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Sunday Edition


31
May
2005
BMI-Getting What You Played For


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As I sat down to write another column, late as usual, I pondered on my month of rollercoaster disappointments involving the decline of Southern Gospel music. My first thoughts were, we are not getting our fair share of the lucrative music industries pie. Or could it be that we are bigger than the other genres, and politically the big labels are holding us out, and I don't mean the ones your thinking about. I mean Universal, Sony, BMG, Disney, Warner etc. Our entire industry's label sales combined are smaller than what one major label gives away in demos on one project. That will make some folks angry. But, facts are facts. Even the most sought after companies aren't able to move many acts on their roster past 10,000 units a year.

While traveling this month, I sat in on many conversations that didn't involve me. But, I listen and learn. During my visits to New York, Los Angeles and of course meetings here in Nashville, I had a chance to answer some questions the Southern Gospel music writers, labels, publishers and industry leaders have had over these mysterious claims of BMI cutting Southern Gospel writers 60 to 70 percent in their payments for song royalties.

Lets start with the facts, and inform some of our readers of the role BMI, radio, industry, writers, artists etc play in monies folks make from songs they have written. Broadcast Music Incorporated (BMI) has been the home of most Southern Gospel writers and publishers since its inception. Most of the songs you hear on your local radio stations are BMI affiliated songs. The writers are paid a few cents every time that song is played. BMI's job is to monitor and collect those fees on a regular basis from the radio stations, television, Internet or any area the material has been exposed to a listener impression.

Here is the latest round of BMI/Southern Gospel upsets. Writers were notified recently their payments would be significantly dropped. In some cases as much as 70%. This announcement has lead to online campaigns to solicit the President of BMI, a letter writing campaign, writers showing up at their offices demanding answers, online polls and every tactic imaginable to lobby BMI to reinstate its old payment policies. With all the Urban Legends surrounding the mysterious drop in royalties, I decided to listen and educate myself. (Remember this- I have as much to lose as does the other writers-I have written 10 Top 40 songs and a recent #1. But, with that said, I need the facts, not a bunch of wind and accusations.)

I reminded myself of a meeting recently in Washington, DC where a few members of CERTA and I were discussing parental advisories on music and film products. (By the way June is the National Labeling Month for parental advisories and material warnings on video games and music. If your going to let music, TV and video games Nanny your children this summer. Please be advised of the content. Visit http://www.erlam.org for more information.)

Now, on with the show. Sorry, I just like saying that. I miss my old radio days. A very prominent figure (we will call this person "Pat"- Could be male could be female) and I discussed in length the issues surrounding the BMI and Southern Gospel royalties dilemma. I think my mouth remained open for about 2 hours, my eyes began to stare at the ceiling and I began to ponder my next move. I was also sitting there thinking, "I just had a number one song, went through all the junk to promote it, spent my money, label's money and hundreds of hours of man power to be sitting here listening to the actual statistics and numbers to our industries airplay." If I only worked Southern Gospel and depended on the genre solely to provide for my family and employees, we would be hitching a ride out of DC and eating Ramon noodles for Thanksgiving. But, God has blessed me in other areas. So, during flight lay overs, script rewrites and calming of the divas, I made phone calls and visits to find the answers to life in Southern Gospel Land's latest urban Legend "Gospel is being penalized by BMI and rock acts are spending our money."

In the late 80's, early 90's, Billboard Magazine and other media outlets took the guessing out of record sales. All products were bar coded and scanned at retail. What the music industry discovered was Urban and Country music were the biggest sellers. While pop had more marketing muscle, it was the cosmetic successor. That's exactly what has happened at BMI, data is now being used to track actual airplay and spins. And guess what? Southern Gospel has been dipping into other genres pots. For years BMI, in their attempts to lure Gospel writers and build a Christian base, has over compensated Southern Gospel writers, by giving them a percentage of the quarterly take. Those days are over, each genre is paid by its collected royalties, the days of the big pot being split amongst the formats is over. In other words Southern Gospel is not being cut 70%, they are now being paid exactly what they deserve and have earned. BMI has not cast a sad day upon Southern Gospel, or a lost war, its just the facts. With the music industry in a battle for its life, accuracy and accountability are a must for even the largest corporations.

An even greater problem for Southern Gospel which I also learned from BMI is that radio stations can't afford to pay their fees. If BMI cannot collect all of the royalties, then there is no way to disburse the monies to us. So, if Southern Gospel fans are listening to Country and Pop radio, the advertisers aren't going to support Southern Gospel stations. This leaves the owners with poor revenues. If you're a station owner and it's a choice between BMI licenses fees or the light bill, you're probably going to pay the light bill to keep the station from going dark.
So, let's sum it up.

Fact: BMI is not cutting Southern Gospel writers and publishers out of 70% of there hard earned money, they are only paying them what they have honestly accrued in airplay money.

Fact: BMI is a dear friend and fan of Southern Gospel music, they welcome their writers and encourage their success. But, they have to answer to God and a board of directors. They cannot give us monies we have not earned or collected.

Due to my personal involvement with this issue I will leave myself open for comments or questions.

Rick Hendrix
http://www.rickhendrix.com

Reader Comments

WOW- Surely SG is not that bad off. I would hope not.

DE


Commented by On 06/04/2005
i too have been concerned about bmi. i have written music and songs for years. i made the most money from musical backgrounds on commercials with bmi. songs are another ballgame. i am sure something can be done to help fix this problem.sounds as if they need more radio and fans.

GJ Crane


Commented by On 06/04/2005
I am starting to see why my sister and her family go so discouraged. I wonder where all the money is going. I purhcased a CD this morning for 15.99. My sister told me the price of a CD is about a dollar. Makes you wonder.
Sue


Commented by On 06/04/2005
Sue, I'm afraid your sister gave you some erroneous information. While your sister may be able to buy a blank CD for $1.00, a CD filled with music costs far more than $1.00. Recording studios are not cheap, musicians are not cheap, photo shoots are not cheap, graphic designs for covers are not cheap, and I could go on. While duplication may be cheaper than the initial recording, you have to sell a lot of those $15.99 CDs just to get the bill of the recording paid. If your sister can figure out how to get all of the above done for $1.00 per CD, I want her to do our next recording.


Commented by On 06/04/2005
HOGWASH-its soundslike a bunch of executive decisions have been made and now the excuses are being handed down to the little guys. My group released a song 2 years ago. We got a check from BMI for 6.00. I looked at it and decided to keep my day job.

Rev. Cecil Smart


Commented by On 06/04/2005
LOL-Deon- I guess the next Gaither album will be at our Downtown Louisville Dollar Tree- 1.00. Where did that come from. Whats your group name Deon? Or are you a solist?

Dale Embry


Commented by On 06/04/2005
OK- I would like a time and location for your sister to take me Cd shopping. Our church just spent 400.00 on acompliment tapes. I sure could use the dollar albums.

Rev. Cecil Smart


Commented by On 06/04/2005
Rev. Smart,
She has her prices wrong. Deon was responding "tongue in cheek"

Dale


Commented by On 06/05/2005
Come on Dale, you're forcing me to make a shameless plug. The Sunday Edition - http://www.sundayedition.net


Commented by On 06/05/2005
This is a shameless plug too...lol but I just done a new project and I wish I could have gotten my Cds for a dollar. After the pictures and duplicationa and recording and traveling to the studio, etc. I was out probably 2000.00 bucks. And that was for 100 Cds and 100 cassettes and I used a studio about 30 miles from my home. SO if my calculations are right I should sell my CD/Cass (at the same price) for 10.00 just to make my money back..and if I place them in a bible book store they have to make a commission, around here that is 2 bucks. SO now the CD is up to 12.00 now if I want radio promotion which can cost 1200.00 for 3 mth. Now the cd is up to $16.00 ( that is with only 3 months of radio promotion. Now if I want to do publicity you looking at even more money per year now the Cd is up to 19.50. And that is just the tip of the iceburg...oh and being is that this articles is about BMI I didn't add they royalities I had to pay for the songwriters...
So when you think 15.99 is alot to pay for a CD think about what that group pays out~
Sorry for such a long entry but I think it is some amusing reading anyway LOL!


Commented by Jamie Carter On 06/05/2005
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