A Great Year, A Great View
ASCAP reports record revenues and royalty payments for 2006 at General Annual Membership Meeting in New York
On March 5, before a packed room of members at Frederick P. Rose Hall, Home of Jazz at Lincoln Center, in New York City, ASCAP CEO John LoFrumento reported record revenues of $785 million and royalty payments of $680 million for 2006, as well as an all-time low operating expense ratio of 12.0 percent.
At the meeting, which was also webcast, LoFrumento attributed ASCAP's stellar performance to multiple factors. These include growing revenues from the licensing of existing and new music channels, outstanding operational efficiency and the introduction of numerous high value new services. These factors are helping to attract record new members. In 2006, ASCAP welcomed 40,000 new members, more than any other rights organization in the world. ASCAP's recent initiatives, which include the 2006 ASCAP "I Create Music" EXPO, is boldly redefining the role of a peforming rights organization.
Revenues for 2006 exceeded 2005 by $37 million, a 5 percent growth rate, while royalty distributions increased by $34 million, or almost 5.3 percent over the prior year. Both U.S. and foreign royalties showed strong gains, with domestic distributions totaling over $486 million, up 6.3 percent, and international distributions reaching $211.7 million.
"Our overarching priority each year is to put more money in the pockets of our members - hard working songwriters, composers, lyricists and music publishers. That's a goal we clearly met in 2006," said LoFrumento. "To continue achieving such results, we are investing in new technologies that enable us to operate more efficiently and are significantly broadening the scope of professional services we offer to enhance the career opportunities of our members."
Among the valuable services LoFrumento cited were MusicPro Insurance, Mediaguide's digital fingerprinting technology, iSafe's antipiracy education program, the EXPO, the ASCAP Network and the Performing Rights Enterprise Program (PREP).
ASCAP President and Chairman Marilyn Bergman welcomed members, announced the results of the recent Board election and addressed digital rights issues and recent legislative developments important to music creators. She also spoke about two ASCAP Foundation programs that are making a genuine positive impact on young children: "Creativity in the Classroom" and "Children Will Listen." The first program educates children on the value of intellectual property and the latter brings alive the musical theatre experience to young students worldwide.
ASCAP Executive VP/Membership Group Todd Brabec reported on ASCAP members' outstanding performance on the 2006 Billboard charts and in major music awards and nominations. Prior to the general meeting, Brabec also hosted a "We Create Music" panel featuring special guest member panelists who explored the skills, knowledge and tools that music creators need to advance their careers in today's marketplace.
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