The rumor has been around the mill for over a year. Today that changed. SESAC, one of the three performing rights organizations in the US and the only one which does not operate under a consent decree, has closed the deal to purchase the Harry Fox Agency, the largest mechanical royalties collection service in the US. What does this mean for the rights users and the rights owners? In theory, the licensing process should simplify which could lead to financial benefits for the rights owners and fewer administrative headaches for the rights users.
According to SESAC chairman and CEO John Josephson, “[The current model] is a complex, opaque and currently inefficient licensing regime that fails to deliver the best outcomes for creators and publishers, as well as end users. [The new model created by the merger will] make the licensing process both simpler and more efficient, and in so doing create additional value for music creators and publishers, as well as the digital music platforms.”
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