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2019-2020 Annual Review 2 Table of Contents

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2019-2020 Annual Review 2 Table of Contents 2019-2020 ANNUAL REVIEW 2 TABLE OF CONTENTS 04 PRESIDENT & CEO REPORT 08 ROSTER & REPERTOIRE 12 REVENUE PERFORMANCE 13 PROTECTING THE FUTURE OF MUSIC 15 DISTRIBUTION & ADMINISTRATION 16 TECHNOLOGY 4 President & CEO Report IT’S BEEN A YEAR UNLIKE The $1.233 billion total in distributions includes domestic and international royalties, with the COVID-19 crisis profoundly as well as distributions from direct deals that ANY OTHER, transforming the world and deeply affecting BMI administers on behalf of our publisher the creative and business communities BMI and digital service provider clients. Those is entrusted to serve. In response, BMI’s deals, which account for $71 million, represent commitment to meeting the diverse and an increase of $9 million over last year and evolving needs of our songwriters, composers, approximately 6% of BMI’s total distribution. publishers and licensees has never been stronger. The Company was well positioned to BMI’s long-term strategic focus on diversifying navigate this challenging time, and despite the revenue streams enabled the Company to unprecedented impact of the global pandemic weather declines that resulted from the I am pleased to share that BMI is reporting pandemic. To that end, strong growth in the record-breaking results for the fiscal year Digital and Radio categories helped offset a ended June 30, 2020. BMI generated historic significant downturn in the General Licensing revenues of $1.311 billion, an increase of $28 sector. For the first time ever, revenue from million, or 2%, over the prior year. Notably, Digital sources represented the largest portion BMI absorbed a $60 million negative impact of BMI’s domestic total with 32%, or $304 due to the pandemic’s effect across multiple million, an increase of $42 million, or 16%, over businesses, yet the Company still surpassed last year. Radio came in at $155 million, $27 last year’s performance. Moreover, BMI million higher than last year, or an increase of distributed and administered a record-setting 21%. This growth is thanks to BMI’s rate court $1.233 billion to our songwriters, composers settlement with the Radio Music Licensing and publishers, $37 million more than last year, Committee (RMLC) that resulted in a new or a 3% increase. For the fifth consecutive year, agreement and retroactive payments; further BMI’s results represent the highest reported detail is available below. General Licensing, public performance revenues and royalty along with other income, totaled $130 million, distributions of any music rights organization down $39 million, or 23%, from last year. This in the world, highlighting the increasing value directly correlates to the hit taken by bars, BMI continues to provide to our creative and restaurants, fitness centers, hotels, retail business communities. establishments and multiple other businesses President & CEO Report 5 that shut down in the second half of the year. office grosses before the pandemic curtailed on by the pandemic, was a priority for the Overseas, BMI’s international revenue reached theater attendance. In addition to Guðnadóttir’s Company. When all in-person music events an all-time high of $350 million, up $10 million, extraordinary year, highlights included Star were canceled, from festivals and showcases or 3%, over last year. This impressive total Wars: Episode IX - The Rise of Skywalker to our award shows, BMI developed many would have been $9 million higher were it not concluding the legendary contributions of John exciting new digital initiatives to highlight for a negative foreign exchange impact. Williams to the 42-year Star Wars saga after our songwriters, composers and publishers nine feature films and more than 20 hours on our online platforms. Additional detail Throughout the year BMI took critical action to of music. Other hits included 1917 (Thomas on these projects is available in our “Roster support the ongoing creation of new music, to Newman) and Little Women (Alexandre & Repertoire” section. Easing our affiliates’ the benefit of both our affiliates and licensees. Desplat), to name just a few. financial hardship was also very important to To do so effectively, a primary focus was us. BMI was proud to join with other PROs to placed on safeguarding the health, safety and Over 60% of this season’s primetime network create a special fund as part of the MusiCares well-being of our team members. Like so many TV shows featured themes and/or scores COVID-19 Relief Fund to specifically support others, the BMI team began working remotely written by BMI composers. There were many songwriters and composers in need during this in mid-March. We seamlessly transitioned standout series this year with music created time. our operational capabilities, which notably by BMI composers, including Mike Post (Law enabled us to distribute two quarters of & Order: SVU, Magnum P.I.), Atli Örvarsson This year, BMI’s membership increased by royalty payments earlier than scheduled to our (Chicago Fire, Chicago Med, Chicago P.D., nearly 10%, bringing our new total number of affiliates for the first time ever. Concurrently, FBI, FBI: Most Wanted), Ramin Djawadi (Tom creators and copyright owners to 1.1 million, BMI took strategic measures to significantly Clancy’s Jack Ryan), Brian Tyler (Yellowstone), and we look forward to protecting their rights reduce expenses in order to minimize the Blake Neely (You), and Kris Bowers (When They and royalties now and into the future. BMI also pandemic’s financial impact on our creative See Us), among others. saw our number of licensed musical works grow community, now and into the future. Celebrating our affiliates and promoting to over 17 million. In addition, BMI processed BMI’s success is directly due to the unmatched their music, amid the new normal brought approximately two trillion performances this creativity and talent of our songwriters and composers and the incredible worldwide appeal of their music. Across genres, BMI’s stellar TOTAL REVENUE & ROYALTY DISTRIBUTION affiliates made remarkable achievements. Icelandic composer Hildur Guðnadóttir won several major awards for her stunning music in $1.5 B Joker; not only did it land her a Golden Globe and a BAFTA, but she also became the first solo woman to win the Academy Award for Original $1.25 B Score. Guðnadóttir also picked up an Emmy and GRAMMY for her powerful score in the HBO series, Chernobyl. GRAMMY gold also went $1 B to hitmakers including Lizzo, Gary Clark Jr., Lil Nas X, Billy Ray Cyrus, and Lady Gaga, among many others, while Music City’s Luke Combs $750 M and Kacey Musgraves swept the CMAs, and Latin superstars such as Luis Fonsi and J Balvin took Premio Lo Nuestro Awards. Taylor Swift’s $500 M album, Lover, was the top-selling album of 2019, and she also released the documentary, Miss Americana, on Netflix, to rave reviews. $250 M These are just a few of many accomplishments by our affiliates. BMI’s outstanding composers scored films 2016 2017 2018 2019 2020 accounting for over $2.5 billion in domestic box TOTAL REVENUE TOTAL DISTRIBUTION 6 President & CEO Report Senior Management MICHAEL COLLINS BRUCE A. ESWORTHY LIZ FISCHER ALEX FLORES VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT GOVERNMENT RELATIONS FINANCE & ADMINISTRATION, CORPORATE COMMUNICATIONS CREATIVE CHIEF FINANCIAL OFFICER & MARKETING GLENDA HART NADA LATTO DAVID LEVIN STUART ROSEN JODI SAAL VICE PRESIDENT VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT & VICE PRESIDENT SPECIAL PROJECTS HUMAN RESOURCES LICENSING GENERAL COUNSEL CORPORATE PLANNING ALISON SMITH MICHAEL G. STEINBERG ANN SWEENEY MIKE WEST EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT SENIOR VICE PRESIDENT DISTRIBUTION, PUBLISHER RELATIONS CREATIVE & LICENSING INTERNATIONAL & GLOBAL POLICY CHIEF INFORMATION OFFICER & ADMINISTRATION SERVICES year. While this number is slightly lower than last year’s total, this is CARES Act, as well as many other useful resources for financial only due to a change in BMI’s internal performance tracking system. The assistance and beyond. Company actually saw a 26% increase in performances processed when In Washington, D.C., the U.S. Department of Justice (DOJ) is continuing comparing year-over-year with this new approach. to evaluate the future of the BMI and ASCAP consent decrees.* On the advocacy front, BMI led a productive effort to petition Congress Recognizing that immediate termination of the decrees would lead us to keep the needs of music creators front and center in any federal down the dangerous path of compulsory licensing, in August of 2019 stimulus package. We were gratified when the Coronavirus Aid, Relief, BMI put forth our proposal for reform to the DOJ, along with ASCAP, and Economic Security (CARES) Act was signed into law on March recommending a gradual shift to a free market with protections in place 27, 2020, which offered relief to songwriters and composers who for all parties. This would facilitate a level playing field for everyone are independent contractors, sole proprietors, or self-employed, and involved, while protecting competition and enabling creators to be made them eligible for small business loans, emergency grants, and fairly compensated for their intellectual property. Later that month, unemployment insurance. Furthermore, we created a comprehensive BMI had the opportunity to take part in the Orrin G. Hatch Foundation’s informational hub called the BMI Resource Center on our website, symposium on “Music Licensing in the 21st Century,” where I reinforced providing detail on how creators could practically benefit from the our proposal for decree reform before Makan Delrahim, Assistant *On January 15, 2021, the DOJ formally closed its review of the BMI and ASCAP consent decrees, announcing it will take no action to modify or terminate the decrees but leaving open the possibility of changes in the future. President & CEO Report 7 Attorney General for the Antitrust Division of the DOJ, as well as various business leaders.
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