[Music1234]

I agree with your analysis about advertising bills not getting paid to TV networks and radio stations. Yes, there is no reason for Hilton, Sandals, UAL, American Airlines, etc….to advertise now. But, there is a great reason for Proctor and Gamble, Kellogg’s, Amazon, Costco, Wal Mart, ATT, Verizon, CVS Pharmacy, Walgreens, pharma, medicine, T Mobile, UPS, FEDEX, and packaged food products to advertise. Some companies are making money hand over fist – Amazon, Wal Mart, Costco, all grocery stores, for example

I recently landed a cereal spot and it’s airing heavily on National and Cable TV….It will be very interesting to see what that pays out in performance royalties.

I am skeptical about your theory of PRO’s using current revenue to pay current royalty distributions. I have to believe that monies (blanket network license fees) are collected 90 to 180 days in advance and then they sit on the money (while it earns interest) then they pay us based on broadcast usage reports. Otherwise, why would they delay payment by 2 qtrs or 180 days? BMI and SESAC paid us properly recently. There were no shenanigans with this March and April distribution and I am surprised ASCAP needs 3 more weeks to pay. I bet they take the 3 weeks to re-assess, and cut payouts. I met face to face with SESAC one year ago and asked where they get their revenue from and they said “TV Networks each pay us one large blanket license fee”.

So yes, while ad revenue is lost from hotels, airlines, casinos, sandals, cruise lines, etc….PG, Wal Mart, Costco, Kelloggs, General Mills, Amazon, Whole Foods, Unilever, Kimberly Clark,Home Depot, Lowes, Medicine, Pharma, CVS, Walgreens, Health Care, financial services, insurance co’s, Phone Companies, and Utilities will all step up and buy TV ads. Anyway, this article predicts a 12% drop in 2020 which is not so bad:

https://variety.com/2020/tv/news/traditional-media-ad-sales-coronavirus-magna-1203546258/

[Music1234]

The PRO’s all have fixed costs that are not going to change much despite the fall in revenue.

A great deal of those “fixed costs” are salaries to staff. I put that in quotes because salaries really are not fixed costs. I also do not share your point of view that Revenue from TV networks is down. In fact, I have to argue that it very well may be up! Every American in the world is home watching TV and companies are still buying ads on TV networks with even larger audiences watching news 24/7. I see dozens of TV spots every day. These spots are not being sold for free.

The revenue decline is going to come from sources we do not participate in – Restaurants, bars, hotels, theme parks, live concert venues, stadiums, sports events. I have never received a royalty for any of these mediums because typically they play popular music, not production music. I agree, revenue may drop 30% because of this, but if our TV, advertising, and social media/ youtube production music does not service, nor participate in these revenue streams, are you saying we must take a hit with everyone else? Will ASCAP staff and board members get pay cuts for their contributions?

Not to be insensitive…I feel horrible for so many musicians who will lose a lot of money by not performing live gigs in rock, blues, jazz clubs, weddings, corporate parties and events, street festivals, concert venues, etc…. but the reality is that kind of work does not produce back end performance royalties. Additionally, radio still is rolling along so why would that revenue stream dry up for PRO’s? TV Network fees to PRO’s will be the only game in town for PRO’s in 2020. Are you implying that all of us TV writers will have to share that TV network revenue stream with pop artists and touring artists who will not get a chance to tour this year and have their songs played in restaurants, bars, theme parks, sports arenas, etc. etc…?

[Music1234]

You figures for what we earn, compared to what the 30 second spot sells for are way off. PRO’s just get paid one lump sum annual blanket license fee from every TV network so the Network can obtain the rights to use the music in that PRO’s catalog.

Here is what advertisers pay for 30 second spots on prime time shows:

https://adage.com/article/news/tv-ad-pricing-chart/305899

I have no idea what ASCAP will do, but they should pay based on what is being broadcast or “performed” on TV.
That should not change. I do feel bad for the artists who rely on live concerts, theme parks, retail playlists and so on, but at the end of the day, we all make a choice as to how we want to participate in the music. We hear chose to focus on Music for tv, ads, films, internet and social media. That is our angle and we should not get a pay cut because touring artists are out of work. It’s kind of like saying Amazon fullfillment center workers should get a pay cut because Macy’s and the Gap had to close their stores and furlough their workers.

Let’s not speculate. The PRO’s will handle this, the way they handle it, and they probably won’t be transparent about it.

[Music1234]

@ UpFromTheSkies – Wow! amazing that they need 3 more weeks to catch up.

@ jdt9517 – Royalties are paid based on advertising revenue TV networks collect. Ad revenue will decline for NCAA, NBA, NHL, GOLF, all sports events that never happened, but new ad revenue is coming in from different advertisers who can thrive in this market – essential items, food, soap, tooth paste, TP, cleaning products, insurance, financial services. I can even make a case for computer products and tech products (I need to order ink cartridges for example, or a new 2 terrabyte hard drive) . People will still need to buy certain items. Home Delivery services will grow. Restaurants and fast food still need to drive pick up orders in. They will all have to quickly develop COVID 19 ad campaigns and buy ad time on TV networks. Broadcast Music “performance’ royalties always come from advertisers who pay TV networks to advertise.

[Music1234]

We probably should stop giving ideas to PRO’s as to how they will reduce payments to TV composers. The loss in Revenue will mainly be theme parks, hotels, restaurants, live concerts, stadiums, bars, retail.

TV writers should NOT (in theory) be that grossly impacted. Yes, live sports is gone, but 24 hour news and tv spots still march forward. Re-runs still march forward. YOUTUBE videos will still march forward. My TUNESAT detections are not slowing up much and to my surprise, the direct licensing markets still remain OK so far….3 to 4 weeks into this crisis.

The musicians that will be hit should be those focusing on pop songs that play in bars, restaurants, theme pars, retail…and then they perform live at concert venues and log their set lists at PRO’s.

When you follow the money, the money starts with advertisers who buy ads on TV networks. TV Networks collect all their money by selling ad time. Everyone is watching TV these days because everyone is home. The TV is literally on from wake up to bed time in my home. I am still seeing lots of re-runs and ads and of course talk shows and live news. These TV networks still have to pay our PRO’s a percentage of the advertising revenue they collect. Then our PRO’s pay TV writers from that pool of money. So if we are fortunate enough to have music on reality reruns, etc….In theory, the performance royalties should hold up.

If the pool of money the PRO’s collect becomes “democratized” and distributed to those who are not performing live in concert…well then that is a problem. I just landed a Raisin Bran cereal ad that has 500 air dates in just 3 days, I really would not be happy if I get short changed due to “democratization” of royalty distributions. Because everyone is at home eating, food ads are going to really pick up in April. Food, soap, TP, medicine, insurance and financial services are the only game in town. Airlines, Hotels, Vacations, Cruise Ships, Apparel are essentially out of business.

[Music1234]

Michael, can you send a link to the ASCAP communications? It would seem to me that payments to us will drop in 6 to 9 months and not on the next two distributions because that revenue should already have been collected and slated for payment in April and July 2020. It will be interesting if they start slashing royalty distributions now. It’s my understanding that we are getting paid for 2019 performance royalties on this distribution and the next distribution. Even the foreign distributions for 2019 and 2018 should pay out normally for the remainder of this year. The October 2020 and January 2021 distributions should show declines. We’ll see what they do soon enough. BMI did not slash 2019 royalties, that’s for sure.

[Music1234]

“Skate where the puck is going”
Indeed new shows are not in production and live sports broadcasts are history. These are negatives.

The positives will be re-runs. Those of us who have music on shows produced in the past few years will see re-runs. And yes, advertising and youtube messaging will change and all corporations will start advertising “during these difficult times….our corporation is ensuring that we will do…. blank, blank, and blank…so you feel confident and safe………..etc” .

The big dip has occurred in March because the news cycle is so negative, fearful, and shocking, but starting in April media producers will have to produce messages of “how to cope and adapt” and “how companies are implementing safety policies”….etc. So media will still get produced. All editors (our clients) will be editing from home.

The performance royalties we will get paid reflect the past 6 to 18 months ago so this will help sustain our earnings in 2020 a bit. I suppose we will see declines on Q4 2020 through Q3 2021 PRO statements. Olympics will be cancelled which means all the media that was supposed to get produced and broadcast for the summer games is out the window.

Bars, restaurants, retail stores, theme parks, hotels….hmmm ( all these extra sources of revenue for PRO’s) I really wonder about that. These businesses are closed so one has to wonder if they will even pay their annual license fees to ASCAP, BMI, and SESAC in 2020.

Key numbers to keep an eye on are what the pros will collect and distribute in 2020 compared to 2019

https://variety.com/2019/music/news/ascap-distributes-a-record-1-1-billion-in-royalties-1203202183/

If I were to take a guess at it, perhaps PRO’s will see a 20% to 30% decrease in revenue collected in 2020.
We will not know for 1 year.

ASCAP collected 1.27 Billion in 2018. I suppose they will report their 2019 revenue in 2 months or so.

BMI already warned about 2020 revenue in their March distribution. So performance royalties earned in 2021 will be lower I predict. All PRO’s around the globe will see their revenue decline. EVERYONE in the world except Amazon, Wal Mart, Costco, grocery stores, health care, drug companies will see their revenue decline.

It will be interesting to see if real estate prices crash down. I certainly hope University tuition crashes hard too.

[Music1234]

Very helpful and positive statement. In bizarre times like these, it just goes to show you how important these performance royalties are for all production music producers. Maybe Scripps, ESPN, BTN, ASCAP, BMI, SESAC and the libraries enabling the “blanket direct licensing” loop hole to some of these networks, will soon understand this and change their business practices so we can get paid when our music airs.

NBA, NCAA, Golf, Olympics, MLB Baseball….these are huge sports entertainment and live broadcast revenue streams that will most likely disappear for us this year. These sporting events are very important to all of us participating, and they very well may not happen at all this year.

We can all probably expect 2021 statements to drop substantially. So keep that in mind.

[Music1234]

LAwriter – It’s the practice of several SCRIPPS Properties not playing by the same rules as all other TV networks.

That is what they and the PRO’s need to stop enabling.

EVERYONE must follow the rules and ideas of “performing rights” for intellectual music property being broadcast to the entire public.

I get “direct licensing” for small businesses, youtube channels, in house media productions, e-learning, and tutorials, etc…..but when music is BROADCAST to the public, the concept of “performing rights” should apply to all tv, and cable networks no matter how big or small.

ABC, NBC, CBS, FOX, BRAVO, TLC, MTV, CNN, VH1, History Channel, Discovery Channel, and many others all pay performance royalties. Why is SCRIPPS exempt? This is why we need to write to them!

[Music1234]

Honestly I am more interested in bringing awareness to The FCC and lawmakers so that this practice comes to an end. Libraries need to end their greed. Selling PRO REGISTERED music via “direct license” that you did not create, nor paid an advance for is moral bankruptcy. We upload our music in good faith that you will license our music and share that sync license revenue with us, or offer it under blanket terms where cue sheets are filed and PRO’s pay us for the broadcast performances.

Here is the key goal of the FCC from their “WHAT WE DO” page

Revising media regulations so that new technologies flourish alongside diversity and localism

>What all of us need to do is bring awareness to this problem and loop hole. So please, everyone reading write to this lady here:

Rosemary Harold
Bureau Chief

The Enforcement Bureau (EB) is the primary FCC unit responsible for enforcing the provisions of the Communications Act, the Commission’s rules, orders, and various licensing terms and conditions. EB’s mission is to investigate and respond quickly to potential unlawful conduct to ensure: (1) consumer protection in an era of complex communications; (2) a level playing field to promote robust competition; (3) efficient and responsible use of the public airwaves; and (4) strict compliance with public safety-related rules.

[Music1234]

From the federal communications WHAT WE DO page:

The Federal Communications Commission regulates interstate and international communications by radio, television, wire, satellite and cable in all 50 states, the District of Columbia and U.S. territories. An independent U.S. government agency overseen by Congress, the commission is the United States’ primary authority for communications law, regulation and technological innovation. In its work facing economic opportunities and challenges associated with rapidly evolving advances in global communications, the agency capitalizes on its competencies in:

Promoting competition, innovation and investment in broadband services and facilities
Supporting the nation’s economy by ensuring an appropriate competitive framework for the unfolding of the communications revolution
Encouraging the highest and best use of spectrum domestically and internationally
Revising media regulations so that new technologies flourish alongside diversity and localism
Providing leadership in strengthening the defense of the nation’s communications infrastructure

[Music1234]

Should we call out these libraries engaging in this morally bankrupt practice?

Here is where I stand on this issue. The fair and normal business practice for (reality shows, cooking shows, travel shows, how to sell real estate shows) all these topics that SCRIPPS delivers, would be paying us the back end royalty. I just can not comprehend why this network gets a better deal than all other networks? Why aren’t our PRO’s using some legal approach to put some pressure on them. The fact is, this IS pro registered music airing on SCRIPPS, but SCRIPPS is not paying the PRO’s (who in turn pay us). How can this be happening?

Why can’t music library operators reading this offer an explanation? If we are not going to earn a single cent while we hear our tracks getting broadcast on SRIPPS every day.(we have TUNESAT so we know) . This is simply not right! And you should find a way to get us paid because that is the right thing to do. Cue sheets should STILL be filed with your library and you should account back to us “direct license to SCRIPPS (example: background cue drop)” should also equal “direct royalty paid to contributing music author/ writer.” And then you folks send a statement to us each quarter…Otherwise, the PROs need to make this happen and get SCRIPPS regulated by the FCC

https://www.fcc.gov/

[Music1234]

Pond 5 has sales people and a music director to handle this. E mail pond 5 support and ask them to negotiate the license terms based on how popular the game may become. If this is an independent game developer, perhaps the game will be played by hundreds. If this were done for X box and be a smash hit game that sells millions of copies, that should be reflected in the license being sold.

Simply stated: Big client with big bucks = charge as much a you can get away with, always quote very, very high. Small client with few clients typically =’s smaller license fee, unfortunately maybe the $69 license would work. Try to at least sell the premium license, and Pond 5, if you are listening here, the premium license needs to be higher or introduce “custom quote” so these scenarios can be negotiated.

It sounds like this customer is ready to spend more than $69, so it woulb be a shame to foolishly leave money on the table, but that’s the nature of stock music. It always disgusts me when national TV spots in the USA hit the airwaves for a petty $50 to $300 sync license. SAD! PATHETIC! SHAMEFUL! RECKLESS!

But I don’t know who to blame because composers are complicit in these stupidities. We all have collectively devalued ourselves to cheap commodities. I always come from the school of thought that it just takes some balls to ask for more money. Just ask for it! The worst thing that will happen is they will counter offer. I can tell from the letter that this customer wants your track no matter what, so you have the upper hand.

[Music1234]

I am pretty shocked by those figures myself. I have watched this show many times for leisure and have always been keen to listen to those “tension filled, mysterious, crimes and investigation” cues. They tend to play for longer periods of time, 45 secs to 90 secs. They also stand out and are a very important part of the overall show. Frankly, I always thought every episode was post scored by one composer. What a shame. These are the same earnings we get for petty reality shows where they just slap “light Pop” and “Quirky comedy” diddy’s on every 20 seconds. American Pickers and Pawn Stars pay similarly and they are shows that just kind of slap cues on with minimal thought given.

[Music1234]

And this months data for 10 subscription tunes…….
Track Amount
$ 2.47
$ 0.45
$ 1.20
$ 1.26
$ 0.51
$ 1.95
$ 2.43
$ 1.83
$ 8.93

Kind of speaks for itself where this model is headed…..Pretty Pathetic.

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