Tag - BMI
Apple's 90-second iTunes sample deal has already been reached with major music labels but is simply being pushed on indies, tips from the inside revealed today. EMI, Sony, Universal and Warner have all reportedly signed off so far along with some individual publishers, while the blanket notice to smaller labels was sent without them having reached an agreement. Labels talking to CNET couldn't provide detailed comment but, in two cases, agreed Apple was using hardline tactics by making labels automatically accept the deal just by staying in the store.
Apple's plans for minute-long iTunes samples may have been thwarted by the sheer number of deals it needed, both official and unofficial sources divulged Tuesday afternoon. Although all the music labels themselves are still reported by CNET as onboard, Apple had yet to clear both Broadcast Music Inc.'s performance rights and the National Music Publishers Association's rights. The NMPA brought Apple's plans to a halt a day before last week's music event after lawyers told association CEO David Israelite that a formal deal was essential.
Music royalty groups ASCAP and BMI are pressing online music stores like Apple's iTunes to pay performance fees not only for actual song downloads but also videos and even the 30-second samples used to preview the music in advance. While these stores already pay the distribution fees for the songs themselves, ASCAP, BMI and labels claim that just downloading and playing the content also counts as a live performance and should bring an extra fee.