BMI reacts after live groups appeal rate increase

Live Nation, AEG and the North American Concert Promoters Association (NACPA) have filed to appeal against BMI’s court triumph over performance royalty rates paid by the live industry.

The US collection society claimed victory in the long-running court battle back in March after New York District Court Judge Louis Stanton ruled a new rate of 0.5% would replace the previously tiered rate of between 0.15% and 0.3%, which had been in place since 1998.

The ruling said the new 0.5% rate also applies retrospectively to shows that took place from 1 July 2018.

However, it was revealed this week that the live groups have filed a notice to appeal the decision, which could mean they intend to move forward with the appeal, but could also be a procedural move to keep the option to appeal open. The move was drew criticism from BMI.

“Given Live Nation, AEG and NACPA’s bizarre position throughout trial that concertgoers attend concerts for the experience of the staging, videos and light shows, as opposed to the actual songs and music being performed, their appeal was not a surprise to BMI,” says BMI president and CEO Mike O’Neill.

“For decades, the live concert industry has fought to keep rates suppressed. And even now, when they are making more money than ever, in more ways than ever, they are determined to deny songwriters and composers the fair value of their work, despite the fact that without their contributions, a concert wouldn’t even be possible. BMI will continue to fight on behalf of our affiliates, the creators of the music that is the very backbone of the live concert industry, to prevent that outcome.”

At the outset of the case in 2018, BMI said its total income from the US concert business was $20 million annually

It claims the court’s decision “ended decades of below-market rates”, arguing the revised rate reflected “the importance of music in the live concert experience”.

“The decision also expanded the definition of the total revenue base to which the new rate is applied, taking into account the way modern promoters monetise concerts,” it adds. “This includes tickets sold directly onto the secondary market, servicing fees received by the promoters and revenues from box suites and VIP packages.”

BMI (Broadcast Music Inc) represents the public performance rights in over 20.6 million musical works created and owned by more than 1.3m songwriters, composers, and music publishers.

At the outset of the case in 2018, BMI said its total income from the US concert business was $20 million annually, or less than 0.19% of the industry’s revenue. This number is less than 2% of the $1.118bn it paid to songwriters in 2018 (BMI paid $1.5bn in 2022).

The live groups have not commented on the appeal. However, responding to the March 2023 ruling at the time, Live Nation said in a statement, “We advocated on behalf of artists to keep their costs down, and managed to hold the increase to less than 1/3 of BMI’s proposed increase. This will cost the performers we work with approximately $15 million a year spread out over thousands of artists, and cost increases for Live Nation directly are not material.”

An spokesperson for AEG said back in May: “AEG Presents and NACPA were defending performing artists, who bear the costs of BMI fees, in this litigation. The result is that BMI was awarded significantly less than it sought, which is an important benefit for performing artists. AEG Presents will always support all of the artists who make their living on our stages.”

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BMI’s victory highlights gulf between performance rates

US collection society BMI has this week claimed victory in a long-running court battle with Live Nation, AEG and the North American Concert Promoters Association (NACPA).

The new rate of 0.5% replaces a previously tiered rate of between 0.15% and 0.3% that has been in place since 1998.

BMI President and CEO Mike O’Neill says the long-running dispute “took millions of dollars and years of litigation” to arrive at, and the new rate will apply to additional revenues around shows including tickets sold directly to the secondary market, servicing fees that promoters receive, and revenues from box suites and VIP packages.

The ruling, handed down by New York District Court Judge Louis Stanton, says that the new 0.5% rate also applies retrospectively to shows that took place from 1 July 2018.

BMI had proposed a rate of 1% when negotiations began, a figure that was subsequently lowered to 0.08% when it began litigation. Requests by BMI to include revenue from sponsorship and advertising within the rate were rejected by Stanton.

BMI President and CEO Mike O’Neill says the long-running dispute “took millions of dollars and years of litigation” to arrive at

Responding to the ruling, Live Nation said in a statement, “We advocated on behalf of artists to keep their costs down, and managed to hold the increase to less than 1/3 of BMI’s proposed increase. This will cost the performers we work with approximately $15 million a year spread out over thousands of artists, and cost increases for Live Nation directly are not material.”

At the outset of the case in 2018, BMI said its total income from the US concert business was $20 million annually, or less than 0.19% of the industry’s revenue. This number is less than 2% of the $1.118bn it paid to songwriters in 2018 (BMI paid $1.5bn in 2022).

While BMI’s court victory will boost its revenues from concerts, the new rate is still a far cry from other concert markets. In the UK, PRS for Music negotiated an increased rate of 4% in 2018 for most live events. German society GEMA upped its tiered performance royalty rates in 2017 which ranged up to 8% of net receipts for events over 15,000-capacity.

Spain’s troubled collection society SGAE, which was fined €2.95 for anti-competitive practices in 2019 had previously been ordered by a court to review its 10% rate for concerts. And Switzerland’s SUISA also levies up to 10% for concerts, with discounts for members of trade associations.

Nonetheless, BMI’s O’Neill says, “the music created by songwriters and composers is the backbone of the live concert industry and should be valued accordingly. [The] decision also underscores BMI’s continued mission to fight on behalf of our affiliates, no matter how long it takes, to ensure they receive fair value for their creative work.”

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