Two weeks ago, electronic musician Four Tet (Kieran Hebden) resolved a UK legal dispute with Domino Records over a deal he signed with the label in 2001.
Domino was pay Hebden 18% of the revenue generated by his records on streaming platforms, but he claimed he should get 50% under the terms of the contract.
In a document published by Hebden on Twitter showing a settlement offer from Domino, the music company offered to pay the artist a settlement of GBP 56,921.08 and also offered to pay a 50% royalty rate “on all streaming and download revenue for which [Domino] hasn’t realized yet [Hebden]”.
Meanwhile, behind the scenes, Domino generated healthy revenue, driven by strong catalog sales.
The independent label, which is currently home to British rock stars Arctic Monkeys and British duo Wet Leg, increased its UK turnover by 31.6% from £15m ($19m) in 2020 at £19.8 million (about $27.2 million). in 2021 (see below).
This is according to new documents filed on Companies House in the UK for Domino Recording Company Limited.
According to the company’s strategy report, included in earnings filings for its fiscal year ended August 31, 2021, Domino’s revenue growth was driven by “cyclical factors.”
Domino noted specifically that “2021 has seen a stronger album release schedule with one of the company’s most established artists having an album release within the year”.
Adds the filing: “The stronger album release schedule was supported by strong back catalog sales due to continued growth in streaming service revenue globally.”
Domino’s strong catalog sales in 2021 saw A M, Arctic Monkeys’ fifth album, released in 2013, became the UK’s No. 1 independent album (in terms of sales and streaming) last year.
The debut album of the Arctic Monkeys, Whatever people say I am (that’s what I’m not)also released via Domino, in 2006, was the sixth biggest independent album in the UK in 2021.
Arctic Monkeys also scored two of the 10 biggest independent singles of 2021, including do i wanna know and Why do you only call me when you’re stoned (Domino recordings). Both singles are taken from the band’s 2013 album A M.
Domino reports releasing 23 albums in 2021 compared to 34 in 2020.
The company also reveals in the filing that its operating profit rose to £3.27 million ($3.96 million) in 2021 from £1.75 million ($2.24 million). in 2020 (see above).
Elsewhere in Domino’s filing, the company notes that, “like other companies serving the music distribution industry”, it is “currently benefiting from continued global growth and increased consumption due to the success streaming services”.
“The company, like other companies serving the music distribution industry, is benefiting from continued global growth and increased consumption driven by the success of streaming services”
Domino adds that, “While the administrators believe this growth will continue for the foreseeable future, they have also recognized that there is a significant threat posed by future technological legislative developments.”
The statement continued, “While these developments may lead to an improvement in the artistic process, they may also result in significant changes in the way music is distributed and consumed and therefore negatively affect our revenues and profitability.”The music industry around the world