Ethics in Real Time

Sara, the new president of XYZ records has inherited a variety of issues that require innovative and creative leadership. One of the matters that she has taken on is the conflict between artists and labels over the classification of streaming and digital download income—that is, whether this revenue should be classified as traditional sale revenue, triggering he= artists’ regular royalty rate, or whether it should be treated as licensing income, yielding artists 50 percent of net receipts.

For the moment, she has decided to put her legal team on hold. Before she commits herself to a firm stance on the issue, she needs some outside input and advice, and she wants to be sure that any recommendations properly account for ethics considerations.

Specifically, she wants to be briefed on this issue from the perspective of both the artist and the label’s operations. (What case can either the Artist or Label make in this area?)

will address this from a record label/master rights holder’s perspective.

Please be sure to support and explain your findings and suggestions.