Songwriters Get a Raise

Both BMI and ASCAP recently announced a rate raise for performance royalties payable to songwriters and music publishers.

BMI (Broadcast Music Incorporated) was purchased recently by New Mountain Capital, a move that change the company to a for-profit company.

ASCAP (American Society of Composers, Authors and Publishers) announced a forthcoming raise in royalty rates on the same day via email to members, but haven't yet shared the numbers.

BMI's numbers rose from 1.78% to 2.14% for 2022-2023 and will go up again to 2.20% for the 2026 - 2029 period.  This money comes from a newly re-negotiated agreement with the radio broadcasters group RMLC (Radio Music License Committee). [Source https://www.musicbusinessworldwide.com/confirmed-bmi-royalty-rate-from-terrestrial-us-radio-is-rising-by-nearly-24]

This royalty money collected from public performance of original songs when they are aired on the radio is the driver behind the upcoming rate raises, estimated to be a near 24% increase.

While the amounts are low for the per streaming rates, any raise is good news in this day and age for songwriters and music publishers who have been hit with one problem after another since the 1999 technology turnover of the music industry began to get underway with Napster, Spotify, and now AI and the rest.

Thanks to additional interest in the industry with investments and rate increases in the news cycle, one can optimistically look forward to what many foresee as a new golden age of music and the arts amounting to a modern Renaissance.

We can only hope so, and work toward a strong, enjoyable and entertaining future in the music business.

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