SOURCE: Broadcast Music, Inc. - NY

Broadcast Music, Inc. - NY

September 08, 2016 10:31 ET

BMI Announces $1.060 Billion in Revenue, the Highest in Company's History

Distributes Record-Breaking $931 Million to Songwriters, Composers and Publishers; Digital Revenue Grows 50% to $152 Million

NEW YORK, NY--(Marketwired - September 08, 2016) - BMI (Broadcast Music, Inc.), the global leader in music rights management, today announced the highest revenues in its 76-year history, achieving $1.060 billion for its fiscal year ended June 30. The company also distributed and administered a record-breaking $931 million to its songwriters, composers and publishers, a 6% increase over last year. These results represent the most public performance revenue and royalty distributions by any music rights organization in the world.

BMI operates on a non-profit-making basis and returns approximately 88% of all revenue to the musical creators and copyright owners it represents.

"We are beyond pleased with this milestone," said Mike O'Neill, President and CEO, BMI. "The ability to provide our songwriters, composers and publishers with our largest royalty distributions to date proves that the current marketplace is working efficiently, a fact the DOJ has undermined with its recent interpretation of our consent decree. We're eager to build on this success and continue to ensure that all of our music creators are fairly paid for their work and that licensees maintain full access to BMI's repertoire of nearly 12 million songs. As of now, the DOJ's interpretation will disrupt these efforts, stifle creative freedom for songwriters, limit choices for music users and bog down the marketplace. We are determined not to let that happen."

BMI's total domestic revenue performance of $784 million was bolstered by record-breaking results in its digital and general licensing categories. Digital revenue, which exceeded $100 million for the first time last year, hit a new high of $152 million, up 50%. Numerous new agreements were signed throughout the year, notably a multi-year license with Pandora, as well as deals with Spotify, Apple Music, Microsoft, Sony's PlayStation Video and Slacker, among others.

General Licensing, which includes fees from businesses like restaurants, bars, hotels and fitness facilities, along with other income, hit a new milestone of $140 million. The category added 15,000 new businesses to the hundreds of thousands already in BMI's diverse portfolio.

Revenue from all media licensing, including radio, television and cable and satellite entertainment, grew to $492 million, with cable and satellite entertainment accounting for the largest portion of BMI's domestic revenue for the third consecutive year. International revenues came in at a strong $276 million, despite significant economic challenges overseas resulting in lower foreign exchange rates. While down 5% year to year in U.S. dollars, BMI's international revenues would have exceeded last year's performance by $14 million had it not been for the strengthening dollar.

BMI processed more than one trillion audio performances this year, over 950 billion of which were digital, a 45% increase from last year.

ABOUT BMI:

Celebrating over 75 years of service to songwriters, composers, music publishers and businesses, Broadcast Music, Inc.® (BMI®) is a global leader in music rights management, serving as an advocate for the value of music. BMI represents the public performance rights in nearly 12 million musical works created and owned by more than 750,000 songwriters, composers, and music publishers. The Company negotiates music license agreements and distributes the fees it generates as royalties to its affiliated writers and publishers when their songs are performed in public. In 1939, BMI created a groundbreaking open-door policy becoming the only performing rights organization to welcome and represent the creators of blues, jazz, country, and American roots music. Today, the musical compositions in BMI's repertoire, from chart toppers to perennial favorites, span all genres of music and are consistently among the most-performed hits of the year. For additional information and the latest BMI news, visit www.bmi.com, follow us on Twitter @BMI or stay connected through Broadcast Music, Inc.'s Facebook page.