The world’s biggest music publisher, Sony/ATV, has signed a new licensing deal across Europe with Spotify. Martin Bandier says he is satisfied it will deliver “fair compensation to songwriters”.
Although, as you’d expect, both parties are tight-lipped on the exact nature of the deal, Bandier’s endorsement is highly significant.
The Sony/ATV CEO and chairman has been leading the charge for increased rates of pay for the talent behind the songs – particularly in the direction of online radio services such as Pandora.
In Europe, unlike the US, Sony/ATV is free to directly negotiate with digital services over licensing terms for its performance rights.
A recent SNEP report out of France suggested that, on average, publishers and songwriters were splitting around 16% of overall royalty payouts from streaming subscriptions.
As a result of the new deal, Spotify can continue to offer Sony/ATV’s Anglo-American repertoire in all 30 territories that make up the European Economic Area (EEA).
“Sony/ATV and Spotify share the goal of fair compensation for writers. We believe this deal achieves it.”
Martin Bandier, Sony/ATV
Martin Bandier said: “We are thrilled to have renewed our European agreement with Spotify, the world’s largest music subscription service. As streaming services continue to grow, Sony/ATV is delighted to be continuing our relationship with Spotify at this pivotal moment for the music industry.
“We share two important goals – growing the market for paid for music subscription services for the benefit of music lovers everywhere while delivering fair compensation to our songwriters for the use of their songs. We believe we have accomplished that with this deal.”
Ken Parks, Spotify’s Chief Content Officer, said: “We are very pleased to announce our continued partnership with Sony/ATV, home of some of the greatest songwriters in the world. We look forward to continuing our work together to deliver great music to fans around the world and fair compensation to songwriters for their terrific work.”
Together with EMI Music Publishing – which it bought in a $2.2 bn dollar deal in 2012 – Sony/ATV owns or administers around 3 million copyrights, including catalogues like Leiber & Stoller, Mijac Music, Motown and Famous Music.
Music Business Worldwide