Last month, in a move that won widespread applause, Sony Music announced that it was to disregard unrecouped balances for a swathe of heritage recording artists on its books.
The move was launched via an initiative called “Artists Forward” which, according to the record company, focuses on “prioritizing transparency with creators in all aspects of their development”.
Now, the marquee policy from that initiative, The Legacy Unrecouped Balance Program, is being extended to songwriters, with Sony Music Publishing (SMP) revealing today that it will disregard unrecouped balances going forward for qualifying songwriters.
The news was confirmed in a letter sent by Sony Music Publishing Chairman and CEO Jon Platt to the company’s songwriters today (July 20).
Obtained by MBW, the letter states that Sony Music Publishing will “no longer apply existing unrecouped balances to earnings for eligible songwriters signed prior to the year 2000 who have not received advances since”.
Platt confirms that “this applies retroactively to January 1, 2021” and that “qualifying songwriters will be notified separately in the coming weeks”.
What this means in practise is that if a songwriter last received an advance from SMP prior to 2000, and that advance is still unrecouped today, said writer will now start being paid money from streaming and other royalty sources, backdated to January 1 of this year.
The size of this move should not be underestimated: according to Sony Group Corp filings, its global music publishing network – led by SMP – owned and administered just over 5.03 million copyrights at the close of March 2021.
Platt added in his letter that “these efforts are a continuation of our songwriter-first approach and accompany our ongoing investment in administration modernization”.
He added that SMP has been “working for some time to develop this plan”, which he noted “complements Sony Music’s recently announced Artists Forward”.
“With historic policy changes across our business, we are taking important steps toward creating a more equitable, transparent music industry for songwriters and all creators.”
Jon Platt, Sony Music Publishing
Added Platt: “With historic policy changes across our business, we are taking important steps toward creating a more equitable, transparent music industry for songwriters and all creators.”
Sony Music’s move last month and SMP’s complementary gesture announced today come three years after Sony Music memorably dismissed unrecouped artist balances when distributing profits reaped from its sale of $768 million in Spotify shares.
You can read Jon Platt’s email in full below:
Dear Songwriters,
Today, I am pleased to share that we are launching Songwriters Forward, an initiative designed to expand our support of careers at every stage.
Under Songwriters Forward, we are introducing the ‘Legacy Unrecouped Balance Program’ to qualifying Sony Music Publishing songwriters. We have been working for some time to develop this plan, which complements Sony Music’s recently announced Artists Forward.
We will no longer apply existing unrecouped balances to earnings for eligible songwriters signed prior to the year 2000 who have not received advances since, and this applies retroactively to January 1, 2021. Qualifying songwriters will be notified separately in the coming weeks.
These efforts are a continuation of our songwriter-first approach and accompany our ongoing investment in administration modernization, including new SCORE data and analytics upgrades, Cash Out payment options, and real-time foreign royalty processing.
With historic policy changes across our business, we are taking important steps toward creating a more equitable, transparent music industry for songwriters and all creators. On behalf of our teams around the world, it is our privilege to represent you as we begin this next chapter with Songwriters Forward.
Jon Platt
Chairman/CEO, Sony Music PublishingMusic Business Worldwide
