Optimism

Performance royalties and PROs

A performance royalty is paid to the songwriter and publisher every time a song is played in public – on radio, TV, streaming, in a venue or a store. A performing rights organization (PRO) collects it. In the US that's ASCAP, BMI, SESAC or GMR, and a songwriter affiliates with one.

What a PRO collects

A performance royalty is owed whenever a composition is performed in public – not just a live show, but radio and TV airplay, every stream, and the music playing in bars, restaurants, gyms and stores. Tracking all of that individually would be impossible, so PROs license it in bulk: they sell blanket licenses to anyone who plays music, collect the fees, and distribute them to the songwriters and publishers whose work was played. This is the composition side – the recording is handled separately, through SoundExchange and neighboring rights.

The four US PROs

There are four: ASCAP, BMI, SESAC and GMR. A songwriter affiliates with one at a time. ASCAP and BMI are the two big ones and are open to any writer – that’s where most people start. SESAC and GMR are private and invitation-only, built around more established catalogs. One thing worth knowing: ASCAP is a not-for-profit membership group, while BMI was sold to private equity and now runs for-profit, so the old “they’re both non-profits” line is out of date. For a new writer, the practical move is just to pick ASCAP or BMI and get registered.

The writer's share and the publisher's share

Every performance royalty splits into two halves: the writer’s share (50%) and the publisher’s share (50%). The PRO pays the writer’s share straight to the songwriter – that part is easy. The publisher’s share is where money gets left behind. Depending on the PRO, a songwriter with no publishing entity may not be paid that half automatically. The safe move is to register your own publishing company with the PRO, or use a publishing admin that collects both shares for you – including overseas, where a lot of performance money hides.

The manager's job here

It’s simple but it’s constantly missed: make sure your songwriter is affiliated with a PRO, that every release is registered with the correct splits, and that the publisher’s share is actually being collected. A writer who’s only getting the writer’s share is leaving roughly half of their performance income on the table. For where this sits in the bigger picture, see the royalties guide.

Common questions

What is a PRO?
A performing rights organization. It licenses the public performance of compositions, collects the fees from radio, TV, streaming, venues and businesses, and pays songwriters and publishers. In the US the PROs are ASCAP, BMI, SESAC and GMR.
Which PRO should a songwriter join?
A songwriter affiliates with one PRO at a time. ASCAP and BMI are open to all and are the two big ones; SESAC and GMR are invitation-only. For most new writers the choice is ASCAP or BMI – compare their terms, but the important thing is to be registered with one.
What's the writer's share vs the publisher's share?
Performance royalties split 50/50 into a writer's share and a publisher's share. The PRO pays the writer's share to the songwriter directly. To collect the publisher's half, a self-published writer usually needs to register as their own publisher or use a publishing admin – otherwise that half can go uncollected.

Make sure every play gets counted

Performance royalties come from everywhere a song gets played. Optimism keeps the income organized so you can see what's landing and chase what isn't.

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