Re: Licensing Fees

[Jibguy@aol.com]

In a message dated 98-07-14 19:00:19 EDT, billo@erols.com writes:

>
>Tossing this out there  -  Any numbers $$$ as to the annual licensing
>cost(s) to stations you've worked at?  Curious as to the ballpark.  What is
>the basis of the rate set?  Is it market size? ADI?
>
>

For ASCAP & BMI, it's approx 1.65% of the station's annual gross income; NOT
profit but gross income.   There are a few deductions for air talent, etc,
which might bring it down to 1.5%.    Actually this is the best way to do the
fees, since the theory is, the station should pay a piece of their profits
which are most likely made on the music.    BMI has about 55% of all the music
played on radio, and ASCAP has about 44%. 

Trailing way behind at 1% is SESAC.  They bill differently.  A two-factor
system combining your 60-second spot rate with market size.   Needless to say
WJIB pays more to SESAC (SEA-SICK?) than to ASCAP or BMI.   A good deal (for
SESAC).   SESAC's system may be in the future deemed unethical.  SESAC for
many years had nothing to speak of, and most stations were safe not to get
SESAC license.   Now, SESAC has bought all rights for Bob Dylan & Neil
Diamond-written music (including such surprises as "Blowin In The Wind" by
PEter, Paul & Mary.    So, if there's are any stations out there still playing
such, they must get SESAC license.    Another tricky one is "I'm A Believer"
by the Monkees.  (It was written by Neil Diamond).   SESAC is stronger in
Spanish and Gospel songs.   "Butterfly Kisses" is SESAC.   Other famous
quality songs from SESAC are :   They're Comin To Take Me Away Ha Ha.
(Napolean XIV) and Convoy (CW McCall).
Enough for now,.
- ----jibguy

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