Let’s instead dive into the different types of, Obviously, there are many different ways to distribute a composition; streaming, radio, live shows, TV and movies, and physical copies are just a few. A lot of indie artists are confused about the difference between ASCAP, BMI, SESAC and SoundExchange. As I said earlier, a PROs role is to track, collect, and pay one specific kind of royalty to the owner(s) of a copyright: performance royalties, which are a type of composition royalty. A phone call with a representative can give you more info, or you can look. “In My Dreams, A Perfect Chair” by Gawain... “Don’t Mind The Weather” by Sunflower Thieves: The... “Brand New” by Sea Glass, Misty Boyce and... “Lady” by Danny Addison: Lush, Lovely Indie Folk. That's where a PRO comes in. I know several independent artist in my area alone who receive quarterly checks from ASCAP/BMI through the licensing of their music to film, tv, and video games. Why You Should Think Twice Before Joining ASCAP, BMI, or SESAC. Read more about ASCAP and our members' remarkable year in our 2020 Annual Report. Unfortunately, unless you are signed to a publishing deal or have a publishing administrator like Songtrust (I wrote about them here), your PRO will withhold the publisher’s share of royalties. These two nonprofits started as competitors and, in many ways, are still competing today. are songwriting royalties, earned by the somewhat abstract notion of the composition. The best thing to do is talk to fellow musicians who are members of either ASCAP or BMI and see what their experiences are. are generated anytime a song is performed live, broadcasted, or streamed. ASCAP or BMI for independent artists, which one is the best performing rights organization for me? Payouts are split evenly between publishers and writers (that unfortunate. Copyright Act. ASCAP is known for working with artists and composers from many genres, including famous names like Stevie Wonder and Leonard Bernstein. No, they're not $100,000 checks, but some have started off at a few thousand, and now, 5 years later they are still recieving a couple hundred dollars every few months. BMI has a million members and about 15 million songs, while ASCAP has about 735,000 members and 11.5 million songs. Though there are others that are gaining ground, such as the Society of European Stage Authors and Composers (SESAC), ASCAP and BMI continue to be the reigning champions. mentioned earlier, which writers are unable to collect on their own). What a PRO does not do is collect money for songs streamed on Spotify or other streaming services from online music distribution. The differences are chiefly in the organization model and the company culture. Between the 2 I haven’t noticed much of a difference in pay. It never gets any more fun to talk about how royalties work, so let’s just get it over with. ASCAP and BMI are basically the same. We dig deeper into the perks and experiences below. A PRO represents catalogs of music, from hundreds of thousands of artists that businesses or other people can pay to use, whether it’s played over the sound system in a cafe, retail shop or performed publicly on TV, radio, or stage. Today, ASCAP and BMI have a lot in common. ASCAP is the oldest PRO in the US. Still, others are swayed by the history of BMI vs. ASCAP (payola, race records, and more). They collect the songwriter’s share of royalties for performances of songs on broadcast mediums like radio and television, and public performances such as songs played in clubs, department stores, and music venues. If you write a song or create a recording, you own its copyright, which essentially gives you the sole permission to use, record, perform, distribute, and profit from it. He has also mixed, mastered, & recorded for countless independent artists. BMI is free, while ASCAP charges a one-time fee of $50. These are categorized as composition royalties and recording royalties, and are paid to the rights-owner of each copyright. Otherwise, things can get messy.). Obviously, there are many different ways to distribute a composition; streaming, radio, live shows, TV and movies, and physical copies are just a few. Most independent artists and songwriters in the US are likely to choose BMI, simply because it’s free to register. If you own a rink that has 15,000 square feet of skating area and you charge customers $5.00 to skate, you own a class 6B establishment and you need to pay BMI $205 every year. Let’s break it down, starting with royalties. BMI and ASCAP are performance rights organizations (PROs) that serve to protect the interests of songwriters. For the rest of this article, we’re going to be ignoring recording royalties, because PROs have nothing to do with them. Royalties are usually sent for performances that took place about two quarters ago. Artists that don't license out their music and who aren't relying on BMI ASCAP and SESAC to ensure their copyrighted music ins't be used unpaid for don't survive. I do remember being shorted 3 cents (compared to … If your co-writer belongs to a different PRO, you will also need to register your work with ASCAP … ASCAP takes close to seven months after the quarter in which the song was played to distribute funds. This eventually included radio, television broadcasts, as well as live performances. BMI (Broadcast Music, Inc.), ASCAP (American Society of Composers, Authors, and Publishers), and SESAC are the “Idlewild” by Mandy Brooks: A Heartfelt Reflection on... “Cosmica” by Stevie Zita: A Space-Age Love Song. BMI is the largest PRO in the US. One last wrinkle: performance royalties are split in half, with one half being designated as the writer’s share, and the other half being designated as the publisher’s share. The money works out the same between BMI and ASCAP, just the percentages they use are different. Rachel Efron’s “I Changed My Mind, I Want... “She” by Mirabai Ceiba: A Rediscovery of Nature. BMI’s consent decree with the DOJ was entered into in the 1940s, and not the 1960s, PROs represent songwriters and not artists, streaming platforms were licensed long before 2011, the … For example, they let you see your cue sheets (which tell you who played your songs, so you know what to expect when it comes time for your payout). Others take a cue from the artists in their genre. They contribute far more to our income than record sales or live shows. ASCAP (American Society of Composers, Authors and Publishers) and BMI (Broadcast Music, Inc.) often called the “Coke and Pepsi” of performing rights organizations, will both tell you it is irrational not to join one of their organizations. Here are some key highlights of their model, and the added benefits of signing with BMI: All in all, BMI is generally considered to be bigger and a little more extravagant than other PROs. And then you have SESAC. Both represent a lot of big names so you’re in good company no matter which one you choose. To attract new talent, BMI offered to compensate artists using a fixed performance fee, instead of using a tiered system like ASCAP. He loves indie music, songwriting, Pittsburgh sports, and Special K cereal, and hopes to combine the four someday. NOTE: “BMI became the first performing rights organization in the United States to represent songwriters of blues, jazz, rhythm and blues, gospel (black genres, performers, and writers that ASCAP did not want to represent), country, folk, Latin, and—ultimately—rock and roll. I do remember being shorted 3 cents (compared to … Pretty much all public venues that broadcast music or host performances – from restaurants, to stadiums, to amusement parks, to clubs, to theaters, to hospitals, and everything in between – pay for a blanket license from each PRO, which gives them the right to use each PRO’s entire catalog of songs for a single fee. So, all composition royalties are either mechanical royalties or performance royalties (or both, in the unique case of streaming). A contemporary painter must ignore the criticism or disdain that comes from someone who's hoping for a classical still. As a songwriter myself, I can say that few things feel lamer than depositing a check for two dollars and six cents. Not only that, but it can feel daunting and pointless to tap into revenue streams that only pay in small amounts. If your co-writer belongs to a different PRO, you will also need to register your work with ASCAP … Payments from the two are pretty similar. Performing rights organizations (PROs) exist to help musicians manage the licensing and rights to their work, so they get the royalties they are entitled to. The Differences Between ASCAP & BMI Today, BMI represents more artists and songs than ASCAP, though ASCAP numbers remain extremely impressive. Well record companies, tracking companies like BMI and ASCAP, all got mad and made it worse for artists, musicians, and songwriters. The truth is that the math is mysterious and both companies change their formulas faster than most can figure out. They’re tracked, collected, and paid out by Mechanical Rights Organizations (MROs) like the Harry Fox Agency, and they’re an important source of revenue for artists, but we’ll ignore them in this article because PROs have nothing to do with them. That should be fine, so long as the artists play only original songs, but ASCAP and BMI usually tell venues that they need to pay anyway, just in case someone plays a single covered riff. These are owed to the copyright-owner (and any co-owners), which is usually the songwriter, co-writers, and/or publisher. I’m so proud of us. ASCAP (American Society of Composers, Authors, and Publishers) and BMI (Broadcast Music, Inc.) are both available for registration to all songwriters. Because it would be hard for one person or company to keep track of and pay royalties for every instance a composition is used, the industry’s solution is to distinguish between two different types of composition royalties. While ASCAP, which was formed in 1914, has been around longer than BMI (founded in 1939), the latter has more members. • For most songwriters, the differences are negligible, unless you are offered a publishing deal that is somehow linked to one of these groups. No Spam. The artists proved that the defendants had publicly performed the works based on the findings of ASCAP’s independent investigator. ASCAP members: 715,000 BMI members: 900,000 If you choose to license your creation to somebody for them to use, then you, as the rights-owner, are owed a portion of the money it makes in the form of payments called royalties. The truth is that, for all songwriters and artists, revenue comes in from a bunch of different places, and it can be hard to keep track of it all. Pretty much all public venues that broadcast music or host performances – from restaurants, to stadiums, to amusement parks, to clubs, to theaters, to hospitals, and everything in between – pay for a. from each PRO, which gives them the right to use each PRO’s entire catalog of songs for a single fee. First: Why you need to register your music. ascap vs bmi | what no one will tell you about ascap royalties & bmi music royalties 12m ASCAP or BMI for independent artists, which one is the best performing rights organization for me? Its catalog includes more than 15 million songs from more than one million artists across many genres. Now, every song that’s on a streaming service, on the radio, or in some physical form like CDs and vinyl – every song that’s been recorded into some listenable form – is earning two types of royalties, because it’s representing two different copyrights. Songwriter only or publisher, too? BMI: Broadcast Music, Inc. Like ASCAP, BMI is a nonprofit business entity that was founded in New York City in 1939. ASCAP, BMI, SESAC cover the public performance of musical compositions, while SoundExchange covers the public performance of sound recordings by noninteractive digital music services. They have some super cool perks and benefits that appeal to those interested in the mainstream side of the business. If you want to make sure you’re getting all the money you deserve from your music, joining a PRO is key. It collects license fees from businesses that want to use its artists’ recordings and distributes them as royalties. Feel free to comment with any questions (or corrections). BMI has a million members and about 15 million songs, while ASCAP has about 735,000 members and 11.5 million songs. In the U.K. it’s PRS. ASCAP is the oldest PRO in America, founded in 1914 in New York City and is the second largest in terms of artists enrolled. Now, every song that’s on a streaming service, on the radio, or in some physical form like CDs and vinyl – every song that’s been recorded into some listenable form – is earning two types of royalties, because it’s representing two different copyrights. In the U.K. it’s PRS. Most independent artists and songwriters in the US are likely to choose BMI, simply because it’s free to register. Home » Columns » Careers & Marketing » Here. As far as famous artists go, you’re in good company no matter which you choose. ASCAP registers the right to perform your music in public. You can think of it as a specific version of a song, defined by its unique waveform. BMI takes about six months. ASCAP Surmounts Pandemic Challenges to Collect $1.327 Billion in Revenue in 2020 We overcame the unprecedented headwinds of 2020 to continue our record-breaking revenue streak, collecting more than $1.327 billion in revenues, a $53 million increase over 2019. BMI is free to join, represents more artists, and has a bigger content catalog. BMI also looked for artists that ASCAP overlooked and purchased catalogs from independent music publishers and artists whose ASCAP contracts were nearing expiration dates. The differences are chiefly in the organization model and the company culture. ASCAP was one of the first PROs. To join ASCAP, artists have to pay a one-time membership fee with no annual dues. ASCAP is affiliated with a bunch of other companies and services that offer discounts on everything from instruments, to insurance, to therapy, to hotel stays, etc. They both split royalties 50/50 between the songwriter and publishers, allow you to register your performances online, and pay 88 percent of the money to the artists. These organizations represent songwriters, not artists. Quarterly payments go out to writers each year. @2021 Two Story Media. Currently, BMI works with television, radio stations, podcasts, ringtones, bars, nightclubs, symphonies, digital jukeboxes, and live concerts. If community is something that’s valuable to you, and you’re willing to shell out $50, then go with ASCAP. The Role of Musicians The differences are chiefly in the organization model and the company culture. No, they're not $100,000 checks, but some have started off at a few thousand, and now, 5 years later they are still recieving a couple hundred dollars every few months. Pretty much every country in the world has its own PRO and they work together to collect royalties from each other’s territories. (or both, in the unique case of streaming). A composition is defined loosely by its lyrics and/or melody, and you can think of it as, essentially, the song itself, an entity separate from any specific performance or recording of it. BMI was founded in 1939 as an alternative to ASCAP. It’s free, easy to sign up and use, and it gets the job done as well as any other PRO. They’re tracked, collected, and paid out by PROs like ASCAP, BMI, SESAC, and GMR. Helping Independent Musicians Succeed. ASCAP artists also get discounts on life, health, instrument, and dental insurance, as well as music-related services and products, hotels, and even car rentals. It was started back in 1914 as a non-profit that protected its members’ copyrighted music from being performed in public. It’s been around since 1914, and has since grown to represent over 800,000 members. ASCAP has a minimum payment of $1 for a direct deposit or $100 for a paper check. As an independent artist in the United States, you need to choose between ASCAP and BMI; you cannot use both at the same time. Composition royalties are songwriting royalties, earned by the somewhat abstract notion of the composition. To join ASCAP, members pay a one-time application fee of $50, and after that, contracts are renewed annually at no cost. BMI is affiliated with a few of the flashier organizations such as Billboard, and members are offered special access and discounts to awards shows, conferences, and festivals, as well as discounts on musical goods and services such as ArtistShare and FanBridge. And luckily, PROs are designed to help you with that. Just Industry News, Tips, and Exclusive Deals. Technically, anyone performing music publicly anywhere has to pay: Because ASCAP is slightly smaller and is owned and operated by its members, they’re very democratic, communal, and transparent in everything they do. Does It Matter Which One I Join? ASCAP’s Board of Directors is made up of artists represented by the company, who are nominated every two years. Let’s take a look. I think it's important to note that there is a difference here between writers and artists, although some are both. The industry is and has always been a game of penny-pinching, and it definitely isn’t as glamorous as it seems from the outside. He acts as owner, editor, lead author, and web designer of LedgerNote, as well as co-author on all articles. ASCAP then pays the money to its artists as royalties. Glad that’s over. ASCAP does not license the right to print copies of musical works nor does it license rights to make adaptations or arrangements. ASCAP or BMI? Tynia Coats explains the differences. Learn how to get traction on your music in a way that’s actually fulfilling. Mechanical royalties are generated anytime a copy of a song is made and sold, like a CD or vinyl pressing, or more recently, a stream or a download. BMI is in the same range. ASCAP and BMI are the major performance rights organizations in the US. None of my research or connections could ever convince me any significant benefits from one to the other so pick one and call it a day IMO. Here’s how to register online with ASCAP in 5 minutes. NOTE: “BMI became the first performing rights organization in the United States to represent songwriters of blues, jazz, rhythm and blues, gospel (black genres, performers, and writers that ASCAP did not want to represent), country, folk, Latin, and—ultimately—rock and roll. All Rights Reserved. Music creation takes time and practice. ASCAP, BMI, SESAC, SOCAN, PRS are all Performing Rights Organizations (or PRO for short). They do this by licensing compositions on behalf of their members, who have given them the right to license them. Membership automatically renews unless it’s canceled, and members get a lot of information about how payments are calculated and distributed. are earned by the tangible form the song takes, as the public hears it. Consequently, BMI drastically expanded their scope, representing artists from gospel, blues, jazz, county, folk, and rock and roll. In my personal experience, people are drawn to BMI for two major reasons: it’s the largest PRO, and it’s free to join. Because it would be hard for one person or company to keep track of and pay royalties for every instance a composition is used, the industry’s solution is to distinguish between two different types of. As a ballpark, in 2018, ASCAP’s minimum annual fee is $380 for restaurants and bars and $246 for retail. , though individual licenses can be used. copyright royalties songwriting. If you ever plan to play your song live, outside of your house, or if you think other people might want to play it, it needs to be registered. Businesses that want access to the catalog from ASCAP artists pay membership fees to access it. So in short: royalties are payments owed to rights-owners because of the use of copyrighted material. There are four major PROs in the US: ASCAP, BMI, SESAC, and GMR (which some people don’t consider major). In Canada this is SOCAN. Home; ... ASCAP or BMI? 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