ASCAP, which collects music royalties for songwriters, composers and copyright owners, announced that revenues were up 5.4% in 2011 to $985 million for calendar year 2011. That’s not quite a record, but is the organization’s second highest year for revenues.
From that cash, ASCAP distributed over $824 million to its songwriters, composers and music publishers. The member-owned organization represents more than 425,000 music creators from every genre.
“ASCAP has been able to deliver strong financial results for our members through licensing innovations, operational efficiencies and growth in foreign revenues. We will continue to meet the challenges of this economy and evolving music marketplace through innovation and by offering the best model for licensing the most in-demand repertory of music in the world. In this unsettled time, our goal is to ensure a stable future for our members,” said ASCAP CEO John LoFrumento,
Toward that end, ASCAP noted, several multi-year license negotiations were concluded with major licensees in 2011, including XM/Sirius Radio, HBO, Viacom and the radio industry, “providing security and certainty for ASCAP members for the next five years.”
ASCAP had this to say about the recently completed deal with the Radio Music License Committee: “ The radio settlement includes a return to a revenue-based fee structure as radio is broadening its revenue base through new distribution platforms, such as online, wireless, multicast and HD stations.”
ASCAP has also been growing its revenues from online sources. In 2011, Netflix, Hulu and Spotify were among the major digital services that signed ASCAP blanket license agreements.