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Era is considering the radical step of asking the MCPS-PRS Alliance to raise the royalty rate for covermount CDs, as the row over newspaper giveaways escalates.
The retailers' association's co-chairman Paul Quirk last week sent an open letter to Music Week, urging labels and artists to resist covermounting.
Quirk adds that Era will be meeting with the BPI, the MMF and representatives from labels to discuss the practice, with retailers voicing serious concerns that it has a negative effect on CD sales. (see diary, p17). However, taking action over royalties would arguably represent the most radical plan to date to tackle the issue.
At present, royalties for covermount CDs are covered by two separate sets of conditions: AP7 for magazines and AP7N for newspapers. The fee is calculated by a royalty rate of presently 6.5% multiplied by the base price of the publication, then multiplied by the number of ...