EMI Publishing Dumps ASCAP : The Record The publishing arm of the major record label EMI has decided that it will negotiate its own fees for digital performances of songs instead of relying on ASCAP, a company that has long tracked performances of songs and that collects fees for labels and songwriters.
NPR logo

EMI Publishing Dumps ASCAP

  • Download
  • <iframe src="https://www.npr.org/player/embed/137504092/137509353" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
EMI Publishing Dumps ASCAP

EMI Publishing Dumps ASCAP

  • Download
  • <iframe src="https://www.npr.org/player/embed/137504092/137509353" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

ROBERT SIEGEL, Host:

But NPR's Laura Sydell reports that as broadcasting moves online, ASCAP's role is less certain.

LAURA SYDELL: Like many record labels, EMI Music has a publishing arm that controls several different catalogues of songs. Take April Music, which holds the rights to some 200,000 songs, including words written by such popular artists as Jay-Z, Mos Def and Beyonce.

(SOUNDBITE OF SONG, "SINGLE LADIES")

BEYONCE KNOWLES: All the single ladies, all the single ladies. All the single ladies, all the single ladies. All the single ladies, all the single ladies. All the single ladies, now put your hands up.

SYDELL: Every time Beyonce's song gets played on the radio - that includes NPR - the American Society of Composers, Authors and Publishers keeps track. ASCAP was founded in 1914 by songwriters who wanted to get paid when their songs got played on the radio. The organization would send its staff out into the field to listen.

JOHN LOFRUMENTO: We had individuals in recreational vehicles traveling around the United States taping over-the-air broadcasts of radio and television.

SYDELL: That's John LoFrumento, the CEO of ASCAP. Times have changed and so has the technology that ASCAP uses.

LOFRUMENTO: Which fingerprints our members' music and tracks our members' music as it's being performed real time.

SYDELL: On radio. But as fans start to listen to more of their music online, keeping track of how often a song gets played is even easier, says Jeff Price, the CEO of the digital music distribution company TuneCore.

JEFF PRICE: YouTube and Spotify and Apple and MOG and Rhapsody and all these online digital streaming services already track the public performances of the songs. And they can just click a few buttons and spit out a report that shows how many plays there have been.

SYDELL: Market analyst Phil Leigh agrees that the new arrangement will help start-ups.

PHIL LEIGH: They can't get started if they get charged rates that apply to old businesses that are too high. Therefore, the music publishers want to be able to negotiate with them directly in order to provide rates that enable them to get into business.

SYDELL: And while these changes might pose extra challenges for artists in streaming services, TuneCore's Jeff Price says that in an age of shrinking profits, publishers like EMI can save money by cutting out the fees they have to pay performance rights organizations like ASCAP.

PRICE: I think its short-term goals right now of, you know, particularly EMI, to squeeze every penny they can out, because they're going to put themselves up for sale, and they want their balance sheet up. That's why EMI is rushing around doing this, because they're trying to get bought by Russian billionaires.

SYDELL: Casey Rae-Hunter of the nonprofit advocacy group Future of Music Coalition says the big music publishers aren't bound by the old agreements negotiated by performance rights organizations or PROs like ASCAP.

CASEY RAE: What is EMI's responsibility to the songwriters who are part of their publishing empire, and can we trust that this company is going to honor the, you know, 50-50 split that songwriters and publishers have worked out and honored over the years?

SYDELL: Stories are a legion about musicians not being paid royalties by record labels. TuneCore's Jeff Price says if you're a songwriter with an older contract that doesn't address digital sales, those same issues might play out online.

PRICE: So if you're a legacy songwriter and you're in a deal with EMI Music Publishing and that money is now all given to EMI as opposed to the PRO, and you're unrecouped, meaning they've advanced you money and you haven't earned enough back to pay them back, you're not going to get any money as a songwriter.

SYDELL: Laura Sydell, NPR News.

(SOUNDBITE OF MUSIC)

MELISSA BLOCK, Host:

You're listening to ALL THINGS CONSIDERED from NPR News.

Copyright © 2011 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.