Broadcast Music, Inc.

  • FOUNDED: 1939
  • TYPE OF ORGANIZATION: One of three major performance rights organizations
  • SIGNIFICANCE: Responsible for breaking the monopoly held during the early part of the twentieth century by ASCAP, the first major performance rights organization, which had effectively limited the broadcast possibilities of certain kinds of music

Founded in 1939, the National Association of Broadcasters was created to compete with the American Society of Composers, Authors & Publishers (ASCAP), which then held a virtual monopoly of the business of collecting performance fees for musicians, songwriters, and music publishers. The National Broadcasting Company and Columbia Broadcasting System were major stockholders in BMI by 1940. Because ASCAP had exclusive arrangements with many music interests to collect performance fees owed them from broadcasters and other sources, BMI initially had to make its collection arrangements with the musical interests ASCAP had shunned: blues, country, and, eventually, rock music. ASCAP’s refusal to allow music interests in these areas to become members of its organization had the effect of limiting the broadcast avenues for this music. BMI’s entry into the business thus created broadcast opportunities for these forms of music. Television networks had a major stake in BMI, so they used their programming power to encourage the performance of music licensed by BMI and to discourage giving air time to music licensed to ASCAP.

In the twenty-first century, BMI represents more than 22 million works and owns nearly 1.5 million copywrights. BMI continues hosting many awards, scholarships, and grants for individuals in the music industry, including the BMI Christian music, country, pop, trailblazer, and other awards. In 2023, Reuters reported that New Mountain Capital acquired BMI and its shareholders.

Bibliography

"About." BMI, www.bmi.com/about. Accessed 20 Oct. 2024.

"BMI Award Shows." BMI, www.bmi.com/awards. Accessed 20 Oct. 2024.

"Music Rights Giant BMI to Be Bought by New Mountain-Led Group." Reuters, 22 Nov. 2023, www.reuters.com/markets/deals/music-rights-giant-bmi-be-bought-by-new-mountain-led-group-2023-11-21. Accessed 20 Oct. 2024.