BMG extends licensing to Africa

Other territories involved in the deal include the Middle East, Turkey and Russia. The company had been involved in licensing Anglo-American repertoire to 38 European countries through GEMA subsidiary, Anglo-American Rights European Service Agency (ARESA). The new deal adds 48 more territories.

“Ensuring songwriters get the money they deserve in the streaming age is a simple concept but an incredibly complicated process," said BMG CEO Hartwig Masuch.

"We are delighted to extend our relationship with GEMA through ARESA to make sure BMG’s writers continue to receive a world-class service. Under our previous deal BMG already reached a potential 531 million music fans through ARESA, but this new extension of our relationship takes that to more than 1.8 billion."

In a related development, BMG's agreement with GEMA through ARESA has also been extended till 2021. Apple, Facebook, Spotify, Amazon, Spotify, and Deezer are among ARESA's licensees. The ARESA structure will help in the payments process working with BMG writers; it also simplifies licensing for music users.

“Licensing digital services with GEMA through ARESA benefits our writers in terms of speed, efficiency and transparency. It also makes life easier for music users by providing a one-stop-shop for the mechanical rights of our Anglo-American writers,” said BMG General Counsel Ama Walton.

“For six years, GEMA has, together with BMG, been facilitating a transparent and efficient licensing process for Anglo-American music all over Europe," said GEMA CEO Harald Heker.

"I am pleased that we continue this successful cooperation and now also expand it far beyond Europe’s borders. We have a strong partner in BMG in order to meet the challenges of digital music licensing and to develop up-to-date licensing models.”

MD ARESA Kaspar Kunisch said: “Digital music exploitation and the diversification of digital music services are fast-paced. In order to allow composers and lyricists to participate in the financial remuneration from the streaming and download sectors in the best possible way, we need flexible and innovative solutions.”