BMG accelerates royalty payments to 20,000 songwriters
OFFICIAL PRESS RELEASE
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BMG is speeding up payments to more than 20,000 US and UK songwriters on old contracts as part of its program to ensure established clients are not left behind by changes in the industry.
It means that the songwriters will be paid within 60 days of the close of a royalty period rather than the 90 days specified in their contracts.
Distributions will now occur one month earlier than previously on February 28 and August 31 of each year.
The majority of BMG's publishing clients, mainly those on newer contracts, are already on 60 day terms. This change extends the benefit to most of the remaining clients, mainly those who signed contracts subsequently acquired by BMG with companies including Chrysalis and Cherry Lane.
It forms part of BMG's program to modernize industry practices which have seen it abandon packaging deductions on digital formats (benefiting recording artists) and unilaterally removing the controversial controlled composition deduction (benefiting songwriters).
Sebastian Hentzschel, BMG CIO, who is responsible for BMG's global royalty processing, said, "With 60 day terms the new standard in music publishing, we are delighted to extend them to our acquired catalogues. This service update reaffirms BMG's commitment to deliver 21st century levels of fairness, transparency and service to songwriters and artists whenever they signed their deals."
The move was driven by Eric Scott, SVP Rights Administration & Royalty Services US and Aidan Kenny, SVP Royalty Services & Income Tracking UK.
Royalty statements, as with all BMG royalty information, are delivered through the myBMG platform, BMG's industry-leading mobile app and website, a single all-inclusive portal for both songwriters and artists. Its user-friendly design, engineered by BMG's technology team in consultation with a team of songwriter clients, offers real-time insights and open period data, downloadable statements; publishing royalty analysis by territory, song, source and income type; recording royalty analysis by territory, product and distribution channel.
Hartwig Masuch, BMG CEO said, "Contracts define minimum terms in the relationship between music companies and their clients, but too often they become frozen in time, creating generations of disadvantaged musicians. Paying our clients faster forms part of our broader program to make the music industry work better for artists and songwriters."
April 29, 2021 11:00am ET by Pressparty