[Fmpro] ASCAP

[Doug Wood]

HI friends,

I agree with many of the sentiments expressed here, but some misinformation
has been posted (there's a surprise!) and rumors have been posited as fact.

First I would remind readers that the ASCAP Board is made up of twenty-four
individuals who may not all agree on the current distribution rules. Many
have never voted on the rules. So be wary of inflammatory posts which lump
all Board members together as "cowards" or some sort of evil clan. These
posters know better, or should.

Second, broadcasters do not pay $123 for a minute of music. Most
broadcasters have a blanket license with all three PROs under which they
have the right to broadcast anything in the PRO's repertoire for a flat fee.
The license covers every piece of music they use over a five year period. So
the PROs try to keep track of the music that a licensee broadcasts during a
quarter (plenty to discuss here, but not now) and distribute the
broadcaster's license fee among those composers and publishers according to
their various distribution formulas.

Until the 1990s, ASCAP television license fees were tied to station revenue,
so as revenues increased, license fees increased. This approach was struck
down by a judge in the Buffalo Broadcasting case. Now the fee is a floating
number which is subject to challenge every time it comes up for renewal. In
the last round, ASCAP was forced by the television broadcasters to accept a
steep cut in license fees despite growing broadcaster revenues, because, the
broadcasters claimed, music just wasn't that important any more. (There were
other complicating factors at work, but the unwillingness of the
broadcasters to pay for music was the primary reason for the cut.)

(Make no mistake, if American broadcasters had their way they would
eliminate all performance royalties and tell composers to get their money
from producers, studios and ad agencies. Now there's a formula you don't
want if you're a composer! Look at Scripps! Or Turner!)

So American broadcasters now pay less for music, as a percentage of income,
than broadcasters in most other parts of the civilized world. They are also
unencumbered by any obligation to keep track of music use, as broadcasters
are required by law to do in Europe and elsewhere. So these factors play
into the current situation where score and CPA composers suffer
disproportionately under the current system at all three PROs.

I can't and won't defend the current ASCAP distribution formula - indeed,
the reform of this formula was the reason I originally ran for the Board and
has been the primary item on my campaign platform every election since. But
change will require time, energy, focus, determination, and the support of
13 Board members and the members of ASCAP.

I can help supply the first four of those, and I will do everything to
garner support of other Board members. However, the civil but vocal support
of ASCAP members is critical. If you can avoid the name calling, the rumor
mongering, the half-truths, the distortions, and the temptation to jump to
other subjects, we can get this done.

I will organize another phone conference call this fall for ASCAP members
who want to speak with me about these and other ASCAP issues. Please email
me off the list if you would like to participate and I'll let you know about
date and time. 

And yes, I still fly in the back of the plane and use my miles to reduce
ticket costs. After all, it's members' money.

Doug Wood
ASCAP Board member

Disclaimer: The views expressed are my own and do not necessarily reflect
those of ASCAP, its directors, management or staff.