All ASCAP Payments Delayed 3 Weeks Due To Coronavirus Cash Crunch. Is BMI Next?
Many songwriters and music publishers already struggling from the economic impact of the coronavirus were dealt an additional blow yesterday with news that ASCAP was delaying all payments.
ASCAP payments scheduled for April 6th are being delayed until April 28th in a move to ensure that quarterly writer payouts are fully funded. The delay was due to late payments from licensees, according to ASCAP.
In a letter to members, ASCAP said that it had “already been contacted by numerous licensees who are attempting to pay less, pay late or not pay at all.”
The revenue sources most impacted include radio, television and cable, who rely on advertising revenue, as well as general licensing.
“As COVID-19 has continued to escalate and more and more of our licensee businesses have shut down, we have had to carefully review our cash forecasts and plan for more disruption to our revenue collections and member distributions.” – ASCAP
Are BMI, SESAC Next?
Because BMI already holds payments for 6 months before paying them to songwriters, their members will not be immediately affected. But as the COVID-19 crisis continues, it could affect future payments.
SEASAC has pledged that there will no immediate disruption in payments.