Understanding music rights and royalties can be confusing. With multiple organizations handling different aspects of the process, it’s essential to know who does what. This guide breaks down the key differences between ASCAP, BMI, SESAC, and SoundExchange. By the end, you’ll have a clearer picture of their roles and how they can help you manage your music rights and royalties effectively.
Understanding Performing Rights Organizations (PROs)
Performing Rights Organizations (PROs) serve as intermediaries between music creators and those who publicly use their music. They ensure that songwriters, composers, and music publishers get paid when their works are performed or broadcast. In simple terms, they collect money from businesses that play your music and pass it on to you as royalties.
Overview of the Four Organizations
ASCAP (American Society of Composers, Authors, and Publishers)
- Overview: Founded in 1914, ASCAP is a nonprofit organization run by its members—songwriters, composers, and publishers. It represents over 900,000 music creators.
- Services:
- Licensing and Royalty Collection: Licenses your music to businesses and collects royalties on your behalf.
- Member Benefits: Offers health and life insurance, discounts on services, and exclusive events.
- Advocacy: Works for music creators’ rights and fair compensation.
- Membership: Open to songwriters, composers, and publishers. Charges a $50 application fee for publishers, waived for new songwriters, with no recurring membership fee.
- Payout Schedule: Distributes royalties quarterly, about six to seven months after the quarter when a song was played.
- Official Website: ASCAP
BMI (Broadcast Music, Inc.)
- Overview: Established in 1939, BMI is a nonprofit that represents over 17 million musical works by more than 1.3 million creators.
- Services:
- Negotiating Licenses: Secures music license agreements with businesses.
- Royalty Distribution: Collects and distributes royalties to writers and publishers.
- Genre Support: Embraces music across all genres, from jazz to hip-hop.
- Membership: Free to join with an open-door policy. Offers free membership for songwriters and composers; publishers pay an application fee ($150 for individuals, $250 for companies).
- Payout Schedule: Distributes royalties quarterly, six to eight months after the quarter when a song was played.
- Official Website: BMI
SESAC (Society of European Stage Authors and Composers)
- Overview: Founded in 1930, SESAC is the only for-profit PRO in the U.S. Known for its exclusive membership and personalized approach, it represents over 1 million songs.
- Services:
- Public Performance Licenses: Provides licenses to businesses.
- Royalties: Distributes royalties using advanced tracking technology.
- Personalized Service: Offers hands-on support to its members.
- Membership: By invitation or approval only. Seeks to keep its roster selective for a more personalized experience. Membership is free.
- Payout Schedule: Pays royalties 90 days after the end of the quarter when the music was played, with an option for monthly royalties for radio performances.
- Official Website: SESAC
SoundExchange
- Overview: Established in 2003, SoundExchange is a nonprofit focusing on digital performance royalties for recording artists and sound recording owners.
- Services:
- Digital Royalties: Collects royalties from digital performances like satellite radio and internet streaming.
- Distribution: Focuses on digital performance royalties and distributes them to recording artists and sound recording copyright owners.
- Membership: Requires registration. Ideal for artists whose music is played on digital platforms.
- Official Website: SoundExchange
Key Differences Between ASCAP, BMI, SESAC, and SoundExchange
Purpose and Scope
- ASCAP and BMI: Large nonprofits covering public performance rights for a wide range of genres and works.
- SESAC: More selective, offering personalized service to a select group of creators.
- SoundExchange: Focuses exclusively on digital performance royalties for sound recordings.
Services Offered
| Service | ASCAP | BMI | SESAC | SoundExchange |
| Licensing | Yes | Yes | Yes | Yes (Digital Only) |
| Royalty Collection | Performance | Performance | Performance | Digital Performance |
| Member Benefits | Extensive | Some | Personalized | Focused on Digital |
| Advocacy Efforts | Yes | Yes | Yes | Yes |
| Membership Fee | One-time Fee | Free | Invitation Only | Free |
| Genres Covered | All Genres | All Genres | Selective | All Genres |
Membership Criteria
- ASCAP: Open to all music creators with a one-time fee.
- BMI: Free to join with lenient criteria.
- SESAC: Membership by invitation or approval.
- SoundExchange: Registration required for digital performance royalties.
How Each Organization Handles Royalties
Royalty Collection and Distribution
- ASCAP and BMI:
- Collect performance royalties from venues, radio stations, TV networks, and more.
- Use tracking systems and data analysis to determine who gets paid. Each pays 88% of collected royalties to members, splitting payments 50/50 between publishers and songwriters.
- SESAC:
- Similar collection methods but with advanced technology for more precise tracking.
- Personalized attention ensures members’ works are accurately monitored. Pays 88% of collected royalties.
- SoundExchange:
- Collects royalties from digital platforms like Pandora, SiriusXM, and webcasters.
- Distributes royalties directly to artists and rights owners without intermediaries.
Choosing the Right PRO for Your Needs
Selecting the right PRO is a crucial step in managing your music career. Here’s how to decide:
Factors to Consider
- Type of Rights Managed: Do you need coverage for public performances, digital performances, or both?
- Membership Requirements: Are you looking for open membership or a more selective organization?
- Services and Benefits: Consider additional perks like insurance, networking, and advocacy.
- Royalty Distribution Methods: How do they track performances and pay out royalties?
Checklist to Help You Decide:
- Do you write or compose music? (Consider ASCAP, BMI, or SESAC)
- Is your music played on digital platforms? (Register with SoundExchange)
- Do you prefer a nonprofit organization? (ASCAP or BMI)
- Are you looking for personalized service? (SESAC)
- Do you want extensive member benefits? (ASCAP)
- Are you starting out and prefer free membership? (BMI)
As Don Passman often emphasizes, understanding how these organizations work is essential for protecting your rights and income. He compares choosing a PRO to choosing a business partner—you need to find the one that aligns with your goals and needs.
Frequently Asked Questions
1. Can a Musician Be a Member of Multiple PROs at the Same Time?
Typically, you can’t be a member of multiple PROs for the same type of rights. However, you can join different organizations for different rights. For example:
- Join ASCAP or BMI for public performance rights as a songwriter.
- Register with SoundExchange for digital performance royalties as a recording artist.
2. Pros and Cons of Each PRO
| PRO | Pros | Cons |
| ASCAP | Extensive benefits, advocacy efforts, run by members. | One-time membership fee. |
| BMI | Free membership, open to all, global reach. | Fewer member benefits compared to ASCAP. |
| SESAC | Personalized service, more hands-on approach. | Exclusive membership by invitation only. |
| SoundExchange | Essential for collecting digital royalties, free registration. | Limited to digital performances, doesn’t cover songwriting royalties. |
Common Challenges Musicians Face with PROs
- Understanding Royalty Distribution: The payout systems can be complex. As Don Passman notes, it’s crucial to keep track of where your money is coming from.
- Navigating Membership: Each PRO has its own processes and requirements.
- Ensuring Compliance: Keeping track of where your music is played can be challenging. Penalties for copyright infringement can range from $750 to $30,000 per violation, with an additional $150,000 if the violation is willful.
- Adapting to Technology: With the rise of digital platforms, staying updated is crucial. For guidance on managing these challenges, artists may explore resources like What Artists Should Know About Songtrust to understand alternative solutions for royalty collection and management.
Don Passman often reminds artists that the music business is a business. Understanding the mechanics of royalties and being proactive about your rights can make a significant difference in your career.
The Future of PROs
As the music industry evolves, so do PROs. Here’s what’s on the horizon in 2025:
- Digitization: The growth of streaming means digital rights are more significant than ever.
- Technology Integration: Advanced tracking systems for more accurate royalty collection.
- Global Reach: PROs form international partnerships to collect royalties worldwide.
- Fair Compensation: Ongoing efforts to ensure artists are paid fairly in the digital age. Recent legal cases, such as a concert venue sued by a PRO in 2024 for songs played without permission, demonstrate the industry’s ongoing legal battles.
Artists seeking to enhance their understanding and maximize their income from music rights might consider a Music Monetization Course to explore ways to effectively gather and manage royalties.
Conclusion
Understanding the differences between ASCAP, BMI, SESAC, and SoundExchange is key to managing your music rights effectively. By evaluating the services offered, membership requirements, and how each organization handles royalties, you can choose the one that best aligns with your career goals.
As Don Passman would say, knowledge is power in the music industry. Take the time to understand your options, and you’ll be better equipped to navigate your career successfully.
Additional Resources
- Official Websites:
- Professional Advice: Consider consulting a music industry lawyer or advisor to navigate PRO memberships.
- Admin Publishing Companies: Services like CD Baby Pro, Songtrust, and TuneCore Publishing can help register your songs and manage royalties.
Note: Always ensure you’re fully informed about each organization’s terms and benefits before making a decision. The right PRO can significantly impact your music career and income.