New digital music contracts inked in the UK

UK RECORD COMPANIES have hammered out an agreement over flogging music online, according to the BPI.

There had been a deep base rumbling from musicians over the amount of cash the record companies were taking from online sales.

Some labels were taking 97 percent of sales even though they didn't even have to make a CD to sell it online.

The three-year deal was agreed between the MCPS-PRS Alliance representing songwriters, composers and music publishers, British recorded music trade association the BPI, iTunes and four UK mobile network operators, O2, Orange, T-Mobile and Vodafone.

Musicians and composers get eight percent of Gross Revenue less VAT when their music is offered in a digital environment. On demand sales will see them only get 6.5 percent for non-on-demand services.

Both sides have apparently welcomed the agreement, which is being touted to help drive the on-going growth of the legitimate digital music market.

However, it does mean that even with the likes of iTunes taking a cut for distribution, the record labels are still getting huge wodges of cash for doing sod all. µ

L'INQ
BPI