This powerhouse combo is a strategic move in the music industry’s present-day shift from sales to streaming. HFA, a prime dealer of songwriting rights, had been losing revenue despite its recent attempts to tackle publishing in the digital world. However, SESAC, a performing rights organization that siphons its income from radio plays, streaming, and the likes, has been profiting steadily over the past few years.
“What excites us about this transaction is the ability it provides to 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.”
The deal also gives SESAC an upper hand on its competitors. With mechanicals now under their belt, SESAC will have access to useful analytics about digital platforms such as Apple, Spotify, and Pandora. However, this edge is only temporary – PROs ASCAP and BMI are expected to secure licensing for mechanicals once the Department of Justice confirms a looser grip on their consent decrees. (This wouldn’t have applied to the privately owned SESAC).
What does this mean for the future of the industry? Larry Miller, a music business professor at NYU predicts, “If the SESCA-HFA deal goes through, it may signal the start of a new cycle of competition, consolidation and deal-making in the global music rights industry.”
The terms of the SESAC-HFA deal have not been disclosed yet, as they still need to be approved by the members of the NMPA.
Music Publishing Deal Driven by Shift From Sales to Streaming
SESAC Buys the Harry Fox Agency
SESAC Is Acquiring the Harry Fox Agency…