[Fmpro] NO one?? PRS changes?

[James Ryan]

Hi Mark -

OK, for the sake of this discussion, let's remove the value and viewers
factor.  According to one of the negotiators at ASCAP who had no hidden
agenda that I could detect, broadcasters don't pay ASCAP for CPA.  Zero.
Zilch.  They only pay for content.  CPA is not part of the negotiation.  It
may have been different in the past, but that is how it is at the moment.
Star repertoire is all that is considered, and that's what brings in the PRO
revenue.  In that sense, ASCAP paying royalties for CPA could be considered
a gift, since according to him, they are not getting any income from it.

PRO income is no longer decided by ad revenue.  It is just a negotiation
based on "we've got the big star songwriters and composers from the big hit
shows, and that's going to cost you."  They don't say "we've got all that
loop music you run at 3AM during the infomercials, so you pay by the
minute!"

Please don't throw the tomatoes at me for this.  I'm just reporting my
discussion with a high ranking negotiator whom I respect who has NOTHING to
do with distribution policies and nothing to gain by lying to me.  His only
function at ASCAP is to bring money in, not pay it out.  My purpose is not
to deflate, devalue or discourage, just to add some hopefully factual info
to a discussion that tends to get a bit emotional and could use some
(hopefully) factual input.

Does BMI pay on CPA?  Last I heard, it doesn't.  If that's true, it ties in
with the fact that it is owned and operated by the broadcasters, who
according to my friend, the negotiator, don't pay for CPA.

Best,
James

On 8/10/07 12:49 PM, "Mark Northam" <mnortham at gmdgroup.com> wrote:

> Trying to guess what the "viewer" cares about or values is an impossible
> task and not appropriate, as it's the broadcaster who's paying the license
> fees. Trying to value music based on the viewer's perception on television
> is like asking a 6 year old whether ice cream is better than the spinach for
> dinner. Of course viewers would rather have commercial-free TV, and 6-year
> olds would rather eat ice cream for dinner than spinach. But neither is
> appropriate or realistic.
> 
> CPA and value to the broadcaster...
> 
> As far as what the broadcaster cares about, obviously commercials are the
> lifeblood of his business and represent nearly 100% of his income, so that's
> a no-brainer in my book.
> 
> CPA and value to the advertiser...
> 
> The massive license fees paid by advertisers to use hit songs in their
> advertising is proof of the value of music to advertisers. Often this fee
> can be more than for use in programming.
> 
> CPA and value to ASCAP...
> 
> It is a patently dangerous act to take over 50% of the music on television,
> ASCAP's largest income source, and inflict a whopping 97% devaluation
> penalty on it for distribution purposes (for a minute of CPA compared to a
> minute of song during a program). Beyond the obvious moral implications of
> singling out this music and those who write it for this penalty, what's to
> stop broadcasters from making the case that their license fees should
> parallel ASCAP's distribution valuations? Financial discrimination against
> any person or group to this degree just doesn't make sense, and as always,
> isn't backed by any financial or statistical evidence, just old wive's tales
> and anecdotal stories from staffers who are afraid to even put their names
> with the stories...
> 
> I'll say it again.... Viewership is the only fair way to pay music
> performance royalties, and there's already a complete system in place that
> measures this and is the basis for the expenditure of billions of dollars of
> advertising dollars every year.
> 
> 
> Best,
> 
> Mark Northam
> 
> 
> 
> On 8/10/07 8:45 AM, "Pete" <musical411 at yahoo.com> wrote:
> 
>> If he doesn't care about the content on his shows, I
>> doubt he cares about the content in the commercials.
>> He just wants to get paid for the commercial airtime.
> 
> 
> 
> _______________________________________________
> The Film Music Pro List is sponsored by Film Music Magazine -
> http://www.filmmusicmag.com
> 
> To edit your list options or unsubscribe, visit:
> http://nxport.com/mailman/listinfo/fmpro