How Taylor Swift's 2018 Record Contract Is Helping Artists Make Money as UMG Sells Spotify Shares

The company's decision to share proceeds from the sale with its artists lines up with a "condition" included in Swift's 2018 deal with UMG

NEED TO KNOW

• Universal Music Group is selling half its Spotify stake and sharing proceeds with artists
• Swift’s 2018 contract required UMG to distribute Spotify stake sale profits to artists, marking a win for creator compensation
• UMG’s Spotify stake is reportedly valued at over $3 billion and aligns with its strategy to enhance shareholder and artist value

A clause in Taylor Swift's 2018 recording contract with Universal Music Group is officially helping artists make money.

UMG reported its financial results for the first quarter of 2026 on Wednesday, April 29, and the recording company revealed it's selling half of its equity stake in Spotify and doubling its share buyback program. Proceeds from the sale will be used for the buyback and shared with artists, with the latter move lining up with a clause previously included in Swift's 2018 deal.

According to Reuters, UMG's Spotify stake totals 2.7 billion euros — which equals about 3.151 billion in U.S. dollars.

"We delivered a solid quarter of growth in our core businesses, complemented by our strategic development and investment in fast-growing areas of the industry," said Sir Lucian Grainge, UMG's Chairman and CEO. "We continue to build the most successful music company in history by attracting the world's top talent, engaging fans globally, and delivering long-term value for stakeholders."

Grainge added, "Central to that mission is fostering an environment that protects artists and songwriters, champions human creativity, and embraces innovation at a pivotal moment for our industry."

Matt Ellis, CFO of UMG, said in a statement, "Against the backdrop of a healthy industry, we are consistently driving sustained revenue growth through our multi-faceted strategy, while continuing to expand EBITDA and reinvest for the future."

Ellis continued, "In addition, the important steps we are announcing today 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."

The company's decision to share proceeds from the sale with its artists lines up with a "condition" included in Swift's 2018 deal with UMG.

"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," wrote Swift, 36, on Instagram at the time. "They have generously agreed to this, at what they believe will be much better terms than paid out previously than other major labels."

The "Opalite" singer continued at the time, "I see this as a sign that we are headed towards positive change for creators — a goal I’m never going to stop trying to help achieve, in whatever ways I can."

Swift has spoken out extensively about how artists are compensated by streaming services, having previously withheld her music from Spotify for a period of time due to believing the platform's model was negatively impacting album sales. In 2015, she also successfully persuaded Apple Music to pay artists during its three-month free trial period.

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