March 2012
Dear Songwriter, Composer and Publisher:
As you are probably aware, we have been in litigation with the broadcast radio industry in the BMI Rate Court to set the fees radio stations must pay when they play your music. ASCAP had been in similar litigation in its own rate court, but recently reached an out-of-court settlement with the radio industry, reducing ASCAP’s annual fee by nearly $100 million from its 2009 fee. While BMI’s litigation continues with the radio industry, because BMI operates under strict accounting guidelines known as GAAP (generally accepted accounting principles), the existence of the lower ASCAP final rates in the marketplace requires us to be conservative and recognize our radio income as if the stations were also paying BMI at those lower rates. As a result, domestic radio distributions have been reduced. Please be assured that we continue to work diligently to protect the value of your music at the negotiating table and in the courtroom and will keep you informed of any new developments as they occur.
Fortunately, broadcast radio is just one portion of a diverse revenue stream that we have developed over the years, many areas of which are doing exceptionally well. As an example, BMI’s foreign revenues continue to climb, reaching record levels. Our international distribution for this quarter is the largest in company history, underscoring the global reach and impact of the BMI repertoire, all made possible by your creative efforts.
If you have previously received radio and television royalties from German performing right society GEMA, you may be eligible to receive a share of retroactive royalty payments resulting from their 2006-2008 private-copy distribution. If you are eligible to receive these funds, you will see a “Retro Payment” from GEMA noted at the top of the International section of your royalty statement. Also included in this distribution are payments from the Canadian society SOCAN representing royalties for prior period performances (2006-2010) on XM and Sirius satellite radio. From this point forward, SOCAN will remit satellite radio royalties to BMI for distribution on a quarterly basis.
In Washington, D.C., BMI is constantly working to protect the rights of songwriters, composers, and publishers through the legislative process. Most recently, we have been working closely with the American Federation of Musicians and other industry organizations to urge lawmakers to adopt a single standard governing in-flight instrument storage. Those of you who travel on domestic airlines with your musical instruments will be pleased to learn that Congress recently passed a Federal Aviation Administration reauthorization bill that includes new standards for storing instruments in flight. The law will allow travelers to carry aboard any instrument or related gear that can be safely stored in the cabin, rather than risk it being damaged in the plane’s cargo hold or during baggage handling. More information about the new airline standards is available at BMI.com/airlines.
Our congratulations go to Adele, Foo Fighters, Kanye West, Paul Epworth and all those honored at this year’s Grammy Awards, where BMI songwriter/artists took home a resounding 68 percent of the awards, our highest percentage since 1971. Congratulations also go to Ludovic Bource, who took home the Oscar for Original Score for his work on The Artist. We’d like to thank all our songwriters, composers and publishers for placing their trust in us as they have worked to create a catalog of music whose depth, breadth and popularity are unequaled anywhere in the world.
Sincerely,
Del Bryant
President
Chief Executive Officer
Enclosure:
