Hollywood
AFM Pension Fund sues Sony, Universal, Warner over music streaming dues
MUMBAI: The American Federation of Musicians and Employers’ Pension Fund (AFM Pension Fund) has sued Atlantic Recording Corporation, Hollywood Records, Sony Music Entertainment, Universal Music Group Recordings, Inc, and Warner Brothers Records, Inc for failing to make pension fund contributions.
The suit states that the five recording companies failed to make pension fund payments from foreign audio stream revenue and foreign and domestic ringback revenue.
For over 75 years, the major recording companies have had contracts with the American Federation of Musicians of the United States and Canada (AFM) requiring the companies to share a portion of sales revenue with musicians. Most of the revenue was originally from record sales and later CD sales.
In 1994, AFM and the recording companies entered into an agreement, subsequently renewed, requiring the companies to pay 0.5 per cent of all receipts from digital transmissions including audio streaming, non-permanent downloads and ringbacks.
“The record companies should stop playing games about their streaming revenue and pay musicians and their pension fund every dime that is owed. Fairness and transparency are severely lacking in this business. We are changing that,” said AFM International president Ray Hair.
Last year independent auditors discovered that the recording companies had not made the required revenue payments from foreign audio streams, ringbacks, and foreign non-permanent downloads. Attempts to reconcile the issues outside of court have been ongoing for several months to no avail. Suit was filed in New York.
This is the fifth lawsuit filed against major media corporations for contract violations in the past few months. Under Hair’s leadership, AFM has begun aggressively enforcing existing contracts and standing up to large corporations that fail to pay musicians when their work is reused or offshored.
The suit seeks payment for all missing revenue owed the AFM Pension Fund, late payment penalties, interest, damages and legal costs.
Hollywood
David Zaslav could net up to $887m as Warner Bros Discovery sells up
Media mogul strikes gold as Paramount Skydance deal triggers massive windfall
NEW YORK: While the average office worker might hope for a nice clock and a round of applause upon leaving, David Zaslav is looking at a slightly more substantial parting gift. The chief executive officer of Warner Bros Discovery is positioned to receive a windfall of up to $887 million following the company’s blockbuster $110 billion sale to Paramount Skydance.
In a twist of corporate fate that feels scripted for the big screen, the deal marks the finale of a high-stakes bidding war. It comes after Netflix, once the frontrunner, decided to exit stage left and abandon its pursuit of the HBO Max parent company.
While most people receive a standard final paycheck, the filing released on Monday suggests Zaslav’s exit package is built a little differently. If the deal closes as expected in the third quarter of 2026, the numbers break down like this:
The cash out: A severance package of $34.2 million, covering his salary and bonuses.
The equity: $115.8 million in vested shares he already owns.
The future fortune: A massive $517.2 million in unvested share awards, essentially “future stock” that turns into real money the moment the ink dries on the merger.
Perhaps the most eye-catching figure is the $335 million earmarked for tax reimbursements. However, this particular pot of gold has an expiration date.
The company noted that these reimbursements are tied to specific tax-code rules that significantly decline as time passes. If the deal hits a snag and drags into 2027, that tax payout drops to zero. With hundreds of millions on the line, the chief executive officer likely has every incentive to ensure the closing process moves at double-speed.
