Exclusive: HFA Raising Its Commission to 11.5 Percent…

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HFA (Harry Fox Agency) is increasing their commission to 11.5 percent. The following letter was sent out by HFA to clients today (January 20th). A DMN source shared the letter, stating that commission is currently 8.5 percent:

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Notice of Commission Change

Dear HFA Publisher or Society:

The Board of Directors of HFA has recently completed a review of the funding needs of HFA. In order to continue to act effectively as your licensing agent, we have concluded with our Board’s approval that we must increase our commission to 11.5%, effective April 20, 2015.

In accordance with the authorization executed by each publisher upon engaging HFA as its agent, this letter constitutes formal notice of the commission rate change described above. As per the authorization, unless we receive written notice from you on or before March 21, 2015 terminating your relationship with HFA, as of April 20, 2015, you will be deemed to have accepted the new commission rate.

In the face of a declining music market, we consistently manage our operations to provide you with the best possible service. This change in commission will allow HFA to continue to support the business interests of the publishing community, and I hope that you will continue to rely upon HFA for your licensing needs. If you have any questions, please email clientservices@harryfox.com and include your publishing company name and publisher number, which you will find on your check vouchers and statements.


Michael Simon
President & CEO

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5 Responses

  1. Remi Swierczek

    With monetization stream shrinking and shrinking soon they will need 77% commission! …. or we convert Radio, streaming, bar, restaurant, McDonald …and Starbucks …and Nordstrom …and cars …and elevators to simple discovery based MUSIC STORES.

    Stupid Google is the only one preventing us to cash in to this no-brainer $100B jackpot!

    Hey Google $50 YouTube as a hub of $100B music industry is much better than $5B music to advertising marmalade! Call me for free advice at any time.

  2. Rodney

    I’m not a conspiracy kind of guy, but it has always been curious to me how HFA is just a jumbled version of FHA.

  3. Irving Mindreader

    I like Michael Simon personally, and sympathize with his (arguably impossible) task of bringing HFA into the 21st century.

    That said, their mantra of “Rights. Simplified.” is painfully out of place. If anything, HFA are known as the DMV of music rights — dense, slow, bureaucratic, and complicated.

    Raising prices while others like Crunch Digital and MRI are eating their lunch is…risky…to be polite.

  4. Versus

    Disgusting. So music creators are already hurt by a shrinking market, and then the companies that are supposed to represent musicians compensate by taking even more money from the musicians.

    Dear Mr. Fox:
    Wrong answer. Do something about the shrinking market instead.

    The noble thing to do would be to REDUCE your commission when musicians are down and out.
    Think: tax brackets which increase for higher incomes.
    Think: Steve Jobs taking a $1 salary when Apple was in trouble.

    (P.S. Is Harry Fox a monopoly?)