Last week the RIAA’s latest tax filing revealed that the music group has lost nearly half of its revenue because the music labels reduced their membership dues.
This downward trend is not limited to the music business – the MPAA isn’t doing any better financially either.
The most recent IRS tax filing of the non-profit movie group covers 2010 and is slightly dated, but it nevertheless shows some noteworthy trends. Like the RIAA, the MPAA’s revenue has been dropping year after year.
In just three years the revenue generated by the anti-piracy outfit reduced from $92.8 million to $49.6 million. The decreased budget is a direct result of the major Hollywood studios cutting back on their MPAA funding. In the same period membership dues dropped from $84.7 million to $41.5 million, more than a 50% decline.
Unlike at the RIAA where there were 40% staff cutbacks, the MPAA managed to keep the number of employees on par. However, they are now working for a lower average salary. In three years the money spent on wages sunk from $29 million to $18.2 million.
Not even former CEO Dan Glickman could avoid a drop in renumeration – his salary fell from $1.65 million to $1.11 million. However, that still made Glickman the best paid MPAA employee, closely followed by President Robert Pisano who resigned in 2011 after earning $1.09 million during his final year in the job.
The MPAA’s lobbying budget remained stable at $4.6 million and despite their dire financial position the group still had enough money available to give some away, such as a $25,000 grant to the Democratic Attorney Generals Association. Yes, that’s the organization of Vice President Joe Biden’s oldest son Beau.
The same Joe Biden who reportedly took down Megaupload.
RIAA membership dues from music labels have been cut in half