MTV resumes talks in video payments row

Music channel MTV is heading back to the negotiating table in a bid to break the deadlock over payments to show videos by independent labels.

Scores of companies, representing acts including Travis, Mis-Teeq, Basement Jaxx, the White Stripes and Craig David, have protested about plans to change royalty fees.

The UK and European independent labels say the new offer would mean a reduction of more than 55% in royalties, yet the videos would be broadcast over more channels and with more rights included.

Some independents have signed individual deals with MTV, but many say they want the channel to negotiate via the labels’ collection society, Video Performance Ltd (VPL).

Yesterday, following a press conference by some of the labels and with the Association of Independent Music, MTV announced it was to resume discussions.

A spokeswoman said: “Of course we want to keep independent artists on our network and support the independent community. The meeting is going to happen very, very quickly.

“We are going back to the negotiating table and hope we can come to a happy conclusion.

“Negotiations stalled, absolutely, but the door was never closed.

“We hope to come to an agreement with the VPL but we are also happy to discuss any potential opportunities with any labels that want to talk to us.”

The previous four-year licence enabled MTV Europe’s channels to broadcast European independent videos.

The labels said the new MTV offer gave them less than half the fees payable under the previous deal, and offered a pot of money totalling £840,000 (€1.3m).

And they say MTV said their videos could be pulled off air if they did not sign by March 31 – a charge MTV denied.

The MTV spokeswoman said: “We never threatened to pull their videos. MTV wanted to show their videos, we wanted to come to an agreement, the only reason not to show them was for copyright issues.

"We were looking at every possible way to keep these artists on our network – and the result is we have gone back to the table with VPL.”

In an open letter to MTV from European independent labels, issued before MTV said it would meet VPL, the record companies said: “Independent artists and record companies object to the high-handed way in which MTV is trying to reduce its costs.

“If MTV loves music and artists, this is not the way to treat them.”

It added: “Without music, MTV would not exist, and yet we get a comparatively tiny return from their use of our videos.

“We value MTV. We wish they would value us in the same way.”