Broadcast Music, Inc.

The American Society of Composers, Authors and Publishers (ASCAP) is a sort of communistic holding corporation which collects royalties for the classicists & tinkers of Tin Pan Alley and divides the proceeds among them according to their deserts and needs. Ten years ago the National Association of Broadcasters had a chance to buy ASCAP, lock, stock & Alley, for $20,000,000. NAB thought the price too stiff. But since then radio has paid ASCAP some $30,000,000 in license fees (a flat 5% of net receipts on all programs) and sustaining fees, arbitrarily set and ranging from $100 to $15,000 whether the stations use ASCAP music or not.

The radio industry's present five-year contract with ASCAP expires in December 1940, but for the last three years broadcasters have been girding for a great fight to break ASCAP's hold on U, S. music. Last week in Chicago, NAB got in a showy bit of brandishing, by voting to organize something to be called Broadcast Music, Inc. Subject to SEC requirements, stock will be sold to broadcasters up to one-half their 1937 payments to ASCAP. In 1937 ASCAP collected $3,878,000 from radio; last year, $3,845,000. Announced purpose of Broadcast Music, Inc.: to "uncover a wealth of new talent in the U. S. . . . and bring to the American public an abundance of enjoyable new music." It is more important as a threat: to make ASCAP shave its fees in radio's 1941 contract. If fees are revised, Broadcast Music, Inc., will be dissolved. If not, NAB members expect to hand ASCAP a shellacking by 1) refusing to plug any ASCAP songs, including those from movies, producer of much of today's hit music; 2) signing up as many new tunesters and renegade ASCAP-ers as possible; 3) producing its own future Hold Tights, Three Little Fishies, Well All Right.

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