On November 20, 2015, Future of Music Coalition filed with the Department of Justice (DOJ) Antitrust Division in their request for comments on the matter of “fractional licensing” of musical works for public performance. This inquiry is part of the DOJ’s examination of the ASCAP / BMI consent decrees, which could result in a change to the rules that govern how songs are licensed to all forms of radio.
Chief, Litigation III Section
U.S. Department of Justice
450 5th Street NW, Suite 4000
Washington, DC 20001
To David C. Kully, Chief, Litigation III Section:
Future of Music Coalition (FMC) appreciates the opportunity to submit the following comments regarding the Antitrust Consent Decrees for the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI). Our views on the issue of 100 percent licensing are informed by consultation with the vocational songwriters, performing songwriters and independent publishers who comprise our community. read more
On May 29, 2015, Judge Lous Stanton of the Southern District Court of New York reached a decision in a dispute over rates paid by the webcaster Pandora to the performance rights organization (PRO) BMI. This court oversees rate-setting for songwriters and publishers when their works are “performed” on any form of radio (as well as live venues, bars and restaurants).
Judge Stanton’s ruling sets BMI’s new fee at 2.5 percent of revenue from Pandora, up from the previous 1.75—an increase of 43 percent. However, a separate judge from the same district court reached an entirely different decision about rates for Pandora and ASCAP (the other main PRO). In that ruling, from May 6, Judge Denise Coteheld rates at 1.85 percent.
On its surface, it looks like the judges presiding over each case simply have divergent views regarding what the rates should be. And this may be true, but there are additional factors to consider.
WASHINGTON, DC— Today, Comcast officially confirmed its decision to walk away from its 45-billion dollar deal to acquire Time Warner Cable. This merger was widely criticized by creators and consumers alike, and had previously been greeted with skepticism by the USDepartment of Justice (DOJ) and Federal Communications Commission (FCC). read more
WASHINGTON, DC— Today, Comcast officially confirmed its decision to walk away from its 45-billion dollar deal to acquire Time Warner Cable. This merger was widely criticized by creators and consumers alike, and had previously been greeted with skepticism by the US Department of Justice (DOJ) and Federal Communications Commission (FCC). read more
[UPDATE: Numerous media outlets—including the New York Times—are now reporting that Comcast is walking away from its 45 billion dollar plan to acquire Time Warner Cable.]
Cable giant Comcast seemingly has it all: ownership of a major content studio (NBC Universal), the biggest slice of the cable and broadband market and an army of lobbyists and lawyers ready to press their advantage at the state and federal level.
But sometimes even MegaComcast has a bad week. read more
WASHINGTON, DC—In official comments filed with the U.S. Department of Justice Antitrust Division, Future of Music Coalition argues that the consent decrees which currently govern ASCAP and BMI, the nation’s two leading performance rights organizations (PROs), serve an important purpose for songwriters and independent publishers, along with small and noncommercial broadcasters.
The filing is in response to a request for public comments on competitive concerns that arise from the licensing of musical works by Performance Rights Organizations, as part of the DOJ’s review of existing consent decrees.
The following statement can be attributed to Casey Rae, VP for Policy & Education: read more
FMC is pleased to submit the following comments to the Department of Justice (DOJ) Antitrust Division regarding the agency’s review of the Antitrust Consent Decrees for the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI).
Moreover, FMC appreciates the opportunity to address the persistent issues songwriters and independent music publishers face under the Consent Decrees, particularly a lack of transparency and failure to balance interests in the licensing of musical works for public performance, as well as barriers of entry for independent songwriters, publishers, and music platforms.
FMC commends the DOJ for reviewing the Consent Decrees and also commends the agency’s commitment to maintaining healthy competition within the licensing of musical works for public performance. Despite some differences with ASCAP, BMI, and the major consolidated music publishers, we are encouraged that many in this space have expressed their desire to nurture songwriters and expand transparency. We see the DOJ’s review of the Antitrust Consent Decrees as an important opportunity to highlight issues with consolidation of the music industry, the need for fair compensation and stronger protections for songwriters, as well as the importance of ASCAP and BMI to a functional music industry that serves the needs of creators.
FMC’s comments will address the specific questions raised by the DOJ in soliciting public comment for the review.
General Comments for the Review of the ASCAP and BMI Antitrust Consent Decrees
Do the Consent Decrees continue to serve important competitive purposes today? Why or why not? Are there provisions that are no longer necessary to protect competition? Are there provisions that are ineffective in protecting competition?read more
You may have heard that the United States Department of Justice (DOJ) is investigating potential anticompetitive behavior by major music publishers and Performing Rights Organizations (PROs), which collect and distribute royalties to songwriters and publishers for the performance of musical compositions. These “blanket licenses” are made possible by DOJconsent decrees and cover all forms of broadcast as well as concert venues or other establishments that publicly perform music (think bars or restaurants).
Make no mistake, PROs are crucially important to songwriters. They provide leverage to artists who wouldn’t otherwise have it in rate negotiations with music services; they pay their songwriter members directly under fair splits (50-50 between artist and publisher); and they allow music to be efficiently licensed to AM/FM, Internet and satellite radio, which means listeners have more opportunities to hear music, and songwriters have more opportunities to get paid.