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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

Lets try and do something nive for people without paybacks.

Dale


Commented by On 06/05/2005
Dale, if I knew how to be nive, I would sure do it... LOL


Commented by On 06/05/2005
Deon, That nive-stands for fat man cant type. I have fingers overlap syndrom LOL

Dale


Commented by On 06/05/2005
Dale,
You can hear my audio clips at http://www.jamiecarter.com Just click on the audio tab or the products tab. Hope ya enjoy!

**And the person that ask Justin about his song "I worship you" He indeed wrote that! Mr.Hendricks is doing radio promotion!


Commented by Jamie Carter On 06/06/2005
Great article, Rick. Great comments everyone. I am now officially confused about one thing, however: I'm currently an ASCAP-affiliated writer and publisher, but I had considered switching my writer-member affiliation to BMI if it would be beneficial. But as of now, I'm not sure if it matters. ASCAP's royalties are based on mechanical royalties, i.e. actual records sold.
I think it's apples and oranges because SGM doesn't sell many units but we don't get a lot of airplay either. It's like "Let's pick which way we're gonna starve to death."
Can any of you out there tell me if it would be better for me to affiliate with BMI? Does it make a difference at this point? What about SESAC... they used to tout themselves as the "Christian" performing rights organization?


Commented by On 06/06/2005
Our slice of the pie is just too small for anybody to really make a living at this music with the exception of Bill Gaither. The very Christian message that sets our music apart is the "turn off" to most listeners. Let's face it, buddy, as Christian artists we're "Preachin' to the choir."

Too bad we don't have a movie like "O Brother Where Art Thou" to stimulate interest in our music. The other thing that would help is if we had more artists with CCM crossover appeal like the Imperials back in the 70's and 80's. But then CCM isn't what it used to be. Much of the CCM audience got "spititual" and decided to only listen to Praise and Worship music.

The Gaither Homecoming phenomenon is what HAS revitalilized this music. I guess you could say that the Gaither series is OUR 'O Brother.' But, as impact from that dies down, where do we go from there?

One hope may be in tapping in to the country market somehow. Getting some decently-made videos on CMT, for example. If Rascal Flatts can sell massive numbers while looking like Crabb Family castaways (while not singing nearly as well) why can't the Crabb Family?


Commented by On 06/06/2005
Chris, I feel the entire gospel world is sinking. FAST- I am sure SESAC is not the way to go. A member of my church wrote several released songs under SESAC, they had to call and get their payments. Some qrts were totally missed.


Commented by On 06/06/2005
There are plenty of Christians out there to help the Christian music industry to thrive. We have a ready-made audience every Sunday morninng. There are more people attending church every week than attend movies or go to bars -- or attend country or rock concerts. Yet, at least according to the posts here, we're supposed to be trying to win the lost. The lost are not going to buy our records. It just defies all logic in marketing. There are plenty of Christians who might buy our stuff if we directed our songs to them. Perhaps that is why praise and worship is so popular. Maybe if we targeted our efforts to the right audience -- the church, not the lost or BMI -- maybe we would see some improvement.


Commented by Keith Prater On 06/06/2005
Good point, Keith. I agree that preaching to the choir is the only way to go as far as finding a niche audience. I think that the only way to wake Christians up so that they realize that they're more out there than Praise and Worship, CCM, and urban Gospel is through agressive concert promotions. We need promoters who can stage an "event" that the local church people will want to go out and see. We can't just confine our big events to the NQC and to Gaither Homecoming concerts. Maybe some good, old fashioned "fests"
"all-day singings" or whatever. Get new, exciting groups like the Crabb Family and the Isaacs, throw in some legends like the Stamps and the Kingsmen, and some newer legends-in-the-making like Signature Sound and the Dove Brothers,
then charge something extremely low like $10 a ticket and promote the heck out of the thing. You don't even need radio spots, just some sunday bulletin announcements and some fliers. Get those "street teams" on the move. It WILL work.


Commented by On 06/06/2005
Why would you ALL be concerned.Its Gods music. The minstry is free.

Praying for you-

Jennifer Carpenter


Commented by On 06/06/2005
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