In February final yr, Warner Music Group, the world’s third-largest music rights firm, confirmed that it will be introducing a “legacy unrecouped advances program”, to enter impact on July 1, 2022.
In a press release issued by WMG in February 2022, the corporate mentioned: “[We’ve] introduced a legacy unrecouped advances program the place, for our artists and songwriters who signed to us earlier than 2000 and didn’t obtain an advance throughout or after 2000, we received’t apply their unrecouped advances to royalty statements for any interval starting July 1, 2022 or after.
“This system will even profit different artist royalty members akin to producers, engineers, mixers and remixers.”
(Common Music Group additionally introduced, in March final yr, that it will be disregarding unrecouped balances for heritage artists).
Warner has now supplied an replace on its legacy unrecouped advances program, revealing that this system noticed round 4,500 artists and associated producers profit globally in its first yr. The corporate says it expects this quantity to develop “as we join with all eligible members”.
Moreover, WMG says that it has “additionally begun to achieve out to [Warner Chappell Music] WCM songwriters who may gain advantage from this program, with over 1,600 accounts eligible globally”.
These updates had been included inside the firm’s 2022 Environmental, Social, Governance (ESG) report, which shares progress in areas together with worker expertise, social affect, variety, fairness, and inclusion (DEI), and local weather change, whereas setting new targets for 2023 and past.
“As we chart the following part of our long-term development, we’re dedicated to our ESG efforts as a crucial a part of our plan for WMG as a extra dynamic, inclusive, and sustainable firm.”
Robert Kyncl
Commenting on the report, Robert Kyncl mentioned: “Music is a strong and constructive power, and WMG is stuffed with passionate change-makers and champions of tradition.
“This report highlights the robust basis for the corporate’s continued evolution that’s been constructed beneath Steve’s management.
“As we chart the following part of our long-term development, we’re dedicated to our ESG efforts as a crucial a part of our plan for WMG as a extra dynamic, inclusive, and sustainable firm.”
The launch of WMG’s unrecouped advances program adopted different artist and writer-minded updates made by Warner to its streaming phrases over the previous 15 years.
Notably, since 2009 WMG has been sharing all advances and minimal ensures from streaming companies with artists – “treating breakage like different digital income”.
Throughout the report, Warner notes: “Because the creation of streaming, there’s been an rising have to push for equitable and clear funds for artists and songwriters.
It provides: “We imagine WMG was the primary main music leisure firm to implement a digital breakage coverage to credit score artists with royalties on unrecouped advances and minimal ensures (2009), and WMG was the primary to announce an fairness proceeds sharing coverage to credit score artists with royalties on any proceeds from our sale of fairness acquired by us from digital companies as consideration for getting into right into a license settlement (2016).
“In 2022, we launched our legacy unrecouped advances program, which means we not apply unrecouped advances to the long run royalty earnings of eligible artists and songwriters who signed with us earlier than 2000 and didn’t obtain an advance throughout or after 2000.
“In its first yr, this system has seen roughly 4,500 artists and associated producers profit globally, and we anticipate this quantity to develop as we join with all eligible members.
“We’ve additionally begun to achieve out to WCM songwriters who may gain advantage from this program, with over 1,600 accounts eligible globally.”Music Enterprise Worldwide
