I received this in my recent BMI statement and thought folks here might like to know about it. Will it mean more or less money for composers? We’ll have to wait until June 2012 to find out!
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New Cable Royalty Distribution Methodology
Over the last year, BMI has been working to revise and refine its royalty distribution methodology for cable television networks. We are pleased to announce the results of that work by introducing to you the new methodology, which will take effect beginning with performances on and after October 1, 2011, for which royalties will be distributed in June 2012.
By using state-of-the-art technology combined with performance information from Tribune Media and audience measurement data from Nielsen Media Research, BMI will now more closely align its royalty payments with the value that individual programs bring to the cable television industry. Under the new rules, BMI will calculate a unique set of rates for each program that is based on the program’s value relative to all programs airing on an individual cable channel. Royalty rates will vary from quarter to quarter, depending on the amount of license fees available for distribution and the overall number of BMI performances each quarter.
Under the new BMI Cable Television payment system, performances of music can be eligible for two distinct royalty payment components each quarter:
1) The Current Activity Payment
2) The Super Usage Bonus Payment
The calculation methodology behind each of these payments is described below.
The Current Activity Payment
Music in the BMI repertoire that is performed on cable television networks will be eligible for a Current Activity Payment. Each performance will earn a unique royalty rate based on the duration of the performance, the weighted royalty value for each usage type and cable television audience measurement data provided by Nielsen Media Research for each program aired on a channel. The royalty values for all types of performances (theme, feature, background, and logo) that were reported to BMI on cable television program cue sheets are weighted by BMI, with each type having a unique valuation.
Super Usage Bonus Payment
Certain types of performances of an extended duration may qualify for a Super Usage Payment. Specifically, performances of songs (Background Vocal, Visual Instrumental and Visual Vocal usages) with a continuous duration of one minute or greater will be designated as Super Usages. The royalty rate for these performances will be higher than those with a duration of less than one minute.
Of course, the new methodology is set forth in full detail in our Royalty Policy Manual, which can be found at http://www.bmi.com/royalty and which governs the methodology in full. The latest and most recent information on all BMI royalty payments is always available on BMI’s website, where you will find the full text of “How We Pay Royalties.”
We believe the innovations incorporated into these revisions to our cable television royalty payment system will give all BMI composers, writers and publishers the advantages of the most recent achievements in royalty distribution technology and audience measurement data. The new system also ensures that BMI will be able to continue to create the highest value for your music by offering our licensees a competitive source of music, while offering an unmatched repertoire to the American public.