SoundExchange Expands Mission With Acquisition Of CMRRA, The Harry Fox Of Canada
SoundExchange has broaden its mission with the acquisition of the Canadian Musical Reproduction Rights Agency Ltd. (CMRRA), a licensing collective representing 85% of songs recorded and broadcast in Canada.
SoundExchange has acquired Canadian Musical Reproduction Rights Agency Ltd. (CMRRA). The music licensing collective represents 85% of all songs recorded, sold and broadcast in Canada on behalf of music publishers. This move marks SoundExchange’s first expansion into the collective management of music publishing rights.
CMRAA offers the Canadian music industry services similar to those of The Harry Fox Agency (HFA) in the US. HFA was itself bought by performing rights organization SESAC in 2015.
Clients in both countries should see little immediate change; and the organizations will, at least for now, continue to operate separately.
Over time, SoundExchange hopes to use CMRRA to offer a broader range of services to rights holders in both sound recordings and music publishing across all of North America. The acquisition could turn SoundExchange into a "one-stop shop" for rights owners to identify and track their interests in both sound recordings and publishing via a single organization.
Short Term Gains
In the short term, the acquisition should help SoundExchange's balance sheet, as direct label deals halve the funds flowing through the digital music performing rights organization from Pandora.
For CMRRA, the acquisition will make it more visible outside of Canada and help attract international songwriters and music publishers not yet be aware that reproduction royalties are available for them in Canada or how to access them.