{"id":102914,"date":"2025-01-23T16:30:39","date_gmt":"2025-01-23T16:30:39","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=102914"},"modified":"2025-01-23T16:30:42","modified_gmt":"2025-01-23T16:30:42","slug":"labels-threaten-to-pull-music-from-napster-over-late-royalty-payments","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/labels-threaten-to-pull-music-from-napster-over-late-royalty-payments\/","title":{"rendered":"Labels threaten to pull music from Napster over late royalty payments"},"content":{"rendered":"\n

Late payments cause industry backlash against Napster.\n<\/span><\/h2>\n\n\n\n

What’s happened?<\/h3>\n\n\n\n

Napster is under fire from record labels and distributors after failing to make royalty payments on time. According to Billboard<\/a>, over half a dozen distributors and record labels have reported missing payments stretching back \u201cwell over a year\u201d. Napster has reportedly blamed its struggles to secure funding for these delays.<\/p>\n\n\n\n

Some rightsholders are now considering drastic measures, including removing their catalogues from the platform or halting new releases.<\/p>\n\n\n\n

What this means for Napster and the industry<\/h3>\n\n\n\n

The fallout from these late payments could be catastrophic for Napster. Losing content from major labels and distributors threatens the platform\u2019s ability to retain subscribers, as users may abandon the service if it’s missing their favourite music. But, this could also deter investors from funding, creating a vicious cycle of financial difficulties.<\/p>\n\n\n\n

For music streaming services, this is a reminder that operating on a business model that demands up to 70% of revenue being paid out as royalties is challenging, particularly without a large subscriber base.<\/p>\n\n\n\n

This isn\u2019t an isolated issue. Sony Music\u2019s recent withdrawal of its catalogue from the African streaming service Boomplay <\/a>over similar payment disputes highlights how financial instability in the streaming sector is a recurring theme.<\/p>\n\n\n\n

\n
Sony pulls its music from streaming service Boomplay<\/a><\/blockquote>