MTV Networks Europe (MTVNE) is going back to the negotiating table with British collecting society Video Performance Ltd. (VPL) over video licensing payments.
LONDON--MTV Networks Europe (MTVNE) is going back to the negotiating table with British collecting society Video Performance Ltd. (VPL) over video licensing payments.
The parties disagree on the amount MTV pays for showing videos supplied by independent labels. Instead of going through VPL, MTVNE was seeking direct deals with indie labels. It claims it has agreements in place with over 35 indie labels in Europe.
U.K. indie labels license their videos to broadcasters through VPL. Through agreements with collecting societies in other European territories, VPL also collects royalties for broadcast of its members' repertoire in those markets.
Under the previous agreement, which expired in 2002, MTVNE paid VPL £1.9 million ($3.5 million) a year. VPL rejected MTVNE's subsequent proposal of £840,000 ($1.5 million) a year.
Indies say MTV wanted to pay less for broadcasting videos and to expand its rights to include mobile or streaming rights.
MTVNE said it had decided to re-adjust the rate as a matter of fairness because it realized that indie labels were receiving more on a pro rata basis than major labels. Majors have MTV deals in place through the American company and do not use VPL in the United Kingdom.