As I sat down to write another column, late as usual, I pondered on my month of rollercoaster disappointments involving the decline of Southern Gospel music. My first thoughts were, we are not getting our fair share of the lucrative music industries pie. Or could it be that we are bigger than the other genres, and politically the big labels are holding us out, and I don't mean the ones your thinking about. I mean Universal, Sony, BMG, Disney, Warner etc. Our entire industry's label sales combined are smaller than what one major label gives away in demos on one project. That will make some folks angry. But, facts are facts. Even the most sought after companies aren't able to move many acts on their roster past 10,000 units a year.
While traveling this month, I sat in on many conversations that didn't involve me. But, I listen and learn. During my visits to New York, Los Angeles and of course meetings here in Nashville, I had a chance to answer some questions the Southern Gospel music writers, labels, publishers and industry leaders have had over these mysterious claims of BMI cutting Southern Gospel writers 60 to 70 percent in their payments for song royalties.
Lets start with the facts, and inform some of our readers of the role BMI, radio, industry, writers, artists etc play in monies folks make from songs they have written. Broadcast Music Incorporated (BMI) has been the home of most Southern Gospel writers and publishers since its inception. Most of the songs you hear on your local radio stations are BMI affiliated songs. The writers are paid a few cents every time that song is played. BMI's job is to monitor and collect those fees on a regular basis from the radio stations, television, Internet or any area the material has been exposed to a listener impression.
Here is the latest round of BMI/Southern Gospel upsets. Writers were notified recently their payments would be significantly dropped. In some cases as much as 70%. This announcement has lead to online campaigns to solicit the President of BMI, a letter writing campaign, writers showing up at their offices demanding answers, online polls and every tactic imaginable to lobby BMI to reinstate its old payment policies. With all the Urban Legends surrounding the mysterious drop in royalties, I decided to listen and educate myself. (Remember this- I have as much to lose as does the other writers-I have written 10 Top 40 songs and a recent #1. But, with that said, I need the facts, not a bunch of wind and accusations.)
I reminded myself of a meeting recently in Washington, DC where a few members of CERTA and I were discussing parental advisories on music and film products. (By the way June is the National Labeling Month for parental advisories and material warnings on video games and music. If your going to let music, TV and video games Nanny your children this summer. Please be advised of the content. Visit http://www.erlam.org for more information.)
Now, on with the show. Sorry, I just like saying that. I miss my old radio days. A very prominent figure (we will call this person "Pat"- Could be male could be female) and I discussed in length the issues surrounding the BMI and Southern Gospel royalties dilemma. I think my mouth remained open for about 2 hours, my eyes began to stare at the ceiling and I began to ponder my next move. I was also sitting there thinking, "I just had a number one song, went through all the junk to promote it, spent my money, label's money and hundreds of hours of man power to be sitting here listening to the actual statistics and numbers to our industries airplay." If I only worked Southern Gospel and depended on the genre solely to provide for my family and employees, we would be hitching a ride out of DC and eating Ramon noodles for Thanksgiving. But, God has blessed me in other areas. So, during flight lay overs, script rewrites and calming of the divas, I made phone calls and visits to find the answers to life in Southern Gospel Land's latest urban Legend "Gospel is being penalized by BMI and rock acts are spending our money."
In the late 80's, early 90's, Billboard Magazine and other media outlets took the guessing out of record sales. All products were bar coded and scanned at retail. What the music industry discovered was Urban and Country music were the biggest sellers. While pop had more marketing muscle, it was the cosmetic successor. That's exactly what has happened at BMI, data is now being used to track actual airplay and spins. And guess what? Southern Gospel has been dipping into other genres pots. For years BMI, in their attempts to lure Gospel writers and build a Christian base, has over compensated Southern Gospel writers, by giving them a percentage of the quarterly take. Those days are over, each genre is paid by its collected royalties, the days of the big pot being split amongst the formats is over. In other words Southern Gospel is not being cut 70%, they are now being paid exactly what they deserve and have earned. BMI has not cast a sad day upon Southern Gospel, or a lost war, its just the facts. With the music industry in a battle for its life, accuracy and accountability are a must for even the largest corporations.
An even greater problem for Southern Gospel which I also learned from BMI is that radio stations can't afford to pay their fees. If BMI cannot collect all of the royalties, then there is no way to disburse the monies to us. So, if Southern Gospel fans are listening to Country and Pop radio, the advertisers aren't going to support Southern Gospel stations. This leaves the owners with poor revenues. If you're a station owner and it's a choice between BMI licenses fees or the light bill, you're probably going to pay the light bill to keep the station from going dark.
So, let's sum it up.
Fact: BMI is not cutting Southern Gospel writers and publishers out of 70% of there hard earned money, they are only paying them what they have honestly accrued in airplay money.
Fact: BMI is a dear friend and fan of Southern Gospel music, they welcome their writers and encourage their success. But, they have to answer to God and a board of directors. They cannot give us monies we have not earned or collected.
Due to my personal involvement with this issue I will leave myself open for comments or questions.
Rick Hendrix
http://www.rickhendrix.com
Author: RickBHendrix
| Author's Website: http://www.rickhendrix.com
Written: 05/31/2005
| 
Category: Monthly ArticlesLeave No Stone Unturned
Comments: 50
RSS Feed
| (What's an RSS feed?)
|
Ads Sponsored by Southern Spin
WOW- Surely SG is not that bad off. I would hope not.
i too have been concerned about bmi. i have written music and songs for years. i made the most money from musical backgrounds on commercials with bmi. songs are another ballgame. i am sure something can be done to help fix this problem.sounds as if they need more radio and fans.
I am starting to see why my sister and her family go so discouraged. I wonder where all the money is going. I purhcased a CD this morning for 15.99. My sister told me the price of a CD is about a dollar. Makes you wonder.
Sue, I'm afraid your sister gave you some erroneous information. While your sister may be able to buy a blank CD for $1.00, a CD filled with music costs far more than $1.00. Recording studios are not cheap, musicians are not cheap, photo shoots are not cheap, graphic designs for covers are not cheap, and I could go on. While duplication may be cheaper than the initial recording, you have to sell a lot of those $15.99 CDs just to get the bill of the recording paid. If your sister can figure out how to get all of the above done for $1.00 per CD, I want her to do our next recording.
HOGWASH-its soundslike a bunch of executive decisions have been made and now the excuses are being handed down to the little guys. My group released a song 2 years ago. We got a check from BMI for 6.00. I looked at it and decided to keep my day job.
LOL-Deon- I guess the next Gaither album will be at our Downtown Louisville Dollar Tree- 1.00. Where did that come from. Whats your group name Deon? Or are you a solist?
OK- I would like a time and location for your sister to take me Cd shopping. Our church just spent 400.00 on acompliment tapes. I sure could use the dollar albums.
Rev. Smart,
Come on Dale, you're forcing me to make a shameless plug. The Sunday Edition - http://www.sundayedition.net
This is a shameless plug too...lol but I just done a new project and I wish I could have gotten my Cds for a dollar. After the pictures and duplicationa and recording and traveling to the studio, etc. I was out probably 2000.00 bucks. And that was for 100 Cds and 100 cassettes and I used a studio about 30 miles from my home. SO if my calculations are right I should sell my CD/Cass (at the same price) for 10.00 just to make my money back..and if I place them in a bible book store they have to make a commission, around here that is 2 bucks. SO now the CD is up to 12.00 now if I want radio promotion which can cost 1200.00 for 3 mth. Now the cd is up to $16.00 ( that is with only 3 months of radio promotion. Now if I want to do publicity you looking at even more money per year now the Cd is up to 19.50. And that is just the tip of the iceburg...oh and being is that this articles is about BMI I didn't add they royalities I had to pay for the songwriters...
Congratulations Sunday Edition-I read in the news recently, you had your first hit song. I had not a clue that was the same Deon.
Jamie,
I dont understand. I asked my sister again.She said CD plants sometimes charge as little as .50 for a CD. Can anyone explain? I hope prices down South arent that different
Sue, your sister is correct. If you buy 5,000 or 10,000 blank CDs you can probably get them for $1.00 or less, but you have to buy in bulk to get those prices. Now keep in mind that those are just blank CDs no cases or shrink wrap, no music, no voices, nothing except some printing on the CD advertizing the CD company that you are buying the CDs from, and that is very hard to cover when you want to put a label on it. It is really hard to sell a blank CD for $15.99. Most SGM CDs don't sell near 5 or 10 thousand copies, so those prices are not applicable to us. As others have very ably described, there is far more cost to a CD than just buying blank CDs.
What about all of the writers like Dee Gaskins, Robert Deel that get no money from the singers.God is watching them too. I guess the singers are fighting for their share, and keeping the writers. I saw a list at one time of the groups that paid their royalties and I could send my songs to- it was less than 5. None of the major artist were on that list. I would rather keep my songs.If BMI and the artist are going to keep the money.I can use them in my local church. But, someone needs to address the artist accountability.
I am not sure but at one time, a HOT list was being created to hold these artist accountable.If we are going to fight BMI lets fight the artist. I dont expect anyone to answer any of these questions.They never do.
Here is the bottom line, artist need all of the money they can get. I know the main focus is to minister, but unfortunately in our world it takes a LOT of money to do that. For example I have a song out "I worship You" with Rick Hendrix. He is wonderful but in reality you have to pay for what you get. It isn't free. I agree with Jamie.....15.00 per CD is cheap considering everything that you have to have to keep your ministry going. Also, you have other expenses besides what she listed. (Gas, etc) For example I just had to buy a set of in-ear monitors, I have to have other stuff on top of that. It adds up, but God provides.
Justin AMEN- It does cost a lot. My family has spent a lot of money. If they knew the price of traveling,clothes,food,product loss of time at work, they wouldnt mind 15.00 for a CD. I like your song. I heard it on our station in Atoka,OK.Did you write it?
Its a sad circle.Artist do not pay labels for product, they dont pay writers for songs,no one spends money with radio, radio cant pay BMI,ASCAP,SESAC. I love this biz.But, we have no morals being upheld. People only react when it benefits them.
Julie, the major artists are all on contracts with labels. It is the label's responsibility to pay those royalties. Now smaller artists are not signed on labels and all those independent recordings need to be paid by the artists themsleves.
Lets try and do something nive for people without paybacks.
Dale, if I knew how to be nive, I would sure do it... LOL
Deon, That nive-stands for fat man cant type. I have fingers overlap syndrom LOL
Dale,
Great article, Rick. Great comments everyone. I am now officially confused about one thing, however: I'm currently an ASCAP-affiliated writer and publisher, but I had considered switching my writer-member affiliation to BMI if it would be beneficial. But as of now, I'm not sure if it matters. ASCAP's royalties are based on mechanical royalties, i.e. actual records sold.
Our slice of the pie is just too small for anybody to really make a living at this music with the exception of Bill Gaither. The very Christian message that sets our music apart is the "turn off" to most listeners. Let's face it, buddy, as Christian artists we're "Preachin' to the choir."
Chris, I feel the entire gospel world is sinking. FAST- I am sure SESAC is not the way to go. A member of my church wrote several released songs under SESAC, they had to call and get their payments. Some qrts were totally missed.
There are plenty of Christians out there to help the Christian music industry to thrive. We have a ready-made audience every Sunday morninng. There are more people attending church every week than attend movies or go to bars -- or attend country or rock concerts. Yet, at least according to the posts here, we're supposed to be trying to win the lost. The lost are not going to buy our records. It just defies all logic in marketing. There are plenty of Christians who might buy our stuff if we directed our songs to them. Perhaps that is why praise and worship is so popular. Maybe if we targeted our efforts to the right audience -- the church, not the lost or BMI -- maybe we would see some improvement.
Good point, Keith. I agree that preaching to the choir is the only way to go as far as finding a niche audience. I think that the only way to wake Christians up so that they realize that they're more out there than Praise and Worship, CCM, and urban Gospel is through agressive concert promotions. We need promoters who can stage an "event" that the local church people will want to go out and see. We can't just confine our big events to the NQC and to Gaither Homecoming concerts. Maybe some good, old fashioned "fests"
Why would you ALL be concerned.Its Gods music. The minstry is free.
Rick, thank you for not only researching all of this, but for also caring enough about us as writers to inform us. I am always encouraged by you and The Rick Hendrix Company and I am thankful to be part of what you guys are doing.
Renee,
Renee,
SORRY YOU GUYS. My computer flubbed up and I thought it didnt post, so I typed it twice. LOL
Ouch!!! Suddenly I feel like a money changer in the temple!
Dear Sue and others:I will give you a breakdown of what a cd cost to complete.$2500 for the musicians,$5000-to $6000 for vocals,studio time, and producer pay then your product is a dollar!!Oh yeah i forgot about graphic design.I'm pretty sure my calculations are right when i say you have $15 in each cd for the first 1000 sold then your ministry can start getting some support financially.Besides what are you griping about these groups are MINISTRIES for our lord and saviour.I'm sure you have no problem going to Applebees and spending $30 for $3 worth of food.So why not support a good cause--CC
I was sitting around yesterday and this article came to mind...See what ya think about this...
Jamie, mechanical royalties are not handled by BMI. You would want to contact the publisher or the Harry Fox Agency about paying the mechanical licenses for your recordings. BMI and ASCAP handle performance rights which are paid by radio stations, concert halls, etc., for the public performance of songs in their catalogs.
We all could use a good dose of copyright education. And a good place to start would be the United States Copyright office website located at http://www.copyright.gov/.
I didn't know that! When I called BMI they told me that the indeed do mechanical licenses..maybe who I spoke with was new or something? But thanks for letting me know that. I do need more education on this topic.
Interesting topic(s). From my vantage point, SG music is "dying" because artists, labels, studios, etc. are operating outside of God's will. Think about it...We have artists that can't sing, know little, if any, about music, calling themselves "artists". Is it truly God's will for them to be in this particular area of ministry?
Rick-
Speaking of BMI- This should say how screwed up our charting system is. BMI's most played number one song of the year with more spins than any song last year in Southern Gospel was a song that didnt even make top 5
Julie Said: "I would rather keep my songs.If BMI and the artist are going to keep the money.I can use them in my local church."
Way to go Amy. As a songwriter I can't agree with you more. The money is nice and needful, but I wouldn't take a red cent for what God has done through my song.
I agree with Amy and Justin to an extent. But often, calling this a "ministry" causes people to think that we do not have to be responsible with what we do. Because we call it a ministry, the songwriter does not produce the best song possible. Because we call it a ministry, the singer does not develop his voice. Because we call it a ministry, the musician does not master his instrument. Because we call it a ministry, the record company does not follow ethical business practices when dealing with artists and songwriters. Being in ministry does not mean that less is required of us, it means more is required. If we do less, it is no wonder that BMI's survey methods would barely recognize SG out there. We reap what we sow. I'm glad that the songwriters that have responded are being blessed when the artists sing their songs. But it does not absolve everyone from doing this thing in a responsible and ethical manner.
Amy-WAY to GO- I hear this hogwash all the time from artist and writers. But, from you ,I know its true. What a great thing to say. I think the writers have always gotten the bad end of the deal.
Danny Jones is still eluding to a cover up at BMI.has something else happened since Hendrix article?
Dale,
So, is sogospelnews
Page 1 of 1 Comment Pages
