Despite 'unprecedented headwinds' in 2020 ASCAP posted revenues up 4.1% to $1.327 billion

By Emmanuel Legrand

The American Society of Composers, Authors and Publishers (ASCAP) has posted record collections in 2020, despite "unprecedented headwinds."

  "2020 challenged all of us unlike any other year in modern history. It also defined ASCAP’s dedication to our members,” said ASCAP Chief Executive Officer Elizabeth Matthews. “That meant strengthening our commitment to our mission to serve our songwriters, composers and music publishers by taking every step necessary to secure their livelihoods and careers. Inspired by our members each and every day, the ASCAP team proved that innovation, efficiency and progress really can be escalated in a crisis."

ASCAP's Elizabeth Matthews

  The New York-based society posted revenues of more than $1.327 billion, up 4.1% or a $53 million increase over 2019. Domestic revenue for 2020 was up by 2.5% at $969m, an increase of $24 million from 2019, while international revenue rose by 9% to $358m. ASCAP said the growth of domestic revenue was "driven in part by gains of 28% in audio streaming revenue and 8% in audio/visual, matching shifting music consumption trends during the pandemic." ASCAP did not give additional details about the various sources of revenue streams, in particular the impact of Covid on public performance rights.

Finalising multi-year deals

  Matthews explained that while many of ASCAP's licensees closed their businesses or suffered revenue declines, the society finalised "important deals with major licensees that were positively impacted by consumer behaviour during the pandemic." She added: "We did this to make up for revenue loss in categories that were outside of our control. In addition to the many multi-year deals already in place for 2020, we closed or renewed over 130 deals in categories such as Cable, Broadcast TV, radio and Audio/Visual and Audio Streaming."

  In 2020, ASCAP distributed a total of $1.213bn to its songwriter, composer and publisher members, up 2.5% over the previous year. for distributions. Domestic distributions from ASCAP-licensed and administered performances hit $891m, an increase of $22m, while foreign distributions totaled $322m.

  "ASCAP’s strategy to mitigate the impact of Covid-19 helped to offset uncontrollable declines in other sectors, including a 30% decline in revenues from businesses that were shut down or at reduced capacity during the last three quarters of 2020, such as live concerts and events, music venues, bars, clubs, restaurants, retail stores, hotels and more," said Matthews in the foreword to the society's Annual Report.

Deliver financial security

  “I am so impressed by ASCAP and its extraordinary efforts in 2020,” added ASCAP Chairman of the Board and President Paul Williams. “The team worked extremely hard and under incredibly difficult circumstances to make up for revenues lost due to the pandemic and to deliver the financial security and support that music creators need to survive the crisis of our lifetime. Their work will have an impact for years to come and as an ASCAP member, I am deeply grateful. Together, we have met the demands of this challenging time period and we look to 2021 with greater hope and strength as a community.”