Global Music Rights Has Growing Roster, Negotiating Power

The new performing rights organization, Global Music Rights, is growing in prominence. It is part of Azoff MSG Entertainment, which is a partnership between Madison Square Garden Company and Irving Azoff’s Azoff Music Management.
Former ASCAP executive Randy Grimmett is on board with Global Music Rights and according to the New York Times, the new PRO has been recruiting superstar songwriters and now controls works by Shane McAnally, Pharrell Williams, Ryan Tedder, Benny Blanco, members of Journey, Foreigner, Fleetwood Mac and Soundgarden, and the estates of Lennon and Ira Gershwin.
Global Music Rights would likely have more power than other PROs ASCAP and BMI when negotiating licenses on behalf of its members, due to the fact that it would not be subject to the same regulatory agreements that govern the more established organizations. These agreements, called consent decrees, have not been updated to take into account the digital music revolution, and therefore have led to low royalty rates for digital music performances such as streaming. According to the NYT, Global Music Rights is enticing rights holders with the promise of 30 percent higher royalties than they can get through ASCAP or BMI.
Among Global Music Rights’ negotiation advantages would be the ability to refuse permission to use its songs. ASCAP and BMI cannot refuse use because the consent decrees are designed to promote fair competition.
Meanwhile, ASCAP and BMI are fighting for changes or abolishment of the consent decrees. Read more about this in MusicRow’s new Publisher Issue.
Fellow PRO SESAC is a privately held company and therefore not subject to the consent decrees.