US-based collection and licensing society ASCAP has reported that its revenues topped $1.274 billion in 2019, which marks a $47 million increase over 2018, and a fifth year of record-breaking financial results.
Royalty distributions to ASCAP members in 2019 increased by $75 million, crossing the $1bn mark for a third year with $1.184bn in total royalties paid out.
ASCAP operates on a not-for-profit basis and distributes all revenues collected, less operating expenses.
The publication of ASCAP’s 2019 financial results follows reports of a letter that was sent by the organization to its members last month informing them that their April 2020 payments – originally scheduled for April 6 – would be delayed until April 28 due to late payments from licensees because of the financial impact of the COVID-19 crisis.
“During this crisis, as we see more and more of our licenses who pay us start to feel the impact of the economic downturn, this translates into less revenue for ASCAP and less money available for distributions for our members,” stated the email sent to ASCAP members.
“We have already been contacted by numerous licenses who are attempting to pay less, pay late or not pay at all.”
Meanwhile, according to ASCAP’s 2019 financial results, domestic (US) revenue collected last year was $945m, up $39m over the prior year, driven in part by an increase in audio streaming which increased 16%.
Domestic distributions from ASCAP-licensed and administered performances in the US totaled $869m, up $55m over last year.
Foreign revenue increased to $329m and foreign distributions were $315m, up by nearly $20m over 2018.
“Hopefully, this distribution will provide a cushion to members to help weather the storm of COVID-19.”
ASCAP Chief Executive Officer Elizabeth Matthews (pictured, main), said: “We are pleased to report ASCAP’s strong financial results for 2019, but we know that our members are concerned about the economic impact of the COVID-19 crisis on their royalties in 2020 and beyond.
“Fortunately, ASCAP closed a record number of multi-year licensing deals in 2019 and instituted immediate operational changes and expense cuts in early March 2020.
“As a result of these efforts, while collection efforts are increasingly challenging, our first quarter 2020 royalty distributions have proven to be among our highest ever.
“Hopefully, this distribution will provide a cushion to members to help weather the storm of COVID-19.”
“The ASCAP team is working tirelessly on behalf of our members to navigate through this crisis and protect their livelihoods, even in these challenging times.”
Paul Williams, ASCAP
ASCAP Chairman of the Board and President Paul Williams, said: “Music remains essential to our culture and to humanity.
“We see it in good times as evidenced by the achievements of our members and ASCAP in 2019, and we see it now, when music creators show their generosity and compassion, even as they struggle with the impact of the COVID-19 crisis on their own lives and livelihoods.
“We are proud of ASCAP’s strong 2019 financial results, but our focus now is on the future, and fighting for our members.
“The ASCAP team is working tirelessly on behalf of our members to navigate through this crisis and protect their livelihoods, even in these challenging times.
“I am grateful to stand together with so many talented and dedicated members of the ASCAP family, at a time when we need each other more than ever.”Music Business Worldwide
