According to a new report by music industry specialist Music Business Worldwide Songwriters are concerned About BMI’s Potential Sale, one of the two largest music licensing organizations in the United States.
BMI represents over 500,000 songwriters, composers, and music publishers, and its mission is to “grow the value of music” for its members.
The concern among songwriters is that a sale of BMI to a private equity firm could lead to lower royalties for them.
Private equity firms are typically focused on maximizing profits, and they may be less likely to prioritize the interests of songwriters as compared to a non-profit organization like BMI.
In a letter to BMI CEO Mike O’Neill, a coalition of songwriter groups expressed their concerns about the potential sale.
In a letter to BMI CEO Mike O’Neill sent last Thursday (August 17), as reported by MBW, the Artist Rights Alliance, the Black Music Action Coalition, the Music Artists Coalition, Songwriters of North America and SAG-AFTRA stated:“Songwriters have a vested interest in changes at BMI and in any proposed transaction which is wholly dependent on songs they have written… BMI does not own copyrights or other assets; it is a licensing entity for copyrights owned by songwriters and, by extension, publishers.“Songwriters have a right to understand these decisions and how it impacts us.”
The letter said that a sale of BMI could be a major setback for songwriters and that it could have a devastating impact on the music industry.
“BMI has said that it is not currently in active discussions with any potential buyers, but the possibility of a sale has raised concerns among songwriters.
The songwriter groups are calling on BMI to provide more transparency about its plans for the future and to guarantee that songwriters will continue to receive fair royalties.
The potential sale of BMI is just the latest example of the growing financialization of the music industry.
In recent years, there has been a trend of private equity firms investing in music businesses, such as record labels, publishing companies, and streaming services. This trend has raised concerns that the interests of artists and other music creators may be overshadowed by the profit motive.
It remains to be seen whether BMI will be sold, and if so, to whom.
However, the potential sale has highlighted the need for songwriters to have a seat at the table when decisions are being made about the future of the music industry.
