SOCAN sells mechanical agency Audiam to HFA owner SESAC

By Emmanuel Legrand

Canadian rights society SOCAN has sold music publishing digital rights reproduction collection agency Audiam to Nashville-based music rights organisation SESAC.

  Financial terms of the transaction were not disclosed. SOCAN will retain a 15% minority share in Audiam, according to Billboard. The company, founded in 2013 by TuneCore founder and former CEO Jeff Price, will remain under the leadership of Jamie Purpora, who has been at the helm of the company since 2015.

  SOCAN bought the company in 2016 as part of a strategy to diversify into other streams of revenues, in this case mechanical rights. Audiam provided one-stop licensing and collecting in North America for mechanicals, with a particular emphasis on YouTube.

A strategic partner and capital supporter

  “SOCAN is delighted to complete this agreement with SESAC," said SOCAN CEO Jennifer Brown. "Since our acquisition of Audiam in 2016, the organisation has exceeded expectations, but the time is right for Audiam to continue its next phase with a new parent organisation. We look forward to seeing this new chapter for Audiam as the organisation benefits from new synergy with SESAC.” 

  SESAC Chairman and CEO John Josephson said SESAC was acquiring Audiam "with the intention of supporting the existing management team," and to act as "a supportive strategic partner and capital provider." He said he anticipates "a seamless transition in ownership with no disruption to the Audiam business activities as a result of this transaction."

  SESAC also operates mechanical rights unit the Harry Fox Agency (HFA), which was acquired from the National Music Publishers’ Association (NMPA) in 2015, and which has been selected as one of the vendors to the newly-created Mechanical Licensing Collective, The MLC, to provide back office functions.

Position SESAC for enhanced growth

  Added Josephson: "Going forward, we believe this will position SESAC well for enhanced growth of our multi-rights, multi-territory global rights management business and continued delivery of best-in-class service to our affiliates, licensees and commercial partners.” In an interview with Billboard, Josephson suggested that Audiam could also pivot to become a collection agency for recorded music rights or neighbouring rights.

  Reacting to the news, Price, who left Audiam last year, said in a statement that by acquiring Audiam, "the Harry Fox Agency is eliminating competition and removing the sole entity that revealed HFA’s lack of payments to copyright holders as well as its role in widespread copyright infringement.”

  Price said that through Audiam’s daily auditing of HFA, Audiam has revealed "HFA’s incorrect payment amounts, underpayments and/or complete lack of payments to songwriters and music publishers globally." 

Offering an alternative to songwriters and publishers

  He continued: "With this acquisition, HFA neutralises the sole entity that exposes its own actions."

  Price founded in 2020 Word Collections, a rights licensing and collection agency for comedians and non-musical literary work. Price wrote on Twitter that he plans to expand World Collections  into music collections, explaining that with HFA and Audiam under the same roof, songwriters and publishers "need a place to go."