ASCAP or BMI: Which is Best For Independent Artists?
Performing Rights Organizations (PROs) exist to help musical artists manage performance royalties that come from the licensing or use of their work. (You can read up on the specifics of royalties in our post What Are Music Royalties?.) Perhaps the best-known PROs in North America are the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI).
Without the benefit of a record company’s expertise, independent artists have to make decisions for themselves about which PRO to use. So which one is better — ASCAP or BMI — for independent artists? The short answer is “it depends on what matters to you.” With many similarities and a few key differences, it’s wise for independent artists to do their homework before signing with either organization. This post will dig into the specifics and help you decide which PRO is the right choice for you.
Of course, Trqk is also here to help you manage your royalties, and can find payments PROs miss. To find out more about what we do, get in touch.
What is a PRO?
First, a quick review of what a Performing Rights Organization does for musical artists. PROs function as intermediaries between rights holders and those who use or publicly perform copyrighted works. “Performance” in this case can mean a live concert, but more commonly refers to music that’s played on the radio or on TV. A PRO monitors performances, collects appropriate royalties, and distributes them to the rights holders. They also check that anyone playing the music actually has a license to do so.
Artists who want to collect performance royalties must belong to a PRO. There is no mechanism in the US for artists to track and collect their own performance royalties.
ASCAP or BMI: Can’t I just join both?
Though you can belong to both over the course of your career, in the US it cannot be at the same time. Composers, songwriters, publishers, artists, or other performance rights holders who register with a PRO must enter into an exclusive contract with that organization. At the end of the contract, you can terminate and register with a different PRO if you choose, but whatever works were under the first PRO remain under its purview, unless you request your catalog be removed from representation at the end of your contract. In other words, you and your music can only move between PROs once a contract expires. You would continue to receive royalty payments from BMI after you’ve left and joined ASCAP, or vice versa.
ASCAP or BMI: Comparing costs and benefits
The natural starting point for trying to choose which PRO is best for you would be to compare the difference between what you might expect to earn from each one, and which represents composers or artists like yourself. The tricky part is, they both have plenty to offer indie artists, with discounted memberships to professional organizations, networking opportunities, and reliable disbursement of payments.
The one key financial difference between the two are membership fees. Publishers and songwriters must pay a one-time registration fee of $50 to join ASCAP. Songwriters can join BMI for free and individual publishers pay a one-time registration fee of $150, which increases to $250 for publishing companies. Another key point of differentiation is that ASCAP contracts are in 1-year increments, while BMI’s are 2-year.
ASCAP or BMI for independent artists: Which is better?
So if they pay out the same and cost roughly the same to join, is either ASCAP or BMI any better than the other? Possibly, depending on what you want to get out of your contract besides royalty payments. Each organization offers a unique set of benefits that include things like discounts and memberships in other organizations. Let’s get into some specifics.
ASCAP
The American Society of Composers, Authors, and Publishers was founded in 1914 by writers and publishers to enforce copyright laws with regard to live performances. It’s the second-largest PRO in the United States, with over 600,000 artists and 11 million registered musical compositions. ASCAP’s benefits are arguably more geared toward day-to-day life, and therefore possibly of greater use for independent artists. Health insurance and discounts on marketing tools may not be as sexy as tickets to awards shows, but may fill more pressing needs of an up-and-coming musician.
Discounted membership to Songwriters Hall of Fame
Discounts on health, dental, instrument, and life insurance
Discount on ASCAP Web Tools, a collection of marketing apps
Membership in US Alliance Federal Credit Union
BMI
Broadcast Music, Inc. was founded in 1939 and is owned by the broadcasting industry. It’s the largest PRO in the United States, with 900,000 songwriters and 14 million registered musical compositions. BMI is a little flashier than ASCAP, with benefits that focus more on performances, tours, and awards shows. Those aren’t only fun, they’re excellent networking opportunities for independent musicians.
Songwriting camps and workshops for musicians
Membership discount to BMI affiliates
Discounted membership to the Songwriters Hall of Fame
Discounts on Billboard Latin Conference, Billboard touring conference, Video Games Live
The question of ASCAP or BMI for independent artists doesn’t have a definitive answer. There are minor differences between how they report or the extras they offer, but by and large both PROs offer the same services. ASCAP is perhaps a more intimate, communal experience, which may be ideal for an indie artist, especially one that lives in a music-focused city like Nashville or New York. BMI, on the other hand, is more business-like, which might be preferable for artists simply trying to manage a large catalog.
The best thing an independent artist should do is talk to fellow musicians about their experiences with both organizations and ask questions. Ask if they’ve ever made use of the benefits (and if so, which ones), if they found any of the workshops to be productive, and so on. Once you’ve chosen a PRO and gotten your first royalty report, sign up for your free trial of TrqkIQ Indie Edition for an even deeper dive into your data. Discover trends and opportunities that might otherwise lay hidden in page after page of spreadsheets. Trqk helps independent artists gain full understanding of their data, empowering them to make informed choices about their income. Get in touch today to learn more about what Trqk does and how we do it.