In its latest move in licensing music, Apple's iTunes Radio has cut a performance licensing deal with BMI, according to sources.
Those sources say that BMI is going to be the beneficiary of the
rising tide begun by the major music publishers who withheld digital
rights from the PROs (performing rights organizations), in order to cut
market-rate deals. Consequently, sources say that BMI will receive 10%
of advertising revenue from the iTunes Radio service. Apple was
unavailable to comment and BMI earlier had declined comment.
While the Universal Music Group, Kobalt Music Group and BMG Chrysalis
have notified the two PROs that they are withholding their digital
rights so that they can cut their own direct deals, all three of them
will likely be covered by the BMI deal for the remainder of the deal,
since none of them can reclaim the ability to cut digital deals until
Jan. 1, 2014, sources say.
In the meantime, because of different licensing periods, the above
three publishers and Warner/Chappell Music have filed what is termed a
revocable notices with ASCAP that beginning July 1 it is their intention
to withdraw digital rights, but none of them have made a final
decision, according to the ASCAP Website.
The Universal Music Publishing Group has already confirmed its
intention to cut direct digital deals and sources say it is close to
signing a deal with the Apple iTunes Radio service. Likewise, sources
say the BMG Chrysalis will withdraw its digital rights from the two PROs
when the waiting periods expire. However, its not clear if
Warner/Chappel will pull all of its digital rights, even though it has
filed a revocable notice with ASCAP and apparently has negotiated a
direct deal with Apple for its streaming service. Sources say that since
publishers allow the PROs to license their music on a non-exclusive
basis, Warner might choose which digital accounts it wants to do direct
deals with and might leave others to be covered by the PROs. A
Warner/Chappell spokesman declined comment.
As for Kobalt, "while Kobalt has notified ASCAP and BMI of its
revocable election to withdraw licensing rights with respect to certain
categories of digital service providers, we prefer not to comment
further until the arrangements are finalized," a Kobalt spokesperson
said in a statement.
No comments:
Post a Comment