We all know that there is big money in music. The huge fees for concerts, the sale of records and CDs, the lavish lifestyles of famous musicians. What many of us do not realize is where a large amount of that money comes from and you may be surprised.
One of the rights that comes with copyright in a piece of music is called the "performing right." That means only the writers of the song and lyrics have the right to perform the song in public for commercial reasons. Anyone else has to negotiate a license from the writers and for that license they pay a fee. Before modern communications, this right was impossible to enforce. Who knew what songs and music was being played in Deadwood? How could the writers collect those fees they were entitled to? That was simply impossible and as America filled up the problem only grew larger.
John Philip Souza, a very popular composer and performer of the day, was not happy that people were using his music without a license from him. Other composers were also angry. They got together in New York City to come up with a solution.
They formed an association known by its initials. ASCAP was formed to enforce payment of those license fees from any business that used the popular music. They established rates for businesses, concerts and any form of entertainment where music by their composer members was used. Inspectors were hired and sent out across the nation to find those using the music without paying. If they refused to pay, they were sued.
After a few years of "education," the money flowed in. Rates were established for various businesses and collected in one big pot. Those with a license could play any music by any of the ASCAP members with one fee. Concerts in which small numbers of songs were performed submitted forms to ASCAP and the fees went to the individual songwriters.
For restaurants and such, the money went in to one big pot and various formulas were used to divide the money as fairly as possible amongst all the composers. The performers got paid from admission fees at concerts and, in time, from record companies.
Unless they also wrote the song, they did not share in the monies derived from the performing right. It did not take long for famous performers to demand they be included as co-writers on the label even if they had no participation in the writing. The performing right lasted for the life of the composer plus fifty years and could be sold in whole or part. Famous composers in dire straights often sold their rights for peanuts. Investors and money men circled ASCAP members and their estates. And oh how the money rolled in. Now, ASCAP was restricted. Only "good" composers were invited to be members, Jews faced an uphill battle until George Gershwin became popular but blacks, "hillbillies", and other such riffraff had no chance at all.
In the 1940s, with the Depression cutting into the flow of money, problems developed. Radio had become the major user of music.They paid ASCAP a blanket license, a percentage of their revenue. ASCAP raised the rates and the radio stations rebelled.
The broadcasters talked with their lawyers and found that there was no limit on the number of performing rights societies that could be formed. But all the "good" composers were already members of ASCAP so where could the new society, called BMI (Broadcast Music Incorporated), find songwriters? In a remarkable move, they put their headquarters in Nashville and started to solicit blacks and hillbillies as members.
Once they had gathered almost all of those composers, they cut the fees payable by broadcasters to use their music. If a radio station ceased using any ASCAP music, it would pay less to use the new jazz, country, gospel, "race music" (early rock 'n roll), and more. Needless to say, BMI stations started to pop up everywhere in the South and spread northwards.
The war years held this static for a time.
After, ASCAP held steady with pop songs by good performers and songwriters. BMI stations plugged along playing country music which became popular in the South. Race music, the original rock 'n roll, started to become popular in the 1950s. With more powerful stations, the sound also went north and west to the big cities. The migration of blacks to northern cities for good paying jobs was also an influence. Increasing in popularity, the BMI stations were increasingly marketed to white audiences.
Then came Elvis and the world of music exploded. Elvis took race music and gave it a white twist. Many of the early rock stars played white adaptations of earlier race music and the blues before turning to composing their own songs. Radio stations, then television, had to choose a side.
Elvis and other early rockers were banned by ASCAP stations and parents. Ministers held outings to break up rock records for their alleged Attending a live performance of Buddy Holly might get you grounded for a month. Black performers finally gained a white audience.
It is said in music circles that the public does not like what it never hears. he best guitarist might still be playing only in his room; the best song may lie forgotten in a desk drawer. The exposure of new forms of music to a larger audience through BMI led to growing popularity especially amongst the younger generation.
The teen angst came later.
