What Is A Performing Rights Organization?

P.R.O stands for Performance Rights Organization… but what are they? PROs are organizations that collect performance royalties so musicians can get paid when their music is performed in a public environment.

PROs also collect royalties for musicians when their music is heard on radio or seen on tv - even if your music is played behind a commercial for toilet paper or is only used for 5 seconds in a t.v. show or movie, you will still receive royalties! (One thing that needs to be pointed out before we continue is that tv, movies, and commercials usually pay out synchronization fees AND performance royalties. PROs don't collect sync fees, as their biggest focus is to collect performance royalties.)

If you're wondering what I mean when I say royalties, I just mean the sum of money that's paid to artists/musicians whenever their songs are sold, distributed, performed live, played on tv or radio, or used in any other way.

When a musician performs at a professional venue, the venue will tell the PROs which songs were performed. If any of the songs are registered to a PRO, that PRO will collect (and distribute) the royalties owed to the songwriter/publisher. Radio stations, performance venues, and digital platforms pay PROs for a blanket license to use all the music that has been reported. Then the PROs do their magic and calculate how much each songwriter/publisher is owed.

An important thing to know about PROs is that they only collect performance royalties. There are many types of revenue a song can receive that PROs don’t collect. Click here to learn more about how a song earns income.

P.R.O. Comparison

(ASCAP vs. BMI vs. SESAC)

There are three well-known PROs in the US. The first one is ASCAP, also known as the American Society of Composers, Authors, and Publishers. I know, it's a lot of words to describe an organization, but that's why we just call them ASCAP. The second one is BMI, also called Broadcast Music Inc., and the third one is SESAC. The full name for SESAC is the Society of European Stage Authors and Composers. These three organizations offer a lot of help and already hold millions of artists. However, each one has various pros and cons which can make them better or worse for a musician. You can only sign up for one at a time, so you should consider the one that fits your needs the best. Let's look at the first two organizations that are open to the public.

ASCAP

The first P.R.O. to consider is ASCAP. ASCAP is the oldest, but not the biggest, of all three PROs. They are a non-profit organization and they are built of musicians, music publishers, and writers alike. They all work to help music lovers get the money they deserve for the music or creative work they give to the world. It was created in 1914 and represents over 10 million works. Some well known artists signed to ASCAP are Cardi B, Red Hot Chili Peppers, Justin Timberlake, Ariana Grande, Kelly Clarkson, Katy Perry, Dua Lipa, The Cure, Def Leppard, Radiohead, and so much more. ASCAP gives members access to an annual “I Create Music Expo” so creators can come together and connect.

Other Benefits Include:

Discounts for the Songwriters Hall Of Fame
Membership to the US Alliance Federal Credit Union
Discounts through the MusicPro Program on Dental, Health, Life insurance, etc.
Discounts on things related to music
Discounts with ASCAPs web tools
Discounts on vehicle rent and hotels

ASCAP is for both publishers and songwriters; it costs $50 to register for either side. If you sign up as both a publisher and songwriter then it’s $100 total registration fee. It may be worth considering that ASCAP usually requires a 1 year commitment before you can change PROs.

If you're an independent artist and don’t already have a publisher, then it is best to register for both sides so you can get the full amount of money owed to you. If you only sign up as a songwriter, and don’t have a publisher, then you will miss out on half of your potential earnings since the money owed to the publisher won't have anywhere to go. If you do have a publisher, the publisher will receive the publishing share and distribute your percentage (if any).

ASCAP requires you have a mailing address, email address, social security number, and that you are 18 years or older.

BMI

The largest PRO that is the youngest out of all three is BMI. BMI is also a non-profit organization and it represents over 12 million works. It was created in 1939 and it was founded by a group of leaders in the radio industry. They met at the National Association of Broadcasters annual convention in Chicago and then BMI became a reality. BMI may not give as many benefits as ASCAP, but they still work hard to give you as much help and guidance as you need. Some well-known artists that are signed to BMI are Lady Gaga, Kendrick Lamar, Post Malone, Halsey, Taylor Swift, Twenty One Pilots, Linkin Park, Eminem, and many more. Additional Benefits with BMI include:

Discounts with NXNE music and gaming festival
Access to ArtistShare for Songwriters
Access to Fan Bridges
Access to Musician’s Atlas
Access to Muzlink
Access to Songwriters Hall Of Fame
Discounts from Video Games Life
Discounted registration for Billboard Latin Conference (only offered to certain people or organizations connected with BMI)
Discounted Membership with LARAS (Latin Academy of Recording Arts and Sciences)
Discounted registration to The Billboard Touring Conference and Awards

The good thing about this organization is that it's free for songwriters to join. However publishers pay a $150 fee to register, and if you're a company, then it’s $250. BMI songwriters have a 2 year commitment, while publishers have a 5 year commitment.

Songwriters only need an email address to register, but if you're a publisher signing up then you would also need a name for your company, or yourself, and of course, a card for payment. If you're signing up and you're under 18, then you would also need to have a custodial trust bank account.

SESAC

SESAC is the second oldest PRO in the US. It was founded in New York in 1930, however unlike the ASCAP or BMI, this organization is for-profit. It is also invitation only so you can only gain access if you are invited to join. It has over 400,000 works registered. One good thing about SESAC though, is that if you get an invitation then you can join without having to pay a fee. Some well known artists that are in this organization are Adele, Mumford And Sons, Neil Diamond, Mariah Carey, Bob Dylan, and more. Joining SESAC gives a 3 year contract to both writers and publishers that automatically renews. Some benefits that you can get if your invited include:

Can get monthly radio royalty payments instead of quarterly payments
Airport parking discounts
SESAC direct deposit
Special Discount at POPmarket
10% discount with sprint
10% discount with Berkleemusic.com
15% discount during first year of SongTrust
Free 3-month account with Musicians Atlas
20% discount on Legacy Learning System
33% discount to American Songwriter Magazine
Discount Subscription for Billboard Publications
Special Rate for The Hollywood Reporter
Discount with MusicPro Insurance
Discount at Avis Rental Cars
Additional Discounts, and many more benefits

Which PRO Pays Out The Fastest?

In terms of payment, ASCAP pays 6 and a half months after the end of every quarter, which makes it the slowest at paying out royalties to the artists and publishers. BMI is a little bit faster because they pay 5 and a half months after the end of each quarter. SESAC is the fastest and will pay 90 days after the end of each quarter.

Final Thoughts

ASCAP and BMI are the easiest to join for most songwriters/publishers. ASCAP is helpful if you want touring or live performance discounts. BMI is helpful if you're an indie artist because it focuses on discounts for songwriting tools and workshops. SESAC is helpful because they can give more attention to each of their members. All 3 organizations provide great options and benefits for their members!

Whether you’re a songwriter, a publisher, or both, don’t forget to register for a Performance Royalty Organization so you can get paid every time your song is performed publicly!

Never give up, always move forward, and don’t forget that music is the voice to the soul!

What is a P.R.O in Music?