MBW’s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by music data analytics firm Chartmetric.
US performance rights organization ASCAP has reported its revenue and royalty payout numbers for 2024, with both numbers hitting all-time highs.
Revenue came in at $1.835 billion for calendar 2024, up 5.7% year over year. Of that, ASCAP distributed $1.696 billion to artists, songwriters, and music publishers, an increase of 6.5% YoY.
In a statement issued on Thursday (February 27), ASCAP said the record-breaking numbers were “fueled by revenue growth and the lowest overall cost allocation overhead rate in the US at 10%.”
US-licensed performances brought in $1.397 billion in revenue, up 5.3% YoY, with revenues from streaming audio, audio-visual and general licensing driving the growth. Of that, ASCAP paid out $1.284 billion to rights holders, up 5.5% YoY.
Foreign revenue collections came in at $438 million, up 6.8% YoY, of which $411 million was paid out to rightsholders, up 9.8% YoY.
Over the past 10 years, ASCAP has seen a compound annual growth rate of 7% for revenue and 8% for distributions, indicating a long-term trend towards paying out a larger share of revenue to rightsholders.
ASCAP also reported that its membership “soared past the 1 million mark” in 2024 as it attracted a slew of new members. Among them are country star Kacey Musgraves, eighties rockers Def Leppard, pop star Tate McRae, film/TV composer Cliff Martinez, rapper Sexyy Redd, songwriter Justin Tranter, rock icon Jack White of The White Stripes, Dear Evan Hansen star Ben Platt and folk rocker Graham Nash.
With rival performance rights org BMI having converted to a for-profit model several years ago, ASCAP now bills itself as the only PRO in the US operating on a not-for-profit basis. (The org stresses that it isn’t a licensed non-profit, rather it’s an unincorporated membership association that operates without taking a net profit.)
“For songwriters, composers and publishers, ASCAP provides the best return on their performance royalties because they get 90 cents of every dollar we collect. It’s that simple. We are the only US PRO that does not take a profit and the only one that can credibly say we put creators first in everything we do,” ASCAP CEO Elizabeth Matthews said.
By comparison, BMI reduced its payouts to rightsholders from 90% to 85% of revenue in 2023, shortly before it was acquired by private equity firm New Mountain Capital.
“We are the only US PRO that does not take a profit and the only one that can credibly say we put creators first in everything we do.”
Elizabeth Matthews, ASCAP
ASCAP also stresses that it’s the only one – out of six PROs operating in the US – not owned by private equity.
“ASCAP is the only one that does not owe payouts to private investors or shareholders, making writer and publisher members the sole beneficiaries of ASCAP’s growth,” the organization said Thursday.
“ASCAP is committed to innovating, growing and evolving in ways that benefit our members, because music creators drive every decision we make,” said ASCAP Chairman of the Board and President Paul Williams.
“Protecting the livelihoods of songwriters and composers and defending the value of music is a mission we take seriously. For us, this is more than just business – it’s personal, and that’s what sets ASCAP apart from any other PRO.”
ASCAP’s latest annual earnings report comes as the US Copyright Office (USCO) prepares for an inquiry into “questions related to the increase in the number of PROs and the licensing revenue distribution practices of PROs.”
The inquiry was prompted by a letter to the USCO by congressmembers on the House Judiciary Committee, who echoed concerns from music licensees such as hotels, restaurants and bars that new PROs have been making demands for royalty payments above and beyond the blanket licenses the businesses obtained from established PROs.
Of the six PROs operating in the US – ASCAP, SESAC, BMI, Global Music Rights (GMR), PRO Music Rights, and AllTrack – three were founded in the past 12 years.
Earlier this month, BMI launched a campaign urging artists, songwriters and publishers to make their voices heard in the USCO’s call for submissions on PROs.
“We believe the goal of these licensees is not to question how the marketplace functions or call attention to new PROs who have actually gained very little traction in the industry, but ultimately to pay you less for your creative work,” BMI said.
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