Table of Contents
Music creators and publishers rely heavily on performance rights organizations (PROs) to collect royalties when their music is played publicly. The three major PROs in the United States are ASCAP, BMI, and SESAC. Each organization has its own methods for royalty collection, distribution, and member support. Understanding these differences helps artists and publishers make informed decisions about their affiliations.
Overview of Major PROs
ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music, Inc.), and SESAC (Society of European Stage Authors and Composers) are the primary organizations that collect public performance royalties in the U.S. They monitor radio, TV, live performances, and digital streaming to ensure creators are compensated for their work.
Royalty Collection Methods
ASCAP
ASCAP uses a combination of digital monitoring and reports from licensees to track performances. They rely heavily on data submitted by broadcasters, venues, and digital services. ASCAP also employs a sampling method to estimate performance data when direct monitoring is unavailable.
BMI
BMI employs a mix of digital monitoring, licensee reports, and sampling. They have a large network of affiliates and licensees that submit performance data regularly. BMI is known for its flexible licensing policies, which can influence collection methods.
SESAC
SESAC operates more selectively, with a focus on digital streaming and live performances. They utilize digital fingerprinting technology and direct licensing agreements. SESAC’s smaller size allows for more personalized service and targeted collection strategies.
Distribution of Royalties
All three PROs distribute royalties based on their collected data. They analyze performance reports, digital logs, and sampling data to determine each creator’s share. The distribution process can vary in speed and transparency, with SESAC often praised for its quicker payouts due to its smaller scale.
Comparison and Conclusion
- Data Collection: ASCAP and BMI rely heavily on licensee reports and sampling, while SESAC emphasizes digital fingerprinting and direct licensing.
- Size and Scope: ASCAP and BMI are larger, covering a broader range of performances. SESAC’s smaller size allows for more personalized service.
- Royalty Distribution: All three distribute royalties efficiently, but SESAC is often faster due to its streamlined operations.
- Member Support: SESAC offers more tailored support, whereas ASCAP and BMI provide extensive resources and networks.
Choosing between ASCAP, BMI, and SESAC depends on individual needs, the type of performances, and preferences for service and speed. Understanding their collection methods helps creators maximize their earnings and select the PRO that best aligns with their career goals.