BMI vs ASCAP vs SESAC: What PROs Do (and How They Measure Up)

If you’ve dabbled in the music industry, then you probably know about the PROs: organizations, collecting royalties on behalf of songwriters and publishers, and essentially function as middlemen between music users and music creators. In case you're vague on the details, we suggest you check out our recent blog post breaking out the exact role of the PROs on the music market — and then come back to this one. With that out of the way, let's get started.

So, there are three major PROs in the US: BMI, ASCAP, and SESAC — though SESAC is more specialized and invitation-only, so, for most of us, the choice is between BMI and ASCAP. And then there’s also AMRA — a digital collections society processing mechanical and public performance royalties, generated by streaming services around the world. 

Yeah. Music royalties is a messy business. But we’ve sorted it all out and simplified it for you in this article: we provide a detailed breakdown of BMI, ASCAP, SESAC, and AMRA, and give you the down-low on their benefits, payout speeds, contract lengths, and more — so that you can pick the right one. But before we get into it, let’s make sure everybody is on the same page:

What are performance royalties? 

Performance royalties are paid to songwriters and publishers when a song is played (i.e. performed publicly) in a live venue, on the radio, on a digital streaming platform, or on TV, film. Of the three main types of music royalties — sync and mechanical being the other two — performance royalties are the most common and lucrative for (most) musicians. 

Performance Rights Organizations (PROs): the performance royalty collectors

So, how do artists and publishers get paid when their music is played in public? It’s not as simple as getting a check every time your song plays on the radio: the collection and distribution of performance royalties is mediated by Performance Rights Organizations. These organizations only collect performance royalties, not mechanical or sync royalties, and musicians and publishers must be registered with a PRO to collect the royalties they’re due. 

How does it work? Live venues, bars, restaurants, digital streaming platforms (e.g. Spotify, Pandora), and radio stations all pay the PROs for a blanket licence to use all of the music in the PRO’s catalogue. Then, they record everything they play in broadcast logs, and send these logs to the PROs, who distribute royalties based on a number of factors, including: number of plays, station or medium, time of day the song was played, and more. This system is not without its flaws — which we break down in a separate article on the roles of the PROs — but for now we have to play with the cards that were dealt. So, here are your options: 

The big 3 PROs (+ the digital newcomer)

In the US, there are 3 major PROs who collect performance royalties (BMI, ASCAP and SESAC), along with a digital-first newcomer, that puts a spin on the PRO model. We mean AMRA — the company’s mission is to offer songwriters both in the US and around the globe, a single-step, unified streaming royalty collection pipe. And mind you, we don’t mean the streaming payouts on the master side — AMRA focuses on public performance and mechanical royalties paid by streaming services to songwriters. Now, let’s take a closer look at those collection societies:

1. BMI

BMI is a nonprofit organization that was founded in 1939 (oh, how different the music industry was then), and is the largest of the PROs. BMI’s music licensing repertoire includes over 900,000 songwriters and 14 million musical compositions, and in 2018 BMI collected $1.199 billion in licensing fees and distributed $1.12 billion in royalties to songwriters and publishers. 

Songwriters can join BMI for free, while individual publishers must pay $150 and publishing companies must pay $250. Membership with BMI comes with a number of benefits, including: 

• Songwriting camps and workshops for musicians
• Membership discount to BMI affiliates
• Discount for songwriters Hall of Fame
• Discounts for many songwriting apps and services
• Discounts on Bilboard Latin Conference, Billboard touring conference, Video Games Live

You can sign up for BMI online here. 

2. ASCAP

ASCAP is the second-largest PRO in the US and was founded in 1914, representing and over 600,000 songwriters and 11 million musical compositions. In 2017, ASCAP collected $1.14 billion in licensing fees and distributed over $1.007 billion to it’s clients. 

Unlike BMI, ASCAP isn’t quite free: songwriters have to pay $50 to join, though the price for publishers is also $50 (a bit lower than BMI). Here are some of the perks you get with an ASCAP membership: 

• Discounted membership to Songwriters Hall of Fame
• Membership in MusicPro program, which provides discounts on health, dental, instrument, and life insurance
• Discount on ASCAP Web Tools, a collection of marketing apps
• Discounts on hotels and rental cars
• Membership in US Alliance Federal Credit Union

Sign up to join ASCAP here. 

3. SESAC

Unlike BMI and ASCAP, SESAC is a for-profit organization that was founded in 1930. Much smaller than the two above PROs on this list, SESAC represents over 30,000 songwriters and 400,000 musical compositions. In 2016, SESAC collected between $400-500 million in licensing fees. 

Another thing that makes SESAC unique: membership is not open for all, instead, songwriters and publishers must be invited to SESAC. If you do get the invitation, here are some of the features you get: 

• SESAC direct deposits your royalties
• 10% discount on Sprint products
• 15% discount on your first year at SongTrust
• 3 months of free membership to Musician’s Atlas online
• Airport parking discounts
• 10% discount at Berkleemusic.com
• 33% discount on American Songwriter Magazine
• Discount on Avis Rental cars
• MusicPro insurance discount

4. AMRA

There is a new collection society on the market. AMRA opened shop just in 2014, focusing primarily on the US market — though they’ve recently branched out into Europe since then. AMRA collects mechanical and public performance royalties for compositions from streaming services only — no radio, restaurants, or anything else, just digital. 

AMRA is a bit different from the other collection societies on this list: rather than offering discounts and memberships, their main selling point is to make the collection of digital streaming royalties much more efficient for songwriters. Typically, royalties travel through a complicated pipeline that not only takes a long time but also loses some of the royalties in the process. AMRA cuts out the intermediaries — collecting royalties directly — and uses an advanced technological approach to minimize errors and enhance efficiencies.

In 2015, AMRA was purchased by Kobalt, a giant in the music publishing world with a reputation of technology-driven disruptor, so, while they’re currently much smaller than the others on this list, expect to hear more about them as digital streaming becomes more and more prevalent. 

BMI vs ASCAP vs SESAC: which one is for you? 

So, now that you’ve got a look at the PRO landscape, the big question is: which is the best? Well, it’s not so simple: for one thing, since SESAC is invitation-only, the choice is really between BMI and ASCAP, and both PROs offer similar services and benefits. 

However, there are small differences between them that might nudge you one way or the other depending on what’s most important to you: flexibility, cost, payout speed, and more. 

Benefits

If you compare the list of perks and benefits that BMI and ASCAP offer, you’ll find that they’re pretty similar: discounts for membership with music-related organizations, subscriptions to publications, and travel discounts, to name a few. Overall, though, BMI’s discounts are geared slightly more towards indie songwriters (with songwriting camps and subscriptions to songwriting apps), while ASCAP’s discounts are aimed more at live performers (they offer airport and hotel discounts). So, one isn’t really better than the other, it’s more about which perks you would prefer: songwriting tools/workshops or touring-related discounts. 

Contract length

There’s a measurable difference between the two PROs in this area: ASCAP contracts are 1-year for songwriters, while BMI contracts are 2-years. So, if commitment isn’t your thing and you’d prefer flexibility (maybe you’re hoping for that SESAC invitation this upcoming year?), then BMI has a slight advantage. 

Signup fees

Again, BMI gets a slight edge for songwriters here: joining BMI is free for songwriters, while ASCAP requires a one-time $50 fee. However, if you’re a publisher, then you may want to go with ASCAP: joining ASCAP as a publisher is only $50, but BMI charges $150 for individual publishers and $250 for publishing corporations. Along with BMI, one of the advantages of getting a SESAC invitation is that signup is free of charge.

Payout speed

Payout speeds can vary, but BMI royalties are distributed slightly faster, with an average payout time of 5.5 months compared to 6.5 months for ASCAP. 

Payout speed is also one of the selling points of SESAC: they expedite the collection process and complete payouts in as little as 90 days after the quarter in which the song was played finishes. So, if your song played at the beginning of January, then you might not receive a royalty until June (about 6 months), but if it’s played in late March you’ll get it in a little over 3 months. 

The verdict

BMI and ASCAP are very similar in how they collect and payout performance royalties, and have similar perks and benefits, but the lack of signup fees and faster payouts can make BMI a slightly smarter choice for songwriters. However, if you’re more interested in live touring-related discounts, or if you’re a publisher and want to save a little money, then ASCAP might be a slightly better choice.

SESAC is a bit of a different animal from BMI and ASCAP, and not just because they’re invitation-only. Their smaller size allows them to give more attention to individual artists, develop relationships, and work to advance careers, whereas with BMI and ASCAP you’re really just one in a million. But, to get a SESAC invitation you need a decent amount of clout and traction in the music industry. 

Joining a PRO

Every dope artist you’ve ever heard of is a member of a PRO, and every time you’ve heard that artist’s most famous songs in public it’s probably earned them bank thanks to a PRO. Joining one is more or less a necessity for songwriters, so here are the basics. 

Who is eligible to join a PRO? 

If we’re talking about ASCAP or BMI, then any songwriter or publisher can join. As we’ve mentioned above, SESAC is the only PRO that requires an invitation. 

Do I need to join a PRO? 

Joining a PRO isn’t a legal requirement or anything, but if you don’t join a PRO, then you can’t collect performance royalties: it’s that simple. So, if you’ve got any music out gathering plays on streaming platforms, in bars, on radio, or in commercials, then make sure to join one! 

When should I join a PRO?

Firstly, you NEED to join a PRO if you have any music being performed publicly. That being said, you probably shouldn’t wait until your work is garnering radio airplay and digital streams to join. Membership in a PRO comes with other features and benefits that can be beneficial even if your music is not yet being played publicly. So, to answer the question: join as soon as possible, but at the very latest when you’re actually earning performance royalties. 

How do I join a PRO?

It’s easy! Just go to BMI or ASCAP’s respective websites, submit an application, then pay the membership fee and you’re in! 

Metadata: the other critical component of performance royalties

We briefly explored above how radio stations, digital streaming platforms, and venues record all the songs that are played and report them to the PROs, but there’s a critical underlying factor that we haven’t touched on yet: metadata. Metadata, you see, is the crux of the entire process. When platforms, stations, and venues log the music they use, the information they log is metadata. PROs then rely on this metadata to determine royalty rates and payout amounts. 

So, getting the royalties you’re due isn’t just about joining a PRO, it’s dependent on the accuracy of your metadata, and unfortunately music metadata is in a terrible state. Artists often miss out on substantial revenue because they don’t have accurate metadata for their music. That’s why we recommend tools that keep your metadata straight from the get-go, like Sound Credit and Auddly’s Creator Credits.

Measuring data with new-age accuracy

It’s not just broadcast logs and PRO databases that are plagued with metadata problems: many airplay tracking platforms also struggle to keep their data straight, because they often rely on the same flawed metadata. This is what makes Soundcharts different. 

Soundcharts tracks radio airplay without relying on manually-reported metadata. Instead, our platform taps into the state-of-the-art music fingerprinting technology that analyzes raw radio audio-broadcasts and cross-checks the spins against our 68-million strong database of songs. Add to that a variety of metadata cleansing tools and continuously updated matching algorithms, and you’ve got a music analytics platform with data you can always trust.

Conclusion

Bottom line: when it comes to getting paid as a musician, the PROs are friends you gotta have. Which you choose is less important than making sure you are a member of one (and making sure your publisher is as well, since 50% of all performance royalties are allocated to the publisher). Next to membership in a PRO, one of the most important steps music professionals can take to get paid is keeping their metadata straight from the beginning. Finally, the royalty split that musicians agree to with their publisher will also play a role in determining future royalties.