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Spotify Drops Record Label's Entire Catalog Over Unpaid Royalties

Victory Records posted an announcement to their website yesterday, revealing that their entire roster of work that had previously been available for streaming was taken down from the popular music site due to the streaming service's failure to provide proper compensation to the label and its artists.

Despite Victory Record's plea to Spotify not to remove their material from the service, all of their albums were removed from the site. Not only that, but Victory Records explains a number of works unrelated to the label were erroneously removed as well.

Read the full statement below:

"Victory Records’ catalog of music was pulled from Spotify last night as a result of Spotify not properly paying publishing revenues due to Victory Records’ artists in blatant violation of US Copyright laws. Spotify also pulled down a very large number of albums that Victory is not the publisher for proving that their internal systems are inadequate. We asked that our catalog not be pulled, that we would amicably work with Spotify, and they haphazardly removed our content regardless. 53,000,000 streams, as per Spotify’s statements, were identified with no publishing royalties being paid by Spotify.

Late yesterday, Spotify sent over a document giving them mechanical clearance to use our music. We could not sign said document for a variety of reasons, most importantly, that it would put us in direct violation of our agreement with Audiam. Spotify knows we are in business with Audiam and were essentially asking us to breach/ignore that agreement. The issue of nonpayment for songwriters and composers is a widespread problem and not exclusive to Victory Records’ artists. We understand your frustration with not being able to listen to the music you enjoy (and most pay for via subscription).

The bottom line is that artists and songwriters are not being paid and fans of Victory’s artists cannot listen to the music.

Thank you for your support and we remain hopeful that Spotify will do the right thing."

We're not sure if this is an isolated incident, but 53 million unpaid for plays is no small screw up. It's not clear at this time how Spotify will proceed with the matter going forward.

[H/T: VictoryRecords]

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