BMG to speed up mechanical royalty payments for songs released by the company's US recording artists

BMG to speed up mechanical royalty payments for songs released by the company's US recording artists

BMG has unveiled an initiative to speed up the payment of mechanical royalties to its US publishing clients when their songs are used on recordings released by BMG’s US artists. 

Mechanicals will be paid within the same quarter rather than the standard industry practice of at least three to six months later.

The initiative is a direct result of BMG’s investment in a cloud-based royalties system, which spans both music publishing and recordings.

The change will directly benefit BMG songwriters who write for BMG-signed artists. It will be particularly advantageous for clients who choose the company to represent both their songs and recordings, including Bush, George Harrison, Jelly Roll, Jennifer Lopez, LP, Mammoth WVH, Spiritbox and Terrace Martin, among others.

Sebastian Hentzschel, BMG chief operating officer, said: “This is a practical benefit of BMG’s decision to offer music publishing and recordings off the same integrated platform. No conventional music company can do this. It means that if two songwriters contribute to a BMG recording and one is signed to BMG and the other to another company, the BMG writer will get paid sooner. We believe passionately that artists and songwriters should benefit from the speed and efficiency modern royalty accounting can deliver. It is yet another reason I believe we are the best publisher in the world.”

This latest service enhancement comes three years after BMG announced it would become the first music company to abolish the so-called controlled composition deduction

BMG continues to pay mechanical royalties on all releases in the US at the full statutory rate.

Eric Scott, EVP, rights administration & royalty services, who leads BMG’s royalty team based in Nashville, said: “A genuine commitment to service requires a substantial investment in technology but also a team which is committed to going the extra mile. We believe it is the right thing to do. All the indications so far are that our clients really appreciate it.”


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