NMPA reports US$2.3bn loss due to outdated copyright laws
The National Music Publishers’ Association (NMPA) has for the first time released figures for the total industry revenue and value in the US for 2013.
The figures released by the trade association’s members report US music publishers bring in US$2.2 billion each year, with an estimated 52% of that revenue stemming from performance licensing, 23% from mechanical licensing and 20% from sync licensing.
However, NMPA members have estimated the industry lost around US$2.3 billion in revenue last year due to “outdated laws and regulation” within the digital music streaming realm. According to Billboard, digital streaming companies aren’t currently able to deal with music publishers directly, forcing them to collect payments through the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI).
“The new digital marketplace is changing how songwriters and their music publishing partners can thrive,” said NMPA President and CEO David Israelite in a statement. “As the marketplace evolves, it is essential our industry no longer be hamstrung by outdated laws and government regulation.”
Last week the Department of Justice (DOJ) announced it would review both ASCAP and BMI’s consent decrees. The laws which currently stand were entered in 1941; ASCAP’s has not been updated since 2001 and BMI’s since 1994. The current consent decrees mean negotiations between a person requesting a license and ASCAP or BMI begin after a license is granted.
Elizabeth Matthews, Executive VP and General Counsel at ASCAP gave the following analogy at the ASCAP Music Expo in April: “[It’s like] if you wanted to buy a house and you couldn’t come to an agreement on the price of the house, you could still move in and redecorate and they can’t kick you out.”
Digital Music News reported DOJ has requested comments from songwriters, publishers, licensees and service providers on whether the consent decrees should be modified and if so, how. Comments can be submitted to [email protected] before August 6, 2014.