Universal Music Group, the world’s largest music conglomerate made major headlines yesterday for establishing a new kind of agreement with The National Music Publisher’s Association. Online music trade magazine Allaccess.com has reported that Universal Music Group is the first of the major label groups to build a music video based revenue sharing system specifically designed to enrich, empower, and compensate song writers and publishers for their efforts. If this agreement proves to be successful, it has the potential to shift the priorities on how money is made and stabilized for artists and writers who create songs that bring in big viral views online. This move could prove to be extremely important in the online video viewing, music world of Vevo. David Israelite, CEO of The National Music Publisher’s Association discussed how important he thought this move was for the music industry.
“We’re all navigating through a rapidly changing business environment,” said NMPA Pres./CEO David Israelite, “and NMPA’s job is to ensure that the rights of every songwriter and music publisher are protected. 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. Music videos have become an important part of the music business ecosystem. They are not simply promotional tools to help sell recordings. The agreement announced today is an important first step in resolving industry-wide music video issues. UMG deserves credit for being the first record label to partner with the entire songwriting and music publishing community through this model licensing deal.”
As part of this new licensing agreement music publishers that are working with Universal will grant the rights necessary to synchronize all of their work with music videos if it isn’t already done so they can collect the music video royalties. Every U.S. music publisher that is willing to participate in this agreement will be made available to Universal with the help of the NMPA. Additional details are on the new agreement are available on the NMPA website.