Music Industry News Network [04-01-2004]

VPL And MTV Ink New Deal For Independent Music


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The UK and European independent record sectors are delighted that Video Performance Limited and MTV Networks Europe have agreed a new three year deal for the independents.

This both preserves the principle of collective licensing, so crucial to the independent sector, achieves fair value for the use of videos, and gives MTV unlimited access to one of the greatest music video libraries in the world. Thousands of companies will be delighted to learn that the deal has been struck on behalf of all VPL members, with the larger companies demonstrating solidarity for the whole sector throughout the last few months.

Specific details of the deal remain confidential to VPL and MTV, but after the very public dispute, many companies have openly expressed their satisfaction that MTV decided to return to the negotiating table last Thursday, after a press conference organised by independents at the Royal Society for the Arts. Independent record companies were today celebrating a deal that clearly establishes the value of the video rights licensed to MTV.

At a time when business models are changing, today's music broadcasters are becoming distributors and retailers of music, rather than being just a promotional outlet for music. The principle of fair value for the use of all music by broadcasters has been established today, and will, we hope ensure the preservation of fair revenues to investors in artists, who are the record producers themselves. Respecting all rights, and not just some, was a principle upheld with determination by the leading independent companies of Europe.

Commented Fran Nevrkla, Chairman and Chief Executive Officer of VPL: 'I am delighted that VPL has been able to facilitate a new collective agreement with MTV on behalf of the independent record companies, thus confirming a mutually successful partnership which goes back to MTV's launch in Europe. I am very grateful to the independent sector for demonstrating their passion for music, loyalty to their artists as well as their fundamental belief in the value of music and the crucial importance of copyright which is the very lifeblood of the music industry. AIM and Impala have played a crucial role in underlying this important message.'

Peter Quicke, Managing Director of Ninja Tune commented: 'I am very pleased that MTV have recognised the value of our music and the importance of collective licensing both to them and us. We love having our videos played on MTV and are pleased that for the term of this deal this can continue.'

Michel Lambot, co-chairman of PIAS, and president of IMPALA said: '"We are glad to see that MTV Europe, after some misunderstanding, has finally recognised the cultural and commercial value coming from the diversity of repertoire produced by more than 2000 European independent labels"

Horst Weidemuller of !K7, Germany said: 'Throughout the past 10 years we have often co-operated fruitfully with MTV Germany and Europe. All of these co-operations have been beneficial for both sides. MTV has built its success upon spotting new trends very early on and then helping them break through. If MTV were to lose access to independent videos, it would discard an important gateway for new trends. MTV's collective deal for the Indies is acknowledging an important and advantageous partnership'.

Martin Mills, Chairman of Beggars Group said: 'We're delighted that the music people at MTV have seen fit to accept the right of independent labels and artists to be fairly remunerated for the use of their valuable rights '

Guy Holmes, Chairman of Gut Records said: 'Without music MTV is just TV. It's good news that they have eventually seen the value of our music'

Alison Wenham, Chairman and CEO of AIM said: 'We are very pleased indeed that this particular argument is over. We hope and trust that the principle of collective licensing, dear to the independent community, is now respected and upheld. We now look forward to discussing with MTV the proper licensing of videos in other territories, and how independent record companies should be paid for the use of these rights'.


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