April 2005
Dear Songwriter & Composer:
The enclosed royalty statement is the first to feature our new radio payment methodology. We believe the innovations incorporated in our radio payment system will give all BMI writers, composers and publishers the advantages of the most recent achievements in digital technology and radio airplay measurement. The new system also assures that BMI will be able to continue to create the highest value for your music by offering our licensees a competitive source of music and an unmatched repertoire for the American public.
The first section of your BMI royalty statement, labeled “U.S. Performance – Commercial Radio,” lists songs aired, the number of times each song aired, the performance period during which each song was used and royalties earned in each of the new categories: Current Activity Royalties, Hit Song Bonus Royalties and Standards Bonus Royalties. A Total Royalty Amount is provided for each song and a grand total of royalties earned in each of the new categories is provided at the end of this section.
The latest and most recent information on all BMI royalty payments is always available on BMI’s website, at http://www.bmi.com/royalty, where you will find the full text of the current BMI Royalty Information Brochure. BMI affiliates may also request a printed copy of the Royalty Information Brochure by calling 212-830-8346 or sending an email with your name and current mailing address to requestRIB@bmi.com.
Should you have questions about these enhancements or any of BMI’s royalty policies, please contact your BMI Writer/Publisher representative, or send your question via email to royalty@bmi.com.
MobZilla Pact
We are pleased to report that BMI has reached an agreement with La Jolla, CA-based wireless media company mobZilla, LLC covering the performing rights for BMI musical works for mobZilla’s mobile phone streaming music service. MobZilla is a monthly subscription service that gives users unlimited access to streaming commercial-free music both online and on select mobile phones across most major U.S. carriers. MobZilla subscribers nationwide can listen to a mix of music personalized from over 30 content genres through their mobile phone or on the Internet. Payments from this pact will be reflected in future royalty distributions as license fees are collected.
This new agreement highlights BMI’s ongoing efforts in licensing mobile technologies, including cell-phone ringtones and ringbacks. As of fourth quarter 2004, BMI has processed more than 275,000,000 ringtone transactions through its percentage-of-revenue license agreements. BMI distributes ringtone royalties from census-based reporting received from more than 225 different outlets offering ringtones for sale.
New Muzak Agreement
BMI has also signed an agreement with Muzak LLC (parent company of Muzak and the Muzak Affiliate Group) that will significantly increase the fees BMI receives from the background music services. Muzak and its affiliates represent approximately 60% of the businesses subscribing to background music services.
In addition, we have negotiated interim license agreements with both XM and the Sirius Satellite Radio Networks. These licenses insure substantial payments with these fast-growing services while we continue to negotiate final agreements.
BMI To Represent Vast Catalog of Chinese Music
In a precedent-setting international pact, BMI has reached an agreement to represent the performing rights to a vast catalog of Chinese music that has never been exposed to world markets. The agreement was signed between CRC Jianian Cultural Development, a company charged with exploiting to the world the publishing and mechanical rights of the state-controlled China Record Corp. CRC Jianian also will manage the use of Western copyrights in China. The agreement marks the first time any of the songs have been registered with any performing rights society in the world.
I’d like to remind you once again that songwriters, composers and individually owned publishers can now update their contact information through bmi.com. Using this feature, part of the array of digital tools BMI offers its affiliates, is quick and easy and insures your statements will reach you in a timely manner. To get started, visit the online services area of bmi.com.
Sincerely,
Del Bryant
President
Chief Executive Officer