Celebrating 20 years of the landmark VPL and MTV deal: a win for independent music
Reflecting on two decades since VPL and MTV Network Europe reached a historic agreement that reshaped the landscape for independent music videos.
April 1, 2024, marked a significant milestone for the music industry: the 20th anniversary of the crucial licensing deal between MTV Network Europe (MTVNE) and Video Performance Limited (VPL), PPL’s sister company that licenses music videos when they are played in public or broadcast on TV.
This landmark agreement came after a tense and public dispute that nearly saw independent music videos disappear from MTV’s channels.
As we reflect on this historic deal, it is important to appreciate its impact on the music industry and the vital role it played in how independent music is used and showcased today.
The context and the conflict
In the early 2000s, MTV was a dominant force in music television, reaching millions of households across Europe. However, the network found itself in a contentious negotiation with Indie companies over the royalties paid for broadcasting music videos from independent labels, after it refused to continue to have a blanket licence from VPL.
As well as wanting to go direct to labels, MTV sought to significantly reduce the overall payments made to the Indie sector, leading to a standoff with the indie labels, who, represented by British trade body AIM and European sister organisation IMPALA, refused to enter into direct licensing discussions, insisting on licensing via VPL.
The last-minute resolution
With the threat of a boycott looming, the negotiations reached a critical juncture. A week before MTV would have been required to remove all Indie videos from its channels it decided to negotiate with VPL once again. There was just one week left to reach a suitable licensing agreement, when these deals usually take months to negotiate.
A licence agreement was needed by the end of 31 March to enable MTV to continue to use Indie videos, and a deal was signed in the early hours of the morning of 1 April, 2004. The agreement allowed independent music videos to continue to be featured across MTV’s channels. The resolution was hailed as a victory for independent labels, allowing them to maintain their presence on one of the most influential music platforms of the time.
MTVNE President/CEO Brent Hansen expressed the network’s commitment to indie music, stating at he time: “By signing this deal, we are making a firm statement of our unwavering commitment to indie artists and labels, and affirming their value and importance to us and our business.” This sentiment was echoed by VPL Chairman and CEO Fran Nevrkla OBE, who highlighted the mutually beneficial partnership that dated back to MTV’s launch in Europe.
The key players
The negotiation was spearheaded by influential figures in the industry. Martin Mills, Chairman of Beggars Group, and Alison Wenham, then CEO of AIM, led the campaign for the independent labels.
On the VPL side, Tony Clark, David Harmsworth and Peter Leathem OBE, who is now the CEO of PPL, played pivotal roles. Sadly, Tony and David have both passed away due to bowel cancer, but the dedication and expertise of these individuals were crucial in reaching a favourable outcome.
Reflecting on the negotiations, Peter shares: “Martin and Alison’s ability to hold together the Indie Music community across Europe was no mean feat and came down to the enormous respect they both had across the music industry. I am delighted that MTV reviewed their approach to licensing based on the feedback from the Indie sector and that we have maintained an excellent working relationship with MTV over the last 20 years.”
The lasting impact
The 2004 agreement was not just a temporary fix; it laid the foundation for a sustained relationship between VPL and MTV. The deal has since been renegotiated multiple times, continually ensuring that independent labels receive fair compensation for their contributions to MTV’s programming.
Over the past two decades, this partnership has generated tens of millions of pounds for independent artists and labels across Europe, helping to support a vibrant and diverse music ecosystem.
A celebration of independent music
As we mark the 20th anniversary of this landmark deal, it is important to recognise its impact on the music industry. The agreement between VPL and MTVNE preserved a crucial platform for the consumption of independent music, allowing countless artists to reach a wide audience. This anniversary serves as a reminder of the power of collaboration and the importance of standing up for the value of music.
