BMI’s Court Case Win Helps Songwriters in the Live Music Industry

Songwriters, composers, and publishers have long been underpaid when it comes to the live concert industry. However, a successful court case may be the first step to changing that.

On March 28, Broadcast Music Inc. (BMI) won its federal rate court case against Live Nations, AEG, and the North American Concert Promoters Association (NACPA). The win results in an increase in the live performance revenue rate and base for songwriters, composers, and publishers. 

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Before we get into the details of what BMI’s win entails, let’s start with who BMI is. 

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According to their website, BMI was founded in 1939 and is the largest music rights organization in the US. BMI wants to be the “bridge between songwriters and the businesses and organizations that want to play their music publicly.” They represent over 20.6 million musical works from more than 1.3 million songwriters, composers, and music publishers.

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Needless to say, BMI is pushing for big changes in the live music industry. So what has their latest win resulted in?

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For context, from 1998 to 2017 the revenue rate these groups were paid by promoters was as follows:

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• 0.3% of revenue for concert venues under 10,000 seats
• 0.15% of revenue for venues over 10,000 seats
• Revenue base definition is only primary market ticket sales

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Now, these rates have changed to the following:

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• Base rate increased to 0.5% of the event’s revenue (a 138% increase!)
• Revenue base now includes concert hall VIP packages and box suites, secondary market tickers, and servicing fees received by promoters

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Furthermore, this new revenue rate and base also apply to the period of mid-2018 through Dec. 31, 2022.

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“This is a massive victory for BMI and the songwriters, composers, and publishers we represent. It will have a significant and long-term positive impact on the royalties they receive for the live concert category. We are gratified the Court agreed with BMI’s position that the music created by songwriters and composers is the backbone of the live concert industry and should be valued accordingly. Today’s decision also underscores BMI’s continued mission to fight on behalf of our affiliates, no matter how long it takes, to ensure they receive fair value for their creative work.” - Mike O’Neill, BMI President.

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Unfortunately, BMI’s results fell short of what they originally wanted. The changes that were rejected include: 

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• Getting rid of the historical 10% discount fee that Live Nation, AEG, and NACPA get for administering the license on BMI’s behalf
• Expanding the revenue base to include sponsorships and advertising revenue
• The 0.5% rate awarded is lower than the 1% they originally requested

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Despite its full request not being fulfilled, BMI’s win was a step in the right direction for recognizing the important work of songwriters, composers, and publishers. 

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If you’d like to read more details on the case, check out Billboard’s article here!

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