Mastering Royalties: ASCAP vs BMI Explained!

Matic Magister

Jan 24, 2024

The music industry, with its complex web of rights and royalties, can be a daunting field to navigate, especially for new artists and industry professionals. A key player in this intricate network is the performance rights organization (PRO). In this article, we’ll delve into the purpose and workings of PROs, with a focus on the three major entities in the United States: ASCAP, BMI, and SESAC. 

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What is the Purpose of ASCAP, BMI, and SESAC?

At their core, performance rights organizations are designed to protect and administer the performance rights of songwriters, composers, and music publishers. These organizations are responsible for collecting performance royalties, which are due when a musical work is publicly performed. This includes play on television, radio, online streaming services, and even live performances.

How Do PROs Work?

PROs operate by granting licenses to businesses and individuals who wish to publicly perform the music of their members. In return for these licenses, they collect fees, which are then distributed as royalties to their members based on the usage of their works. This system not only ensures that artists are fairly compensated for the use of their music but also simplifies the process for those looking to use music legally in their ventures.

Benefits for Artists

Joining a PRO can offer numerous benefits for artists. Firstly, it provides a streamlined avenue for collecting royalties that might otherwise be difficult and time-consuming to track and gather. Additionally, being part of a PRO can offer networking opportunities, access to workshops and educational resources, and even financial benefits like insurance and retirement plans.

Considerations for Artists

While the advantages are significant, artists need to be aware of certain factors. Each PRO has its own set of rules and regulations regarding membership, royalty distribution, and the types of performances they cover. It’s crucial for artists to understand these details to ensure they align with their personal and professional goals.

ASCAP vs BMI vs SESAC: A Comparison

ASCAP (American Society of Composers, Authors, and Publishers)

·         Founded in 1914

·         Operates as a non-profit membership association.

·         Represents over 800,000 songwriters, composers, and music publishers.

·         Members retain the right to license their works directly.

·         Offers workshops and awards to support and recognize its members.

BMI (Broadcast Music, Inc.)

·         Founded in 1939

·         Also a non-profit organization.

·         Represents over 1 million songwriters, composers, and music publishers.

·         Known for its diverse and extensive catalog, particularly strong in the genres of pop, hip-hop, and R&B.

·         Provides numerous educational and networking opportunities for its members.

SESAC (originally the Society of European Stage Authors and Composers)

·         Founded in 1930

·         The smallest and only for-profit PRO in the U.S.

·         Represents over 30,000 writers and publishers.

·         Unique for its policy of affiliating writers and publishers by invitation only.

·         Offers personalized service and innovative technology for tracking performances.

Choosing the Right PRO

The choice between ASCAP, BMI, and SESAC depends on various factors like the artist’s genre, career stage, and specific needs for services and support. While ASCAP and BMI are more accessible to all artists, SESAC’s exclusive model might appeal to those looking for a more tailored approach.

Conclusion

Understanding the role and differences of ASCAP, BMI, and SESAC is crucial for anyone involved in the music industry. These organizations not only facilitate the fair compensation of artists but also provide a range of services and support that can be invaluable in an artist’s career. By making an informed choice about which PRO to join, artists can better manage their rights and focus on what they do best – creating music.