What is a Performance Rights Organization and What Can They Do for Me?

As a musician and songwriter, you may have come across the term PRO. The music industry loves a good acronym, but sometimes understanding what each one means can be daunting. Here we'll talk about what a Performance Rights Organization is, what they do, and how they can help you collect royalties for your music.

A Performance Rights Organization, otherwise known as a Performing Rights Organization or PRO, helps songwriters and publishers get paid for the use of their music by collecting public performance royalties. Public Performance Royalties are paid out to songwriters, composers, and lyricists whenever their music is performed on radio stations (terrestrial, streaming, satellite), TV shows or commercials, or played in live venues or businesses. PROs do not collect mechanical royalties, sync fees, or digital performance royalties associated with the master recording.

How do Performance Rights Organizations get paid?

Any commercial premises that publicly plays music must first purchase a license from a PRO to do so. This means restaurants, music venues (bars, amphitheaters, performance halls, etc.), sports arenas, stores, shopping malls, amusement parks, airports, hospitals, and any other public place that plays music.

Which is the best PRO for me?

Although there are many worldwide PROs, in the US, you can choose from just three: ASCAP, BMI, and SESAC. There is no right or wrong choice, but you can only be affiliated with one PRO at a time. Many artists base their decision on the PRO their favorite artist uses or recommendations from their friends.

When considering which PRO to join, you will want to ensure you can collect all the money that is legally owed to you. PRO's divide the licensing money for a song into two parts, the writer's share and the publisher's share. This means that for every dollar your song earns in performance royalties, 50¢ goes to the writer(s), and 50¢ goes to the publisher(s).

If you do not list a publisher for your songs, the PRO's will keep the publisher's share. This means you will only be collecting half of the royalties available to you. Working with a publisher can benefit you, especially if you don't have the resources or support to promote your songs on your own. A good publisher can get other bands to perform or cover your songs, which will help you earn more licensing fees. If you choose to self-publish, you should register yourself as a publisher with your PRO to collect both the writer's and publisher's share. However, if you have a publisher, they will want to collect their share and will likely register your songs with a performance rights organization themselves.

Below is a list of performing rights organizations to help you choose the right PRO for you.

Comparisons of Performance Rights Organizations

ASCAP (The American Society of Composers, Authors and Publishers)

ASCAP is a non-profit home to over 585,000 composers, songwriters, lyricists, and music publishers. It is the only performing rights organization in the US-owned and governed by songwriters, composers, and publishers. ASCAP's Board of Directors is made up entirely of writers and publishers elected by its members every two years.

Fee: One-time fee of $50 as a writer. $50 as a publisher.

Requirements: Legal name. Mailing address, Valid email address. SSN/ITIN. Must be 18 years old to apply.

To collect your publisher's share of royalties as an ASCAP member, you must have an ASCAP publishing company.

BMI (Broadcast Music, Inc.)

Founded by radio executives as a non-profit, BMI now boasts more than 700,000 members. According to its website, "BMI is the bridge between songwriters and the businesses and organizations that play their music publicly…BMI serves as an advocate for the value of music, representing nearly 12 million musical works created and owned by more than 700,000 songwriters, composers, and music publishers."

Fee: Free for songwriters. $150 as a publisher.

Requirements: Valid email address.

You do not need a publishing company to collect your publisher's share of royalties at BMI.

SESAC

SESAC is the only US-based Music Rights Organization that administers public performance, mechanical, synchronization, and other rights. The organization represents over 400,000 songs on behalf of its 30,000 affiliated songwriters, composers, and music publishers. Additionally, SESAC pays royalties monthly rather than quarterly. Its site reads, "With an international reach and a vast repertory that spans virtually every genre of music, SESAC is the most innovative and most technologically adept of the nation's performing rights organizations."

Fee: None.

Requirements: SESAC is not open to all songwriters. You must receive an invitation to join.