“We are finally able to capture what the publishing industry is worth and, more importantly, what our industry is losing,” said David Israelite, National Music Publishers Association President and CEO. Israelite was speaking at the trade association’s annual meeting in New York City (6/11). NMPA was founded in 1917.
According to NMPA, U.S. revenue across all sources for 2013 totaled $2.2 billion which compares with $2.3 billion lost due to “outdated copyright law and government regulations.”
“The new digital marketplace is changing how songwriters and their music publishing partners can thrive,” adds Israelite. “As the marketplace evolves, it is essential our industry no longer be hamstrung by outdated laws and government regulation.”
The revenue is quantified based upon information collected from NMPA’s modernization program which requires members to provide revenue data and captures market share info. Lost revenue calculations are based on projected fair market value of the industry in the absence of government regulations.
Performance License 52%
Although the performance right is not explicitly regulated by law, the Department of Justice imposed consent decrees on the performance rights organizations ASCAP and BMI in 1941.
Mechanical License 23%
Section 115 of the Copyright Act imposes a compulsory license that dates back to 1909. As a result of this World War I-era law, songwriters and music publishers are denied the right to negotiate the value of their intellectual property in a free market. For every song downloaded on iTunes, songwriters receive only 9.1 cents – the current rate set by the Copyright Royalty Board.
Sync License 20%
Traditionally this has included using music in movies, television shows, and commercials. Newer forms of this right include music videos produced by record labels as well as user-generated content such as videos on YouTube. For songwriters and music publishers, this is a free market right not regulated by law or consent decrees.
Income from uses such as sheet music and lyric websites.