The potential sale of BMI is raising significant concerns among professionals, particularly songwriters and publishers. The multi-billion-dollar price tag associated with this sale has triggered questions about how it may impact writers and their earnings. If BMI transitions into a for-profit entity under private equity management, there is apprehension that profits might be prioritized over payouts to songwriters, potentially reducing their income.
Recent reports have provided contrasting views on the matter. Some advise a cautious “wait-and-see” approach, while others, including some managers of successful writers, have taken proactive steps by moving to alternatives like ASCAP due to concerns about BMI’s services and resource allocation leading up to the sale.
Transparency is a major issue in this context. BMI’s decision to cease sharing year-over-year total revenue and writer payout figures has raised suspicions that the organization might be planning to increase payouts for star writers while retaining a larger share of total revenue, potentially disadvantaging mid-tier and lower-class artists.
The lack of direct answers from BMI to questions posed by various songwriter groups further fuels uncertainty. Questions regarding the potential impact of future profits on songwriter distributions, the allocation of proceeds from a BMI sale, and assurances that less lucrative writers won’t be pushed away remain unanswered.
This situation underscores the broader issue of transparency within performing rights organizations (PROs) and the music industry as a whole. The inability to audit PROs leaves songwriters and publishers to trust that proper accounting is taking place, making it difficult to verify the accuracy of payments.
The larger question arising from this situation is the need for songwriters to unite and create leverage through unionization. Without a collective voice and industry support, songwriters may continue to face challenges and potential exploitation not only from BMI but throughout the streaming music ecosystem. The recent developments, including the potential sale of BMI and the Writers Guild of America’s progress in securing concessions for Hollywood writers, should serve as a rallying point for songwriters to seek fair treatment and address critical industry issues collectively.