ASCAP generated over $1 billion in 2014, plans to maintain strong presence in D.C.
It’s fair to say that the past couple of years have not been easy on ASCAP, given clash between the fast-changing world of digital music and the regulations that govern the organisation, some of which go back to the 1960s.
At the same time, the doom and gloom caused by the clashes over digital rates may have been overstated since the PRO has reported revenues of over $1 billion, the highest ever reported by a collection society worldwide.
ASCAP’s distributions to publishers and songwriters increased accordingly, rising by 3.7% to $883 million.
The CEO of the organisation Elizabeth Matthews stated:
“ASCAP had an incredibly successful 2014. We worked extremely hard and continually innovated in order to maximize the financial opportunities for our members in the face of an evolving and increasingly competitive global landscape. We implemented new revenue growth strategies and productivity improvement initiatives in order to deliver the best collective licensing value proposition at the lowest possible cost for all stakeholders. Our 2014 financial results clearly demonstrate that collective licensing is the most efficient licensing model available to creators and music licensees alike. The collective can accommodate big data growth of extreme scale at the lowest cost while also providing access to a broad, diverse and high quality repertory of music.”
In the digital realm, the organisation stated that the number of writers paid for performances on services like Apple iRadio, Pandora, Rhapsody and Spotify increased exponentially with 1.3 million unique works identified as being played on them, 30 times more than in 2013.
On the live front, 30% more shows were processed using OnStage, ASCAP’s program allowing members to submit their set lists and receive royalties from ASCAP-licensed venues.
ASCAP’s results are extremely positive but the organisation still faces a number of challenges, which is why its President Paul Williams stated:
“We maintain a strong presence in Washington, D.C. to ensure they are fairly compensated for their creative work, which is the engine driving the entire industry. I am very gratified that we were able to deliver such strong financial results for the talented women and men who call ASCAP home. From our point of view, if we can ensure fair market rates for our members by working with the Department of Justice to modernize our outdated Consent Decree, then everyone wins – music creators, licensees and fans -- because the value of collective licensing is that strong.”
Andrea Leonelli