Edgar Bronfman Jr. Answers Questions About EMI, The Performance Royalty And Spotify
November 18, 2010 at 4:13 AM (PT)
WARNER MUSIC GROUP reported its Q4 and year-end financials YESTERDAY (NET NEWS 11/17), but it was the follow-up earnings call held by Chairman/CEO EDGAR BRONFMAN, JR. touched upon any possible acquisition of EMI, commented on a performance royalty settlement and confirmed a new European deal with SPOTIFY.
As for the speculation that WMG will persue EMI, BRONFMAN JR. was quick to deflate that rumor. "It makes no sense to speculate on what happens next. There has already been plenty of speculation in the press. When we have something to announce, if we have something to announce, you will be the first to know."
When we have something to announce, if we have something to announce, you will be the first to know.
Regarding the ongoing performance royalty fight between the labels and musicFIRST on one side, and radio and the NAB on the other, BRONFMAN JR. said he was "pleased that U.S. radio broadcasters have finally acknowledged their obligation to pay the recording artists who are the foundation of their business," but was "disappointed that they failed to vote on the deal both parties had agreed upon."
BRONFMAN JR. said WMG has signed a new deal with SPOTIFY -- the unlimited-music service -- but it’s only a renewed deal, reports PAIDCONTENT.ORG, covering SPOTIFY’s existing EUROPEAN markets. "We’re very comfortable that we finally reached an agreement that aligned our economic interests with those of SPOTIFY, which was a long time coming and not easy for us and not easy for them," said BRONFMAN JR.