ASCAP vs. BMI vs. SESAC: All About PROs

ASCAP vs. BMI vs. SESAC- All About PROs

If you’re a performing artist you know the value of royalties. Regardless of the size of the check, they show up every quarter like clockwork. But they don’t just appear out of nowhere; those royalty payments are the work of one of three main performing rights organizations (PROs) in the US: ASCAP, BMI, and SESAC.

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

Performing rights organizations like ASCAP, BMI and SESAC license, collect, and distribute ‘public performance’ royalties for registered songwriters and publishers in the United States. It’s important to sign up for one of these organizations so you don’t miss out on any potential income from your music.

Royalties collected by PROs include when music is:

PROs ensure that all public performance channels listed above have a blanket license to play your music. They collect public performance royalties from each licensee, as well as keep track of who hasn’t paid. They’ll then determine the composer, publisher, and songwriter to pay in each instance. PROs put together a list of what music was played where and includes this information with every payment to each artist it represents.

How do royalties work?

There are three main types of licenses in the music industry through which artists, copyright holders, songwriters, etc. get paid. Though there are more than that, the primary licenses you’ll find are as follows below. PROs concern themselves with public performance licenses, but it’s good to familiarize yourself the with the others as well.

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ASCAP vs. BMI vs. SESAC

All major PROs in the US—ASCAP,BMI, and SESAC—offer similar services. It really all boils down to the fact that PROs make sure their members are paid what they’re owed in performance royalties. That’s the most important thing, right?

Choosing the right PRO for you is ultimately a personal choice. There are different benefits that come with each organization, however, so we’ll highlight some of the benefits that come with each.

ASCAP

The American Society of Composers, Authors, and Publishers (ASCAP) is a non-profit organization. What stands out about ASCAP is that it’s run solely by the composers, writers, and music publishers that make up its membership. It’s also the oldest of the major PROs in the United States, founded in 1914. ASCAP represents over 10 million pieces of work from over half a million registered members. Membership costs $50 for both songwriters and publishers.

Perks of being an ASCAP member:

BMI

Broadcast Music, Inc. (BMI) is another non-profit organization, marginally larger than ASCAP making it the biggest in the US. It represents over 12 million works from more than 750,000 members. As opposed to the small universal ASCAP fee, BMI is free for songwriters. Publishers, on the other hand, must pay $150 to enroll as an individual, or $250 to enroll as a company.

Perks of being a BMI member:

SESAC

SESAC is the only for-profit private company among the the big 3 PROs in the US. The business is based in Nashville and provides services for approximately 400,000 musical works from over 30,000 writers.

SESAC pays its members quarterly royalty checks just like BMI and ASCAP, but members also have the option to receive monthly radio royalty payments. The biggest difference between ASCAP, BMI, and SESAC, is that the latter is invitation-only.

Perks of being a SESAC member:

Conclusion: ASCAP, BMI, and SESAC

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