Every serious musician needs to be a part of a performance rights organization. While seldom discussed by casual music creators, PROs like ASCAP and BMI help artists collect performance royalties, which are not collected by your music distributor. Uncovering this information can be a shock to the system, but fortunately, it's pretty simple to register with a PRO.

Below, we'll compare and contrast ASCAP and BMI (two of America's most popular performance rights organizations) so that you can align your artist project with the ideal organization.

Understanding Music Licensing and Royalties

Understanding the roles of royalty collection within the music industry can be complex, to say the least. With variable streaming rates and complex payout timelines, it can feel overly complicated to get to your well-earned royalties.

This is hard enough digitally, where your streaming royalties are paid out on several months' delay. But did you know that you earn a separate type of royalty whenever you perform a piece in a live setting?

That's where PROs or Performance Rights Organizations like ASCAP and BMI come into play. These organizations help track down a separate category of royalties, otherwise called performance royalties, that are owed to the original creators of a composition.

You have to pay a nominal fee for these organizations, but all professional musicians do so in their best interest as PROs work on behalf of artists to ensure you're getting your full compensation as well as other benefits detailed in this guide.

Role of a Performing Rights Organization

Simply put, a performance rights organization collects royalties owed to the artist and rights holders whenever a piece is performed in a public setting. Public performance can include any live shows via broadcast like TV, or when played in businesses like restaurants or bars. Venues are required to report music performed to these organizations so that royalty payments can be sent out to artists.

As the bridge between music copyright holders and those who wish to perform or recreate music in a public setting, these organizations play a crucial role in ensuring that artists receive their fair share of income. Without a PRO, these royalty payments are lost in the shuffle and hence not paid out to artists and rights holders.

We go into the different types of music royalties in depth here, but the basic gist is that there are several types of royalties outside of streaming royalties that should be accounted for. It's important to note that all types of royalties are not captured by your music distributor, hence the need for a PRO like ASCAP vs BMI, which are primarily focused on collecting public performance royalties.

Other royalty categories to consider include mechanical royalties, synchronization royalties, and digital performance royalties.

Should I Sign Up As a Writer or Publisher?

In this guide, we will refer to signing up as a writer or publisher. A writer in this context refers to anyone who is responsible for crafting the melodic composition of a song (typically songwriters). A publisher refers to the person owns the rights to the master recording of a composition, which could be a label or an individual.

If you self-distribute your music, you need to sign up as a publishing company to get full performance royalties for your music.

By default, when you register BMI or ASCAP songs, you can only account for up to 50% in each category. So, you need two accounts if you act as both your own publishing company and the songwriter for your tracks to collect the full payout of performance royalties that you're entitled to.

ASCAP vs BMI: Which Performance Rights Organization is Right for You?

If you're looking to collect performance royalties within the United States, you likely want to align yourself with one of the most reputable PROs, like ASCAP or BMI. These organizations do have some key differences and continue to evolve to this day, though the important takeaway is that you align yourself with some PRO as soon as possible.

Keep in mind that PROs require multiple accounts if you're both a songwriter and hold the rights to your music's publishing. Without registering properly for a PRO, you're leaving valuable performance royalties on the table and can also make it more challenging for interested parties to track down the rights holders to your music.

PROs can help clearly identify who is responsible for creating a song, and at what ratio, if your song is split across multiple songwriters or publishing parties.

ASCAP and BMI Overview

ASCAP and BMI are pretty similar in nature, but have some slight differences that may lead creators to choose one platform over another. Generally speaking, if you choose one platform as a songwriter, you should also register your publishing there if applicable. With PROs, you pick one or the other.

ASCAP, which stands for the American Society of Composers, Authors and Publishers, is the longest-standing performance rights organization in the United States. BMI, otherwise known as Broadcast Music Inc., was created as an alternative to ASCAP initially.

We'll break down the agreement differences between the two organizations below, but it's worth noting that PROs like ASCAP and BMI can both provide additional benefits outside of collecting and distributing performance royalties.

For example, ASCAP puts on a recurring "ASCAP Experience" expo that brings together its members for shared discussions and networking. ASCAP offers a number of wellness benefits, including discounts on dental insurance plans, gym plans, and discounted membership to educational resources like Berklee Music's online programs.

BMI provides external benefits as well, such as networking events and performances, and discounts to educational resources and other affiliates like FedEx.

Occasionally, BMI offers showcases to connect members in prime US markets like New York, Los Angeles, Austin, and Nashville to connect up-and-coming talent. BMI affiliates like Output and Squarespace can also provide relevant discounts on their respective services.

BMI and ASCAP Compared

At the end of the day, BMI or ASCAP are great PROs you can use to collect royalties from public performances. With that in mind, here are the main differences between BMI and ASCAP:

Catalog Size: When it comes to membership numbers, BMI hosts a larger catalog, licensing over 22.4 million works. ASCAP has a catalog of around 18 million musical works. This could be due to BMI initially being open to a wider range of genres within the music industry.

Membership Costs: Joining ASCAP costs a one-time fee of $50 for both songwriters and publishers. If you are on both sides of the coin, you need an account for each. In contrast, BMI is free for songwriters. Publishers registered with BMI pay a one-time fee of $175 to $250.

History: While both of the organizations have changed greatly over time, it's worth taking a look at the origins of ASCAP and BMI. ASCAP stands as the oldest PRO in the United States, initially created in 1914 to appeal to pop-focused artists and sheet music publishers.

In 1939, BMI was created by the National Association of Broadcasters to build a lower-cost alternative to ASCAP. BMI took in overlooked genres like country, blues, and jazz, which at the time, weren't as integrated into the ASCAP ecosystem.

BMI was initially a non-profit, but was acquired by a private equity group in 2023. ASCAP remains a not-for-profit, member-owned organization.

Royalty Structure: ASCAP pays out on a weighted structure, providing higher payout rates on higher-profile platforms like TV shows and networks. BMI's payout structure is a little more complex, which takes additional factors into account like the time of day a song is performed, platform, and how frequently a song is played and performed.

BMI and ASCAP pay out on a quarterly basis. However, as with any royalty payment provider, payout times can be highly volatile.

ASCAP states that payments take around 6.5 months following the quarter in which a song was performed. Similarly, BMI states that payments take around 5.5 months following the quarter in which a song was performed.

Ownership: One of the biggest differences between ASCAP and BMI is that ASCAP is a member-led organization, operating as a nonprofit. The ASCAP board consists of writers and publishers who are also ASCAP members, leading some to feel that the organizations' decisions are more focused on benefiting its members.

BMI used to be a non-profit organization as well, but was acquired recently by New Mountain Capital, a private equity group which effectively transitioned the organization to for-profit. The board comprises of industry professionals, broadcasters, and some writers and publishers.

Eligibility: To join ASCAP, applicants need at least one song commercially recorded that has been released for sale or performed in a licensed venue or broadcast setting. Anyone who writes or holds publishing contract can join BMI.

In terms of contracts, ASCAP offers a one-year, automatically renewing structure, which may be more flexible compared to BMI's two-year contract for writers.

The Importance of Accurate Metadata

Your ability to collect performance royalties depends heavily on proper song registration. This is why it's so important that you accurately reflect the songwriter composition and rights holders upon distributing a piece of music.

When you register a song on a PRO, you'll be asked for an ISRC code which is provided by your music distributor. You can think of this code as a universal identifier for your song, allowing your PRO to quickly recognize when your track is being played or performed.

Having consistent metadata means that it's easier for PROs to match you with your well-deserved royalties. It also makes it easier for outside organizations like synchronization firms to track down ownership of music and pitch relevant opportunities.

The Future of Music Royalties

It's worth noting that the future of music royalties is constantly in flux, especially since the way we discover and consume music has shifted dramatically within the past decade. As AI-generated music becomes more commonplace and social media platforms gain more influence within the music industry, copyright and how we approach it will inevitably shift. This doesn't mean that having a PRO like ASCAP or BMI isn't important, but it speaks to the uncertainty of copyright moving forward.

How to Register Your Music on a PRO

Once you've decided between ASCAP, BMI, or another performance rights organization, it's time to get to work! Every time you release a new track or project, you must register your songs on your PRO with the corresponding ISRC code (which stands for International Standard Recording Code).

Keep in mind that if you're responsible for both the publishing and songwriting rights to a song or project, you'll need to register under two separate accounts within your PRO of choice.

Each interface is different, but essentially, after a track is published, you can add the work to your PRO, specifying identifiable details such as track length, ISRC code, artist name/aliases, and record run time. This makes it easier for your PRO to identify when your music is performed publicly and, therefore, deserving of some royalties.

Choosing ASCAP or BMI Comes Down to Your Needs As a Musician

Both ASCAP and BMI  have understandably evolved since their founding. These performance rights organizations both help musicians collect valuable performance royalties, though some artists may find one more appealing than another depending on their genre or strategy. It's also worth noting that ASCAP operates as a not-for-profit organization, while BMI was acquired by New Mountain Capital in 2023.

There is no one right answer, but one fact remains clear: Any serious professional artist should take the time to join a performance rights organization. You don't want to leave royalty payments on the table, and having your metadata in check, although not one of the most exciting parts of music, is essential.