Rumors proceed to swirl surrounding BMI’s supposed flirtation with a sale to non-public fairness agency New Mountain Capital, and songwriters are involved.
Following reviews {that a} supply near the state of affairs revealed to Billboard that performing rights group Broadcast Music Inc. (BMI) was in talks to promote itself to non-public fairness agency New Mountain Capital, rumors proceed to floor over whether or not the deal will shut. If true, the supposed price ticket for the transaction is a whopping $1.7 billion.
Whereas this isn’t the primary rumor surrounding BMI for the reason that group shifted from a not-for-profit to a for-profit firm final yr and supplied itself on the market, the uncertainty of its destiny has sparked concern amongst songwriters and publishers.
Music trade organizations, together with the Black Music Artists Coalition, the Artist Rights Alliance, the Music Artists Coalition, SAG-AFTRA, and Songwriters of North America, wrote a letter to BMI final week expressing their collective concern over the affect the corporate’s new profit-driven method might need on songwriter funds.
“Songwriters have a vested curiosity in modifications at BMI and in any proposed transaction which is wholly depending on songs they’ve written,” the letter reads. “BMI doesn’t personal copyrights or different property; it’s a licensing entity for copyrights owned by songwriters and, by extension, publishers. Songwriters have a proper to know these choices and the way (they affect) us.”
“Will the broadcasters on BMI’s Board obtain the sale proceeds? In that case, why ought to broadcasters be the largest beneficiary from a sale of an organization whose solely asset is songs that belong to songwriters?” the letter continues. “If broadcasters profit from the sale of BMI, aren’t they primarily receiving a rebate on the licensing charges they’ve paid? In different phrases, they received to play songs free of charge.”
To assuage considerations, BMI President Mike O’Neill has emphasised a dedication to prioritizing songwriters’ pursuits and monetary success, citing upgrades to BMI’s providers portal and comparable initiatives enabled by the shift to a for-profit mannequin.
In the meantime, Jody Gerson, CEO and Chair of Common Music Publishing Group, tells Music Enterprise Worldwide: “We don’t touch upon rumor or speculations, however to be very clear, we are going to solely help modifications that enhance worth for songwriters and won’t stand for any that end in our songwriters being paid lower than what they deserve. Now we have an extended historical past of efficiently preventing for our songwriters and can proceed to take action.”