Nordic CMOs Discontinue Polaris Hub Alliance
The Nordic collective management organizations (CMOs) Koda (Denmark), Teosto (Finland) and Tono (Norway) have decided to discontinue their joint venture, Polaris Hub, established in 2019, to licence digital music services. Teosto is now exploring new solutions for the licensing of its repertoire to digital music services.
On behalf of the three owner organizations as well as Icelandic STEF, the Polaris Hub has negotiated competitive licensing agreements, developed innovative solutions, and streamlined processes, resulting in strong agreements, reduced costs and efficient administration.
The licencing agreements entered into under the joint venture include major major global platforms such as Spotify, YouTube, Meta (Facebook and Instagram), Apple Music, Tidal, SoundCloud, TikTok, and others.
Cooperation on a Nordic scale no longer sufficient
After careful analyses, the organizations have nonetheless concluded that in today´s increasingly competitive, complex and scale-driven music ecosystem, cooperation on a Nordic scale is no longer sufficient. The Board of Polaris Hub has accordingly decided to initiate a phased wind down of the venture in an orderly manner around the turn of 2025–2026.
“Polaris Hub has achieved remarkable results for our rightholders in licensing multi-territorial music services. However, the rapidly evolving market requires us to proactively enhance our capabilities to meet future challenges and ensure the best outcomes for our members”, says Risto Salminen, Teosto CEO.
As part of the Polaris collaboration, a Danish company Network of Music Partners (NMP) has handled data administration, reporting, and invoicing for digital music services on behalf of the four rights organizations. In connection with the discontinuation of Polaris Hub, the agreement will also be concluded.
New Strategic Opportunities
Although the Polaris Hub will be discontinued at the turn of the year, the licensing agreements entered into under the company will remain in effect until the expiry of their contract periods. The change will not affect the collection or distribution of rightsholders’ royalties.
The discontinuation of Polaris Hub opens the door to new strategic opportunities. Teosto is now exploring alternative solutions aimed at strengthening its international online licensing capabilities to meet the demands of complex and rapidly evolving market environment and to secure a robust foundation for future success of our members. New licensing arrangement will be announced later this year.
For further information visit:
polarismusichub.com
koda.dk,
tono.no
