Musicians Making Lots Of Money, Money, Money...
from the but-wait... dept
Jeremiah writes "Amidst the public ballyhoo about how rampant P2P piracy is costing the music business its very life (gasp! NO!), BMI announced it collected a record level of revenue and royalty payout to its artist members. From their press release: "BMI has reported revenues of $673 million for the 2004 fiscal year, an increase of nearly $43 million, 6.8% over the prior year. Royalties of more than $573 million were distributed to our songwriters, composers and music publishers, an increase of $40 million or 7.5% from the previous year, and the most ever paid by an American PRO." Another interesting tidbit: "During the period 1995-2004, BMI had an average annual revenue growth rate of 9%..." If I read this right, BMI has been reporting solid growth over the last nine years, which makes me question the industry's claims about P2P. Either P2P ate into their growth (not mentioned), they found a way to cope with it (plausible), or it may actually help music sales. Whatever. Reminds me a bit of a spec I did for a life-insurance company's radio ad: Money, Money, Money (mp3 file)."
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No Subject Given by John Dowdell on Sep 3rd, 2004 @ 3:22pm
Any word on the distribution curve of payments? If Britney Spears Inc. got money from a Flaco Jimenez recording sale, for instance, then that would not be good. How many creators received how much from the gatekeepers, and what were the comparative ratios compared to sales...?
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The Curve by Jeremiah on Sep 3rd, 2004 @ 4:09pm
JD - that's a good question. As a BMI member, i've known for years the potential existed for us lesser artists to be handing money to the B. Spears & Co. via BMI's mystical royalty equation.
For instance, plays are rated on a market system, where markets are graded A-F. Someone who has 300 plays in an "A" market will be paid more than someone with 1000 plays in "D", "E" or "F" markets. This would explain the persistence of payola (ahem: "independent radio promotion") in the business, as being able to bump an artist into an "A" market holds vast commercial consequences.
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Revenue, royalty, and expense by bob on Sep 4th, 2004 @ 4:27am
I think I want to be a BMI executive. They took in 673M and distributed 573M, leaving 100M for expenses like collecting play information, lawyers, salaries, rent, and office parties. Given that most of their data collection is handled by the customers (e.g., radio stations, etc.), and the legal work that goes beyond a threatening letter is small, I'd think that office party budget would be pretty substantial. Of course, I may have underestimated the political contribution fund.
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Re: The Curve by 2fic on Sep 4th, 2004 @ 8:34am
any chance you'll submit this to Slashdot? If not I'd be happy to do so anonymously, that crowd would go bonkers for this...
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Re: The Curve by Jeremiah on Sep 5th, 2004 @ 11:43am
I don't have a /. login, so go for it 2fic!
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NY Times Article, BMI-ASCAP-SESAC by Xueilonox on Sep 7th, 2004 @ 11:04am
Here is an older article from earlier this year that shows this isn't really a recent trend.
http://www.nytimes.com/2004/01/26/business/media/26tune.html?pagewanted=2&ei=5007&en=934 fcbb939d52a31&ex=1390539600&partner=USERLAND
Lots of good quotes but here is the one I like:
"The bottom hasn't dropped out of the performing rights business," [Frances W. Preston, the president of B.M.I.] said. "They look to us for their royalties because the record company royalties, in some cases, are almost nonexistent."
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