BMG is dashing up funds for over 20,000 songwriters (which can also be excellent news for KKR)

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BMG says it is expediting payments to more than 20,000 US and UK songwriters on old contracts.

The company says the move is “part of [our] Program to ensure established customers are not left behind by changes in the industry. “Songwriters are paid within 60 days of a license fee expiring, rather than the 90 days specified in their contracts.

According to the BMG, the distributions will now be made one month earlier than previously on February 28 and August 31 of each year.

According to BMG, the majority of publishing customers, mainly customers with newer contracts, already have a term of 60 days.

This change extends the utility to most of BMG’s remaining customers, especially those who have signed contracts that BMG later acquired with companies such as Chrysalis and Cherry Lane.

The move was driven by Eric Scott, SVP Rights Administration & Royalty Services USA, and Aidan Kenny, SVP Royalty Services & Income Tracking UK, says BMG.

According to BMG, the move is part of a “program to modernize industry practices,” in which BMG has given up packaging prints for digital formats (in favor of recording artists) and removed the clauses on controlled composition from its contracts (which benefits songwriters).

BMG’s promise to pay songwriters faster is likely to benefit not only songwriters, but also song rights holders who have purchased catalogs and rely on BMG as a service provider.

For one, it will likely be music for the company’s new financial partner, KKR, with whom BMG signed a deal to jointly purchase music rights last month.

Hartwig Masuch told MBW last month that “BMG’s fairness agenda … is not a hobby that is separate from our business strategy – it is an integral part of it”.

Masuch added, “You can raise $ 1 billion, $ 2 billion, $ 3 billion – as much as you want – but when artists and increasingly financial investors can’t trust you to play it right out and get them and their work with Treat them with respect then all the money in the world will not be enough to convince them to do business with you. “

“This service update reaffirms the commitment of BMG, songwriters and artists to provide a level of fairness, transparency and service in the 21st century every time they sign their contracts.”

Sebastian Hentzschel, BMG

Sebastian Hentzschel, CIO of BMG, who is responsible for BMG’s worldwide license processing, said: “With a duration of 60 days, the new standard in music publishing, we are pleased to be expanding this to include the catalogs we have purchased.

“This service update reaffirms the commitment of BMG, songwriters and artists to provide a level of fairness, transparency and service in the 21st century every time they sign their contracts.”

“Paying our customers faster is part of our broader program to make the music industry work better for artists and songwriters.”

Hartwig Masuch, BMG

Hartwig Masuch, CEO of BMG, added: “Contracts define minimum terms in the relationship between music companies and their customers, but too often they are frozen in time and create generations of disadvantaged musicians.

“Paying our customers faster is part of our broader program to make the music industry work better for artists and songwriters.”Music business worldwide

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