Tuesday, September 4, 2007
At least someone’s making money in the music industry.
Performing rights organization BMI announced it will distribute more than $732 million in royalties for its 2006-‘07 fiscal year to songwriters, composers and copyright owners, an 8% increase over the prior fiscal year.
The performing right organization attributed the rise in revenues to its “robust” music catalog, the successful licensing of music across a diverse range of media, and revenue growth in foreign markets, posting record-setting revenues of more than $839 million, up 7% from the prior year and the highest annual revenues and royalty distributions ever reported by a performing rights society. BMI also announced that overhead dropped to 12.7%, the lowest in the company's history.
The increased usage of BMI's repertoire throughout many broadcast mediums has, over the past several years, represented a shift in the traditional revenue structure from one dominated by conventional over-the-air broadcasting to cable networks, satellite audio and video services, and digital media. Revenues from cable, satellite audio and video services grew $11 million, and BMI licensed almost 500 new digital media properties and reached long-term agreements with several major web services.
Revenues from eating-and-drinking establishments, hospitality, retail and service establishments also increased substantially, reaching more than $93 million. BMI's foreign revenue benefited from increased marketshare and favorable exchange rates, growing to more than $227 million.
Commented BMI President/CEO Del Bryant: "The dynamic growth and continued popularity of the BMI catalog have made these outstanding financial results possible at a time of unprecedented change in the media and entertainment business. Our success is a reflection of developing win-win business solutions for both our affiliated songwriters and our customers, enabling us to respond to significant changes in our business environment that are part of the continued transition from the analog world to the digital. And no, you can’t borrow $10 million until next payday."
