Revenue / 09.25.18

BMI Files Rate Court Action Against Concert Promoter Trade Group

Access Staff

Original article published on Billboard (09/25/18) by Dave Brooks

Broadcast Music Inc. (BMI) has filed a court petition to have new rates set for concerts and live events. BMI's Mike Steinberg says the North American Concert Promoters Association (NACPA) currently pays a rate between 0.3 percent and 0.15 percent of revenue, according to venue size. BMI calculates that it makes $20 million annually from the concert business, or 0.19 percent of the live entertainment sector's annual $10.5 billion in revenue. BMI desires a significantly higher royalty rate from NACPA, with Steinberg saying the current rate it gets for the use of its affiliates' music "vastly undervalues that contribution." He contends that despite BMI's long effort to finalize rates more closely aligned with those that NAPCA members pay to other performing rights organizations, the trade group "is attempting to shortchange BMI affiliates and rely on outdated rates that do not reflect the evolution of the music industry or take in to account the expanded revenue streams that result from the performances of BMI music." According to the petition, BMI is "seeking a determination of reasonable final license fees for the right to perform all BMI-affiliated musical compositions" from Jan. 1, 2014, to Dec. 31, 2022, and new retroactive rates from 2014 to 2018. The group is pursuring a rate of 1.15 percent of revenues — a three-to-seven-fold increase — with an broader definition of revenues to cover "secondary market sales, sponsorship revenue, VIP packages, ticket broker charges, and other relevant streams of income."

Read the full story on the Billboard website.

Tags: Music , News , Secondary Ticketing