-- Mediaguide, which tracks broadcast and Internet radio performances via digital fingerprinting technology. Mediaguide not only satisfies ASCAP's performance tracking needs, but also generates revenues from over 150 independent labels and publishers as well as advertisers benefiting from accurate and timely ad verification. -- PREP (Performing Rights Enterprise Program), a sophisticated technology platform that gives members online access to ASCAP's performance and royalty distribution databases. Major components of PREP are now in use, with other capabilities scheduled to go live within the year. -- ASCAP Network, a rapidly growing showcase for the music of ASCAP members across 10 channels at www.ascap.com. This online music source now delivers nearly 500,000 streams a month, exposing new audiences to great music and emerging talent. -- MusicPro Insurance, created and owned by ASCAP members, it provides affordable and convenient instrument, studio and tour coverage to thousands of music professionals, regardless of affiliation. In addition this service is also endorsed by nearly every music organization, including ASCAP's competitors. -- "I Create Music" EXPO, the first and only national conference dedicated to songwriting and composing, ASCAP expanded its "I Create Music" franchise in 2007 to embrace an entire week of high-profile awards ceremonies and professional development activities. In its first two years, over 4,000 people have participated in this EXPO. This year, the three-day "I Create Music" EXPO will take place in Los Angeles April 10 - 12.In addition to the above mentioned member services and benefits, ASCAP also took a bold step to support education for children on the issue of illegal downloading of copyrighted music. In conjunction with i-SAFE, the leader in Internet safety education, ASCAP created the nation's first comprehensive educational program addressing why personal piracy of music and other creative content is harmful. Titled "The Donny the Downloader Experience," this new program is being presented in schools across the U.S. Since its launch in February, the program, which was conceived to help preserve future music appreciators, has already reached nearly a million students through assemblies and an interactive curriculum. "Our stellar financial performance in 2007 underscores the success of ASCAP's leadership strategy, which combines extensive revenue and royalty building initiatives with aggressive cost containment efforts," said LoFrumento. "These strategies are underpinned by our deployment of innovative technologies and our deep commitment to providing our members with the new tools to succeed in this ever-changing music environment." About ASCAP: Established in 1914, ASCAP (American Society of Composers, Authors and Publishers) is the first and leading U.S. Performing Rights Organization representing the world's largest repertory totaling over 8.5 million copyrighted musical works of every style and genre from more than 315,000 songwriter, composer and music publisher members. ASCAP also represents the repertories created by the international affiliates of 90 foreign performing rights organizations. ASCAP protects the rights of its members and foreign affiliates by licensing the public performances of their copyrighted works and distributing royalties based upon surveyed performances. ASCAP is the only American Performing Rights Organization owned and governed by its writer and publisher members. www.ascap.com
ASCAP Achieves Outstanding 2007 Financial Performance
World's Leading PRO Grows Revenues by 10%, While Reducing Operating Costs to All-Time Low of 11.9%
Intense Focus on Member Benefits and Development Contributes to Success
| Source: ASCAP
NEW YORK, NY--(Marketwire - February 8, 2008) - Demonstrating clear leadership within the
music industry, member-owned performing rights organization, ASCAP
(American Society of Composers, Authors and Publishers), today reported
record 2007 revenues of $863 million and royalty payments of $741 million,
as well as an all-time low operating expense ratio of 11.9 percent.
Representing a fast-growing, diverse membership of more than 315,000 music
creators -- a 14.5 percent increase over last year -- ASCAP attributes its
exceptional performance to five key factors: tirelessly building revenues
from the licensing of existing and new music channels; consistently
distributing more royalties to its members; aggressively implementing
innovative technology; relentlessly managing operating costs; and
tenaciously focusing on providing superior member benefits.
"In 2007 ASCAP clearly performed for our member-owners," said John
LoFrumento, ASCAP CEO. "Not only did we put more money in the pockets of
hard working songwriters, composers, lyricists and music publishers, but we
also intensified our professional development programs and public advocacy
efforts on their behalf. In 2008 and beyond, we will continue to assert
our leadership as the pre-eminent performing rights organization."
Revenues for 2007 exceeded 2006 by $77 million, a 10 percent growth rate.
Both U.S. and foreign revenues showed strong gains. Domestic revenues
totaled nearly $598 million, up $39 million, with significant growth in
radio, cable and General Licensing. International revenues exceeded $265
million, up $38 million from the year before -- benefiting from the growing
global popularity of the ASCAP repertory and favorable exchange rates.
Royalty distributions to ASCAP's members grew in 2007 by $61 million, a 9
percent increase over the prior year. Both U.S. and foreign distributions
rose substantially, with domestic royalties up more than $28 million and
international royalties up nearly $33 million.
While substantially growing both revenues and royalties, ASCAP held the
line on expenses, achieving the lowest-ever operating expense ratio of any
performing rights organization: 11.9 percent, down from 12.1 percent in
2006.
Focus on Career Advancement and Advocacy
ASCAP is continuing to place an emphasis on career advancement,
professional development and advocacy through a variety of initiatives.
LoFrumento added that investing in the professional development of its
members through technologies like Mediaguide, PREP and the ASCAP Network;
services like MusicPro Insurance and the industry's largest member benefit
program; and career enhancement tools like the ASCAP "I Create Music" EXPO,
makes ASCAP a totally different kind of PRO. "By investing in our members'
professional development, we are seeing a significant return in revenue
growth now and will continue to see it in the future," said LoFrumento.
The following details the core ASCAP services and member benefits that
support and advance the careers of music creators: