BMI Changing Business Model To For-Profit

There’s a significant change afoot at US-based performance rights company BMI (Broadcast Music Inc.), reports musicbusinessworldwide.com.

BMI revealed on Wednesday that its not-for-profit business model, under which it has operated since the PRO was founded in 1939, is changing to a for-profit model.

The news was announced by the company in a post published to its website, which includes a note sent by BMI President & CEO Mike O’Neill to the organization’s affiliates.

Within his note, O’Neill writes that the decision to change BMI’s business model comes “after a comprehensive and careful assessment on how best to position our company for the future”.

He argues that the move “will open up new and important opportunities for us to invest in our business”.

Mike O'Neill

Added O’Neill: “Simply put, growth for BMI means growth for our affiliates. And most importantly, our goal is to continue to increase our royalty distributions at an even greater rate than we have before.”

Last month, BMI revealed that it had distributed a record $1.471 billion to its songwriters, composers and publishers in the year ended June 30, 2022, which was up 10%.

For comparison, its close rival ASCAP, which operates a not-for-profit licensing and collection society, reported annual collections of $1.335 billion for the calendar year 2021.

The move to a for-profit model follows the news from August that BMI had scrapped plans for a multi-billion dollar company sale following underwhelming offers.

BMI enlisted Goldman Sachs as an advisor in March to help review strategic opportunities.