The U.S.-based PRO wants as much as a 7x rate increase and access to sponsorship, merch and scalper revenue.
Performing rights organization Broadcast Music Inc. (BMI) has been unable to make a deal with a trade group representing the biggest concert promoters in the United States and has filed a court petition to have new rates determined for concerts and live events.
Mike Steinberg, evp at BMI, says the North American Concert Promoters Association (NACPA) currently pays a rate between .3% to .15% of revenue, base on venue size. BMI estimates it generates $20 million annually from the concert business, a rate BMI estimates is .19% of the $10.5 billion revenue that the live entertainment industry generates annually. BMI wants a much higher royalty rate from the 30-year-old trade organization that represents both independent promoters — like Another Planet Entertainment, Nederlander Concerts and Jam Productions — as well as the companies that fall under the AEG and Live Nation umbrellas.
“The music created by songwriters and composers and enjoyed by American music fans is the backbone of the live concert industry, yet the rate paid to BMI for the use of its affiliates’ music vastly undervalues that contribution,” Steinberg says in a statement provided to Billboard. "We have spent nearly five years attempting to finalize new rates with NACPA that more closely align with the higher rates NACPA members have already agreed to pay to other PROs, both internationally and in the U.S. Instead, NACPA is attempting to shortchange BMI affiliates and rely on outdated rates that do not reflect the evolution of the music industry or take in to account the expanded revenue streams that result from the performances of BMI music. We believe we have a compelling case and look forward to presenting our positions to the Court.”