Breaking: Vevo to Finally Begin Paying Independent Publishers
Yesterday, we reported to you that the U.S. National Music Publisher's Association (NMPA) and their CEO David Israelite recently called for reform in the way publishers license digital content, particular with the way VEVO conducts its payouts. Today, Universal Music Group (part-owner of VEVO) announced that they will begin paying independent publishers for the use of their compositions streamed on VEVO, representing a huge win for independents.
While no specifics of the deal have been disclosed, it has been said that publishers stand to receive 15% of advertising revenues generated by music videos and that the deal takes effect back to 2008. However, for the first two years through 2009, the agreed upon rate is 10% of revenue, while the 15% revenue rate kicks in for music videos in 2010.
Before this announcement, monies were paid by VEVO and kept by UMG, while indie publishers were basically getting left out. This agreement (which covers North America) has been coined by the NMPA as a groundbreaking model licensing deal" due to the fact that it will allow songwriters and music publishers to a share in revenue from music videos.
We're all navigating through a rapidly changing business environment," said Israelite. This is a model example of how record labels along with songwriters and music publishers can move forward together to ensure that the licensing process is more effective and efficient, and that all creators are fairly compensated."
The deal been said to also cover a wide array of content beyond just music videos, including concert footage, backstage videos, and artist interviews. The agreement also provides songwriters and publishers monies for additional UMG product offerings including ringtones, dual disc, multi-session audio and locked content products.
The Harry Fox Agency will serve as the administrator for the deal between NMPA and UMG, and both Harry Fox and NMPA should announce additional details in the coming weeks. Stay tuned for more details as they surface.