Tunecore revolutionized a way to distribute digital music. But they never revolutionized a way to make money as a company distributing digital music.
Which brings us to this: according to details leaked to Digital Music News this week, Tunecore is now foregoing bonuses for all employees, perhaps indefinitely.
Update (#1): Tunecore has confirmed that 2012 bonuses have not been paid, but says they will be paid (at some point). They have not specified when, and did not explain why this has lagged until August.
Indications of trouble appeared right around the time when bonuses should have been paid in 2012 (ie, Christmas). After that window lapsed, official word was apparently issued in March of 2013: no bonuses.
Here, read this: it’s an email we got from a disgruntled employee, who decided the best way to vent was to email Digital Music News. Tunecore has not yet responded to an inquiry on the matter.
It’s called a “bonus” for a reason. Calm down.
Let us know when their payroll department stops issuing paychecks. Until then, yeah – companies change how they do things based on their ever changing financial situations.
It’s not only about bonuses…
TuneCore promised their employees these bonuses as part of their compensation packages. For most employees it’s not written in a contract but was a formal commitment. People were definitely counting on receiving these checks.
Tunecore, no matter how well intentioned was ALWAYS a glass ceiling business…
Oops, hope you’ll keep us up to speed on that.
Wonder who’s next on the we-can’t-pay-you list if this is true…
iTunes Radio likely to pump additional revenues into companies like Tunecore via their publishing administration service.
The real question is did TuneCore already write off these bonuses to the IRS
In order to deduct bonuses on its tax return for 2012, TuneCore would have had to pay them by March 15, 2013. In this case, the negative cash flow impact of paying them was apparently bad enough that the company was willing to wait to deduct in 2013 or later (if they pay them at all, of course).
So some disgruntled calls up DMN then makes the company pay bonuses, when this should have been dealt with management to rectify first. Why am I reading this again?
The new boss isn’t like the old boss. The new boss needs to get a return to its investors. The old boss was in it for his ideals. If you’re still in it for the old boss, you should move on, before you’re moved on.
They dumped Jeff Price for a reason, it’s called making a profit. Sorry Jeff — go find a company that exists in 1999, maybe they’ll hire you.
Actually they’ve just partnered with DistroKid with their Audiam project. I guess they don’t really need Tunecore when they have DistroKid!