ASCAP vs BMI: Which PRO is right for you?
PROs make sure you get paid every time your song is played, so choose the best one for you
Every piece of music begins with a moment of inspiration, and hopefully ends with an appreciative listener. Along for the ride are a diverse group of people, from musicians to producers, who all deserve to be paid for their hard work. A performance rights organization (PRO) ensures performance royalties are collected and delivered to anyone entitled to them. But with two large and competing organizations to choose from in the US, ASCAP and BMI, how do you know which one is the right one for you?
Read on to find out.
What is a PRO?
A PRO (Performance Rights Organization) is the group that makes sure the parties who own performance rights for a piece of music are paid what they’re owed. An intermediary between the people who have the rights for a piece of music and those who play it, the PRO monitors how and when pieces are performed, ensures it’s being done legally, collects the royalties, and then distributes them.
A PRO’s bailiwick covers a fairly loose definition of “performance” — that means when a song is played on the TV or radio, when it’s performed live, when it’s streamed, and more. If you’re touring, PROs will also let you self-report your own performances and setlists, and make sure you’re paid for them that way, too.
Because the payment rates are not set by the PRO, the organizations also offer a variety of other advantages to a musical artist to entice them to choose one over the other.
Joining a PRO isn’t just a good idea, it’s a requirement for anyone who wants to collect performance royalties. Some digital streaming platforms will pay out to an artist directly, but for larger, industry-wide payments, you need to go with a PRO. And though there are two you can only belong to one at a time.
ASCAP vs BMI
The two biggest PROs in the United States are ASCAP and BMI. Other organizations handle performance royalties outside the US, while still others concern themselves with completely different kinds of royalties. Any artist or producer will almost certainly belong to several different organizations to ensure they’re collecting their fair share of all the royalties they’re owed worldwide. Let’s go over the players.
ASCAP
The American Society of Composers, Authors, and Publishers have been going since 1914, and have more than 800,000 members, including performers like Madonna, Phoebe Bridgers, Mariah Carey, and Dua Lipa. Despite those big names, ASCAP’s advantages come in the form of day-to-day useful benefits and tools. ASCAP offers:
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
Discounted membership to Songwriters Hall of Fame
ASCAP offers 1-year contracts, with a $50 joining fee for writers (who they define as “someone who creates a musical composition: the melody, harmony, lyrics, arrangements, beats, etc.”) and publishers (a person or company that handles the business side of music. Publishers may control the copyrights of a musical composition, licensing, etc.).
The organization distributes quarterly, but on different schedules for writers and producers, so if you’re registered as both, you may receive eight smaller payouts over the course of the year. ASCAP cites distributing 88 cents out of every dollar collected. If you set up direct deposits, they will distribute royalties of $1 or more directly into your account, or if you opt for checks, once you reach a $100 threshold.
BMI
BMI (Broadcast Music, Inc.) are the larger of the two PROs in the USA, currently representing more than 1.2 million artists — like David Byrne, Lil Nas X, and Dolly Parton. They offer some exciting opportunities for members, including:
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
It’s free to join BMI for songwriters, and individual publishers pay a one-time registration fee of $150, which increases to $250 for publishing companies. The contracts with BMI last for two years, compared to ASCAP’s one. BMI distributes royalties quarterly, at the same time for both writers and producers. The organization will distribute amounts greater than $2 via direct deposit, or $250 through check. If you’re using checks and don’t meet that threshold, the amount is rolled over into the next quarter, and if it remains below $250, at the end of the year all amounts over $25 are paid out. BMI distributes around 85% of each dollar collected.
Deciding between ASCAP and BMI will depend on what you personally need from the organization. Here are some of the things you should consider when making the call.
ASCAP or BMI for independent artists
As an independent musician, you don’t have a big recording company at your back to handle a lot of the bureaucracy of the industry. So, for better or worse, you’ll need to figure things out on your own. Both organizations have their own strengths, so it’s a matter of weighing up pros and cons for each.
ASCAP has day-to-day benefits that are important for artists who may not be able to get certain types of care through other avenues. Discounted health, dental, and instrument insurance are all huge deals if you’re spending an entire summer on the road in the back of an old van, wearing out your body and your guitar. ASCAP also has discounts on website design software, so that you can market yourself better, and workshops to further your career. If you’re just starting out, or doing music as a side project, the lower payout threshold will also mean money comes into your pocket more quickly.
The advantage to going with BMI lies perhaps in the networking opportunities that can come from being part of such a large organization. BMI has an expansive calendar of showcases and workshops, pushing to get their artists out there into the public view. Plus discounted tickets to large events are a great way to see and be seen.
For more help on choosing the right PRO for you as an independent artist, have a look at ASCAP or BMI: Which is Best For Independent Artists?
ASCAP or BMI for Producers
A producer’s role is often less well understood than that of a performer or songwriter. It might be as limited as just making a beat that gets used in a track all the way up to being the person who shapes the sound for the entire album, front to back. As a result, how payments work for producers can be confusing. But producers, as much as anyone else involved in making music, should sign up for a PRO in order to make sure they’re being fully and fairly compensated for their work.
For a producer, the more “industry-centric” side of working with BMI may make more sense to you, as it will potentially provide more opportunities to network with other musicians and find new artists who want you manning the boards on a piece of their music. ASCAP on the other hand may be more appealing if you want to focus on making sure you have a sustainable day-to-day life beyond just the music biz.
For more advice on making this choice for producers, read our full piece ASCAP or BMI for Producers: Finding the Right PRO for You.
ASCAP or BMI for rappers
Rappers, as much as any other musical artist, need to weigh the individual pros and cons of both PROs according to their own needs — there’s no immediately clear victor for performers of any genre. For hip hop artists getting their start in the music business, ASCAP’s strong presence in certain cities may make it a natural draw, as you work to get set up in one central location before starting your way to global stardom. ASCAP maintains a strong community presence in cities like Atlanta, Miami, New York, and Los Angeles, all of which are hip hop hubs.
BMI’s strength is in its ability to help you grow as an artist. BMI is run by broadcasters, and as such is well placed to get your music more aggressively into people’s ears. That, coupled with discounted tickets to award shows, conferences, and conventions make it a huge draw for artists actively growing and looking to connect with more people in the industry.
If you’re looking for more advice on making this decision, read over BMI or ASCAP for Rappers: Which is Better?
Regardless of what your role is in the music industry, or what style of music you make, having a membership to a PRO is an important part of making sure you get paid when your music gets played. And while neither ASCAP nor BMI is the clear winner over the other, there are enough differences between the two that might make a difference on a personal scale.
Once you’ve joined a PRO and started collecting royalties, TrqkIQ Indie Edition will help you dive deeper into your royalty reports so you can identify trends and uncover opportunities. It syncs seamlessly with either ASCAP or BMI so you can see who is licensing your music, and where. Get in touch today to learn more about how Trqk helps independent artists develop a better understanding of their data and empowers them to make informed decisions about their earnings.