Performing rights organizations and how they pay musical artists

Performing rights organizations (PROs) play a crucial role in ensuring that musical artists are fairly compensated for the use of their music. These organizations collect royalties on behalf of songwriters and composers when their music is played or performed in public, and then distribute those royalties to the rightful owners. In this blog post, we’ll take a closer look at how PROs work and how they pay musical artists.

What are Performing Rights Organizations?

Performing rights organizations are entities that are responsible for collecting and distributing royalties for the public performance of musical works. In the United States, there are three main PROs: ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music, Inc.), and SESAC (Society of European Stage Authors and Composers). These organizations represent hundreds of thousands of songwriters, composers, and publishers, and are responsible for collecting and distributing royalties for the public performance of their works.

How Do PROs Collect Royalties?

PROs collect royalties for the public performance of music in a variety of ways. They track the use of music on TV and radio, in live performances, in restaurants and bars, and in other public places. They also collect royalties for the use of music on streaming platforms like Spotify and Apple Music.

When a song is played or performed in public, the venue or broadcaster is required to obtain a license from the PRO that represents the songwriter or composer. The license allows the venue or broadcaster to use the music, and the PRO collects a fee for the license. The fee is then distributed to the songwriter or composer in the form of royalties.

How Do PROs Pay Musical Artists?

PROs distribute royalties to their members on a regular basis, typically quarterly or semi-annually. The amount of royalties paid to each member is based on a number of factors, including the number of times their music was played or performed, the type of use (e.g., TV, radio, live performance), and the size of the venue or audience.

PROs also offer a variety of tools and resources to help musical artists track their royalties and manage their music catalog. This includes online dashboards that allow artists to see how their music is being used and how much they are earning in royalties.

Performing rights organizations play a vital role in ensuring that musical artists are fairly compensated for the use of their music. By tracking the use of music in public and collecting royalties on behalf of songwriters and composers, PROs help to ensure that artists can continue to create and share their music with the world. If you’re a musical artist, it’s important to understand how PROs work and how they can help you earn money from your music.