Sister Sledge Says Warner Music Cheating on Digital Sales

Posted by at 11:47 am on February 3, 2012

Sister Sledge has filed a lawsuit Thursday against Warner Music Group. The San Francisco complaint caught by the Hollywood Reporter accused Warner of cheating the “We Are Family” singers of revenue on iTunes, Amazon MP3, and other stores through purportedly deceptive terms. By counting a download as a one-time sale rather than a license, Warner was taking the group down from a 25 percent cut to much less.

In the case of Ronee Blakely, the revenue would be as high as 50 percent. Warner has also supposedly misled by withholding “reserve” revenue for lost record sales. Digital music has no concept of unsold stock, so Warner can’t pocket money that was never going to be lost, the sisters said.

Warner hasn’t publicly responded to the accusations.

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