Sony and UMG are not only major music rightsholders on the Spotify platform, they're shareholders in the company
In pulling his music, Neil Young started a conversation about the music industry’s responsibility in keeping Spotify accountable for the controversial, potentially harmful content it exclusively distributes for Joe Rogan. Two of the largest music companies in the world, however — both of whom own stakes in Spotify — don’t seem interested in talking about it publicly.
Spotify has faced controversy for the past several weeks since Young pulled his music from the platform in light of misinformation about Covid-19 on the platform, particularly on Rogan’s podcast. Joni Mitchell followed suit days later, with India Arie also calling for her music to be removed over Rogan’s past use of a racial slur on the podcast. Last weekend, Spotify quietly removed around 70 episodes of the Joe Rogan Experience from the platform, with Rogan taking to Instagram to apologize for racist language he used in the past. Since then, he took to standup and mocked some of the backlash he received both for his use of the slur and misinformation about Covid on his podcast.
So far, have both UMG and Sony have been publicly silent and haven’t issued any statement regarding where their responsibility lies in the issue, and it isn’t clear what the two companies have had with Spotify in light of their place as shareholders.Representatives for both companies declined to comment.
Spotify’s major stock owners have for the most part stayed quiet on the ongoing controversy — and there’s certainly questions to be raised about a lack of shareholder activism at large — but Universal Music Group and Sony Music Entertainment aren’t like most stockholders. A lesser-known fact outside of the music industry is that all the major labels were given stakes in Spotify years ago as part of a licensing agreement back when the streaming service was just a hungry startup. Warner sold its stake in Spotify in 2018 for over $500 million, but Sony and UMG still own their shares. Alongside their status as two of the most significant music rights holders on the platform and representing the music and career interests of some of the biggest stars and most promising upcoming artists in the industry, they’re also significant shareholders in Spotify as a company.
As Billboard previously reported last year, as of the end of 2020, UMG still held about 3.4% ownership in Spotify, while Sony held about 2.85% after selling half its stock in 2018, a number which will have diluted since then.Given Spotify’s current market cap, those shares are worth over $1 billion for UMG and hundreds of millions for Sony.
The music business itself, including the big three record companies and many of the highest earning artists in the industry, remain beholden to Spotify, which represents a major chunk of song royalties in the modern music landscape. Given their reliance on Spotify, it’s unlikely any record company could afford such action as to pull the music off the platform, and it’s unclear how many artists want their music off the platform in general.
And offloading stock may not be the right move either. Spotify’s stock has dipped considerably since last year, and if the stock rebounds, selling low not only cuts the company out of potential earnings, but also impacts how much artists could earn. Sony paid artists directly when it sold half its Spotify stock in 2018, and in part thanks to demands from Taylor Swift when she signed with UMG in four years ago, UMG artists will get the same treatment.
While it isn’t clear what action either label could do, in an era with a premium on standing against misinformation and racism, there’s certainly more that could be said than nothing.
FAQs
So far, have both UMG and Sony have been publicly silent and haven't issued any statement regarding where their responsibility lies in the issue, and it isn't clear what the two companies have had with Spotify in light of their place as shareholders. Representatives for both companies declined to comment.
Does Spotify still pay Joe Rogan? ›
Spotify said it will work closely with Rogan and his team “to continue to maximize the audience of the show across platforms.” Under the new pact, Spotify will handle distribution and ad sales for the podcast. Rogan will receive a guaranteed minimum fee from Spotify as well as a cut of advertising revenue.
Is Joe Rogan no longer exclusive to Spotify? ›
Spotify announced a new multiyear partnership deal with podcaster Joe Rogan. His hit podcast will no longer be exclusive to the audio app and instead now be distributed to a variety of platforms, the streamer announced Friday. “The Joe Rogan Experience” had been Spotify's last exclusive podcast, the company confirmed.
Why is Joe Rogan not playing on Spotify? ›
Rogan's podcast was one of the last major titles that remained exclusive to Spotify for distribution, as the platform moves away from exclusivity in favor of ad-sharing deals and broader distribution.
Who owns the most Spotify shares? ›
Two people are among the main shareholders of Spotify, owning more than 25% of the company, according to official filings.
- Daniel Ek – 30,856,376 Shares – 15.6% ...
- Martin Lorentzon – 21,528,184 Shares – 10.9% ...
- Baillie Gifford – 23,657,094 Shares – 11.92% ...
- Tencent Holdings – 16,631,969 Shares – 9.1%
Joe Rogan's scope of influence on Spotify has been laid bare, with his podcast attracting almost three times the amount of subscribers than his nearest competitor.
Is Joe Rogan a billionaire? ›
While Joe Rogan is undoubtedly wealthy, rumors of him being a billionaire are unfounded. As of 2022, Rogan's net worth is estimated to be around $120 million. This impressive sum is the result of his diverse career endeavors, including podcasting, stand-up comedy, television hosting, and more.
Is Spotify profitable? ›
Spotify Gross Profits Top $1B, Revenues Jump 20% in Quarterly Earnings. The streaming giant is on track to meet its 2024 revenue growth goal but just missed its monthly active user growth guidance.
Who owns Spotify? ›
Spotify is a Swedish music streaming platform and is currently owned by its founders, Daniel EK and Martin Lorentzon, along with some institutional investors, including Baillie Gifford & Co. and Morgan Stanley.
Why are artists leaving Spotify Joe Rogan? ›
Earlier this year, Spotify found itself embroiled in a controversy sparked by one of its most notable podcast hosts, Joe Rogan. The comedian's frequent and sometimes inaccurate claims about Covid-19 and vaccines on his very popular, “The Joe Rogan Experience” podcast led some artists to leave the site in protest.
User reports indicate no current problems at Spotify
Spotify is available for multiple platforms including Windows, OS X and Linux as well as iPhone, iPad, Android, Blackberry and Windows Phone.
Why is Joe Rogan not on the Apple podcast? ›
In addition, Spotify is handling ad sales for Rogan's show, which consistently ranks as the No. 1 most-listened to podcast on the platform. “JRE” had left Apple Podcasts in September 2020 because of Spotify's previous exclusive deal with the comedian and podcaster.
Does Jay Z own Spotify? ›
Jay Z owns the rival music streaming service Tidal. Z's solo work disappeared from both Apple and Spotify in April 2017, but was quickly restored to Apple Music — not so with Spotify.
Does China own Spotify? ›
Spotify's largest institutional shareholders include Baillie Gifford & Co., which owns a 14.5% stake. T. Rowe Price, which owns 6.18%, and Morgan Stanley, which owns 3.66%. Chinese tech and music giant Tencent owns 8.61% of shares, and Sony Group Corporation owns a 2.65%.
Why is Apple Music better than Spotify? ›
Apple's tracks are currently encoded with 24-bit/192kHz (hi-res quality). Spotify's 320kbps simply can't compete with Apple's “Lossless Audio,” which incorporates special surround sound technology to immerse you in the music fully.
How much does Joe Rogan get paid for his podcast? ›
Joe Rogan has a net worth of over $200 million, as of 2024. He earns over $100,000 for one episode. On average, he does 3 podcast episodes weekly, making $1.2 million a month and $14.4 million a year. His net worth went up after Joe's recent deal with Spotify.
Does Joe Rogan pay guests? ›
According to various sources, guests on 'JRE' don't receive payment for appearing on his podcast. However, Rogan sometimes covers their travel and lodging expenses. Joe Bowers, who has worked with some former UFC guests, confirmed on Quora that guests don't get paid to be on the show.
How much does the UFC pay Joe Rogan? ›
As of my last knowledge update in September 2021, Joe Rogan's compensation for each main UFC event was indeed around $50,000, contributing to an estimated annual income of approximately $550,000 from UFC events. However, it's important to note that Joe Rogan's income extends far beyond his work as a UFC commentator.
