ASCAP Reports Record Revenues
ASCAP has reported record revenues of $785 million for 2006, royalty payments to members of $680 million, and an all-time low operating expense ratio of 12.0%, the performing rights organization revealed. Revenues exceeded those of 2005 by $37 million, showing a 5% growth. ASCAP attributes its performance to a number of factors: growing revenues from the licensing of existing and new music channels; operational efficiency; and the introduction of numerous high value new services.
Total royalty distributions to members also increased from the prior year by $34 million. U.S. distributions totaled more than $486 million, and international distributions reached $211.7 million. ASCAP also welcomed 40,000 new members during the year. Overall in 2006, revenues from Internet and wireless license agreements grew more than 70% to $13.8 million.
Contributing to the revenue growth was ASCAP’s recently negotiated licenses with both terrestrial and satellite radio. In 2006, total radio revenues increased 11% to $22 million. Of that amount, terrestrial radio revenues rose by $14 million, and satellite radio revenues rose by $8 million from the prior year. ASCAP anticipates continued growth from satellite radio as a result of a new five-year agreement with XM Satellite Radio that derives revenues from both advertising and subscriber fees.
In television, ASCAP recently completed a new license agreement with ABC, resulting in a significant increase in that network’s fees. Specific figures were not disclosed. The arrangement covers performances by ABC across the Internet, broadband and wireless platforms, as well as video-on-demand, subscription video-on-demand and pay-per-view.