What are “performing rights” organizations (i.e.: ASCAP, SESAC, BMI) and what is the best strategy for selecting a performing rights company?
Performing rights organizations (PROs) are societies that collect royalties for songwriters and publishers in connection with the public performances of their works, including on radio and television, in bars and restaurants, at retail stores and concert venues.
When affiliating with a PRO, a songwriter grants the organization permission to issue licenses for such uses, and the PRO pays each of its members a share of the license fees it collects based on sampled performances and various other factors.
ASCAP and BMI are both non-profit societies, meaning that all monies available after paying company expenses is distributed among its members. SESAC is privately owned and operates for a profit; it is by far the smallest of the three US societies.
PROs often provide services to develop the careers of their members, such as connecting members with other songwriters or promoting their writers at showcases. Royalty reporting is not particularly transparent, so it’s difficult to determine which society may pay you more for your works before affiliating — they each have different licenses with broadcasters and calculate distributions differently (for example, some pay out “hit bonuses” for songs performed a certain number of times in a quarter).