ASCAP, SESAC, or BMI: Which Performance Rights Organization is Right for You, and Why?
Photo by Hanny Naibaho on Unsplash
As an artist, there are a lot of business hurdles that must be cleared before you can start making money on your art. One such hurdle is choosing which Performing Rights Organization (PRO) to register with: American Society of Composers, Authors, and Publishers (ASCAP), Society of European Stage Authors and Composers (SESAC), or Broadcast Music, Inc. (BMI). There are other PROs that you can choose from, but this article is going to focus on ASCAP, SESAC, and BMI because they are the leading PROs. After combing through countless resources on Body Mass Index (BMI) and obesity in America, I decided I was no closer to figuring out which PRO was the right choice. This might be how some of you artists have felt when trying to research this topic; hopefully, this blog can clear up the confusion and help you choose the PRO that is right for you.
What does a PRO do?
The job of the PRO is to help artists collect royalty payments for their works that are being publicly performed. In law, “publicly performed” is not limited to performing your work live for guests, but can mean anything from being played over the radio, TV, or used in a bar, shop, or restaurant. The PRO ensures that places playing the work are paying for the work through a blanket license. The PRO then collects all of the money from these performances and distributes royalty payments to their registered artists. Also, if you play a live show, you should be able to submit a cue sheet or a setlist to your PRO. This lets them know which songs are being publicly performed and improves the royalty collection process.
Interested in reading about other entertainment industry topics? Check out the rest of our blog!
What does a PRO not do?
A PRO is not going to collect money for you if it is derived from mechanical royalties, sync licensing fees, or digital performance royalties. While I will not be going in-depth on these types of royalties in this blog, I will at least include some companies that help manage these types of payouts. SoundExchange is free to sign up and collects royalties for digital performance royalties (SiriusXM, Pandora, etc.). Generally, a publisher collects mechanical royalties for their artists. However, independent artists seeking to collect mechanical royalties should check out companies like Exploration, Songtrust, or other royalty collection agencies. When it comes to sync licensing placements, check out companies such as Music Bed, Triple Scoop Music, or Audiosocket.
What are some of the differences between the big three?
While the big three PROs offer essentially the same services, there are some differences to consider. You can only be affiliated with one PRO, so let’s break these down a bit:
BMI
• Largest PRO representing roughly 17 million musical works and more than 1 million different artists.
• Free to join for songwriters.
• $150 to register a publishing company owned by an individual.
• $250 to register a publishing company that is a partnership, corporation, or limited liability company.
• Minimum one song written and available to the public to join.
• Quarterly payments of royalties.
• Term of contract usually 2 years for writers and 5 years for publishers.
• Notable artists: Kendrick Lamar, Taylor Swift, Lady Gaga, Carrie Underwood.
ASCAP
• Second largest PRO representing roughly 11.5 million musical works and more than 790,000 different artists.
• $50 to register as a songwriter.
• $50 to register as a publisher.
• Minimum one song written and available to the public to join.
• Quarterly payments of royalties.
• Term of contract usually 1 year with automatic renewal.
• Notable artists: Beyonce, Dua Lipa, Justin Bieber, Phoebe Bridgers, DaBaby, and Billie Eilish.
SESAC
• Notably smaller, SESAC represents roughly 1 million musical works and more than 30,000 different artists.
• Free to join, but requires an invitation from SESAC. While SESAC does not accept unsolicited submissions, it asks that artists have a representative lawyer, manager, or agent contact them on the artist’s behalf.
• Quarterly payments of royalties with the option to be paid monthly for certain performances.
• Only “for-profit” company of the three which allows them to put more money into the hands of the artists.
• Term of contract usually three years for both writers and publishers.
• Notable artists: Mariah Carey, Bob Dylan, Adele, RUSH, and Mumford & Sons.
Which one should you join?
The answer to this question varies from person to person because what is a good fit for you might not be a good fit for someone else. Each PRO has benefits and discounts for their members that they have brokered with affiliated companies and can be viewed by following these links: BMI benefits and ASCAP benefits. SESAC does not have a dedicated “benefits” page, but as a boutique agency, they offer a personal experience as opposed to a transactional one (so they claim). If you are ballin’ on a budget, then you may want to consider BMI as they are free to sign up as opposed to the fee that ASCAP charges. As there are not many massive differences between these three companies, it may be best to affiliate based upon personal testimony from your artist friends or other connections within the entertainment community who are affiliated with a PRO. Finally, if you are still unsure about which PRO is right for you, try giving each one a call and see what they have to say for themselves!
Contact us today if you would like to discuss this topic further!
Be sure to check out our interesting blogs, including our series on intellectual property basics.
*The material and information in this blog is for general informational purposes only. In no way is this information to be construed as legal advice for a particular situation.*