Broadcast Music Inc. said it will distribute a record 732 million bucks in royalties for its 2006-2007 fiscal year, which concluded at the end of June. Radio is still a big chunk, of course, but BMI reports gains from licensing music across new media outlets, as well as cable television, plus growth in foreign markets.
Total revenues grew 7% for the past year to 839 million, but BMI said it reduced its overhead costs to a record low 12.7% of revenues, resulting in the larger increase in royalties paid out to songwriters, composers and copyright owners. Radio royalty payments were up 7% and still account for around 25% of the total, but BMI Exec. VP/COO John Cody told RBR that was down from about a third of total revenues coming from radio 20 years ago. New media revenues have grown from nearly zero about five years ago to over 12 million – and growing.
Going forward, Cody is looking for continued double-digit growth in cable. "Radio, as you know, has had its struggles within the industry, and they seem to be bouncing back. Similarly with TV, but when you get into the whole digital realm, that’s another area where we’re going to see growth, both within the new media and within different segments of the traditional media as you look at alternative ways of delivery. And I think our international revenue will grow," Cody said.