News Room







FUND'S MAIN ANNUAL DISTRIBUTION FOR 2016 IS $3,200,000

08/01/2016, V. Robert DiPaola - Fund Administrator,  



(Below is a copy of this year's main annual distribution letter, which contains details related to the distribution and other information about the Fund.)




August 1, 2016


Dear Participating Musician:

Enclosed is a check that represents your portion of the distribution from the Sound Recording Special Payments Fund (ďFundĒ) for the fiscal year ended April 30, 2016. You must cash or deposit this check by October 29, 2016, since the Fundís bank will not honor checks submitted for payment after that date. In addition, enclosed for your reference is a statement of your reported scale wages, if any, for calendar year 2015.

The Fundís total distribution this year is $3,200,000i , which is $1.4 million less than last year. The reduction results from the continued decline in sales of CDs and permanent digital downloads of sound recordings as more and more consumers turn to streaming services, which do not generate contributions to the Fund. Music industry projections indicate that this trend will continue; thus, lower recording company contributions to the Fund, along with lower distributions to musicians, are expected in the future. The parties to the agreement that governs how the Fund is operated (that is, representatives of the American Federation of the Musicians and the sound recording industry) have advised the Fund that they are mindful of the challenges facing the Fund and are working to come up with solutions that would stem the decline in payments to musicians.

As always, I encourage you to visit the Fundís website, www.sound-recording.org, if you have not already done so. It is the best source for getting useful information about the Fund, such as answers to frequently asked questions. There you can update changes to your address and other personal information, sign up for direct deposit (available for U.S. banks only) and print a beneficiary designation form. Using the website also helps reduce the Fundís administrative expenses.


Warmest regards,

V. Robert DiPaola

V. Robert DiPaola
Fund Administrator





i Below is a summary comparison of financial information related to the annual distributions for the fiscal years ended April 30, 2016 and 2015:


2016
2015
Contributions
$ 5,179,000
$ 7,180,000
Compliance audit collections
-
54,000
Interest income and other income
10,000
17,000
Unclaimed distributions
250,000
131,000
Total     
5,439,000
7,382,000
General and administrative expenses
1,789,000
2,103,000
Employer share of payroll taxes
413,000
597,000
Compliance audit expenses
32,000
9,000
Reserves and capital expenditures
5,000
49,000
Total     
2,239,000
2,758,000
Total distribution
$ 3,200,000
$ 4,624,000




Total participants

14,200

14,700