It’s a time of change at Defected Records, and the indie’s latest move is a plan to “set a new industry” standard for royalty rates.
Wez Saunders, who was recently announced as the company’s new CEO, has revealed plans to set a 30% minimum for digital royalty rates for any recording artist or producer within the label group. The majority of the electronic music-focused label’s roster already have rates of at least 30% but, according to the new plans, as of this month, a 30% minimum rate has become standard.
Defected has also written off unrecouped debts for all royalty accounts set up more than 10 years ago, so any pre-2012 unrecouped royalty balances are now deemed zero. This is a move designed to boost talent still recovering from the impact of the Covid shutdown on live music.
Meanwhile, Defected will offer quarterly, rather than bi-annual accounting to all its recording artists, producers and writers by the end of this year. The company also intends to provide its roster with more data and analytics than ever before via a new royalty system.
These changes are a natural progression with artists in mind
Wez Saunders said: “Defected’s mission is to service our community while helping artists build longer lasting, more impactful and more profitable careers. These changes are a natural progression with artists in mind, one that ensures we continue to think about the future of the music industry, with artist benefits at the forefront of our commercial strategies.”
Defected recently reported 2022 as its most successful year yet, with the company on course to amass 2.4 billion global streams, 600,000-plus tickets across 300-plus events and surpass an online community of over 10 million.
Subscribers can read our 2021 label profile here.