The Simple Guide to Understanding Performance Rights Organizations
For independent musicians who don’t have a manager, a label, or a publisher the three words “Performance Rights Organizations” are most likely a mystery. Hell, even if you do have all three of those things you might be scratching your head right now. We are going to change that today, in five minutes or less.
We are going to change that today, in five minutes or less.
WTF IS A PERFORMING RIGHTS ORGANIZATION?
A performance rights organization (commonly referred to as a PRO) collects public performance royalties on behalf of artists, labels, and publishers.
In layman’s terms; they collect monies that are owed to you and make sure that you get them.
ARE THERE DIFFERENT KINDS OF PERFORMANCE ROYALTIES?
Glad you asked! There are two different types of performance royalties: traditional performance (e.g. terrestrial radio, live performance, sync, etc.) and digital performance (e.g. digital and streaming radio [Pandora, SiriusXM, IHeartRadio, Slacker, etc.])
WHO ARE THE TRADITIONAL PROs?
There are three PROs that collect ‘traditional’ public performance royalties in the U.S. ASCAP, BMI, and SESAC. You can belong to only one of these, so I would recommend doing some research on them, and choosing the one that fits you the best.
Important to note that SESAC is actually a private PRO meaning you need an invitation, or to apply with no guarantee of acceptance, to be represented by SESAC. ASCAP and BMI however, are not as exclusive. Simply fill out the proper paperwork online, pay the one-time submission fee, and you are good to go.
WHO ARE THE DIGITAL PERFORMANCE PROs?
There is only one PRO that collects digital performance royalties in the U.S. and that is Sound Exchange. In fact the digital performance royalty is only twenty years old! Want to know the best thing about Sound Exchange? It’s free to register. So go sign up right now, especially if you have music online that could potentially be streamed on the services I listed earlier.
WHY SHOULD YOU JOIN?
Do you like money? Do you want music to be your career? Royalties are an important part of your income as an artist. The more streams of revenue you have the better.
PROs help you make the money that is legally owed to you for the use of your copyrights and help your fellow artists get paid when you use their copyrights. Even if it’s only twenty dollars a month, that money is owed to you damn it!
HOW DO YOU GET PAID?
1. Step one register for one traditional PRO, and Sound Exchange.
2. Step two register your works with them.
3. Step three the PROs monitor the use of your works (when played on the radio, performed live*, synced on TV or in movies, or streamed on digital or satellite radio).
4. Step four receive payment via check, or direct deposit, according to your PROs payment scheduling.
*If you have your works registered with ASCAP, or BMI (I’m sure SESAC as well) and you are performing your own songs at a music venue that pays the ASCAP and BMI licensing fees, you are entitled to a chunk of it. You can report the performance of your works, as well as others works, to ensure that everyone who deserves payment gets paid.
NOW OVER TO YOU!
- Do you have any questions about PROs still? If so let me know and I will do my best to answer them as quickly as possible.
- If you liked this article then please recommend it on Medium, share it with your friends, and make sure to follow for more articles like this on the music business.
Thank you so much for taking the time out of your day to read this. I hope it has been helpful.
