Music Videos & Money: UMG Reaches Rev Deal for Songwriters/Pub Cos

By Steven Gottlieb on June 19, 2012 @ 5:21pm PDT | Comments (0)

The trade group that represents music publishing interests  announced a licensing deal with Universal Music Group (UMG) on music videos. It's the first deal to be reached with any record label.

Short version is that publishing companies will now get a share of all revenue from UMG music videos. Long version is contained in the press release below. Further details via Variety (and a gracious h/t to The Daily Swarm)

My take is: If you're somebody who thinks directors should be entitled to a cut of that music video money as well, this is very interesting news. (And maybe a few of you will hit the comments here...)

Press release is below. All bold emphasis is mine.

NMPA, Universal Music Group Announce Groundbreaking Licensing Agreement on Music Videos

FOR IMMEDIATE RELEASE
June 19, 2012

WASHINGTON - The National Music Publishers' Association (NMPA) announced today it has negotiated a groundbreaking model licensing deal with Universal Music Group (UMG) on music videos.  The agreement, to be offered to all NMPA member music publishers, will allow songwriters and music publishers to share in revenue from music videos, an increasingly important revenue stream for music creators.  UMG is the first record label to provide such opportunity to all songwriters and music publishers.

'We're all navigating through a rapidly changing business environment,' said David Israelite, NMPA President and CEO, '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.'

Under this license opportunity, music publishers will grant the rights necessary for the synchronization of their musical works with music videos, and, in return, receive royalties from these videos based on a percentage of UMG's receipts.  The agreement also enables songwriters and music publishers to receive retroactive compensation for past use of their musical works in UMG's music videos.  In addition to music videos, the agreement provides songwriters and music publishers compensation for additional UMG product offerings including ringtones, dual disc, multi-session audio and locked content products.

Every U.S. music publisher that is a member of NMPA can participate in the agreement, which will be made available by UMG to publishers on an opt-in basis.  Additional details will be available on the NMPA and Harry Fox Agency websites and sent directly to music publishers in the coming weeks.

About the NMPA

Celebrating its 95th year, the National Music Publishers' Association (NMPA) is the trade association representing American music publishers and their songwriting partners. The NMPA's mandate is to protect and advance the interests of music publishers and songwriters in matters relating to the domestic and global protection of music copyrights.

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Comments

Barry's picture
By Barry
Oh Boy! This is very interesting on a lot of fronts. Def music video directors should share in the profitability of the music video. In many cases the financial success of the video online hinges on the creative writing/directing of the video. Some could even argue it could even be a 50/50 split between those responsible for the audio and those responsible for the video. It actually depends on who has more leverage in the relationship, The DGA or WGA or might need to step in and claim a share for their members. One things for sure.. this increase in the number of vested parties in videos will drive musicians to make their music videos more profitable.. which will mean bringing brands on board more frequently. And as Musicians become progressively more concerned with the success of their videos, they'll also be more conscious of those networks who profit from their product without their involvement. Thus advertisers will need to partner directly with creators as opposed to the like Vevo or others. I'm always excited when the middle men are cut out of the equation.
Tim's picture
By Tim
You are right on Barry, well said. Unfortunately the union for music videos, if you can call it a union [the mvpa], has no power or will to fight for directors to get anything near you are suggesting.
aJonzingSpike's picture
By aJonzingSpike
This is so sickening its not cool at all. Does anyone know if the MVPAA or DGA is working on this at all?
Darren Doane's picture
By Darren Doane
I make a living making videos. I negotiate a rate for my work. "I" negotiate that. Not some union. Videos are wild and untamed. Thats what makes them so great to do. Once you start wanting a piece of someone else's money flow you will be subjected to their rules and be governed by them. I guarantee you, the last few videos I just watched on this site would never of been possible to make once unionized. This will be the neutering of music video art. Every director is free to make a deal with a band for a piece of their action. I have a few of those in place. But that was my personal arrangement with the band/label. Ill stick on the outside and wait for unions to run up the rates and process and watch the work flow towards those who are able to keep doing what music video directors do best.
concerneddirector's picture
By concerneddirector
Darren, It is attitudes like yours that keep the music video community in a place where the labels can have their way with us. How does wanting a piece of someone's else's money flow subject us to their rules and governing any more than it does currently? What are you basing this on? I'd say we are pretty damn well ruled and governed right now. I'm glad you are making a living and doing so well. But in case you haven't noticed, the entire music video community is in a very depressed place. Budgets and creativity have been drastically reduced, and we don't even get credited for our work like we once did. I don't know of a time where it has been worse for the mv community - yet now, for the first time in mv history, music videos are making money for the labels and will most likely continue to increase. Something isn't right about this. I don't claim to have the answer to what residuals might do to the community, but it certainly can't hurt or be any worse than it is currently! So how do you differentiate videos from the songwriting process? In songwriting, the people who write the song get residuals (and credited!) for writing songs. How and why are making videos different than songwriting? Do we not deserve anything?
darren doane's picture
By darren doane
Hello concerned, Ill take one piece at a time. 1) It is attitudes like yours that keep the music video community in a place where the labels can have their way with us. Have their way with us? What evil empire are you working for? I get hired, get paid, feed my family. 2) I'd say we are pretty damn well ruled and governed right now. Again, its their money, their rules, their label, their band. 3) I'm glad you are making a living and doing so well. But in case you haven't noticed, the entire music video community is in a very depressed place. Budgets and creativity have been drastically reduced I have not noticed because im to busy finding work. "creativity" drastically reduced? Some of the most exciting and powerful videos I have ever seen are being made these days. "Budgets" reduced. Video costs are a fraction of the cost from 10 years ago. And yes Im doing "well" but keep in mind, ask any commissioner who knows me (I actually only know David Saslow) and they will tell you I work with some of the smallest budgets in the industry. 4) and we don't even get credited for our work like we once did. Paycheck is enough credit for me. 5) I don't know of a time where it has been worse for the mv community - How long have you been around? Ive been in it for 22 years. Ive seen way worse but for different reasons. NEVER in history has there been this great of an opportunity to make a living making music videos. 6) yet now, for the first time in mv history, music videos are making money for the labels and will most likely continue to increase. Music videos have always generated money for record labels. Thats why they have always made them. 7) Something isn't right about this. I don't claim to have the answer to what residuals might do to the community, but it certainly can't hurt or be any worse than it is currently! Again, hurt and worse and things all bleak I just dont get. Im a nobody in this industry and make a living. I have no rep, manager, agency etc. I dont even write treatments. And saying it "cant hurt" to take someone else's money hurts the other person who you took the money from. 8) So how do you differentiate videos from the songwriting process? One is the songwriting process and the other is making a music video. The song is the property. we are hired to build one little part on that property. And we get paid to do that. AND, and this AND is key... Songwriters dont get paid up front. Not the ones I know at least. Now, if some people cannot budget their money and make a living thats their problem. Or maybe directors should stop being suckered into believing that their agency's or managers should only pay them 10%. Maybe directors should start with their own internal fare wage war with their production companies. 9) In songwriting, the people who write the song get residuals (and credited!) for writing songs. How and why are making videos different than songwriting? Because a song is not a video. A music video needs a song to be a music video. But a song does not need a music video to be a song. 10) Do we not deserve anything? Yes we do. We deserve the wage we agreed to when we made the video. And as far as I can see, that happens all the time. Darren
alsoconcerned's picture
By alsoconcerned
Way to keep it real, Darren. Way to sell everyone else out too.
adam1984's picture
By adam1984
From Romanek to Jonze, Hype to Sophie, Darren Doane can't be the last or only word on this. Not sure who you are but sorry Darren.
Steven Gottlieb's picture
By Steven Gottlieb
Darren was the original DIY rock video guy. Did a ton of work for Tooth Nail and other rock indie labels. Good POV. But, yes, surely not the only one... 
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