New York, NY, March 13, 2006 Nimbly adapting to the rapidly changing music marketplace with a combination of innovative business strategies and tight cost controls, ASCAP (American Society of Composers, Authors and Publishers) - the 92-year old Performing Rights Organization (PRO) - reported record revenues and royalty payments for 2005.
Revenues for the year exceeded $749 million - an increase of more than $50 million over the prior year - while royalty payments to members topped $645 million. This royalty distribution is a record amount for any PRO globally.
"At a time when the music industry is in a state of rapid change and many view technology as a challenge to copyright and music creators, we are using sophisticated technology along with other innovative business strategies to grow our participation in the music marketplace and to secure the value our members deserve for their creative efforts," explained John LoFrumento, ASCAP CEO.
According to LoFrumento, ASCAP's success is built on seven strategic thrusts:
- Capturing licensing revenues from new and growing media channels, such as cable TV, Internet, mobile and satellite. In 2005 cable TV revenues grew more than 20 percent to $126 million, while new media revenues jumped 50 percent to $8.1 million.
- Growing overseas licensing revenues through the promotion of an ever-popular ASCAP repertory. In 2005, international revenues increased 4.3 percent to nearly $215 million, contributing to the continuing importance of American music's positive impact on balance of payments.
- Continuing to build valued new member services such as MusicPro Insurance. Created by ASCAP in 2002, MusicPro has achieved an annual growth rate of 42 percent.
- Deploying state-of-the-art technology to more broadly monitor music usage as well as to more effectively curb infringement activity.
- Investing in innovative business ventures that enhance capabilities, reduce operating costs and generate revenue streams. Mediaguide, an ASCAP joint venture with YES, Inc., provides a comprehensive array of airplay data products. By incorporating Mediaguide data, ASCAP has significantly increased the scope of its radio surveys while reducing overall monitoring costs.
- Tightly controlling costs. In 2005, ASCAP's operating costs reached an all-time low of 12.5 percent of revenues. This operating expense ratio is the lowest for any copyright organization in the U.S. and likely the world.
- Attracting and retaining as members the most successful music creators. Based on Billboard's 2005 year-end song charts, ASCAP members secured eight of the Top 10 Hot 100 Songs, eight of the Top 10 Mainstream Rock, eight of the Top 10 Modern Rock, eight of the Top 10 Ringtones, eight of the Top 10 Soundtrack Singles, seven of the Top 10 Hot R&B/Hip-Hop, seven of the Top 10 Hot Rap Tracks, seven of the Top 10 Hot Country Songs, and six of the Top 10 Latin Pop Airplays.
"This record year underscores the success of our business strategies and enables us to continue providing the highest level of payments and best service possible to our members," added LoFrumento.
In fall 2005 ASCAP announced the launch of the first and only national conference dedicated to songwriting and composing. The ASCAP "I Create Music" Conference will take place April 20-22, 2006 at the Renaissance Hollywood Hotel in Los Angeles, CA (www.ascap.com/expo)
. The three-day event is designed to bring together music creators with music industry professionals who want to work together to achieve greater success.
"Some of the biggest names in music have already signed on for what will be the most important conference ever developed for music creators," noted LoFrumento.
Confirmed panelists include: Alan & Marilyn Bergman ("The Windmills of Your Mind," Yentl
, "The Way We Were");
Glen Ballard (Jagged Little Pill,
"Man in the Mirror"); Desmond Child ("Dude (Looks Like a Lady)," "Invisible"); Hal David ("Raindrops Keep Fallin' On My Head," "Alfie"); Jimmy Jam ("No More Drama," "That's the Way Love Goes"); Tom Petty ("American Girl," "Breakdown"); John Rich of Big & Rich ("Come Cryin' To Me," "Redneck Woman"); Stephen Schwartz (Broadway: Wicked, Godspell, Pippin
); Timbaland ("Work It," "More Than A Woman"); and Jimmy Webb ("By The Time I Get To Phoenix," "Galveston").
Established in 1914, ASCAP (American Society of Composers, Authors and Publishers) is the first and leading U.S. Performing Rights Organization representing the world's largest repertory totaling over 8 million copyrighted musical works of every style and genre from more than 230,000 composer, lyricist and music publisher members. ASCAP also represents the repertories created by the international affiliates of 70 foreign performing rights organizations. ASCAP protects the rights of its members and foreign affiliates by licensing the public performances of their copyrighted works and distributing royalties based upon surveyed performances. ASCAP is the only American Performing Rights Organization owned and governed by its writer and publisher members. www.ascap.com
Mediaguide provides the world's most comprehensive, accurate, timely, and reliable airplay data products. The company's information products, which span all media types, provide performers, publishers and the recording, advertising, radio, and television industries deep insight into what is being broadcast across America, in order to deliver better products that create broader consumer demand among audiences. Mediaguide, based in Berwyn, Pa., is a joint venture of the American Society of Composers, Authors and Publishers (ASCAP) and ConneXus Corporation. www.mediaguide.com
About MusicPro Insurance
MusicPro Insurance Agency LLC was created by ASCAP to specifically provide convenient, lower cost insurance to meet the needs of working music professionals. MusicPro offers the advantage of one-stop shopping with low rates, flexible options and excellent service. With coverage for instruments and equipment, studio liability, tour liability, travel/accident, long term care, term life and even medical and dental. MusicPro is now endorsed by virtually every U.S. music organization. www.Musicproinsurance.com
Note to Editors:
For a high-resolution photo of ASCAP CEO John LoFrumento, please contact Pauline Stack