ASCAP collections rose 14.1% to $1.737 billion in 2023 and payments to songwriters and publishers rose 14.7% to $1.592 billion, the performance rights organization said on Wednesday (Feb 28). These figures represent a record year for ASCAP in both revenue categories, as well as all-time highs for any U.S. performing rights organization, ASCAP claimed.
The last time BMI disclosed its annual financials – for the year ending June 30, 2022 – the PRO reported receipts of $1.573 billion and payments of $1.471 billion. BMI did not disclose full-year financial information in its most recent annual report for the fiscal year ended June 30, 2023, and is not likely to disclose any financial information in the future as it is now owned by institutional investor New Mountain Capital and will operate on a for-profit basis. ASCAP is now the only US PRO that operates on a non-profit basis.
ASCAP's collections break down to $1.327 billion domestically (up 12.7% year-over-year) and $410 million internationally (up 19.2%). In distributions, ASCAP paid out $1.217 billion domestically (up 16.1%) and $375 million internationally (up 10.3%).
“ASCAP's mission and nonprofit business model are more important now than ever as artificial intelligence transforms the music landscape and the need for legislative support to protect creators in DC has never been more important,” said the president and ASCAP president Paul. Williams said in a statement. “ASCAP will always be a champion for the people who make music and demand transparency and fair payment for those who exploit our work. ASCAP empowers our songwriter and composer members to write their next song, earn a living and support their families. No one else in the industry has the backs of songwriters like ASCAP.”
In announcing its financial results, the organization pointed out that unlike its competitors, ASCAP has no debt, no shareholders, and no private equity investors. In other words, ASCAP's music creators and publisher members are the sole beneficiaries of ASCAP's financial success.
In addition, he noted that a democratically elected Board of Directors made up of music publishers and music creators sets the rules for distributing royalties and cost sharing based on dollar principles. It is the only US PRO to make these distribution rules publicly available on its website providing transparency to its membership.
“We deliver industry-leading technical innovation, legislative support and revenue growth that solely benefit our members, not outside investors or shareholders,” ASCAP CEO Elizabeth Matthews he said in a statement. “As we like to say, private equity never wrote an iconic love song, so we're fighting purely for songwriters, composers and publishers, not those who use creators and their artwork for their own profit or to secure their own debt. ASCAP is different from others because our mission and purpose are clear and unique.”
Looking at the new technology, the PRO said that in 2023 its board adopted six principles to guide its response to the technology and later submitted them on behalf of members to a US Copyright Office study on genetic artificial intelligence. And he mentioned that he had organized some AI symposiums for members.
During the year, ASCAP membership grew by 66,000 new members, bringing total membership to 960,000 members. Some of these new members included PinkPantheress, Jack Antonoff, Tyla and Jared Leto and Shannon Leto of 30 Seconds to Mars, as well as art-pop singer-songwriter Caroline Polachek, alt-rocker d4vd, singer of jazz Samara Joy, the country bender. Jessie Murph, dark wildcard Chappell Roan, post-punker ThxSoMuch and writer-producer Alexander 23, among others
In addition, the organization says its song catalog now includes 19 million copyrights consisting of music by the likes of Beyoncé, Billy Joel, Cardi B, Dua Lipa, Garth Brooks, Jay-Z, Katy Perry, Lil Baby, Lin-Manuel Miranda , Mariah Carey, Olivia Rodrigo, Paul McCartney, Stevie Wonder and Usher, among others.
Returning to the financial numbers, ASCAP notes that since the launch of its strategic growth plan in 2015, its compound annual growth rate (CAGR) for total revenue through 2023 has increased to 7%, and the CAGR for total distributions by the same time period period amounted to 8%.
In addition, ASCAP reported that in 2023, audio streaming revenues increased 21%, general licensing revenues increased 23%, radio revenues increased 10%, and audiovisual revenues increased 3% compared to 2022. However, ASCAP didn't break out specific revenue numbers like it used to in years prior to 2015, the last year ASCAP provided a comprehensive picture of its finances.
As a percentage of revenue, ASCAP overall paid out 91.7% of receipts in 2023, meaning expenses accounted for 8.3% of revenue. But ASCAP executives also say the organization pays nearly 90% of the receipts, meaning overhead costs amount to just over 10% of revenue.
In any case, ASCAP claims that payments of 90 cents for every dollar of collections yield “the highest value exchange applied to the lowest overhead price provided to creators and publishers of any US PRO.”
from our partners at https://www.billboard.com/business/publishing/ascap-record-collections-distribution-songwriter-royalties-1235617078/
