BMI Records Record Revenue... While Whining To DOJ That It Can't Function Under Antitrust Agreement

from the something-doesn't-add-up-here dept

Fri, Sep 11th 2015 2:07pm — Mike Masnick

As we've been discussing, the two big music collection societies in the US, ASCAP and BMI, are desperately fighting to get the DOJ to alter (or end entirely) the "consent agreement" that they operate under. The consent agreement, in various forms, has been in place for decades, after the DOJ properly recognized that in licensing songwriters' and publishers' public performance rights, they had something of a monopoly. And monopolies can be dangerous when abused. Thus the consent decree to keep the organizations in line. However, both are really angry about this, in large part because they believe that without the consent decree, they could create a world in which they could force everyone to have to pay much higher fees (you can see some of how they tried to collude with publishers to jack up rates to Pandora).

So far, the attempt to get rid of the consent decree has not been going well. It has resulted in more investigations into the publishers for collusion for one thing. The DOJ has also apparently realized that the collection society's treatment of songs with multiple copyright holders may be another anti-trust violation.

And, yet, ASCAP and BMI keep trying to convince everyone that they're suffering under this "obsolete" consent decree, and they need to have it modified greatly. BMI, in comments to the DOJ, has claimed that it's suffocating under the current system, which it says is "broken":

The digital revolution in information processing and communications has completely transformed the way music performances are heard by the public and equally changed the way in which information about music performances is collected and processed. In particular, the rise of Internet streaming as a principal way the public hears performances of music has created market needs that are now not being met because of inefficient and anticompetitive restrictions in the BMI consent decree that serve no sound purpose today.

There is an urgent need for action now. BMI agrees with the Register of Copyrights’ recent testimony characterizing music licensing as “broken,” and certain aspects of the BMI consent decree have contributed to that breakdown. The decree creates rigidities and restrictions in the way BMI must operate that undermine BMI’s efficiency as a resource for both music users and music copyright owners in the digital world. The existing rate court mechanism has proven too slow, too expensive, and too legalistic to keep up with the speed of change in real-world markets today. The need is so dire that, rather than press for comprehensive reform at this point, in these public comments BMI urges the Department to prioritize particular changes that address these immediate needs.

Things must really suck for BMI and all the songwriters who get paid via BMI, right? Oh... wait. BMI has just announced a new record in revenue collection and pay out to artists.

BMI, whose full name is Broadcast Music Inc., collected $1.013 billion for the 12 months that ended in June, up almost 4 percent from the year before. That is slightly more than the $1.001 billion that its competitor Ascap took in last year.

In the number that will be scrutinized most closely by musicians — royalties — BMI paid slightly less than its rival. After deducting its operating expenses, BMI distributed $877 million to its thousands of members, including songwriters like Taylor Swift, Nile Rodgers and Adam Levine of Maroon 5. Last year, Ascap paid its members $883 million.

Why is it paying less than ASCAP? BMI doesn't blame the broken consent decree, but rather "significant legal costs" made up mainly of its lawsuit against Pandora. In other words, something that BMI had control over. The article also notes this little fact:

Since 2005, BMI’s collections have increased about 40 percent.

So, uh, can we hear again about how "dire" the situation is and how BMI can't function, even as its revenue has grown 40% in the last decade and it's setting all kinds of new records? Did BMI think the DOJ would just ignore that bit?

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: anti-trust, antitrust, collection societies, consent decree, doj, pros, publishers, revenue, songwriters
Companies: ascap, bmi

47 Comments

If you liked this post, you may also be interested in...

Reader Comments

Subscribe: RSS

View by: Time | Thread

This comment has been flagged by the community. Click here to show it

Anonymous Coward, 11 Sep 2015 @ 2:15pm

"revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
And don't give credit to "teh internets" merely for mechanics of carrying the content, another of your dodges.

Besides that, the increase yet again proves that you pirates are simply wrong about the demise of the "dinosaur" business model. When copyright is vigorously defended, it works fine. Just quit stealing pay the pittance to support the system which works fine despite attacks from the daily anomalies here.
[ link to this | view in thread ]
Baron von Robber, 11 Sep 2015 @ 2:23pm

Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
I would never, ever, steal........but I'll infringe.
Have a nice weekend. :b
[ link to this | view in thread ]
ltlw0lf (profile), 11 Sep 2015 @ 2:33pm

Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
daily anomalies

Anomaly: n, 1. Something that deviates from what is standard, normal, or expected. synonyms: oddity, peculiarity, abnormality, irregularity, inconsistency, incongruity, aberration, quirk, rarity.

If something happens on a daily basis, it cannot be considered an anomaly.

"You keep using that word. I do not think it means what you think it means." - Inigo Montoya, The Princess Bride.
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 2:36pm

"BMI Records Record Revenue... While Whining To DOJ That It Can't Function Under Antitrust Agreement"

Yes, but they actually had to work a little for that money and they're complaining that they can't receive more money with less effort.
[ link to this | view in thread ]
This comment has been flagged by the community. Click here to show it

Anonymous Coward, 11 Sep 2015 @ 2:42pm

Re: Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
Cos stealing copyright is called infringement
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 2:51pm

Something to celebrate:
Digital Rights Withdrawal: Allow publishers to give BMI the right to license works for certain uses, while permitting publishers to retain the exclusive right to license works for other defined, digital uses. This will enable BMI to offer easy, efficient access to our wide-ranging repertoire for many traditional music uses, while allowing publishers and music users the opportunity to negotiate their own free-market digital deals.

How can this be a bad thing Mike. Instead of suing band camp like the PRS, BMI wants to allow songwriters to manage their rights themselves where they can. This needs to be applauded, not skipped over.

Always only the bad half of a story at Techdirt.
[ link to this | view in thread ]
Nigel, 11 Sep 2015 @ 2:59pm

Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
Please stop trying so hard to be completely irrelevant.
[ link to this | view in thread ]
Sheogorath (profile), 11 Sep 2015 @ 3:20pm

"BMI, whose full name is Broadcast Music Inc., collected $1.013 billion for the 12 months that ended in June, up almost 4 percent from the year before."
Of this amount, slightly less than $15 million will be distributed amongst the most famous record companies that BMI represents. It is unknown how much of that $15 million will reach the artists and bands that have earned it and how much will get swallowed up by creative accounting. Just sayin'. ;(
[ link to this | view in thread ]
Mike Masnick (profile), 11 Sep 2015 @ 3:29pm

Re: Something to celebrate:
How can this be a bad thing Mike. Instead of suing band camp like the PRS, BMI wants to allow songwriters to manage their rights themselves where they can. This needs to be applauded, not skipped over.

Except, we saw how that worked in practice. It wasn't a "free-market" situation, it created a collusion deal where the publishers and the PROs colluded to drive up prices through a fake negotiation:

https://www.techdirt.com/articles/20140323/07554026662/judge-highlights-bogus-collusion- ascap-publishers-rejecting-their-attempt-to-jack-up-pandoras-rates.shtml

https://www.techdirt.com/art icles/20140209/01061226149/details-come-out-about-how-ascap-colluded-with-labels-to-screw-pandora.sh tml

The idea that this is a free market solution involving managing their own rights is a bullshit cover story to try to create uncertainty in the market and drive up prices.
[ link to this | view in thread ]
TDR, 11 Sep 2015 @ 3:29pm

Monopolies are always dangerous. They should not be allowed.
[ link to this | view in thread ]
Sheogorath (profile), 11 Sep 2015 @ 3:31pm

Re: Re: Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
No, stealing copyright is something the NY Times engages in (under its ToS). Infringing copyright is called infringement.
[ link to this | view in thread ]
ottermaton (profile), 11 Sep 2015 @ 3:33pm

Re: \\\
[ link to this | view in thread ]
Mark Wing, 11 Sep 2015 @ 3:37pm

And all this time I believed the recording industry when it claimed that it had to go without the diamonds on their platinum Rolexes. I feel used.
[ link to this | view in thread ]
avideogameplayer, 11 Sep 2015 @ 3:45pm

They should change their name to Bowel Movement Inc. cause they keep talking shit...
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 4:19pm

Re: Re: Something to celebrate:
I'd rather be left alone as a musician to manage my own band camp/ soundcloud page than have my collection agency taking money it should be paying me to sue someone to take a cut of the money I make all by myself on band camp and then not give me it.

One problem with collection agencies is they won't be held accountable in the digital age. They collect public performance fees from cafes but won't take their playlists so the money collected from that cafe goes to the artists whose music was played under that licence. If PRS wins it's lawsuit this is what will happen with soundcloud/bandcamp, quantifiable royalties will instead go into a pool and get given to Taylor Swift, small artists will have to pay a cut to royalties they won't get back (much like the live performance fee in the US).

BMI want's to be able to give artists the chance to manage this own their own, as they see fit.

You're looking at a different agency, and a negotiation that's been done. I don't see how it relates.
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 4:28pm

Don't let the facts get in the way of a sad story.
Actually they payed out $877 million.
And FYI collection agencies pay directly to songwriters.
The Harry Fox Agency collects mechanicals, and their cut is 6%.
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 4:34pm

Re:
Oh blow it out your ass. We all know as long as you keep cashing them RIAA checks, we will never be rid of you.
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 4:38pm

Re: Re: Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
No, stealing copyright is what the record companies do (multi-license deals etc.) You're possibly thinking of unauthorized duplication of items under copyright protection.
[ link to this | view in thread ]
This comment has been flagged by the community. Click here to show it

Anonymous Coward, 11 Sep 2015 @ 4:44pm

Re: Don't let the facts get in the way of a sad story.
Mike doesn't care about facts. He just cares about bashing the copyright system.
[ link to this | view in thread ]
This comment has been flagged by the community. Click here to show it

Anonymous Coward, 11 Sep 2015 @ 4:46pm

Sorry, I meant...
Stealing copyrighted material is called infringement
[ link to this | view in thread ]
This comment has been flagged by the community. Click here to show it

Anonymous Coward, 11 Sep 2015 @ 4:49pm

Re: Re: Don't let the facts get in the way of a sad story.
That's not fair. Mike cares very much about a select group of facts that back his claims.
[ link to this | view in thread ]
That One Guy (profile), 11 Sep 2015 @ 5:29pm

Time to fire some people
If they can be making record profits, while still struggling mightily under the 'burdensome regulations', sounds like the ones running the agency need to be fired and replaced with more efficient people.

If despite heavy profits you're still having a difficult time, either you suck at your job, or your job is terribly inefficient, meaning people either need to be fired, or things need to change.
[ link to this | view in thread ]
Mike Masnick (profile), 11 Sep 2015 @ 5:44pm

Re: Don't let the facts get in the way of a sad story.
Actually they payed out $877 million.
And FYI collection agencies pay directly to songwriters.
The Harry Fox Agency collects mechanicals, and their cut is 6%

I'm curious what any of this has to do with the story?

The $877 million number is mentioned in the article.
[ link to this | view in thread ]
Sheogorath (profile), 11 Sep 2015 @ 5:46pm

Re: Re: Re: Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
Under its ToS, the NY Times states that users hand over the copyright of anything they post to the paper and waive their moral rights (which exist in written works in Europe). What part of that isn't stealing copyrights when no consideration is offered in return?
You're possibly thinking of unauthorized duplication of items under copyright protection.
No, I think of that when I hear/read the term 'copyright infringement'.
[ link to this | view in thread ]
Sheogorath (profile), 11 Sep 2015 @ 5:49pm

Re: Don't let the facts get in the way of a sad story.
I guess a sarc mark isn't enough for some people.
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 5:56pm

Re: Re: Don't let the facts get in the way of a sad story.
It's a reply to shemans dumb post above
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 6:10pm

Re: Re: Don't let the facts get in the way of a sad story.
Bawk!
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 6:12pm

Re: Re: Re: Don't let the facts get in the way of a sad story.
Also known as the truth.
[ link to this | view in thread ]
JoeCool (profile), 11 Sep 2015 @ 7:04pm

Re: Re: Don't let the facts get in the way of a sad story.
I almost missed that myself, so I don't blame him - I blame a lack of caffeine. That would be an interesting study - how many flame posts vs how much coffee (and when) consumed. :)
[ link to this | view in thread ]
Anonymous Coward, 11 Sep 2015 @ 7:43pm

Re: Re: Re: Don't let the facts get in the way of a sad story.
I just saw wilful ignorance. Sarcasm relies on a grasp of the facts.
[ link to this | view in thread ]
Sheogorath (profile), 11 Sep 2015 @ 8:54pm

Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
Sometimes, sarcasm relies on ignoring the facts (the true definition of ignorance). So that would be your wilful ignorance, wouldn't it?
[ link to this | view in thread ]
Mike Masnick (profile), 11 Sep 2015 @ 9:08pm

Re: Re: Re: Don't let the facts get in the way of a sad story.
It's a reply to shemans dumb post above

Oh. You changed the title so I didn't see it.

Also, er, maybe get you sarcasm meter checked. That was pretty clearly sarcasm.
[ link to this | view in thread ]
Anonymous Coward, 12 Sep 2015 @ 1:56am

Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
Says the guy whose headline reads "BMI Records"

One fool to another eh mike?
[ link to this | view in thread ]
PaulT (profile), 12 Sep 2015 @ 6:56am

Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
The title said that because it was noting what BMI recorded, which was a record level of revenue. Is there a problem with that, or do you need lessons in reading comprehension?
[ link to this | view in thread ]
Mike Masnick (profile), 12 Sep 2015 @ 7:06am

Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
Says the guy whose headline reads "BMI Records"

One fool to another eh mike?

What's the problem with the headline? It's entirely accurate, BMI has recorded record revenue.

So now are we going to have to suggest checking your reading comprehension in addition to your sarcasm meter?
[ link to this | view in thread ]
Anonymous Coward, 12 Sep 2015 @ 12:39pm

Re: "revenue has grown 40% in the last decade" -- This is again your characteristic dimensionless number. How much more has listening to BMI products increased?
No, I think the point is that being forced to adapt and work with businesses like Pandora and other services that make things easier, more convenient, and more affordable for users to obtain what they want is very sustainable despite BMI's claims to the contrary. They complained that being forced into the future, that new technologies, would destroy them. They claimed that giving people what they want in a form that's more convenient and affordable will destroy them. It didn't. If anything it was those that innovated around them that helped sustain them. If only BMI didn't waste so much fighting against Pandora they could have given more money to artists. But, instead, they chose to put their own private interests over that of the artists they are supposed to be helping, as expected.
[ link to this | view in thread ]
Anonymous Coward, 12 Sep 2015 @ 1:00pm

Re: Re: Re: Something to celebrate:
"BMI want's to be able to give artists the chance to manage this own their own, as they see fit."

No, they want to be able to collude on prices. and copy protection laws shouldn't be about the 'artists' they should be about the 'public'. Allowing for such collusion is harmful for the public. The very point of anti-trust laws is to prevent increased prices due to collusion. Sure, this may harm 'artists' (or publishers and copy protection holders) but the point of anti-trust laws is to ensure a more competitive market so the public benefits. Yes, in a sense that is a government distortion into a free market but, lets not forget, this government distortion is required because of another government distortion (copy protection laws). The least we can do is to minimize the negative social impact of those copy protection laws.

Anti-trust laws are exactly designed to prevent companies from operating 'as they see fit' (ie: collude and increase prices). This maybe bad for the company but it's good for the public.
[ link to this | view in thread ]
Anonymous Coward, 12 Sep 2015 @ 1:02pm

Re: Something to celebrate:
"How can this be a bad thing Mike. Instead of suing band camp like the PRS, BMI wants to allow songwriters to manage their rights themselves where they can. This needs to be applauded, not skipped over.

Always only the bad half of a story at Techdirt."

Again, anti-trust laws are not about the 'song writer' or the 'artists' or the copy protection holders or the collection agencies. They're about the public. Yes, they come at a 'cost' to those wishing to otherwise collude and jack up prices but their exact purpose is to prevent companies from doing something that would harm the public.
[ link to this | view in thread ]
Anonymous Coward, 12 Sep 2015 @ 1:03pm

Re: Re: Re: Re: Something to celebrate:
(that is companies and groups of people trying to collude on price from operating 'as they see fit').
[ link to this | view in thread ]
Shill, 12 Sep 2015 @ 3:45pm

Re: Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
"So now are we going to have to suggest checking your reading comprehension in addition to your sarcasm meter?"

Please excuse him, he's been off his meds.

(Sheesh, where does my shilling organization get these guys).
[ link to this | view in thread ]
Shill, 12 Sep 2015 @ 4:22pm

Re: Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
OK, so I have been put in charge of the hiring process for my shilling organization. I've been interviewing various applicants and have been having a very difficult time finding someone suitable for the position. Here are the interview requirements

1: Must be sober during the interview

2: Can't be high on illegal drugs during the interview

3: If you are on any meds you can't be off your meds during the interview

Job duties

1: Shilling for various organizations on social media and message boards such as Techdirt

Job requirements

1: Must be sober while shilling

2: Must not be high on illegal drugs while shilling

3: If you are on any meds you must be on your meds while shilling.

Recommended qualifications (not required)

1: High school diploma

2: You're not a drug addict

3: You're not an alcoholic

If you meet these qualifications please give me a call as I have been having a very hard time finding suitable candidates. Thanks.
[ link to this | view in thread ]
Sheogorath (profile), 12 Sep 2015 @ 9:13pm

Re: Re: Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
I think I'd qualify for the position, but I'll have to turn it down on the basis that the companies interested in hiring your organisation tend to be against creative freedom.
[ link to this | view in thread ]
Anonymous Coward, 13 Sep 2015 @ 7:42am

All I hear is Wah Wah Wah we only made a billion dollars Wah Wah Wah.

Bunch of crybabies.
[ link to this | view in thread ]
Shill, 13 Sep 2015 @ 9:14am

Re: Re: Re: Re: Re: Don't let the facts get in the way of a sad story.
I'm not sure who hired you but remember the job requirements. See

Shill, Sep 12th, 2015 @ 4:22pm

Please keep them in mind before posting. If you want to be drunk, high, or off your meds you can do it on your own time. but before posting please make sure you are sober, not high, and on your meds.
[ link to this | view in thread ]
Anonymous Coward, 13 Sep 2015 @ 9:44pm

Re:
Not sorry enough. Stop lying.
[ link to this | view in thread ]
Anonymous Coward, 14 Sep 2015 @ 9:54am

Bastards Make Idiots BMI
[ link to this | view in thread ]
This comment has been flagged by the community. Click here to show it

Anonymous Coward, 14 Sep 2015 @ 11:09pm

Re: Re: Re:
You two want to get a hotel room so you can stroke each other's e-dicks? Just a note, remember to use your Ashley Madison logins so your wives can know about your insatiable Masnick mancrushes.
[ link to this | view in thread ]