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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The Curve
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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Re: The Curve
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Re: The Curve
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Revenue, royalty, and expense
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NY Times Article, BMI-ASCAP-SESAC
http://www.nytimes.com/2004/01/26/business/media/26tune.html?pagewanted=2&ei=5007&en=934fcbb939d 52a31&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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