MTV Reaches Royalty Agreement

Another skirmish is the battle over who’s promoting whom (And the smile on the face of the Tiger; alt): MTV in Deal on Royalties With Labels in Europe

MTV Networks Europe capitulated to the threat of a boycott by European independent record labels, and agreed on Thursday to a new three-year deal that dropped a proposed 55 percent cut in royalties for playing rock videos.

European trade groups that represent the labels said that they would look to the United States next, where they plan to help local independent producers organize to force MTV and other music broadcasters pay royalties for using their music.

Major record labels have global contracts that spell out the royalties they receive when MTV plays their videos anywhere in the world, but the independent labels generally have such contracts in their local area. MTV pays no royalties at all to independent labels in the United States.