artists and musicians who signed with us before 2000 and did not receive an advance during or after 2000, we will not apply their uncollected advances to the royalty statement for any period from July 1, 2022 or later.

“The program will also benefit other artist royalty participants such as producers, engineers, mixologists, and remixers.”

News coming eight months later Sony Music Corporation notice that it is ignore uncollected balance for thousands of legacy artists and musicians who had contracted with the company in previous decades.

(Popular music group also announcedlast March, that it would belittle the uncompensated balances for legacy artists).

Warner has now provided an update on its legacy unrevocable advance program, revealing that the program has benefited approximately 4,500 related artists and producers globally during the year. firstly. The company said it expects this number to grow “as we connect all eligible participants”.

In addition, WMG says that they “have also begun reaching out to[…][[Music Warner Chappell]WCM musicians can benefit from this program, with more than 1,600 eligible accounts globally”.

These updates are incorporated into the company’s 2022 Environment, Society, Governance (ESG) report, which shares progress in areas including employee experience, social impact, and employee engagement. diversity, equity and inclusion (DEI) and climate change, and set new goals for 2023 and beyond.

The reportpublished on Thursday (January 26) coinciding with WMG’s CEO transition and introduced by WMG’s New CEO Robert Kyncl and Outgoing CEO Steve Cooper.

“As we chart the next phase of our long-term growth, we commit to ESG efforts as a key part of our plan to make WMG a dynamic, inclusive company. and more sustainable.”

Robert Kyncl

Commenting on the report, Robert Kyncl said: “Music is a powerful and positive motivator, and WMG is full of change enthusiasts and cultural champions.

“This report highlights the solid foundation for the company’s continued growth that has been built under Steve’s leadership.

“As we chart the next phase of our long-term growth, we commit to ESG efforts as a key part of our plan to make WMG a dynamic, inclusive company. and more sustainable.”

The launch of WMG’s uncollectible advance program follows other artist and writer updates Warner has made to its streaming terms over the past 15 years.

Remarkable, since 2009 WMG has been sharing all the advancements and minimal guarantees from streaming services with artists – “treating disruption like other digital revenue”.

And in 2016, Warner became the first major music company to confirm that it will be sharing any proceeds from the sale of its equity in Spotify with its artists.

In the report, Warner notes: “Since the advent of streaming, there has been an increasing need to promote fair and transparent payments for artists and musicians.

It adds: “We believe WMG is the first major music entertainment company to implement a digital circumvention policy that credits artists with royalties for maximum advances and warranties. minimum (2009), and WMG was the first to announce a policy of sharing equity proceeds to artists crediting with royalties on any proceeds from the sale of shares that we received from digital services to review the signing of the license agreement (2016).

“In 2022, we rolled out our legacy non-refundable advance program, meaning we no longer apply non-refundable advances to future royalty incomes. Eligible artists and musicians signed with us before 2000 and did not receive an advance during or after 2000.

“In its first year, the show saw approximately 4,500 The artists and producers involved benefit globally, and we expect this number to grow as we connect with all eligible participants.

“We have also begun contacting WCM musicians who could benefit from this program, with more than 1,600 eligible accounts globally.”Global Music Business