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negotiation strategy

Three Strikes and You’re Out — Music Rights Owners Have the Power

In the past couple of years, music rights owners have been aggressively ramping up sync licence fees for online usage, especially for YouTube. This is particularly true of some of the “major” music publishers where we’ve seen fee increases up to a multiple of 10 compared with similar uses 12 months earlier. Their rationale is that YouTube is becoming as important as broadcast TV media so needs to be priced accordingly. The challenge for brands is that production budgets for online content are a fraction of those for traditional TV spots. One negotiation strategy to address this is for brands to geolock their content to a specific market – indeed many music rights owners already demand this! For brands that are tempted to cut corners and post films with unlicensed music tracks, BE WARNED! Beyond the financial, legal and reputational risks we’ve previously discussed, there are yet further dangers: