BMI has hired Goldman Sachs to consult on potential growth opportunities for its business as one of the US’s largest performance rights organizations (PRO).
In a letter obtained by Variety, BMI President & CEO Mike O’Neill outlines why the organization is making the move. The objective is “growth for our songwriters, composers and publishers,” ostensibly beyond the traditional PRO sector – effectively publishing royalties from music played anywhere in public. That sector grew to record setting levels in the 2021 fiscal year, with BMI among the beneficiaries.
BMI distributed and administered a record $1.335 billion to songwriters, composers, and publishers in 2021. That’s the PRO’s highest distribution ever, up $102 million (8%) over the previous year. Total domestic licensing revenue exceeded $1 billion for the first time in 2021, driven by growth in the digital sector.
Here’s a peek at the letter BMI CEO Mike O’Neill sent out.
Hi Everyone,
I hope you all had a great week. I’m reaching out today with an important and exciting business update for BMI.
As you are all aware, our industry is changing and growing rapidly, and music has never been more valuable. You’ve all seen the news. There is so much happening in our space, and we are in an unprecedented time full of opportunity. It’s important that we evaluate what this could mean for BMI, both now and into the future.
In order to do that, we have hired outside advisors to help us explore strategic opportunities that could further grow the value of our affiliates’ music and our business.
Growth for our songwriters, composers and publishers has always been our top priority, and we’re excited to explore ways to continue that momentum. While it’s too early to speculate on what might happen, we’re looking at all our options as long as they advance this mission.
As a result of all your hard work, BMI has grown consistently over the last five years, including during the global pandemic. Last year was our most successful ever, and we’re pacing well ahead of that. As such, we are going through this process from a position of strength.
Source: Digital Music News
