Yep the labels are at it again. Using money that should be paid to their artists to buy shares in another technology company.
Yep the labels are using the power that they have amassed by locking away copyrights for what seems like a lifetime to purchase shares in technology companies.
This time around Warner Music Group, Universal Music Group and Sony Music Entertainment have each bought $3 million in shares in Shazam Entertainment on top of the stake they own in Spotify.
The record labels still scream that there is no money in the recording business because of piracy.
Yet, Universal Music has also purchased shares in Beats Music and when the Apple billion dollar purchase is complete, it will be even richer.
Yet, the labels spend artist money to go to court via the RIAA against pirate sites.
Yet, the labels spend artist money to hire a company to send down digital take downs.
Yet, the labels spend artist money to lobby hard, in other words pay, for politicians to write stronger copyright terms and enforcement.
Yet, a recent IFPI report shows that the labels invested $4.5 billion in artist and repertoire.
The question is, if there is no money in the recording business,then why would the record labels spend so much money on artist and repertoire.
Because artists are the lifeblood of the music industry. And it is artists that make the record labels money.
The record labels have purchasing power because of the artists.
The record labels have status because of the artists.
The artists have made the record label executives more wealthy than the best-selling artists.
So if the record labels own shares in Spotify and Shazam, does that mean by default, the artists also own those shares.
Of course the answer is no, but it should be yes.