Deezer has enlisted a second major label for its new ‘artist-centric’ payouts system: Warner Music Group.
The news was announced yesterday, with WMG joining Universal Music Group as part of the new scheme in France, the first market where it has been introduced.
The announcement came in an article on French news site Les Echos. “We are delighted to partner with Deezer on this ‘artist-centric’ model, which rewards music that generates active engagement, and demonetises non-music content,” said Warner Music France president Alain Veille.
The fact that Deezer had devised the new model with UMG had sparked questions about how the other major labels would react, but WMG’s move has answered some of those. Will Sony Music now follow suit?
Earlier this year, WMG boss Robert Kyncl encouraged streaming services to explore new payout models.
“It can’t be that an Ed Sheeran stream is worth exactly the same thing as a stream of rain falling on the roof,” he said in May. “I’m not trying to limit the volume of content. I understand that’s important for personalisation and choice. I’m looking to change the value equation of the way it works today, and put in new incentives.”
WMG had previously signed up for SoundCloud’s ‘fan-powered royalties’ model in July 2022.