ASCAP’s Historic 2023 Financial Triumphs
The American Society of Composers, Authors and Publishers (ASCAP) operates as the sole not-for-profit Public Performance Rights Organization (PRO) in the United States. In the year 2023, ASCAP disclosed its financial outcomes, exhibiting growth across all principal revenue and distribution metrics. The organization’s revenue reached $1.737 billion for the calendar year, with $1.592 billion designated for royalty distributions to its members, including songwriters, composers, lyricists, and music publishers. This achievement marked the highest reported revenue and royalty distributions among U.S. PROs.
The year 2023 saw a 14.1% increase in ASCAP’s revenues, amounting to an additional $215 million over the previous year. This escalation was largely due to the augmented value and monetization of its members’ music. Specifically, domestic revenue from U.S.-licensed performances exceeded $1.327 billion, reflecting a $149 million or 12.6% increase from 2022. Revenue from various sectors saw significant upticks: audio streaming by 21%, general licensing by 23%, radio by 10%, and audio-visual by 3%.
Internationally, ASCAP’s revenues also experienced growth, with total foreign revenues from performances of its members’ work outside the U.S. reaching $410 million, an increase of $66 million or 19.3% from the previous year. This growth is attributed to the efforts of over 960,000 ASCAP members who contribute to a valuable musical repertoire, managed under ASCAP’s blanket licenses which cover over 19 million copyrights including works from globally recognized artists.
Since initiating a strategic growth plan in 2015, ASCAP has seen its Total Revenue’s Compound Annual Growth Rate (CAGR) increase to 7%, with Total Distributions’ CAGR rising to 8% through 2023. The year also saw ASCAP distributing a record $1.592 billion to its members, an uplift of $204 million or 14.7% from the previous year, which stands as the largest royalty distribution amount reported by any U.S. PRO. This was made possible through revenue growth and maintaining the lowest overall cost allocation overhead rate in the U.S. at 10%.
ASCAP operates under a unique governance model that ensures all expenses, after a reasonable reserve is deducted, are allocated towards royalty distributions to its members, effectively meaning that 90% of every dollar collected is paid out. This model underscores ASCAP’s commitment to providing the highest value exchange to creators and publishers at the lowest possible overhead rate.
For domestic distributions related to U.S.-licensed and administered performances, a total of $1.217 billion was available, marking a $169 million or 16.1% increase based on U.S. performances. Additionally, $53 million was distributed through Songwize, ASCAP’s royalty administration service, reflecting a 16.8% increase over 2022.
Royalty distributions from performances outside the U.S. amounted to $375 million, a $35 million or 10.2% increase from the previous year, demonstrating the strength of ASCAP’s repertoire and efficient overhead management.
ASCAP’s financial structure is unique among its peers; it operates without debt, shareholders, private owners, or private equity investors, ensuring that its members are the sole beneficiaries of its financial success. The organization’s royalty distribution rules and cost allocations are set by a democratically elected Board of Directors, composed of music publishers and creators, following a transparent “follow-the-dollar” principle.
Throughout 2023, ASCAP actively engaged in advocacy and innovation to support its members, addressing challenges and opportunities presented by artificial intelligence in the music industry. The organization welcomed over 66,000 new members, including notable figures and emerging artists, expanding its membership to nearly one million.
The ASCAP Experience event and various advocacy efforts, including meetings with lawmakers and campaigns to regulate AI in music, underscored ASCAP’s commitment to protecting creators’ rights. Recognition of member achievements through awards and events celebrated the diversity and success of its community.
In summary, ASCAP’s 2023 achievements reflect its steadfast dedication to supporting music creators through financial growth, advocacy, and innovation, maintaining its position as a leading not-for-profit organization in the music industry.
