Teenage Engineering has announced a new revenue-sharing plan, which will donate 15% of sales revenue to black and POC artists. The new scheme, which it is calling an artist fellowship, will begin on September 1.
The contracts with the first four artists are still to be signed, but they will be Detroit’s Underground Resistance, Suzi Analogue, from Miami; and VoltageCtrlR and Baseck, both of Los Angeles.
This will work so that when US customers use a special links on the company’s website, at least 15% of Teenage Engineering’s sales revenue will go to those artists according to the New York Times.
Teenage Engineering had about $11 million in net sales in 2018, according to its most recently disclosed financial statements, so there won’t be massive windfalls compared to some of the large music giants like Sony, Spotify or Amazon, but this will be significant if the resources are sent in the right places.
Emmy Parker, the company's chief brand officer, estimates that the artists' share could be anything between $100,000 and a million dollars a year.
"This will allow us to make a shift in the economic model immediately," she told the Times.