VEVO To Begin Paying Independent Publishers
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.
Independents FTW. -Allindstrom