BMI Lays A Dozen Off In Nashville
June 29, 2012 at 11:40 AM (PT)
ROADCAST MUSIC INC. (BMI) has laid off about a dozen employees in its NASHVILLE office, THE TENNESEEAN reports. The move was attributed to a recent settlement between publishers and the radio industry, which will reduce royalty revenues.
According to a BMI statement, the staffers either were laid-off because their positions were eliminated or they accepted early retirement as part of "a strategic program to restructure its workforce ... This program is part of a multi-faceted global strategic initiative to ensure that BMI continues to offer relevant, cost-effective, cutting-edge services to its songwriters, music publishers and licensees in a rapidly evolving entertainment economy."
Two weeks ago, BMI and the radio industry reached a tentative settlement on royalty payments that BMI collects on behalf of songwriters. The six-year deal, which still needs a federal judge’s approval, has BMI crediting radio stations $70.5 million and restore royalty payments as a percentage of revenues instead of a flat fee.
Bottom line: The radio industry paid BMI $230 million in royalties under the last year of the old contract in 2009. Under the new arrangement, the industry’s royalty fees would total $150 million in 2012.