ASCAP Reports Record $1B Revenue Fueled By 41% Increase In Streaming Income
ASCAP has announced the collection of record-high revenues of $1.059 billion in 2016 and distributed more than $918 million to its songwriter, composer and music publisher members. Distributions were up 5.6% over the prior year.
Revenues from ASCAP’s licensing efforts in the U.S. grew nearly 6% in 2016 to $759 million, up $42.2 million over 2015, fueled primarily by a 41% increase in revenues from audio streaming services as well as higher revenues from satellite radio and general licensees, such as bars, clubs and concerts.
Foreign revenues totaled $300 million, up $1.5 million year over year in U.S. dollars. ASCAP's international revenues would have exceeded last year’s performance by $12.9 million had it not been for the strengthening U.S. dollar which resulted in lower foreign exchange rates.
Domestic distributions of $631 million from ASCAP-licensed and administered performances in the U.S. grew nearly 10%, up $55.5 million over 2015.
ASCAP has 6000,000 members and operates on a not-for-profit basis with a 2016 operating expense ratio of about 12%.
Ummmm so ascap made money from a streaming company that lost 300 million in 2016? This is not news worthy. This is just another case of another company apart if the temporary money grab. Stop trying to glorify streaming as a legitimate revenue stream. It’s not. Streaming is just a play and a play is a preview. There’s no accurate quantification that says plays are positive thus to get revenue for a stream or worse get a platinum plaque for streams is a scam, which is why it’s not scaling and will eventually implode itself when the long tail investors realize the bigger they get the more they lose.