Taylor Swift Signs and Negotiates A New Deal With Universal Music Group
Taylor Swift signed a new global recording contract with Universal Music Group (UMG). Universal Music Group will now become her exclusive partner for global distribution with UMG’s Republic Records as her label partner nationwide. Swift announced on her Instagram that she will now be able to own all of her master recordings. As a ten-time Grammy Award winner, Taylor successfully negotiated a deal for UMG to assist other artists using Spotify.
Taylor Swift posted on Instagram:
“There was one condition that meant more to me than any other deal point. As part of my new contract with Universal Music Group, I asked that any sale of their Spotify shares result in a distribution of money to their artists, non-recoupable. They have generously agreed to this, at what they believe will be much better termed than paid out previously by other major labels.”
According to Billboard, Swift requested artist royalty payments become non-recoupable, as in no-strings-attached, regardless of whether an artist owes the label money. The Universal Music Group seems fully onboard with Swift’s request.
“Because of Taylor’s commitment to her fellow artists, not only did she want to partner with a company that understood her creative vision and had the resources and expertise to execute globally on her behalf, she also sought a partner whose approach to artists was aligned with hers.”
As many major labels are selling their stock in Spotify, UMG still has a hold on 5% of the streaming platform’s stocks. Their 5% equals $531 million in proceeds. The company has not announced intentions to sell, although, in March, UMG noted that it would share the Spotify Stock proceeds with artists. Taylor Swift’s request seemed to be the extra nudge for UMG to do so if and when they decide to sell.