BMG dings major labels and publishers over US mechanicals


Last week’s proposal for new physical and download mechanical royalties rates in the US was the result of a settlement between labels and publishers.

But BMG, ever alive to a chance to tackle the bigger rightsholders, claims the rates increase was achieved “in the face of the opposition of major record companies and indifference of music publishers”.

BMG also zeroed in on one particular criticism of the major labels: “who just a month ago entered a motion designed to exclude the vast majority of songwriters from benefiting from any rate increase. Thankfully, they have backed down”.

BMG was clearly anticipating a return volley of criticism for speaking out so strongly now, rather than earlier during the rate-setting process.

“We regret on this occasion that we did not speak out earlier and more robustly against an industry consensus that turned a blind eye to what has been a 15-year pay freeze for songwriters…”

Written by: Stuart Dredge