Fair licensing fees from digital channels are vital for growth
Consistent with its history of leadership on behalf of music creators, ASCAP earlier this year reported a record level of money collected for its members in 2008. Representing nearly 350,000 music creators (including lyricists, songwriters, composers and publishers of music from every genre), the member-owned organization generated over $933 million dollars while making royalty payments of more than $817 million. It also reported an all-time low operating expense ratio of 11.3 percent.
Yet despite these record numbers, ASCAP anticipates challenges ahead relative to compensation for its members' music performances. Specifically, many of the businesses that are driving an explosive growth in music use across digital channels have yet to agree to fair licensing terms for the use of ASCAP members' works.
"ASCAP worked hard in 2008 to collect and distribute the most money possible for hardworking songwriters, composers, lyricists and music publishers," said ASCAP CEO John LoFrumento.
"We also continued providing a strong slate of professional development opportunities, such as the annual ASCAP 'I Create Music' EXPO, and intensified our advocacy efforts on behalf of all music creators, through initiatives like the 'Bill of Rights for Songwriters and Composers.'"
But in looking ahead, LoFrumento sounded a note of caution. "We have faced strong resistance on the licensing front from many digital businesses. It is vital that all users of music in the online, mobile and other digital areas come to the table in good faith to negotiate fair licensing fees for music performances."
