Vevo is owned by Universal, Sony Music and Abu Dhabi Media and takes in about $150 million a year in ad revenue, none of which was passed along to songwriters or publishers. With the new agreement, Universal agrees to not only some retroactive compensation, but also to provide a royalty for other UMG offerings like ringtones, dual discs, multi-session audio and locked content products.
There are two things interesting here. First, only UMG is parcel to the agreement. Sony has not signed on. And the agreement specifies that UMG admits no wrongdoing, which stifles and lawsuits on this going forward.
That's one small step for songwriters. Let's see if another happens soon.
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