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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

Congratulations Sunday Edition-I read in the news recently, you had your first hit song. I had not a clue that was the same Deon. grin

IF I had a hit song-there is no such thing as a shameless plug.Theres just jeolous eyes to your success.I've been in this thing before**

Dale


Commented by On 06/05/2005
Jamie,
Thank you for sharing that with us. Its good to see a behind the scenes look at the reality of the cost. It is not cheap doing the music.Where can I hear your music?And I still dont get the whole pay for radio promotions. Can anyone explain that a little better. I have watched Nick say its the anti-Christ, I've seen Mr. Hendrix all but take a bullet for it. I ran a small am in KY, I didnt need anyone telling me what to play or chart.

Dale


Commented by On 06/05/2005
I dont understand. I asked my sister again.She said CD plants sometimes charge as little as .50 for a CD. Can anyone explain? I hope prices down South arent that different grin

Sue


Commented by On 06/05/2005
Sue, your sister is correct. If you buy 5,000 or 10,000 blank CDs you can probably get them for $1.00 or less, but you have to buy in bulk to get those prices. Now keep in mind that those are just blank CDs no cases or shrink wrap, no music, no voices, nothing except some printing on the CD advertizing the CD company that you are buying the CDs from, and that is very hard to cover when you want to put a label on it. It is really hard to sell a blank CD for $15.99. Most SGM CDs don't sell near 5 or 10 thousand copies, so those prices are not applicable to us. As others have very ably described, there is far more cost to a CD than just buying blank CDs.


Commented by On 06/05/2005
What about all of the writers like Dee Gaskins, Robert Deel that get no money from the singers.God is watching them too. I guess the singers are fighting for their share, and keeping the writers. I saw a list at one time of the groups that paid their royalties and I could send my songs to- it was less than 5. None of the major artist were on that list. I would rather keep my songs.If BMI and the artist are going to keep the money.I can use them in my local church. But, someone needs to address the artist accountability.

Julie AV Sizemore


Commented by On 06/05/2005
I am not sure but at one time, a HOT list was being created to hold these artist accountable.If we are going to fight BMI lets fight the artist. I dont expect anyone to answer any of these questions.They never do.

Unpaid Writer-

Julie


Commented by On 06/05/2005
Here is the bottom line, artist need all of the money they can get. I know the main focus is to minister, but unfortunately in our world it takes a LOT of money to do that. For example I have a song out "I worship You" with Rick Hendrix. He is wonderful but in reality you have to pay for what you get. It isn't free. I agree with Jamie.....15.00 per CD is cheap considering everything that you have to have to keep your ministry going. Also, you have other expenses besides what she listed. (Gas, etc) For example I just had to buy a set of in-ear monitors, I have to have other stuff on top of that. It adds up, but God provides.


Commented by Justin Endicott On 06/05/2005
Justin AMEN- It does cost a lot. My family has spent a lot of money. If they knew the price of traveling,clothes,food,product loss of time at work, they wouldnt mind 15.00 for a CD. I like your song. I heard it on our station in Atoka,OK.Did you write it?

Renee


Commented by On 06/05/2005
Its a sad circle.Artist do not pay labels for product, they dont pay writers for songs,no one spends money with radio, radio cant pay BMI,ASCAP,SESAC. I love this biz.But, we have no morals being upheld. People only react when it benefits them.

Dale


Commented by On 06/05/2005
Julie, the major artists are all on contracts with labels. It is the label's responsibility to pay those royalties. Now smaller artists are not signed on labels and all those independent recordings need to be paid by the artists themsleves.


Commented by On 06/05/2005
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