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Last Updated: Wednesday, 24 March, 2004, 17:06 GMT
MTV may lose videos in cash row
Mis-Teeq
Mis-Teeq's label Telstar is involved in the royalties row
MTV may stop broadcasting music videos by artists including The White Stripes, Basement Jaxx and Mis-Teeq in Europe in an argument over royalties.

More than 288 independent record labels have refused to accept a 55% cut in royalty payments offered by MTV.

As a result videos by their artists may disappear from MTV's European channels including VH1, TMF and MTV itself.

In a letter to the network, the record labels said: "We value MTV - we wish they would value us in the same way."

The labels said MTV has threatened to withdraw their videos from its programmes if an agreement is not reached by 31 March.

The labels provide MTV with its core content and so should be effectively recompensed at competitive commercial rates
Independent record labels
"Independent artists and record companies object to the high-handed way in which MTV is trying to reduce its costs," they wrote in the open letter.

"No-one denies that play on MTV may be beneficial, but it should be recognised that the labels provide MTV with its core content and so should be effectively recompensed at competitive commercial rates."

In reply, MTV Europe president Brent Hansen said he did respect and value independent artists and labels - and would return to the negotiating table "in a genuine effort to reach a resolution".

But he was still "convinced at the strength of our case - and unconvinced by the arguments and tactics" of the independent labels, he said.

Our goal... is to ensure that all good music, including independent artists and repertoire, retain their unique position on our network
Brent Hansen
President, MTV Europe
"This is not just about the money - our invaluable relationships with the independent music community dictates that this is the right course," he wrote in an open letter.

"Our goal, as always, is to ensure that all good music, including independent artists and repertoire, retain their unique position on our network."

The dispute stems from a 1998 deal, in which labels including Beggars Banquet, Telstar, Ministry of Sound, Rough Trade and XL Recordings signed a 1.9m contract to have their videos shown across MTV Europe's channels.

When this contract expired, the labels were offered reduced royalties of 840,000, which they refused.

Independent labels account for 22% of Europe's music market. Craig David, Feeder, Franz Ferdinand, Moloko, So Solid Crew and Travis are among the artists signed to labels involved in the dispute.


SEE ALSO:
MTV event hits high economic note
15 Mar 04  |  Scotland
MTV back on as firms halt dispute
11 Mar 04  |  Business
Stars perform at MTV Asia Awards
15 Feb 04  |  Entertainment
Janet upset sees MTV move Britney
10 Feb 04  |  Entertainment
MTV Burma campaign to avoid Asia
17 Dec 03  |  Entertainment


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