BMI has inked a performance licensing deal with Apple for iTunes Radio that will give it 10% royalties on ad revenue from the new service, according to reports. Both Warner/Chappell and Sony/ATV struck deals for iTunes Radio ahead of the platform’s launch. Warner/Chappell is getting 10% royalty rate from ad revenue and Sony/ATV at 10-15% for now.
While the Universal Music Group, Kobalt Music Group and BMG Chrysalis have notified the two performing rights organizations that they are withholding their digital rights deals so that they can cut their own direct deals, all three of them will likely be covered by the BMI deal for the remainder of the deal, since none of them can reclaim the ability to cut digital deals until 1/1/14, per a Billboard story.
In the meantime, because of different licensing periods, UMG, Kobalt, BMG and Warner/Chappell Music have filed “revocable notices” with ASCAP that say beginning 7/1 it is their intention to withdraw digital rights, but none of them have made a final decision, according to the ASCAP website.
