Let the games begin.
Sony/ ATV Music Publishing supposedly plans to dump the licensing firms BMI and ASCAP by the end of the 2014 year. The number one music publisher in the nation claims that this move could allow them to negotiate higher royalties for artists from new-age streaming services such as Spotify, YouTube, and Pandora. Currently artists are being forced to accept significantly lower royalties for streaming services through the BMI and ASCAP format. They are constrained by old government rules with the Department of Justice that can’t adapt to the way music is consumed in modern times.
The number two music publisher, Universal Music Publishing Group, also wants to enter into direct negotiations with streaming services but are saying they are going to wait and see how the Sony / ATV situation plays out first.
BMI and ASCAP reportedly brought in a combined total $230 million in profits last year, all while distributing a cool $1.7 billion out to its artists. If all of this plays out the way Sony / ATV wants, there could be a major shift in the way artists make money from their music and could potentially cripple the BMI and ASCAP companies.
Find out more info from the original story by the New York Post by clicking here.