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ASCAP 2013 Annual Report

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ASCAP 2013 Annual Report Music, Made Possible. ASCAP is the world leader in performance royalties, advocacy and service for songwriters, composers and music publishers. Our mission is to ensure that our music creator members can thrive alongside the businesses who use our music so that, together, we can continue to touch the lives of billions. ASCAP President and Chairman Paul Williams ASCAP CEO John LoFrumento More than 500,000 of my fellow Our strong performance in 2013 songwriters, composers and music further demonstrates why ASCAP is publishers depend on ASCAP to uniquely suited to serve the needs of both “collectively license their work and collect “music creators and licensees in the digital public performance royalties, which are future. I believe ASCAP’s ability to transparently and efciently becoming a more vital source of income track and distribute performance royalties using the most advanced in the digital age. As we celebrate our centennial, we technology is unmatched within the industry, as is our commitment to believe it is time to update the regulations that govern music licensing. nurturing and advocating on behalf of our community of members. I ASCAP is working to shape a future which preserves the enormous am thrilled that in our 100th year, ASCAP is still breaking new ground benefts of the collective licensing model, while better refecting how toward a more transparent, efcient and efective music licensing technology is changing the way people listen to music and the system.” competitive landscape in which we operate.” ASCAP Annual Report 2013 2 Strong Revenues ASCAP BY THE NUMBERS Reported for 2013 $851.0 million ASCAP distributed over $851.0 million in royalties to its distributed 1ST PRO in the United States songwriter, composer and publisher members in the 2013 to members in 2013 calendar year, an increase of nearly $22.3 million over 2012. Domestic distributions totaled $527.9 million, up 5.8%. 2013 became the sixth year in a row that ASCAP distributed well in excess of $800.0 million – more than $5.0 billion total – to its 100 Years 500,000+ members. ASCAP is the only performing rights organization to as the world leader in songwriters, composer do so, making it the global leader in performance royalty performance royalties and music publisher distributions to songwriters, composers and music publishers. and service to music creators members Revenues remained strong at $945.4 million, led by a $13.8 million increase in domestic receipts boosting ASCAP’s financial growth, primarily from its new media and general 250 Billion 9 Million licensing areas. Revenues from foreign societies also performances processed by works in the remained healthy at $330.6 million. ASCAP remains among ASCAP in 2013 ASCAP repertory the most-efficient performing rights organizations with an operating expense ratio among the lowest in the world. 2013’s operating ratio stood at 12.1% versus 11.6% in 2012, due to litigation expenses incurred as a result of ASCAP’s rate court 12.1% $5.0 Billion operating expense ratio, proceeding with Pandora Media, which sought to lower the distributed to ASCAP members one of the lowest among royalties it pays to music creators. in the last 6 years PROs in the world See full audited financials starting on page 18 3 The ASCAP Board of Directors Paul Williams Jimmy Webb Irwin Z. Robinson James M. Kendrick Martin Bandier Richard Bellis Marilyn Bergman Caroline Bienstock President & Chairman Writer Vice Chairman Publisher Vice Chairman Treasurer Sony/ATV Music Composer Songwriter Carlin America Songwriter Songwriter Cromwell Music Schott Music Publishing Bruce Broughton Desmond Child Alf Clausen Barry Coburn Dan Foliart Wayland Holyfield Laurent Hubert Dean Kay Composer Songwriter Composer Ten Ten Music Group Composer Songwriter BMG Rights Lichelle Music Management Leeds Levy Mary Megan Peer Matt Pincus Michael J. Sammis Alex Shapiro Valerie Simpson Cameron Strang Doug Wood Leeds Music peermusic SONGS Music Universal Music Composer Songwriter Warner/Chappell Music Composer Publishing Publishing Group WRITERS & PUBLISHERS The ASCAP Board of Directors, made up of 12 writers and 12 publishers, they represent no other outside interest group. The Board has a clear elected from and by the membership every two years, combines agenda – to provide the fairest and highest level of payments, the best experience and foresight to best guide the Society into the future. ASCAP service and the best copyright protection for the membership. It does this is the only performing rights organization in the U.S. owned by by meeting regularly to set policy and by creating various Board composers, songwriters and music publishers. Writer members elect 12 committees which provide oversight and direction to a professional writers to sit on the Board, and publisher members elect 12 publishers. management team in all areas of ASCAP’s operation. ASCAP Board members know the needs of the members first-hand and ASCAP Annual Report 2013 4 ASCAP welcomed more than 30,000 new members in 2013. Among them are (above, l-r) Zedd, Calvin Harris, Big Sean, Haim, Sia, Matthew Koma, Drake, Kings of Leon’s Jared Followill, Gerardo Ortiz and composer Steven Price (Gravity) ASCAP Annual Report 2013 5 ASCAP members HIGHEST AWARDS & HONORS continue to garner the highest industry ASCAP President Paul Williams accepts his Grammy for Daft Punk’s Justin Timberlake earned #1 hit songwriter Romeo Santos awards and honors. Random Access Memories three Grammys in 2013 dominated the Latin Billboard charts in 2013 At the 56th Grammy Awards, honoring the music of 2013, ASCAP members took home the lion’s share of awards, winning 60% of all categories. Justin Timberlake earned three Grammys; Jay Z and Sir Paul McCartney each earned two; bright, young newcomer Lorde (APRA) won the Song of the Year Grammy for “Royals;” Shane McAnally won the Best Country Song Grammy for “Merry Go U2’s Song, “Ordinary Love,” Co-written with Danger Mouse, Newcomer Lorde (APRA) won won the Golden Globe for Best Original Song the Song of the Year Grammy for “Royals” ‘Round;” and ASCAP’s very own President and Chairman of the Board Paul Williams earned his third career Grammy for his work on Daft Punk’s Random Access Memories. DOMINATING THE CHARTS ASCAP songwriters and composers also swept the music ASCAP members dominated the 2013 Billboard charts. Members whose categories at the 2013 Golden Globe Awards. Composer Alexander songs hit #1 last year included R&B songwriter Robin Thicke, Latin Ebert, bandleader of Edward Sharpe and the Magnetic Zeros, songwriter Romeo Santos, country songwriter Ashley Gorley and Christian earned a Golden Globe for Best Original Score for his music to the songwriter Matthew West. ASCAP members , Bruno Mars, Brandy Clark, 2013 film All is Lost. Rock legends U2 and writer-producer Brian Justin Timberlake, Drake, Katy Perry, Jay Z, Lorde (APRA), Kendrick Lamar, Burton (aka Danger Mouse) earned awards for “Ordinary Love,” their Alicia Keys, fun.’s Nate Ruess, Beyoncé, Josh Kear, Chris Tompkins, 2 Chainz, tribute to Nelson Mandela featured in Mandela: Long Walk to Mike Einziger, Aloe Blacc and many others also topped the charts in 2013. Freedom. In addition, longtime ASCAP member Stephen Schwartz’s Pippin won a 2013 Tony Award for Best Revival of a Musical, and Steven Price won an Oscar for his Score to Gravity. ASCAP Annual Report 2013 6 Utilizing pattern recognition technology, whereby TECHNOLOGICAL ASCAP began automatically identifying musical works – mostly instrumental – on radio, TV and INNOVATIONS cable, even when voice-overs or sound effects are mixed with the music, increasing the number of ASCAP maintained a high level of performances tracked by 150% royalty payments to its members Expanding ASCAP’s satellite radio survey, resulting in through upgrades to its business 18,000 additional members getting paid and an additional 3 million performances processed in one quarter, and expanding ASCAP’s surveys of Music and technological innovations. This Choice, AMI and Touchtunes so that 66,000 more was accomplished by: members got paid and 120 million more performanc es were processed in one quarter Migrating ASCAP’s data center operations to a new state-of-the-art facility with increased storage, Enhancing tracking, which when coupled with a power and speed to maximize the processing of greater number of licensees playing a wider variety performances of music than every before, resulted in a 45% increase in the number of members receiving Completing a 5-year project that simplified its royalties in the past five years alone license and rate structure for eating and drinking establishments, leading to a 30% increase in General Introducing the “Play Music” license for small web Licensing customers. Today, there are more than sites and mobile apps, an easy-to-use, economical 700,000 businesses licensed – bars, clubs, skating agreement that can be obtained at ASCAP.com in a rinks, hotels, retail stores, orchestras and more matter of minutes ASCAP Annual Report 2013 7 SUPPORTING CAREERS In an always-connected music world, good data is essential to making good decisions. That’s why we ofer ASCAP Member Access, an online As the only performing rights portal that gives our members a granular level of detail about who’s playing their music, how often, and how much they’re getting for it organization in the US owned and (ASCAP is also the only PRO in the US that lets its members see every run by songwriters, composers cue sheet with their music on it - all through Member Access). In 2013 we introduced the iStatement to Member Access, an interactive PDF and publishers, ASCAP version of the ASCAP royalty statement that lets our members scan understands that music is more through and sort royalty info quicker and easier than ever before. than a passion for our more than ASCAP is leading the way in transparency in the digital era, and Member Access is key to that goal.
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