ASCAP Financials: Revenue Down 6%; Member Distributions Down 2.1%

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ASCAP reported declines in both revenue and distributions to members at its 2010 at its General Annual Membership Meeting in New York City. According to ASCAP officials, 2010 revenues fell 6% and member distributions were down 2.1%. Officials cited a slower economy, unfavorable rate court decisions and a reduced interim radio rate as reasons for the decline.
The financial distributions to members, at $845 million, were down 2.1% in 2010 versus 2009. ASCAP reported its 2010 revenue at $935 million, 6% below revenues for 2009. ASCAP said the impact of a weak economy having a lagging effect on ASCAP, resulting in lower payments from those customers paying on a percentage of revenue basis. In addition during 2010, ASCAP received a reduced interim radio rate. The final radio rate will be set at the conclusion of a rate court proceeding, most likely in 2012.
John LoFrumento, ASCAP CEO, states “ASCAP continues to benefit its member owners by rewarding them financially, by enhancing their career success and by protecting their copyrights. Looking to the future, we see ongoing challenges to member financial distributions. We are working tirelessly to add new licensing opportunities and to utilize new technologies to control operating costs. Over the next twelve months, ASCAP will maintain its fight for fair songwriter and composer compensation through creative licensing negotiation and litigation when necessary and appropriate.”