Taylor Swift Signs New Record Deal With an Ulterior Motive

3 Min Read
Taylor Swift
Taylor Swift/Instagram

Taylor Swift announced on Instagram Monday that she signed a multi-year agreement with Universal Music Group and its subsidiary Republic Records.

While terms of the deal were not announced, Swift stated in a Tumblr post that she will own her master recordings going forward and that UMG will share with artists the proceeds from the expected sale of its Spotify equity, and make them non-recoupable against the artistsโ€™ earnings, as Sony Music has done.

โ€œItโ€™s also incredibly exciting to know that Iโ€™ll own all of my master recordings that I make from now on,โ€ she wrote.

Swift also shared that as part of her new deal she asked for โ€œone conditionโ€ aimed at ensuring that artists are compensated fairly for their Spotify presence.

The deal states UMGโ€™s sales of its Spotify shares will result in money distributed to the labelโ€™s artists, a point of the deal that Swift noted โ€œmeant more to me than any other deal point.โ€

This part is HUGE!

โ€œAs 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,โ€ she wrote. โ€œThey have generously agreed to this, at what they believe will be much better terms than paid out previously by other major labels. I see this as a sign that we are headed towards positive changes for creators โ€“ a goal Iโ€™m never going to stop trying to help achieve, in whatever ways I can.โ€

Swiftโ€™s agreement with UMG formalizes the companyโ€™s commitment to sharing the wealth with its artists. Music Business Worldwide estimates UMGโ€™s Spotify shares are worth around $850 million.

Sir Lucian Grainge, Chairman and CEO of Universal Music Group, said in the official statement: โ€œBecause of her 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.โ€

โ€œWith these shared beliefs, there is so much we can accomplish together, and all of us at UMG are enormously proud to be embarking on the next chapter of her career alongside her.โ€