A Comprehensive Comparison of Performance Rights Organizations (PROs) In the US

Part I: What Is a Music PRO & Why Do You Need One?

The definition of a ‘PRO’ is simple.  A music performance rights organization, or PRO, administers royalties from the public performances of songs.  It’s a critical royalty partner for songwriters, composers, publishers, recording artists, and copyright owners. Whether or not you need a performance rights organization (PRO) for your music is something to evaluate, but in most cases where a content creator is looking to monetize their content, it is generally recommended.

So what is a ‘public performance,’ exactly?  It’s fairly simple: a public performance occurs when a song is played in front of a substantial group of people.  This includes recordings of songs, or live performances of them, at places like malls, elevators, bowling alleys, restaurants, and sporting events.

Every time that occurs, a royalty needs to be paid to the copyright owners of the music played.

A radio broadcast, either traditional or digital, also constitutes a public performance even though the listeners are geographically dispersed.  Essentially, a large crowd is listening at the same time, just not in one place.

In total, this adds up to a lot of money.  In the United States alone, more than $3 billion of revenue is generated by public performances alone!  That includes collections from airports to Pandora, radio stations to cafes — it’s a very long list, and all of it generates revenue.

Please note that a public performance is not occurring when only one person is listening (for example, to an mp3 download through headphones or a vinyl record at home).  Similarly, a small gathering of family members or acquaintances does not merit a public performance.

Streaming on Spotify does count as a public performance, for a series of complex reasons (and litigations) that go beyond this comparison.  Just know that you should be getting a publishing performance sights organization (PRO) check from Spotify (and other streaming service) streams, though in general, those payouts are extremely low when compared to other mediums (like terrestrial radio and TV).

Generally, those who publicly perform music obtain permission from the owner of the music or their representative.

Fun Fact: In the United States, performance royalties have been protected under US Copyright Law since 1897!

Part II: What’s the Difference Between ASCAP, BMI, SESAC, and SoundExchange?

In any song, there are two major types of copyright: one for the ‘publishing,’ or the underlying composition (the notes and lyrics), and another for the sound recording of that composition.  In many cases, there are different owners for each side. Both sides generate revenue for public performances, though there are lots of details and exceptions.

The splits, however, are fairly straightforward.  On the composition side, royalties are typically divided 50/50 between the songwriters/composers of the music, and whoever administers the use of that music – also known as the “publisher.”  Splits on the recorded music side are between the performers and their label.

Publishing PROs handle royalties related to the performance of the underlying compositions.  In U.S., the major PROs are ASCAP, BMI, and SESAC.  Since the advent of digital radio, SoundExchange has emerged to handle the sound recording royalty for performances of recordings on digital media, largely on Pandora and Sirius XM Radio.  So, if you  (a) are a writer or publisher of a composition and (b) a performer or an owner of a recording copyright, you should have a relationship with both a publishing PRO (ASCAP, BMI, or SESAC) and SoundExchange.

In turn, any business publicly performing music, online or off, must have a blanket license with the PRO(s) that represent the music they perform.  These businesses pay the PROs, and their payments are then divided based on plays, and funneled to members (songwriters/composers and publishers).

But why are there four different Performance Rights Organizations (PROs) for music?

Let’s start with the publishing side.  ASCAP and BMI handle most performance rights royalties for underlying compositions.  SESAC is more niche and hands-on, and involves an acceptance process (a fourth publishing PRO also exists: Global Music Rights, or GMR, though its focus is on a small, high-performing tier and is invite-only).

So if you’re just getting started, either ASCAP or BMI represents a good first choice, though we’ll delineate between all of these options in the grid below.

On the recorded side, the choice around SoundExchange is much easier.  All artists and recording rights owners should register for free on SoundExchange, even if your music isn’t getting played on Pandora, Sirius XM, or other digital radio platforms.  You never know when something will get played on one of those formats, but you can even collect back-royalties when you register.

Part III.  Other Important Notes!

You may be wondering how to choose the best music Performance Rights Organization (PRO) for your specific needs. There are several criteria that you will want to consider in this decision and this guide is intended to help you in choosing which music Performance Rights Organization (PRO) to have.

Before we jump in, a few notes. We’ve weighted every PRO on a number of different criteria, though not all of them will matter to you.  For example, the size of a PRO is less important than the ability to properly collect and pay royalties; however, bigger size can increase the influence that a Performance Rights Organization (PRO) has in getting venues to comply, influence legislation, or spread costs.

Aside from specific services, it makes sense for songwriters and publishers to ask around for testimonials.  In general, the best opinions will come from those that are most similarly situated to you — in terms of genre, format play, size, etc.  Find a close match, and you’ll get some very valuable guidance.  In fact, it could be the most important step in your decision.

Also, it’s important to note that none of these music Performance Rights Organizations (PROs) cover ‘grand rights,’ or music that directly accompanies action in a musical, play, or other scripted performance.  Nor do these agencies offer ‘synchronization rights,’ or ‘synch rights,’ which refer to music that is paired (or ‘synched’) with action in an advertisement, film, or TV show.  Those licenses are negotiated directly with copyright owners (and facilitated by many other companies and platforms).

Also, as a songwriter or producer, you can only join one PRO to represent your public performances.  Publishers, however, can join multiple music publishing Performance Rights Organizations (PROs) to cover their broader catalogs.  For example, if you are an ASCAP songwriter, you cannot also register a share of your songs with BMI (though if you co-write a song with a BMI writer, your co-writer should register it with BMI).  A double-signing with two publishing PROs could be construed as fraud, especially if it results in double payments.

Lastly, please note that this comparison covers the United States only!  Though we’re happy to cover other regions in the future.

Part IV: Here’s the Full Comparison

(gray = publishing PRO; blue = digital recording PRO.  please see footnotes below for more details)

¹ all information is reported by the PROs themselves, typically in annual reports, unless otherwise noted.

² SESAC says they offer a far greater level of service, because they have a smaller group of customers.

³ Reported in 2017 for calendar 2016 (Jan-Dec).

† Fiscal 2017 (ending June 2017).

ª Billboard estimate.

¤ note that ASCAP splits your royalty statements into domestic (US) and international, with two separate statements and payments.  US-based calculations of royalties are far more detailed (similar to other PROs).

§ from our experience, writers and publishers can also contact SESAC and receive an invitation, especially when recommended by an existing member.

¥ Jeffrey Brabec, Todd Brabec. Music Money and Success.

So who has the better payouts overall?  That’s a difficult question to answer.

Which payout is better? All services listed here are legitimate and will pay according to the terms; however: the differences in your payouts can vary greatly depending on where (which format) your music is most played. Unfortunately, there is no easy answer to the question of ‘which music Performance Rights Organization (PRO) will earn me the most’ or ‘has the highest payouts’. This is the source of endless debate; our best ‘professional advice’ here is to ask fellow musicians and publishers — especially those similarly situated.  

Network!