royalties

SEA Change - Music publishers attempt to break the music industry

After record breaking year of royalty payments, ASCAP and BMI demand more… Just because!

Last year, ASCAP and BMI collected more than $2 BILLION, a record-setting amount of royalty payments for songwriters and composers. This is great news for anyone involved in the music industry and those of us who love many different types of music. It should cause us all to be happy knowing that those who write the words and music we love are receiving bigger pay checks as the overall amount of revenue within the music industry increases.

Or are they?

In the face of this unprecedented level of royalties, why are ASCAP and BMI pushing legislation designed to break the very system which has caused this surge in royalty payments?

The Songwriter’s Equity Act (SEA Act) is the creation of ASCAP and BMI with some help by their favored Members of Congress. But there are legitimate questions whether this legislation truly seeks an increase in royalties for composers and songwriters or whether it is simply to compensate for ASCAP and BMI’s own bloated and antiquated systems. Is the goal of this crony legislation to continue to support the bloated bureaucracy which the PROs have built on the backs of the artists they claim to represent?

Music is now accessed via a wider array devices then ever before. Songs are embedded in the background of video games accessed around the globe, playing in the background of every business patrons enter and streaming during practically every online ad. Many of the dedicated streaming music application have been forced into a commercially impractical contract similar to that of indentured servitude.

Steve Jobs Rejects Royalty Increase

I have a lot of respect for Steve Jobs.  He has consistently taken a different approach to the business model with Apple products.  This latest move by him to reject the idea of a 6 cents royalty increase is nothing but wonderful.  He says he will not abide by a decision some government panel makes as to how much of a cut should be given to publishers and song writers.  His decision is driven by his desire is to keep prices low, placing the customer first.  In my eyes this is a huge business win for him.


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