A2IM Welcomes Reports of YouTube-Merlin Deal

A2IM commends Merlin and YouTube for ensuring that YouTube Music Key users have comprehensive access to the Independent label community

(New York, NY) Following the press reports that Merlin, the global rights organization for the Independent sector, has reached an agreement to license hundreds of American Independent labels and their artists to YouTube and their new subscription service, Music Key, A2IM joins our global colleagues at WIN, the Worldwide Independent Network, in applauding Merlin. We anticipate that this deal will not only preserve independent access to a primary marketing and promotional platform used by most music consumers, but also protect a valued source of revenue, foster healthy competition among all content owners, and maintain the value of independent music.

A2IM President Rich Bengloff says: 

“We are very pleased to hear of this outcome and thank Merlin, who represent many A2IM members, and YouTube. We believe actual music usage should be the only basis for calculating compensation on sound recordings. No matter what the size of the music label or what artists are involved, there should be a level playing field with content valued equally for all copyright owners. Merlin was created to make it viable for digital services to have a one-stop solution to license a wide swath of Independent repertoire and has been successful in licensing many services. We see the YouTube-Merlin deal as the latest step forward toward ensuring that all content owners and music creators are treated equitably, regardless of who owns the master.

In September 2014, the American Association of Independent Music (“A2IM”) conducted an internal study with key stakeholders in the Independent label community and found that 94% felt YouTube was significant to their overall business. 100%, inclusive of labels of varying musical genres and business sizes, felt that YouTube was at a minimum “somewhat important” to their business in terms of marketing and promotion, and 89% estimated that YouTube was at least 75% of their total online video audience. We expect the impact of the Merlin-YouTube agreement will be significant for Independent labels as YouTube joins numerous other music services that have previously supported our community and recognized the leadership of Independent Music.

A2IM now calls on all services to respect all content creators equally by offering equitable deals with the independent music label sector, the largest and fastest growing sector in the music industry. Per Billboard, Independent music labels made up 34.6% of the US recorded music industry in 2013, increasing from under 25% industry market share since the formation of A2IM in 2005. 


ABOUT A2IM

Celebrating its 10th Anniversary representing America’s independent music label creators, A2IM is a not-for-profit trade organization serving the Independent music community as a unified voice representing a sector that, according to Billboard Magazine, comprises 34.6% of the music industry’s recorded music market share in the United States (and almost 40% of SoundScan digital album sales). The organization represents the Independents’ interests in the marketplace, in the media, on Capitol Hill, and as part of the global music community.

As of July 4, 2014, the organization’s board of directors will be composed of the following: Razor & Tie President Craig Balsam, Concord Music Group President Glen Barros, Secretly Label Group Head of Domestic Sales & Marketing Cathy Bauer, Smithsonian Folkways Director of Marketing & Sales Richard Burgess, Epitaph/Anti- General Manager Dave Hansen, Hopeless Records Owner Louis Posen, Dualtone Music Group CEO/Co-Founder Scott Robinson, Kill Rock Stars Owner/President Portia Sabin, Glassnote Records General Manager Chris Scully, Ole SVP Digital Jim Selby and Tommy Boy Owner/CEO Thomas Silverman. A2IM’s president’s advisory committee is Loma Vista Label Manager Josh Berman, Mack Avenue Records President Denny Stilwell and Compass Records Group Co-Founder Garry West. A2IM’s Worldwide Independent Network lead representative is Wind-up Records General Manager Alan Galbraith.
www.a2im.org