Publishing
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In 1961, when career counselors arrived at 14-year-old Carole Broughton‘s U.K. school, she aspired to work in the fashion business. But the counselors dissuaded her from that path — and, after Broughton said her uncle worked in book publishing, steered her to song publishing instead. Afterward, her mother accompanied her to a job interview at Mills Music in London, which became her entry into a six-decade career in the music business, during which she worked with acts including ABBA, The Zombies, Creedence Clearwater Revival, Barry Manilow and British crooners Adam Faith and Anthony Newley.
“Growing up in the ’50s and ’60s, parents would [say to their daughters], ‘What do you want a career for? You’re only going to get married and have kids.’ You’d go on a short typing course and become a secretary,” Broughton says. “I just liked to get my teeth stuck into something and see it through.”
In her quiet, methodical way, Broughton was a pioneering female executive in the music business, solving technical problems like logging songwriting data into early computer systems. She started at a time when men ran just about everything, but over the years grew into a formidable executive. By the ’70s, she began to encounter more women at conferences like MIDEM in Cannes, France, but women who ran companies were rare. “I do remember one incident where somebody said they’d like to speak to a director of the company, and I said, ‘I am the director,’ and they said, ‘Well, I don’t like to speak to a female,’” she recalls. “That actually happened once!”
“Obviously, there were a few issues,” she adds.
Today, Broughton, 77, is MD of Bocu, a British independent label and publishing group that has had stakes in early Genesis masters and ABBA’s catalog, among many others. She recently sold The Zombies their master recording catalog, including classic hits such as “She’s Not There” and “Time of the Season,” after managing it for 59 years. “I wouldn’t say [the business] has changed for the better, but it’s obviously more lucrative,” she says.
Broughton was 15 when she began shopping sheet music for hits like Nat King Cole‘s “A Blossom Fell” to local bandleaders. At the time, she found herself at the center of Swinging London and the British Invasion. “Elton John was the tea boy,” Broughton says of her time on Denmark Street, the capital of Music Row, a pub-filled neighborhood where The Rolling Stones, The Kinks and Small Faces made early recordings. “David Bowie used to travel in on the same train. He’d have his ballet shoes in his bag.”
Broughton’s early days in the music business were “a magical time,” she says, when the denizens of Denmark Street piled into pubs and cafes and made lifelong contacts. Back then, she befriended Robert Wise, who printed her companies’ sheet music and in 2020 bought The Zombies’ publishing catalog from Broughton’s Marquis Enterprises.
“Just fun days, really,” Broughton recalls of ’60s London. “You’d have a meal out in the evening, and you’d get home, and my parents would have another meal sitting in the oven.”
In her spare time, Broughton, an Elvis Presley fan, traveled the United Kingdom with her then-husband, who served as bassist in a group called The Four that was opening for British rock star Billy Fury. (The Four supported The Rolling Stones, too, but Broughton and her husband didn’t interact with Mick and company.) “If you traveled in a van — say you had a husband or a boyfriend in a band — you always had to keep the curtain shut. They didn’t want the fans to know you had wives or girlfriends,” she recalls. “Billy Fury wanted to have screaming fans — we’d have to run up to the stage and try to grab hold of the artists. Then the bouncers would come and throw you off the stage. A lot of that was planned.”
At work, Broughton learned the nuances of copyright and realized “publishing had more longevity.” Contemporary hits might come and go, but memorable songs made money forever, covered by bandleaders, recorded by other artists, licensed to movies and TV shows and more. When she was 17, a friend at Essex Music, a publishing company down the street, called Broughton to say she was leaving to get married and recommended her for the job. Soon, another employee who worked for publisher Joe Roncoroni and producer Ken Jones left their company, Marquis Enterprises, which evolved from commercial jingles to production.
As the company’s signees, from The Zombies to Jonathan King — who had a hit with 1965’s “Everyone’s Gone to the Moon” — became successful, Marquis expanded, working with stars from Hedgehoppers Anonymous to Genesis. Broughton took on more responsibilities as the company grew into an umbrella organization encompassing as many as seven publishing and production entities — and when Roncoroni and Jones died, she took more control. “When Joe died, we bought the shares from various people — Joe’s widow, and the boys [The Zombies] were happy to sell their shares at the time. They probably were short a few bob.”
Banding with another veteran publisher, John Spalding, Broughton became co-director of the company, renamed Bocu Music. (Spalding had looked after the publishing for the Fantasy and Prestige labels for years, including the Creedence Clearwater Revival catalog as well as those of jazz giants such as Thelonious Monk and Miles Davis.) Bocu published the B-side of ABBA’s first single, 1974 Eurovision winner “Waterloo,” and, within a few years, Broughton and Spalding became the Swedish supergroup’s co-agent and sub-publisher, developing a close relationship with the band (until Universal Music Group took over the rights in 2016).
“It started getting really busy,” Broughton says.
Broughton toured with ABBA in 1977, “helping backstage with the ironing of the outfits,” she recalls. Over time, she used the contacts she made with ABBA to help her old friends from the ’60s, The Zombies. Soon, she was working in the early synch business, pitching songs to studios and advertisers by sending out tapes. The Zombies were often beneficiaries, landing “Time of the Season” in the 1990 film Awakenings and “She’s Not There” in a Chanel spot in 2015.
When Spalding died in 2011, Broughton took over Bocu. Now that The Zombies own their masters, she looks after 700 remaining copyrights, including Kid Creole and the Coconuts‘ “There But for the Grace of God Go I,” Johnny Logan’s 1980 Eurovision winner “What’s Another Year” and, as ever, King’s “Everyone’s Gone to the Moon.”
Broughton’s career-long focus on publishing, as opposed to working at record labels, served her well in the early 2000s when mp3s, Napster and online piracy threatened to destroy the album sales business. Licensing copyrights for films, TV shows and advertisements kept Bocu afloat. “We still had great copyrights and masters that were in demand,” she says. When YouTube and Spotify kicked in, she noticed that new fans were discovering her clients’ music — particularly The Zombies — more than they ever had.
There were issues with streaming licenses and how to pay artists and songwriters at first, but eventually performance rights organizations such as the United Kingdom’s PRS for Music sorted out the details. Although Broughton’s company has expanded beyond the music business in recent years — it owns a fish restaurant in Essex and a portfolio of rental properties run by her 33-year-old son — she remains active in Bocu. “I should probably have long since retired,” she says. “But this business gets in your blood, doesn’t it?”
The best advice I’ve received is… When I was first starting out, a secretary I took over from always used to say, “Listen and learn, even if it’s behind closed doors.” If your boss was in a meeting, always have an ear out, so you’d be one step ahead. If someone wanted a file on something, you were already there. She retired and I stepped in as secretary and I was still only about 17. I had staff under me. I just was always determined to make the best of a situation. I’d be there with the tea or the coffee, or the file.
My big break was… Just coming into this industry.
Something most people don’t understand is… The complexities of how copyright works. When you start explaining how money is collected, people outside the industry are always quite astounded by how complex it all can be.
Dealing with musicians is… My two main ones have been ABBA and The Zombies, and you couldn’t have worked with nicer people. I know there used to be a saying in the industry — “All artists are ‘dot-dot-dot,’” and not a very nice word — but I only had good experiences. You take them under your wing. I always called The Zombies “my boys.”
Steve Mac, Pablo Bowman Navarro and Aynzli Jones are the top winners at the ASCAP London Music Awards 2023, which shine a light on British songwriting and composing talent for their U.S. success. This year, the winners will be revealed on @ascap social media Tuesday (Sept. 26), starting at 10:30 a.m. ET.
Navarro takes home three awards including songwriter of the year and top Hot Dance/Electronic song. He shares the latter award with Sarah Baby Blanchard, Claudia Valentina and Lostboy for co-writing “The Motto” by Tiësto and Ava Max. The song reached No. 2 on Billboard’s Hot Dance/Electronic Songs chart.
Navarro also wins a Hot Dance/Electronic song award for “Numb” by Marshmello and Khalid, which reached No. 3 on the Hot Dance/Electronic Songs chart. Navarrro co-wrote the song with Richard Boardman, a fellow member of songwriting collective The Six. Navarro has gained a profile as a top hitmaker over the last few years with a catalogue that includes Anne-Marie and Marshmello’s global hit “Friends” as well as tracks for stars such as Bebe Rexha, Jonas Brothers and Alan Walker. His catalogue has accumulated 7 billion streams on Spotify.
Mac takes home both song of the year and top streaming song for Ed Sheeran’s smash, “Shivers.” The song reached No. 4 on the Billboard Hot 100 and remained on the chart for a full year. It also topped charts around the world, surpassing 1.35 billion streams on Spotify. Mac and Sheeran previously collaborated on 2017’s “Shape of You.” These two gongs represent Mac’s 19th and 20th ASCAP London Music Awards.
Jones wins his first ASCAP London Music Award with the Hot 100 song award for Doja Cat’s “Woman.” The song from Doja’s third studio album rose to No. 7 on the Hot 100 and, like “Shivers,” logged a full year on the chart. “Woman” also received a Grammy nod for record of the year, marking the third consecutive year Doja was nominated in that marquee category.
Top box office film of the year goes to Daniel Pemberton for his soundtrack for The Bad Guys. He also takes a top box office film award for his work on Amsterdam. Other top box office film awards go to John Lunn for Downton Abbey: A New Era, Dickon Hinchliffe for Father Stu, and Robin Carolan and Sebastian Gainsborough for The Northman. Joby Talbot wins for the second year in a row for Sing 2, Patrick Doyle wins for Death on the Nile and Jonny Greenwood wins for Licorice Pizza. The Radiohead multi-instrumentalist and composer was recognized in the same category last year for his soundtrack to Spencer.
In the world of film and TV streaming, Natalie Holt wins two awards — top streaming film for The Princess, and top streaming series for Obi-Wan Kenobi. Other top streaming series awards go to Scottish band Mogwai for the crime drama Black Bird and Anne Nikitin for The Dropout.
The trio of Barrie Cadogan, Virgil Howe and Lewis Wharton are awarded the top cable series award for the soundtrack to Better Call Saul, while Julian Gingell and Barry Stone win top network series again this year for their work on American Idol.
Atlanta-based hitmaker GENT! has signed a worldwide co-publishing deal with Brandon Silverstein Publishing and Avex USA, the companies jointly tell Billboard. “I’m grateful…and look forward to what we’re going to build together,” said GENT! in a statement about the signing. The in-demand producer is fresh off a major release, having co-produced two singles (“Agora Hills” […]
On Wednesday (Sept. 21), members of ASCAP turned out for the organization’s 12th annual We Write the Songs concert at the Coolidge Auditorium in Washington, D.C.As in previous years, the concert was held to celebrate gifts from The ASCAP Foundation to the Library of Congress “of the original manuscripts, lead sheets, lyrics sheets, photos and letters of some of America’s greatest creators of words and music,” according to a press release.
Co-hosted by The Library of Congress, Librarian of Congress Carla Hayden and The ASCAP Foundation president Paul Williams, the night featured performances by songwriters and producers performing songs they wrote or co-wrote. They included Jermaine Dupri, performing “Confessions/Confessions Part II” (Usher) and “We Belong Together” (Mariah Carey); Madison Love, performing “Kings & Queens” (Ava Max) and “Turbulence” (P!nk)”; Pasek & Paul, performing “Waving Through a Window” (from Dear Evan Hansen) and “This is Me” (The Greatest Showman); Matthew West, performing “My Jesus” (Anne Wilson) and “Truth Be Told”; and closing act Jimmy Jam and Terry Lewis, performing “Human” (The Human League) and “Miss You Much” (Janet Jackson).
The night’s performers were introduced by members of Congress from both sides of the aisle, including Rep. Mark Green (R-TN), who introduced West; Rep. Hank Johnson (D-GA), who introduced Dupri; Rep. Jerrold Nadler (D-NY), who introduced Pasek & Paul; and Congressional Songwriters Caucus co-chairs Rep. Ted Lieu (D-CA), who introduced Love, and Rep. Ben Cline (R-VA), who introduced Jam and Lewis.
“To us music creators, the Library is the Fort Knox of our copyrights — thank you for being our allies in protecting creators’ rights,” said Williams, also ASCAP’s president/chairman as well as a songwriter, at the event. “We have ASCAP members from all 50 states, in each and every district of our great nation. Some of our songwriters and composers may not be household names, but their songs are instantly recognizable and beloved by millions, all thanks to the hard work they put in behind the scenes to soundtrack our lives.”
The concert was held ahead of ASCAP’s annual Stand With Songwriters advocacy day in D.C. on Thursday, during which songwriters and composers were slated to meet with members of Congress. This year, a particular focus was on the growing influence of artificial intelligence (AI), with ASCAP members on hand to urge lawmakers to adhere to the six key principles for AI adopted by the ASCAP board of directors earlier this year.
In addition to songwriters and producers who performed at the We Write the Songs concert, those slated to participate in the advocacy day included songwriter-producer Cirkut along with ASCAP songwriter, composer and publisher board members Bob Bruderman, Desmond Child, Marti Cuevas, Sharon Farber, Dan Foliart, Ree Guyer, James M. Kendrick, Evan Lamberg, Michelle Lewis, Alex Shapiro, Jonathan Singer and Jimmy Webb.
ASCAP additionally invited its songwriter, composer and music publisher members from all 50 states to join in the lobbying effort via social media all week long.
Check out photos from the We Write the Songs event below.
Image Credit: Mariah Miranda/ASCAP
Elizabeth Matthews, ASCAP CEO (center), with Jimmy Jam and Terry Lewis at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Nicole George-Middleton, ASCAP SVP of Membership and Executive Director of The ASCAP Foundation (center); with Jimmy Jam, Terry Lewis, Benj Pasek and Justin Paul at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Rep. Judy Chu, Jimmy Jam and Elizabeth Matthews, ASCAP CEO, attend ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Jimmy Jam, Sen. Bill Hagerty, Paul Williams, ASCAP President and Matthew West attend ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Paul Williams, ASCAP President and Chairman of the Board speaks at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Benj Pasek and Justin Paul perform at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Matthew West performs at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Madison Love performs at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Carla Hayden, 14th Librarian of Congress, speaks onstage at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Rep. Hank Johnson speaks onstage at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Jermaine Dupri performs at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Image Credit: Mariah Miranda/ASCAP
Jimmy Jam and Terry Lewis perform at ASCAP Foundations “We Write the Songs” Event in Washington, D.C. on September 20, 2023.
Jack Harlow was named songwriter of the year at the 2023 SESAC Music Awards, which were held at the Highlight Room in Hollywood on Tuesday (Sept. 19). This is the third year in a row Harlow has taken that title. “First Class,” which was his first unaccompanied No. 1 hit on the Billboard Hot 100, took song of the year.
The event was attended by top executives, artists, songwriters and publishers including Bryan-Michael Cox, Dixson, Papiyerr, Dontae Winslow and Kenyon Dixon, among others.
Sony Music Publishing was named publisher of the year for the second year in a row, taking home a total of 12 awards for songs including “First Class,” “We Go Up” recorded by Nicki Minaj and Fivio Foreign, “Count Me Out” recorded by Kendrick Lamar and “Mercury” recorded by Steve Lacy.
Micah Otano won the SESAC Resurgence Award for “Lost,” which was recorded by Frank Ocean. The song was published by Music 4 Mataya and Tunes of Reach.
“We are honored to celebrate our songwriters and publishers across multiple genres,” Sam Kling, chief creative officer, SESAC Performing Rights, said in a statement. “SESAC is proud of its affiliates who continue to write chart-topping hits and we enjoy every opportunity we get to celebrate their achievements.”
Additional award-winning writers include Daniel Lopatin, who took home four awards for his work with The Weeknd; Dez Wright, for his work with Young Thug and Drake; and Jimmy Napes for songs he wrote with Sam Smith.
Artist and SESAC songwriter Tamara Jade, who appeared on Season 19 of NBC’s The Voice, served as the MC for the evening. This marked the second year the awards were held in Los Angeles.
For event highlights, visit @SESAC on Instagram. A full list of winners is available at www.sesac.com.
The significance of Washington washed over me as my flight dodged the historic monuments and we descended into DCA. An interesting metaphor for the opportunities and challenges of advocating for music creators’ rights in today’s lightning round race into the future.
I have visited many times over the years to fight for the rights of songwriters on Capitol Hill. This week, songwriter members of the American Society of Composers, Authors and Publishers (ASCAP) will once again be with me in Washington for “We Write the Songs,” a performance held at the Library of Congress and co-presented by The ASCAP Foundation. Hit songwriters will play for Members of Congress and others and share the stories behind their beloved songs. As songwriters, we are also here to affirm our rights as artificial intelligence (AI) and other technologies seek to use our creations.
ASCAP is a unique entity in the music world — we are the only performance-rights organization (PRO) founded and governed by democratically elected music creators and publishers. As a membership organization, we represent nearly a million songwriters, composers, lyricists and music publishers across every genre. We are also the only U.S. PRO that operates on a not-for-profit basis so, unlike others whose profits may go elsewhere to corporate dividends and private equity investors, we put creators first in everything we do.
As the chairman of ASCAP’s board, I have seen our industry go through immense changes. When music moved from records to tapes to CDs to pirated online listening, our members descended upon Washington to ensure the rights of songwriters were respected across new platforms and listening experiences.
Emerging technologies – whether it be streaming or AI – have always presented our industry both challenges and opportunities. But in every instance, we as songwriters are often the first to feel the effects when technology outpaces the law.
During Songwriter Advocacy Day, held the day after We Write the Songs, ASCAP members – the songwriters, composers and publishers that form the soundtrack to our lives – will meet with Members of Congress and urge them to protect creators in the age of AI.
At ASCAP, we have developed six guiding principles for AI and we need Congress to act to uphold them:
Human Creators First, prioritizing rights and compensation for human creativity
Transparency, in identifying AI vs. human-generated works and retaining metadata
Consent, protecting the right for creators to decide whether their work is included in an AI training license
Compensation, making sure creators are paid fairly when their work is used in ANY way by AI, which is best accomplished in a free market, NOT with government-mandated licensing that essentially eliminates consent
Credit, when creators’ works are used in new AI-generated music
Global Consistency, an even playing field that values intellectual property across the global music and data ecosystem
While most songwriters work behind the scenes, our work has enormous value to an industry that generates $170 billion a year for the U.S. economy. But we have long been over-regulated — we are some of the most heavily controlled small business owners in the country. Roughly three-quarters of the average American songwriter’s income is subject to federal government regulations. All the while, big media and tech companies are consistently looking for ways to pay songwriters less by regulating us even more.
ASCAP has embraced new and emerging advances in technology, and we have the capacity and infrastructure to manage it at scale. But it has remained painfully clear that any new technology needs to respect existing copyright law. Music creators are concerned about the threat to their livelihood and 8 out of 10 believe A.I. companies need better regulation. Our mission at ASCAP is to help music creators navigate the future while protecting their rights and livelihoods, and enabling the type of innovation that will move the entire music industry forward.
Just because AI requires a high volume of inputs, that does not mean it cannot be licensed or deserves an exception under the law. Just as we’ve approached the streaming market, we believe the opportunities presented by AI can be realized in the free market. To do so, we need lawmakers to stand with songwriters and not give big tech and AI companies a free ride with government-mandated licenses for AI.
AI is a new challenge, but we are well positioned to meet this challenge as we always have in the face of new technologies. We are ready to help chart the path, and we look forward to sharing those insights — and breaking it down on the dance floor — with the same lawmakers whose partnership and enthusiasm has helped us to fight for the rights of songwriters as new technologies emerge.
ASCAP president and chairman of the board Paul Williams is an Oscar-, Grammy- and Golden Globe-winning composer and lyricist who has written “The Rainbow Connection,” “We’ve Only Just Begun,” and many other hits.
BMI’s October 2022 switch to operating as a for-profit company didn’t cause a big reaction in the music business until a July 2023 Reuters article about the company being put up for sale revealed that it had generated $147 million in earnings before interest, taxes, depreciation and amortization. Then the response was significant – and mostly negative. The fear was that profit would essentially come at the expense of royalty payouts.
Even so, BMI executives and other music business sources familiar with the way private equity funds think about business suggest that songwriters and executives should wait to see how the performance rights organization’s vision, backed by the right strategic partner — such as New Mountain Capital, with which BMI is negotiating — could help them.
BMI has said it is switching models and seeking a buyer in order to respond to a changing market. “We need to continue to invest in our business and explore new avenues for revenue generation,” CEO Mike O’Neill said in an Aug. 18 letter to creators groups that was shared with Billboard, “so we can continue to expand our distribution sources.”
To do that, while delivering the kind of growth a buyer will presumably want, BMI plans to explore new businesses to build a company that can operate at scale, and across national borders, more efficiently than it now does. The idea, according to sources inside and familiar with BMI, is to create a new interdependent royalty-collection ecosystem that will benefit BMI and its potential new owner, as well as its affiliates.
BMI is looking for “a partner who can help us take advantage of new opportunities and provide a new level of investment and technological expertise,” according to a Sept. 5 letter from O’Neill to creators groups published on BMI’s website. New Mountain Capital, which is in an exclusive period to negotiate a deal with the performance rights organization, could be such a partner, executives familiar with the private equity sector suggest, since the firm has a track record of investing in companies to help them achieve significant growth. Since its 1995 launch, New Mountain — which now oversees more than $35 billion in assets and funds — has acquired or founded more than 60 companies, without any going into bankruptcy and without missing an interest payment, according to the company.
In particular, sources familiar with New Mountain Capital point to its investment in Blue Yonder, a software company the private equity firm acquired for $565 million in 2010 and sold to Panasonic in 2021 for an enterprise value of $8.5 billion. The private equity firm, “through continued investment and improvement” helped grow it from a “somewhat sleepy niche company to being the 14th largest software company in the nation,” New Mountain Capital’s CEO Steve Klinsky wrote in the May-June 2022 issue of Harvard Business Review. “We offer the capabilities and access to capital that a large corporate parent would, without forcing companies to become part of a conglomerate culture. At the same time, we bring a fresh, entrepreneurial vision to strategy, talent, R&D, technology, and corporate alliances.”
Still, BMI has not specifically addressed many of the concerns raised by its switch to a for-profit model, which is why songwriters and publishers remain nervous. In fact, on Sept. 18 a letter signed by dozens of lawyers called on BMI to engage in open and honest conversations with affiliates, saying that the PRO owes them the responsibility to respond with “specificity and transparency.”
“I get it that some writers may have legitimate worries because in a vacuum there is not a clear picture of what such a deal could be and how it could be a positive for BMI,” says a veteran music business executive. “But a lot of people with their own interest have been spreading very negative spins with shrill voices that what BMI is doing will be bad for publishers and songwriters.”
In the case of New Mountain Capital, the executive says, they “are nice, smart people” that help businesses add new processes to help them grow substantially and become even more profitable. New Mountain Capital has been studying the music industry for a few years and looked at some substantial deals, sources say, but so far has passed on them until now.
“There is so much negativity out there that doesn’t give this deal the benefit of the doubt,” says another executive. “New Mountain Capital are not corporate raiders; they are intelligent and love the business and want to grow the revenue base so that publishers and writers will be making more money and still make a profit for BMI.”
That’s exactly the kind of approach BMI is looking for, according to executives familiar with its strategy. In its first year as a for-profit business, for example, BMI announced a partnership with the United Arab Emirates company Music Nation to try to establish a public performance licensing and royalty infrastructure there. BMI has also undertaken an “extensive customer service initiative” to enhance the service it provides to affiliates, with plans for an improved online service portal to follow.
The company has said that its move to a for-profit model made these investments possible. But one music publishing executive, who requested anonymity, wonders “why is it easier to invest in systems upgrades as a for-profit entity rather than as a not-for-profit organization?” One answer: The level of investment would impact distributions to affiliates under the previous not-for-profit system.
Publishing executives also believe that growing outside the U.S. will become a priority for BMI. Most of the growth for royalty collections is now coming from the growth of streaming services, and most of that will be international. Over the past decade, some of the European collective management organizations teamed much with publishers to license repertoire for online purposes across Europe, as European law allows. Such a model could also work in other territories, such as Latin America, Asia, or even the Middle East.
Given the opportunity for BMI outside the U.S., another executive wonders if it could be the first organization to try to rollout a global model, with a global membership. And if so, whether that would re-ignite competition to sign writers around the world.
Meanwhile, some executives speculate about whether New Mountain might be frightened off by the antitrust consent decree under which BMI operates, but “they understand deeply what that means,” says a source familiar with the fund, “and that it is baked into the business.”
Private equity is known for growing profits, not restraining them, but sources familiar with BMI’s thinking say that potential suitors need to understand that the company will prioritize payouts. In fact, a potential deal would not involve an expectation of “insane margins,” says one music industry executive who has worked with private equity. If a sale takes place, said O’Neill in an Aug 19 letter, BMI “would ensure that any partner embraces our mission of prioritizing the interests of songwriters, including their financial success.”
For-profit, for whom?
It’s “easy to assume that if we kept doing business the way we always had, distributions would continue to grow,” O’Neill wrote in his Sept. 5 letter posted on the company’s website. “That is a dangerous assumption to make, because in an evolving industry like ours, you run the risk of settling for a larger slice of a shrinking pie. Our goal is to grow that pie to your benefit.”
So far, in the three quarterly distributions since BMI announced its shift to a for-profit model, combined payouts were 9% greater than the same periods of the previous year. That’s almost as good as the 10.2% increase to $1.471 billion that BMI distributed in the fiscal year ended June 30, 2022, when overall revenue grew 15.6% to $1.573 billion, when it was still operating as a non-profit. (BMI is not releasing how much distributions increased for the full year ended June 30, 2023, and it will no longer release any company-wide revenue results, sources say. Instead, it will provide more information to songwriters and publishers to help them measure BMI’s payments in comparison to the past, and in some cases, if songwriters so request, to other PROs.)
Some songwriters and executives argue that, if BMI is sold, affiliates deserve some of the revenue from that sale. But as one industry executive familiar with private equity points out, it’s actually surprising that BMI’s owners – radio and television stations – didn’t sell it a long time ago.
“For over 80 years, you have had owners — all for-profit companies with their own businesses — and yet they didn’t make any profit on BMI,” that executive says. “And I guess it would be unseemly for them to pull dividends out at the same time they are paying licensing fees.” At the same time, he adds, those owners had to watch SESAC and GMR come along and build very profitable businesses.
SESAC, which is considerably smaller than BMI, was sold to the private equity firm Blackstone for about $1 billion in 2017. Ironically, at the end of 2018, one of Blackstone’s investment funds acquired a passive minority equity stake in New Mountain Capital, a fact that U.S. regulators could look at, if New Mountain Capital moves forward with its BMI acquisition.
“The fact is that the broadcasters own BMI; and they are entitled to sell it,” the executive says. “I understand that the music industry likes the status quo, but if you start with the premise that the owners will sell, then you would want them to sell it to someone who is decent and understands the industry. It’s not smart to push [New Mountain Capital] away with a big outcry, because you don’t know who will come along next.”
There is also the potential for BMI to grow into a more modern company in a way that benefits the entire industry, the source says. “Take a year or two and see how things roll forward and how things shake out. If [BMI] songwriters are happy, then they can stay; and if not, then they can look to make a move.”
Concord has acquired the publishing catalog of Mojo Music & Media, a catalog that includes over 30,000 works. Founded in 2018 by Mark Fried, Peter Shane and Alan Wallis, Mojo Music & Media’s holdings include portions of songs recorded by REO Speedwagon, KISS, Cheap Trick, Duran Duran, Earth Wind & Fire and more.
The acquisition comes just after Concord announced that it made a recommended bid to buy Round Hill Music Royalty Fund Limited.
Since its founding, Mojo Music & Media has grown quickly, competing with more established competitors for evergreen catalogs. In 2019, the company partnered with Crestline Investors, Inc. to fund further acquisitions. Soon, it had bought more than 40 catalogs.
Catalogs in the Mojo Music & Media portfolio include: HoriPro Entertainment (REO Speedwagon, Kiss, Jerry Reed), Emerald Forest (Sophie B. Hawkins, Brownstone, Lita Ford), Rick Nielson (Cheap Trick), Warren Cuccurullo (Missing Persons, Duran Duran), Bob Morrison (“Lookin’ For Love”), Sharon Vaughn (“My Heroes Have Always Been Cowboys”), Larry Gatlin (“All The Gold In California”), D.L. Byron (“Shadows Of The Night”), Jeffrey Cohen (“Freeway Of Love”), Earth Wind & Fire’s Al McKay (“September,” “Best Of My Love”), English Beat and General Public’s Dave Wakeling (“Save It For Later,” “Tenderness”), Jordan Reynolds (writer of Dan + Shay hits “Tequila,” “Speechless,” and “10,000 Hours”), Jacknife Lee (Taylor Swift, Snow Patrol, and Kodaline) and the estates of Johnny Burke (“Misty”), Bernie Wayne (“Blue Velvet”) and Johnny Russell (“Act Naturally”).
My nearly 30-year adventure in music publishing has always been about surrounding myself with the greatest songwriters, getting them paid, keeping them inspired, and elevating the power of their songs in pop culture so they vibrate forever,” says Mark Fried, Mojo’s Co-Founder and CEO. “Concord has been on the same mission since its founding, and my partners and I feel like we’ve come full circle working with [Concord’s Chief Business Development Officer] Steve Salm, whom I’ve known and respected since his first days in the business, and other old friends at Concord to bring our catalogs together. I feel a deep responsibility to the artists, songs, and legacies we represent and I’m excited to see them continue to prosper in the hands of such capable and passionate caretakers.”
“We are delighted to have supported Mojo through their successful ramp up and aggregation of their catalogue. All aspects of our involvement with Mark and team have been outstanding. It is a great example of our desire to use our capital to build valuable asset platforms,” said Michael Guy, chief investment iofficer of Crestline Europe.
Steve Salm, Concord’s chief business development officer, remarked, “Mark Fried is a true original who’s repeatedly seen the value in songs and catalogs well before market trends, always putting songwriters first. Over the last several decades, he’s built two premier independent catalogs with Mojo here and Spirit Music prior, winning the trust of some of the most legendary songwriters and artists. With Mojo, Mark, Pete, and Alan have assembled a stellar collection of incredible hits spanning genres, eras, and territories. The Mojo catalog is a perfect fit with Concord’s catalogs, and we’re honored by the trust they’ve now put in us.”
Concord was represented by Ritholz Levy Fields LLP (Adam Ritholz, Cody Brown, John Brill, Gillian Sloane, Amanda Inglesh, and Jason Barth), and by DLA Piper, Rob Sherman. Shot Tower Capital acted as exclusive financial advisor to Mojo. Mojo was represented by Reed Smith LLP as legal counsel.
In late August, Billboard reported that BMI is in serious discussions to sell itself to New Mountain Capital for $1.7 billion, less than a year after the organization announced it was switching for a for-profit model. No deal has been signed, but talks are serious enough that the two sides have entered into exclusive negotiations, and the change in the way BMI operates — especially after the industry became aware of how much profit it has generated in its most recent fiscal year — has triggered an avalanche of questions from songwriters and music publishers. The most important: Will BMI’s future profits come at the expense of royalty payouts to its more than a million affiliated songwriters and publishers.
BMI had $147 million in earnings before interest, taxes, depreciation and amortization in its most recent — but as yet unannounced — fiscal results, according to Reuters. The question is where this money came from.
“Where does profit come from for a performance rights organization?” asks one veteran music publishing executive. “It can come from only two buckets — the cost bucket or the royalty distribution bucket.” And that executive, like several others, believes that BMI “definitely didn’t cut $147 million in expenses.”
Although BMI made news in October 2022 when it announced it would begin to operate on a for-profit basis, all four U.S. performance rights organizations are actually set-up as for-profit corporations – BMI and ASCAP both file form 1120 with the I.R.S., as SESAC and GMR likely do as well. For decades, though, the first two have operated as not-for-profit companies, which likely means that since they pay out all the royalties they collect, minus expenses, they have no profit on which to pay tax. ASCAP’s Articles of Association states that “all royalties and license fees collected by the society shall be…distributed among its members,” except for expenses and contributions to a reserve fund.
BMI has always operated the same way, even though it has always been a private company owned by radio and television companies. In July 2022, though, rumors started spreading about BMI’s plans to change its operations, and the company hired Goldman Sachs to shop the company, preferably to a company which can fill the role of a strategic, but non-industry, partner. That effort didn’t result in a sale, either because the not-for-profit model BMI operated under at the time left it without any profit to show potential buyers, according to some sources; or, as other sources say, because BMI didn’t find a partner at that time that shared its vision of prioritizing the interests of songwriters.
Last October, when BMI announced it would switch to operating on a for-profit basis, the initial reaction in the industry was muted. This summer, however, when Reuters reported that BMI was once again up for sale — and that it had generated $147 million in earnings before interest, taxes, depreciation and amortization — creators expressed alarm, especially at the idea that those earnings might have been taken out of their royalties.
On Aug. 17, five creators groups sent an open letter to BMI CEO Mike O’Neill that asked 17 questions about BMI’s new business model, including whether songwriters and publishers would receive any of the proceeds from a potential sale, how the organization generated so much profit, and how it could continue to do so without reducing payouts to songwriters and publishers, the last of which is an especially significant worry, according to sources. The letter came from the Black Music Action Coalition, the Music Artists Coalition, the Songwriters of North America, SAG-AFTRA, and the Artists Rights Alliance.
So far, the only music publisher to comment on the changes at BMI is Universal Music Publishing Group chairman and CEO Jody Gerson, who said in a statement that, “We will only support changes that increase value for songwriters and will not stand for any that result in our songwriters being paid less than what they deserve.” Other publishers would not comment on the record but expressed concerns.
On Aug. 18, O’Neill responded in a letter to the creators groups and acknowledged that they raised “some important questions” about BMI’s evolution. (His letter was shared with Billboard, and published in full along with a story on it.) He said that the change would allow BMI to invest in its business in order to grow, plus increase payouts. Most important, O’Neill wrote, in the event of a sale, BMI “would ensure that any partner embraces our mission of prioritizing the interests of songwriters, including their financial success. This is especially important as we navigate this rapidly changing industry together.”
(BMI executives declined to be interviewed for this article but they responded to questions with emailed statements, issues other statements for two other stories on the issue, and provided Billboard with the letters O’Neill wrote in response to the creators groups.)
“Relying on the past never sustained a business for the future,” BMI said in an Aug. 29 statement to Billboard. “Our goal is to stay ahead of the changing industry and invest in our business to grow the value of our affiliates’ music.”
O’Neill’s initial letter didn’t satisfy the groups behind the letter, which followed up with another letter to BMI on Aug. 25, which was also obtained by Billboard. “While we appreciated you responding to our letter,” it read, “all of our questions went unanswered.” So far, sources involved with the music creators groups argue. BMI has still not responded to most of the questions in the original letter.
SLICING A FOR-PROFIT PIE
The other big question hanging over a potential sale of BMI is what it would mean for its competition against and its relationships with the other collective management organizations that it competes with but also collects money for and in turn receives royalties from under reciprocal agreements. Because of BMI’s change in governance, it has gone from being a member of CISAC, the international organization of CMOs, to a client, so it is no longer bound by the organization’s transparency rules but will still have access to its data systems.
ASCAP, BMI’s main competitor in the U.S. for more than eight decades, had a pointed take, which it shared in a social media campaign clearly aimed at BMI, though it did not mention the company by name. Its tweets included “We pay songwriters, not shareholders;” “growth without greed;” “Not for profit since 1914 and still growing;” and “There is no I in ASCAP.” Asked to respond, BMI issued a statement: “Our focus is not on how our competitors position themselves, our focus is on delivering for our affiliates.”
So far, BMI has made record payments to affiliates under its for-profit model, the company claims. In a Sept. 5 letter, posted on BMI’s website, O’Neill points out that the company has made three distributions under the new model, each higher than the corresponding one from the previous year. BMI said in an emailed statement that the three combined payments are 9% higher than they were in the previous year. Two of those payouts, according to O’Neill’s Sept. 5 letter, “are the “largest in [the] company’s history.” BMI also set a record in 2022, when it collected $1.573 billion, a 15.58% increase over the previous year, and distributed what it called an “unprecedented” $1.471 billion, a 10.2% increase.
If BMI’s core business keeps growing, it would be relatively easy for the company to continue to increase annual payouts, while keeping healthy profits for itself, industry financial executives point out. From now on, though, songwriters and publishers will have to take BMI’s word for its financial success because, according to sources, its 2022 results are the last ones it will make public. The kind of financial information BMI has traditionally shared would allow publishing executives to see where BMI’s EBITDA is coming from – which could potentially fuel further debate about how much of that money ought to have gone to rightsholders, but didn’t.
Going forward, BMI will instead emphasize and expand the financial information it provides to individual songwriters and their publishers to allow them to compare its payouts with previous years – and potentially, if BMH songwriters so choose, with those going to their co-songwriters who are affiliated with other PROs. That information would show affiliates that it takes its obligations to pay creators competitively, say sources familiar with BMI’s thinking.
BMI’s reluctance to share information is not unique. Both SESAC and Global Music Rights (GMR) operate under a for-profit model, and neither shares information about its overall financial results. Sources speculate that GMR, a boutique U.S. performance rights organization that represents top-tier writers for performance rights licensing, collects more than $150 million. Less is known about SESAC’s financials, which it guards closely, but in 2013 when investment firm Rizvi Traverse acquired a 75% interest in the company, Billboard obtained the financial information used to shop the company which showed that in 2011 SESAC took in $128 million in collections, and paid out $60 million in distributions, leaving itself with $68 million in net publisher’s share. After $27 million in expenses, the company realized $41 million in EBITDA, an EBITDA margin of 32%, according to Billboard calculations. (Rizvi Traverse subsequently sold SESAC to Blackstone for about $1 billion in 2017.) For the year ended June 30, 2023, Billboard estimates that BMI has an EBITDA margin of 8.1%, although BMI is unlikely to make public these financial results. In other words, SESAC’s 2011 EBIDTA margin was four times larger than BMI’s, Billboard estimates.
SESAC and GMR declined to comment or could not be reached to comment on their profitability. But an executive familiar with SESAC’s strategy noted, “everyone who’s affiliated with SESAC has known SESAC is a for-profit” company. The implication is that it didn’t switch models, as BMI did.
The same goes for GMR, and some industry sources find it ironic that Irving Azoff, who founded the for-profit GMR, is on the board of two of the creators groups leading the charge in criticizing BMI. Like SESAC, GMR has always made clear to songwriters that it operates as a for-profit business, and it shows its affiliates a rate card with the amounts of money it collects from different licensees, sources say, so they can compare that to other PROs. It sticks to those rates, unlike BMI and ASCAP, which have bonus plans, explained on their respective web sites, which pay out more money per play to songwriters who accumulate a certain number of plays.
At BMI and ASCAP, for example, a pop song might generate a payout of about a dollar a play on a popular big-city radio station, but a composition that qualifies for a bonus could generate three times that much, to use a simplified example. These bifurcated rate structures apply to most big genres, and to subscription streaming and satellite radio play, as well as terrestrial radio. While some songwriters and executives argue that it’s not fair to pay top songwriters and their publishers at a higher rate, since their songs accumulate more plays anyway, these plans allow BMI and ASCAP to compete for top writers with SESAC and GMR, which are not bound by antitrust consent decrees the way BMI and ASCAP are. For BMI and ASCAP, having those top writers helps them get better rates from licensees. “A rising tide lifts all boats,” as one PRO executive says.
Even so, these plans show how the two big PROs structure their businesses in order to pay different rates to songwriters, which sources suggest BMI had to do even more in order to generate a profit.
Sources familiar with BMI’s thinking dismiss as inaccurate the idea that it will change the way it pays songwriters and publishers and BMI in an email to Billboard called this unfounded speculation. But other industry sources suggest that BMI’s switch to a for-profit model gives it an incentive to grow that would make such a switch worth considering. And there are plenty of ways it could do so. “There are a lot of rule changes they can make there and in other places to get dribs and drabs that would impact people equally but not so noticeably,” says an executive at a competing PRO. As another executive notes, paraphrasing a music publishing saying, “If you get a crumb here and a crumb there, eventually you have a loaf of bread.”
If BMI does decide to alter its payout structure, changes are likely to come at the expense of less popular songwriters on the so-called long tail, argue other sources, or smaller publishers who are less likely to push back. “The people with no representation are at the biggest risk in the for-profit model,” the music publishing executive says. “For sure, [BMI’s profit] will come out of the pocket of many, many people who are currently paid little amounts of dollars.”
Another executive familiar with BMI’s plans says that this kind of speculation is nonsense, and O’Neill said in the Sept. 5 letter that there is no truth to these rumors. “The industry’s most successful music creators didn’t start out that way,” he said in the Sept. 5 letter, “and we pride ourselves on our work helping to guide, develop, and support your talent to ensure your passion can also be a profession.”
Not everyone is convinced, though. “In the music industry,” says another veteran executive, “we usually oil the squeaky wheels with money.”
OTHER QUESTIONS
Even after these two big questions are addressed, others remain. One: Will BMI loosen its rules on songwriter departures, since its switch to a for-profit model represents such a dramatic change in how it operates?
More immediately, will BMI’s balancing act – operating for-profit while continuing to make sure its affiliates are paid fairly – appeal to a private equity player? The company already operates under a consent decree, and its first attempt at a sale, in the summer of 2022, didn’t succeed.
It’s also hard to predict what effects a potential BMI sale to a private equity fund would have on its regulatory environment, from the possibility of more antitrust scrutiny from the U.S. Dept. of Justice to the chance of a renewed look at a compulsory license for public performances.
And the big question driving all of the arguments still remain unanswered. If BMI does make a deal to sell itself, will songwriters and publishers share in what sources suggest is a $1.7 billion valuation price? Will some of that money be earmarked for infrastructure improvements? Or will all of it go to the radio and TV stations that own BMI? Since BMI has taken in an average of about $238 million a year in annual licensing fees from terrestrial radio and broadcast television over the last half-decade, that means that a price of about $1.7 billion would fund about a seven-year licensing rebate for BMI’s owners.
Warner Chappell Music entered into new contracts with Guy Moot, co-chair/CEO, and Carianne Marshall, co-chair/COO, according to a filing with the Securities and Exchange Commission on Friday (Sept. 15).
The new employment agreements go into effect on Oct. 1 and lock in both executives until Mar. 31, 2028. Both Moot and Marshall enjoyed 25% raises; the former’s base salary jumped from $1,750,000 to $2,187,500, while the latter’s rose from $1,250,000 to $1,562,500. Annual discretionary bonus targets for the pair increased as well, climbing from $1,750,000 to $2,187,500.
Marshall ascended to the COO role in April 2018, while Moot was named CEO the following year. They’ve since moved to sign acts like Frank Ocean, the Quincy Jones catalog and the Pop Smoke estate. “I don’t want us to be looking at every deal just because it’s in the market — we want to pick the winners, be selective [but] aggressive in how we close those deals,” Moot told Billboard in 2020.
“We can drive value for a lot of these catalogs by not just continuing to take good care of the big copyrights but also doing a deep dive,” Marshall added. “For the first time, we have a global head of synchronization, which is really important: We want to work with anyone who wants to use our songs to try to figure out how to create solutions for them. It’s important to us to be able to search our catalog to find something in every genre and at every price point with a quick turnaround.”
In the first quarter of 2019, Warner Chappell had a 16.13% share of the top 100 radio songs. In the first quarter of 2023, that share rose to 20.71%, though it fell to 17.21% in the second quarter. Also in the second quarter, Warner Chappell’s Hot 100 Songs market share was 19.94%.