ASCAP or BMI for Producers: Finding the Right PRO for You
Learn which major US performing rights organization is better for producers
Producers are masterminds. These multi-talented professionals oversee an entire musical project and often contribute to every element of its creative process. It’s a hard job, and it deserves fair compensation.
One of the most important steps a producer can take to ensure they’re earning what they deserve is becoming a member of a performing rights organization (PRO). But this choice is complex, as each PRO has differences that producers need to understand before signing up. Exploring and comparing America’s biggest PROs, this article will help you decide between ASCAP or BMI for producers.
What is a PRO?
Performing rights organizations (PROs) are intermediaries between musical rights holders and the people or organizations that want to use copyrighted music as part of a public performance. Whether the performances are live or part of a broadcast, PROs attempt to track when music covered by a performance royalty agreement is used, collect the appropriate fees, and distribute those fees to the rights holders. Singers, songwriters, composers, and producers often join PROs to ensure they get the proper return on their creative labor. In fact, they can’t collect performance royalties until they do.
What are the major PROs?
The two most important PROs in the US are the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI).
ASCAP was founded well over 100 years ago, making it the more established of the two. But the PRO is still massive, with membership exceeding 800,000 and a portfolio of over 16 million compositions. ASCAP provides many services, but overall the organization offers the practical support music pros need to succeed.
BMI is the larger of the two organizations, serving over 1.2 million artists and covering almost 20 million musical works. Instead of emphasizing the pragmatic, BMI caters to the creative aspects of an artist’s work-life
With the basics covered, let’s take a closer look at how the two organizations stack up.
ASCAP or BMI for producers: key differences
Unfortunately, producers cannot belong to both PROs at the same time, so you’ll need to choose. To help you figure out which organization best suits your needs and career vision, we’ve outlined how they compare in three aspects: membership process, support, and payment practices.
Membership process
ASCAP membership is for producers who want lower commitment. While producers only need to pay $50 to become registered songwriters or publishers with ASCAP, they must sign a somewhat opaque membership contract. ASCAP’s contract relies on numerous supporting documents that are subject to change to define the agreement. While there isn’t much need for concern, this aspect of the PRO is worth noting for producers who want a complete handle on their legal relationships. If you do find yourself wanting a change, you don’t have to wait long: ASCAP’s contracts last only one year.
BMI membership is for producers that like higher transparency. BMI fees vary by category: Writers can join for free; independent publishers have to pay $150, and publishing companies need to fork over $250. BMI’s contract is clear and contained, so producers who choose this PRO can be sure they know all the terms. But this transparency comes with commitment, as BMI has a two-year membership requirement.
Support
ASCAP’s benefits provide for the producer as a person. The PRO helps its members get many of the perks modern professionals expect out of a career. This includes insurance coverage, discounted lodging and transportation, and banking services through US Alliance Federal Credit Union. ASCAP is a strong choice for producers who want a PRO offering support for the practical aspects of the artist’s life.
BMI’s benefits empower the producer as a creator. The PRO provides numerous opportunities for its members to grow their craft and connect to other industry professionals. These benefits include passes to award shows and other industry events, tickets to training opportunities, discounted access to tools, and much more. If you’re a producer who wants a PRO that will inspire you to improve as an artist, then BMI will undoubtedly have an edge.
Payment practices
ASCAP’s payment process is preferable for producers unsure of their earnings potential. If you’re a member of this PRO, you can receive your payment as a check or a direct deposit. ASCAP waits for your royalties to hit $100 before they send over a check and $1 before they make a direct deposit. ASCAP distributes royalty payments every three months, but they pay writers and publishers on slightly different schedules. Consequently, producers that are both will end up receiving eight payments in a given year.
BMI’s payment process is better for producers expecting higher cash flow. If you join BMI, you can elect to receive your quarterly payment via check or direct deposit. To get a check, your work has to net at least $250; to get a direct deposit, you need to have earned $2 via performance royalties. If a check is your method of choice and you haven’t hit $250 yet, you can still collect the money: You’re just going to have to wait. As long as your royalties exceed $25, you’ll get your payment at the end of the year. It’s also important to note that BMI pays writers and publishers on the same schedule, so you’ll end up receiving fewer total payments if you sign with them.
If you’re wondering about your royalty earnings potential, we suggest reading How Much Do Musical Artists Make In Royalties?
ASCAP or BMI for producers: making the choice
Each of America’s biggest PROs has its advantages. ASCAP is lower commitment, provides practical support, and has a low bar for fund distribution. BMI has a clearer contract, cultivates artistic aims, and pays out efficiently. A balanced assessment of your risk tolerance, professional needs, and financial preferences should help you decide which organization is best for you.
Regardless of this decision, all producers should broaden their performance royalty collection strategy beyond PROs. The explosion of modern media channels has made it very difficult for these organizations to adequately recover all the revenue producers earn from their performance royalties. This means that music pros should partner with innovative firms that have developed tools for the new era of music.
That’s why Trqk developed TrqkIQ: a music royalty platform custom-built to find revenue opportunities that PROs miss. TrqkIQ combines data science and business intelligence to provide a holistic view of your performance royalties, allowing you to discover hidden earnings and grow your business. Reach out today to get started.