Popstar Taylor Swift is leaving behind her longtime label Big Machine Records, which has released all of her albums since she was 16 years old, to partner with Universal Music Group’s Republic Records.
The move is unlike anything the music industry has seen and means two things for Swift, Marcus Walkom from Media Arts Lawyers explained to Your Money Live.
As part of the new deal, the ten-time Grammy winner will own all of her own master recordings going forward.
“The main thing for her was changing the deal parameters from what was a recording deal, where Big Machine Group owned all her recordings and she would never end up with ownership of those, to Universal’s licence deal where ultimately she will retain ownership,” Walkom said.
The other key point of Swift’s deal is that she ultimately decided that as part of her deal, she wanted to benefit other artists.
Swift made it a condition of her contract that if Universal Music Group sells its Spotify shares, the label will distribute some of the money from that sale to all of the artists it represents.
“She wanted to make sure other artists were properly paid through from the sale of Spotify shares that Universal is going to soon probably do.”
Watch the video for the full analysis on what it means for artists and the music industry.