BMG Turbocharges Payment System

• BMG is pleased to announce that it will, in a first-of-its-kind initiative, speed the payment of mechanical royalties to its U.S. publishing clients when their songs are used on recordings released by BMG’s U.S. artists. Mechanicals will be paid within the same quarter rather than the standard industry practice of at least three to six months later.

The initiative is a direct result of BMG’s investment in a cloud-based royalties system which spans both music publishing and recordings, meaning relevant data is all in the same system. The change will directly benefit BMG songwriters who write for BMG-signed artists, and it will be particularly advantageous for the numerous clients who choose BMG to represent both their songs and their recordings, including Bush, George Harrison, Jelly Roll, Jennifer Lopez, LP, Mammoth WVH, Spiritbox, and Terrace Martin, among others.

BMG COO Sebastian Hentzschel (left) said, “This is a practical benefit of BMG’s decision to offer music publishing and recordings off the same integrated platform. No conventional music company can do this. It means that if two songwriters contribute to a BMG recording and one is signed to BMG and the other to another company, the BMG writer will get paid sooner. We believe passionately that artists and songwriters should benefit from the speed and efficiency modern royalty accounting can deliver. It is yet another reason I believe we are the best publisher in the world.”

This latest service enhancement comes three years after BMG announced it would become the first music company to abolish the so-called controlled composition deduction U.S. labels traditionally use to depress mechanical publishing rates on physical product. BMG continues to pay mechanical royalties on all releases in the U.S. at full statutory rate.

Eric Scott, EVP, Rights Administration & Royalty Services, who leads BMG’s Nashville-based royalty team, said, “A genuine commitment to service requires a substantial investment in technology but also a team which is committed to going the extra mile. We believe it is the right thing to do. All the indications so far are that our clients really appreciate it.”