Taylor Swift’s 2018 UMG Record Deal Is Helping Artists Make Money — Report
Taylor Swift’s 2018 UMG Record Deal Is Helping Artists Make Money — ReportParul SinghThu, April 30, 2026 at 5:40 AM UTC
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Photo Credit: Kevin Winter/Getty Images for iHeartRadio
Taylor Swift‘s efforts are finally paying off. The pop icon signed a contract with Universal Music Group (UMG) in 2018 with a non-negotiable cause. At the time, Swift requested that UMG commit to making the deal non-recoupable. And now that UMG is selling half of its Spotify stake, artists may earn more money.
Clause in Taylor Swift’s 2018 contract with UMG is reportedly helping artists make money
It’s a big win for Taylor Swift after years of fighting for artists. The “Spotify deal” that Swift signed with Universal Music Group in 2018 is finally coming through as the group is selling half its Spotify stake and sharing proceeds with artists.
The pop icon signed with UMG’s Republic Records after leaving Big Machine Records in November 2018, with one condition that was non-negotiable. “As part of my new contract with Universal Music Group, I asked that any sale of their Spotify shares result in a distribution of money to their artists, non-recoupable,” she posted back then on her social media channels, per PEOPLE. Swift even shared that the group “have generously agreed to this, at what they believe will be much better terms than paid out previously than other major labels.”
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As a result, with the music group selling roughly half of its Spotify stake, according to the company’s first-quarter earnings report in April 2026, proceeds from the sale will be used for the buyback and shared with artists. UMG said in a statement on April 29 that it would pay out part of the proceeds from the divestiture in accordance with artists’ contracts. “Consistent with the company’s approach to artist compensation, artists will share in the proceeds,” the release read.
Even Matt Ellis, CFO of UMG, said in a statement, “[We are taking an important step to] increase our share buyback authorization and monetize a portion of our equity stake in Spotify will lead to enhanced shareholder value while maintaining the flexibility the Company requires to drive further success.”
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Source: “AOL Entertainment”
