October 30, 2014 - 12:33pm UTC
By BEN SISARIO OCT. 29, 2014 NY Times
Irving Azoff Launches 'Global Music Rights' to take on ASCAP and BMI
Global Music Rights has lured clients with the promise that it can wring royalties that are as much as 30 percent higher from radio stations and online outlets than they can get through ASCAP or BMI, according to three people with knowledge of the negotiations who spoke on the condition of anonymity. 
The management of performing rights how royalties are paid when songs are played on the radio, streamed online or performed in public has been a steady part of the music business for a century. But lately the field has been primed for disruption by advances in technology and a series of lawsuits over how songs are licensed to online services like Pandora.
Ascap and BMI, which represent more than 95 percent of the songs available in the United States, are governed by decades-old regulatory agreements with the Justice Department that restrict how they negotiate with outlets that use music. Recently some big music publishers have complained that these rules lead to low royalty rates, and threatened to leave ASCAP and BMI if regulatory changes were not made.
On Monday, the Madison Square Garden Company which has committed $175 million in backing to Azoff MSG Entertainment said it would consider splitting itself into two companies, one for its sports properties and the other for entertainment. MSG declined to comment about the future of Mr. Azoffs venture. But if MSG is split, Azoff MSG Entertainment is expected to remain part of the entertainment unit.
The hunt for performing royalties has become a priority for musicians as sales of CDs and downloads decline. The National Music Publishers Association said in June that while the publishing business in the United States generates $2.2 billion a year in revenue, another $2.3 billion is lost because of outdated copyright law and government regulations.