2017 ANNUAL REPORT Southern Avenue at the 2017 Sundance ASCAP Music Café; photo by Fred Hayes ASCAP is the world leader in performance royalties, advocacy and service for songwriters, composers and music publishers. Our mission is to cultivate a symbiotic relationship with all stakeholders in the music industry and to ensure that our music creator members, music users and music lovers around the world can thrive together.
2017 ANNUAL REPORT 2 CREATIVITY. COURAGE. COLLABORATION. A MESSAGE FROM ASCAP PRESIDENT AND CHAIRMAN OF THE BOARD PAUL WILLIAMS: Creating music takes courage. As songwriters and composers, we all face that blank page every day and go exploring. Sometimes we go deep and face real pain, emotions and experiences that have hurt us in some way, and we seek to turn them into art, “ a piece of music, a song, a way to share what’s in your heart with others who may be feeling - or hurting - so that you can connect on a universal level. That’s brave.
Or perhaps you feel good and you need to shout it from the rooftops. So you put all your love, passion and soul into your music, you set it to a beat, and you do whatever it takes to get it out into the world. You know the world is a hard place. But you also know that music makes the world a better place. And you know you were put on this earth to make music, and nothing is going to stand in your way. You make a commitment to yourself: This is who I am. This is what I do. I might not make it, but as long as I’m doing what I love, I’m going to try. That’s bold.
That’s the road less taken. But you know what? That’s the road Irving Berlin took. That’s the road Tom Petty took. That’s the road Jay-Z is taking. That’s the road St. Vincent is taking. You’ll meet a lot of interesting people on that road. This is your community.
The more we reach out to those around us, the more we collaborate, the more we transcend what divides us, the more amazing music gets created. Many of today’s most successful ASCAP members know this. They are rewriting the rules, mixing it up and pushing the envelope. Take pop star Justin Timberlake who recently teamed up with country music’s Chris Stapleton on “Say Something.”
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2017 ANNUAL REPORT ANNUAL 2017 4
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a passionate, dedicated and visionary ASCAP Board of Directors. Never forget that that forget Never Directors. of Board ASCAP visionary and dedicated passionate, a
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licensing system that is so vital to our nation’s well-being and to our economy. our to and well-being nation’s our to vital so is that system licensing
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dedicated and knowledgeable group of men and women. and men of group knowledgeable and dedicated
ASCAP Board, I can say that you’ll be hard pressed to find a more passionate, passionate, more a find to pressed hard be you’ll that say can I Board, ASCAP
all-time great songwriters, composers and music publishers. As Chairman of the the of Chairman As publishers. music and composers songwriters, great all-time
owned and governed by its members, and ASCAP’s Board members are some of the the of some are members Board ASCAP’s and members, its by governed and owned
of Directors. ASCAP is the only performing rights organization in the United States States United the in organization rights performing only the is ASCAP Directors. of
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these visionary music creators are thinking outside the box and are leading music in in music leading are and box the outside thinking are creators music visionary these
- and so many more. Music is more diverse and dynamic than ever today because because today ever than dynamic and diverse more is Music more. many so and -
everyone across the musical spectrum - from Beyoncé to Sia to Kamasi Washington Washington Kamasi to Sia to Beyoncé from - spectrum musical the across everyone
the most influential rappers on the planet. You can find him collaborating with with collaborating him find can You planet. the on rappers influential most the
“Something Just Like This.” Then there’s Pulitzer Prize winner Kendrick Lamar, one of of one Lamar, Kendrick winner Prize Pulitzer there’s Then This.” Like Just “Something Or EDM champs, The Chainsmokers, mixing it up with rock supergroup Coldplay on on Coldplay supergroup rock with up it mixing Chainsmokers, The champs, EDM Or IN 2017, WE ACHIEVED RECORD-BREAKING FINANCIAL SUCCESS. A MESSAGE FROM ASCAP CEO BETH MATTHEWS: Thanks to the strength of our family of songwriters, composers and music publishers, 2017 was another record-breaking and successful year of growth and change for ASCAP. I am thrilled to report that we achieved an historic 103 year high in revenues of $1.144 billion for public performances of our members’ works, up 8% over 2016. Revenues from ASCAP’s licensing efforts in the U.S. alone grew 11% in 2017 to $846 million, up $86.9 million over 2016, fueled by increased revenues across multiple platforms, including audio/visual media, audio streaming services and radio. ASCAP also continued to secure future “revenues for members by closing significant licensing and data partnership deals with major media companies such as YouTube. Foreign revenues held firm with $299 million collected for international performances of ASCAP members’ works.
In a 10% increase over the previous year, we distributed an historic high of $1.007 billion to our nearly 650,000 members in 2017. Domestic distributions from ASCAP-licensed and administered performances in the U.S. also $1.144 BILLION increased, to $723 million, up 15% over 2016. TOTAL 2017 REVENUE
ASCAP operates on a not-for-profit basis and delivers about 88 cents of every dollar collected back to our members for performances of their music. With a $85M INCREASE 2017 operating expense ratio of about 12 percent, ASCAP remains among the OVER 2016 most efficient Performance Rights Organizations in the world.
2017 ANNUAL REPORT 5 ASCAP’s record-high revenues and distributions in 2017 is testament to our amazing repertory of music, representing genres across the musical spectrum. In 2017, we renewed membership agreements with some of the greatest names in music and we welcomed more than 45,000 new members. Notably, ASCAP members wrote or
$1.007 BILLION co-wrote all Top 10 Songs on Billboard’s 2017 Hot 100 Year-End chart. TO OUR 650,000 MEMBERS TOTAL DISTRIBUTIONS FROM ASCAP-LICENSED AND ADMINISTERED PERFORMANCES To better support and serve our members, we continued to create the digital products
to make their lives easier so that they can focus more on creating music and managing $89M INCREASE large catalogues of works. These best in class digital tools have helped make ASCAP. OVER 2016 com a world class PRO destination that better positions the organization to succeed in the future. We also came together as an industry in 2017 to overcome some difficult challenges.“ We achieved a court victory for songwriters that affirms the fractional licensing of music works in our repertory. We also introduced the Music Modernization Act of 2017, new legislation that will greatly improve the lives of our music creators.
Strengthening ASCAP’s core operations remains a key strategic initiative. We continue 88¢ to upgrade our administrative infrastructure. I am so thankful for the incredible work OF EVERY DOLLAR ASCAP that the ASCAP team delivers day in and day out to support our members. COLLECTS GOES BACK TO OUR SONGWRITER, COMPOSER AND MUSIC PUBLISHER MEMBERS AS ROYALTIES.
2017 ANNUAL REPORT 7 WE ARE THE ONLY MEMBER-OWNED PERFORMING RIGHTS ORGANIZATION IN THE UNITED STATES. PAUL WILLIAMS ASCAP PRESIDENT & CHAIRMAN The 12 writers and 12 publishers on the ASCAP Board of Directors know the needs of our members first-hand, represent SONGWRITER no outside interest group and combine deep experience and strategic vision to lead the organization into the future.
WRITERS PUBLISHERS
DOUG WOOD JOEL BECKERMAN RICHARD BELLIS IRWIN Z. ROBINSON JAMES M. KENDRICK MARTIN BANDIER ASCAP BOARD WRITER COMPOSER COMPOSER ASCAP BOARD PUBLISHER ASCAP BOARD TREASURER, SONY/ATV MUSIC PUBLISHING VICE CHAIRMAN, VICE CHAIRMAN, CROMWELL MUSIC SCHOTT MUSIC SONGWRITER
MARILYN BERGMAN BRUCE BROUGHTON DESMOND CHILD CAROLINE BIENSTOCK BARRY COBURN LAURENT HUBERT SONGWRITER COMPOSER SONGWRITER CARLIN AMERICA TEN TEN MUSIC GROUP KOBALT MUSIC PUBLISHING EX-OFFICIO
2017 ANNUAL REPORT 8 WRITERS PUBLISHERS
DAN FOLIART MICHELLE LEWIS MARCUS MILLER ZACH KATZ DEAN KAY LEEDS LEVY COMPOSER SONGWRITER COMPOSER BMG MUSIC PUBLISHING LICHELLE MUSIC LEEDS MUSIC
RUDY PEREZ ALEX SHAPIRO JIMMY WEBB MARY MEGAN PEER EVAN LAMBERG JON PLATT SONGWRITER COMPOSER SONGWRITER PEERMUSIC UNIVERSAL MUSIC PUBLISHING WARNER/CHAPPELL MUSIC
2017 ANNUAL REPORT 9 CARDI B DADDY YANKEE DREW TAGGART ASHLEY GORLEY ARIANA GRANDE BENJ PASEK AND JUSTIN PAUL
ASCAP MEMBERS WROTE THE SOUNDTRACK TO 2017.
JAMES FAUNTLEROY JUSTIN BIEBER POO BEAR DEMI LOVATO KENDRICK LAMAR STEVE MAC SAM HUNT
2017 ANNUAL REPORT 10 LIL UZI VERT MIKE WILL MADE-IT DUA LIPA COLDPLAY BIG SEAN STARRAH HEITOR PEREIRA
From pop to hip-hop, Latin to R&B, country to EDM and rock to gospel, music from ASCAP songwriters crowned 31 separate song charts in 2017, and took all 10 of the Top 10 spots on the Hot 100. Chart-topping members included Ashley Gorley, Drew Taggart, Daddy Yankee, Christopher Brody Brown, James Fauntleroy, Ray Charles McCullough, Jeremy Reeves, Frederic Kennett, Isaac Slade, Joe King, Kandi Burruss, Tameka Cottle, Steve Mac (PRS), Justin Bieber, Poo Bear, Mattman & Robin (STIM), Kendrick Lamar, Mike Will Made-It, Lil Uzi Vert, Louis Bell and Quavo, Takeoff, and Offset of Migos.
More than 45,000 new members joined ASCAP in 2017, among them Cardi B, Dua Lipa, Coldplay, Carlos Vives, Nana Rogues (Drake, “Passionfruit”) and Jonas Jeberg (Fifth Harmony, “Sledgehammer,” Selena Gomez, “Fetish”). Top ASCAP members renewing their agreements included Billy Joel, Meghan Trainor, Sam Hunt, Ariana Grande, Donald Fagen, Justin Bieber, Joss Favela, Big Sean, Kendrick Lamar, Drew Taggart (of the Chainsmokers), Pasek and Paul, Christopher Brody Brown, Starrah, Demi Lovato, French Montana, Lil Uzi Vert, Brett James, Henry Jackman and Heitor Pereira.
2017 ANNUAL REPORT 11 ASCAP works with bipartisan allies on Capitol Hill to build consensus and workable solutions to WE ARE WORKING TO revamping our music licensing system. Our annual “We Write the Songs” Concert at the Library of Congress along with our ASCAP “Stand With Songwriters” Advocacy Day on Capitol Hill brings REFORM OUR together ASCAP members and executives with legislative leaders to explore ways to update the WWII-era federal laws that regulate how songwriters license their works. By year-end, ASCAP’s OUTDATED advocacy efforts led to the introduction of the Music Modernization Act of 2017. This new bipartisan legislation represents months of collaboration and compromise between the songwriting and tech industries, creates a more flexible framework that can adapt to the realities of the modern music MUSIC marketplace, and will ultimately result in compensation for ASCAP members that reflects the LICENSING true value of their music. In December 2017, in a significant victory for ASCAP music creators, the Second Circuit Court of SYSTEM. Appeals in New York City affirmed that the right of public performance allows for the fractional licensing of music works. The achievement was the result of a joint effort by ASCAP and BMI to challenge the Department of Justice’s interpretation of our respective consent decrees and to enact modifications that will protect songwriters, composers and music publishers. 2017 ANNUAL REPORT 12 WE ARE Music together launched an initiative to improve the sharing of unique identifiers and matching of sound recordings and compositions across the industry FORGING and in multiple territories, leveraging cutting edge technology, such as blockchain UNPRECEDENTED and graph databases. Then in July, ASCAP and BMI announced a joint database reconciliation project of PARTNERSHIPS. our songs repertories that will deliver an authoritative view of ownership shares for the vast majority of music licensed in the U.S. The first-ever initiative reflects ASCAP’s groundbreaking moves in transparency and innovation ASCAP’s strategy to proactively and voluntarily move the entire industry forward to continued to lead the industry toward more cooperation and more accurate, reliable and user-friendly data. alignment on data issues. In April, 2017, ASCAP, SACEM and PRS for
2017 ANNUAL REPORT 13 WE ARE ASCAP and YouTube signed a multi-year ASCAP’s record-high licensing revenue in 2017 SECURING agreement in July 2017 for U.S. performance was also fueled by increased revenues across rights and data collaboration. It achieves two multiple platforms, including audio/visual media, FUTURE important ASCAP goals. It yields higher overall audio streaming services and radio. In addition to compensation for ASCAP members from the YouTube agreement, we also negotiated REVENUE YouTube and will continue to propel ASCAP’s favorable deals with other top licensing partners. ongoing transformation to lead the industry STREAMS toward more accurate and reliable data.
2017 ANNUAL REPORT 14 BY EMPOWERING ASCAP debuted a market-leading suite of digital tools in its Member Access portal in 2017, unparalleled in the performing rights sector. OUR MEMBERS The tools make it easy for songwriters, composers and publishers to register and manage large catalogues of works and provide songwriters WITH and publishers with new data visualization tools for a deeper dive into their earnings data, empowering them to make more informed business INNOVATIVE decisions about their catalogs and works. TOOLS...
2017 ANNUAL REPORT 15 AND UNIQUE OPPORTUNITIES TO HELP THEM GROW THEIR CAREERS...
We support our members’ long-term success and help foster the hits of tomorrow through high-profile song camps, workshops in multiple genres, showcases at major industry events like the Sundance Film Festival and SXSW and through our ASCAP “I Create Music” EXPO, the largest conference of its kind in the world.
2017 ANNUAL REPORT 16 Our members created some of the best-loved and most honored ASCAP MEMBERS music of 2017. From Kendrick Lamar’s five Grammy wins for DAMN. to Du Yun’s Pulitzer Prize for Angel’s Bone; from Benj Pasek and Justin CAN KEEP CREATING Paul’s Golden Globe for “This Is Me” from The Greatest Showman to Daddy Yankee’s Song of the Year Latin Grammy for “Despacito;” from THE MUSIC THAT Garth Brooks’s sixth Entertainer of the Year Award at the CMAs to Reba CONNECTS US ALL. McEntire’s Dove Award for Sing It Now, ASCAP members created the songs, scores, symphonies and more that united us throughout the year.
2017 ANNUAL REPORT 17 Kendrick Lamar at the 60th Annual Grammy Awards; photo by Kevin Winter/Getty Images