Merlin announces fifth admin fee reduction in four years
Global rights agency for the independent label sector, Merlin, has further reduced its commercial deal administration fees for members.
Effective immediately, the administration free on commercial deals has dropped 20%, from 2.5% of revenues to 2%.
The reduction marks the fifth time in four years that the agency has dropped its fees. London-based Merlin last reduced its fees in July 2014 from 3% to 2.5%, a 16.67% reduction. The admin fees are now almost a quarter of what they were in 2012. All benefits accrued from commercial agreements passed on to members in line with usage.
Last year Merlin agreed a landmark deal with SoundCloud to join the company’s On SoundCloud program. Its members, including over 20,000 independent labels and distributors from 46 countries, are now monetising the revenue from uploads to SoundCloud through advertisements. Merlin also has deals with digital services includingYouTube Red, Spotify, Pandora, Deezer and Vevo.
2015 also marked the organisation’s first full year of operation of its US office. Its New York office is headed up by Jim Mahoney, the former VP of US independent music company representative A2IM (Association of Independent Music).
Charles Caldas, CEO, Merlin said: “Merlin’s members are the bedrock of our organisation and following a year that saw such significant expansion in our activities, it is hugely satisfying to announce today’s 20% reduction in Administration Fees. We look forward to delivering even greater value in 2016 as we help our members grow their businesses in the year ahead.”
Administration fees relating to the cost and nature of obtaining settlements and recoveries from infringing services remain unchanged. Merlin has reachedcopyright infringement settlements on behalf of its members with streaming service Grooveshark, P2P file-sharing platform LimeWire and the US and Canada’s XM Satellite Radio.
Merlin represents 705 direct members, representing between them tens of thousands of independent labels. Australia’s own Colin Daniels, CEO at Inertia, is on the Merlin Board; as is New Zealand’s Scott Muir, Director and Dunedinmusic.com.
Merlin’s membership has increased by 60% since 2010, representing approximately 12% of the global recorded music market.