Diving into the world of music production is thrilling, but it can also be complex, especially when it comes to the legal side, like choosing a performing rights organization. To new producers, understanding the difference between ASCAP and BMI and determining which to register with can be perplexing. So, let's get down an engaging exploration that clears the mist.
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Ascap or BMI for Producers Table of Contents
Differences Between ASCAP and BMI
What are ASCAP and BMI?
ASCAP (American Society of Composers, Authors, and Publishers) and BMI (Broadcast Music, Inc.) are two of the biggest performance rights organizations (PROs) in the US.
As a music producer, when your work is performed publicly, you're owed a public performance royalty, and these PROs collect and distribute these royalties to you.
Differences Between ASCAP and BMI
While serving the same purpose, these two entities have distinct characteristics:
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Ownership:
ASCAP is owned and run by its members (songwriters and publishers), whereas BMI operates as a non-profit making organization run by broadcasters.
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Fee:
BMI has no joining fee for songwriters while ASCAP charges a nominal fee.
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Royalty Calculation:
Their methods of calculating royalties differ and could affect your earnings.
Selecting Between ASCAP and BMI
Listed below are some factors to consider:
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Reputation and Preference:
Research each organization. See what others in your genre say about both PROs.
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Networking Opportunities:
Both offer networking opportunities and events. Look into what each offers in your niche.
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Potential Earnings:
Payouts vary. Investigate each organization's royalty calculation process.
Ascap or BMI for Producers Example:
Imagine you're an EDM producer. Your tracks are primarily played in clubs, and occasionally your compositions are featured on the radio or TV. In this case, a thorough look at how each PRO calculates royalties from each medium is required. For instance, BMI might offer higher radio royalties, but ASCAP might pay more for live performances.
Additionally, if the entrance fee is a significant consideration, BMI has an edge being entirely free to join. However, if you're looking for an organization run by creators for creators, ASCAP is your best bet.
Frequently Asked Questions
What are ASCAP and BMI?
ASCAP (American Society of Composers, Authors, and Publishers) and BMI (Broadcast Music, Inc.) are two of the largest performance rights organizations (PROs) in the United States. They are responsible for collecting performance royalties on behalf of songwriters, composers, and music publishers when their works are publicly performed – this includes live performances, radio play, TV broadcasts, and streaming services.
How do ASCAP and BMI differ?
While ASCAP and BMI perform similar functions in terms of collecting and distributing royalties, they have different governance structures, fee schedules, and distribution methods. ASCAP is a membership association governed by its members, whereas BMI operates on a nonprofit model but is not membership-based in the same way. Each has its own catalog of music and agreements with different songwriters and publishers.
Why would a music producer choose ASCAP or BMI?
A music producer might choose either ASCAP or BMI based on which organization they feel would best represent their interests. Factors to consider might include the ease of registration, customer service, how royalties are calculated and distributed, educational resources, networking events, and which organization has relationships with artists or other producers they admire or work with.
Can a music producer join both ASCAP and BMI?
No, a music producer cannot be a member of both ASCAP and BMI simultaneously. Producers must choose one PRO to join as an associate when it comes to representation for their performance rights.
Are there any genres or types of music that are better suited for ASCAP or BMI?
Both ASCAP and BMI represent a variety of genres and have extensive catalogs of music. The choice of PRO should not be based on the genre of music but rather on which organization aligns best with your specific needs and preferences.
How do ASCAP and BMI collect royalties?
ASCAP and BMI collect royalties by licensing establishments and services that publicly perform music. They track these performances through a variety of means, including digital monitoring, surveys, and logs submitted by music users such as radio stations, TV networks, and live venues. The collected funds are then distributed to their members as royalties.
How are royalties distributed?
Royalties are distributed based on a variety of factors including the frequency and context of music usage, the licensing agreements in place, and each PRO's specific royalty distribution formula. Both ASCAP and BMI aim to compensate members fairly for the public performance of their works.
What are the fees to join ASCAP or BMI?
ASCAP requires a nominal one-time membership fee for songwriters and publishers, while BMI does not require a fee to join for songwriters; however, there is a fee for publishers. These fees are subject to change, and it is best to consult each organization's official website for the most current information.
Do ASCAP and BMI offer any educational resources for music producers?
Yes, both organizations provide various resources, including industry events, panels, workshops, and online tools to aid in the career development of music producers and other members. They also provide information on best practices for royalty collection and music rights management.
How does one become a member of ASCAP or BMI?
To join ASCAP, you must apply through their website and pay the necessary fee. BMI has an online affiliation process as well, which is free for songwriters. The application requires basic personal information, as well as details about your musical works.
How long does it take to receive royalties after joining ASCAP or BMI?
After joining, it might take several months to a year to receive royalties due to the time it takes to process performances and the schedules for royalty distributions. Each organization follows a set timetable for sending out payments, which is published on their respective websites.
What percentage of royalties do ASCAP and BMI take?
ASCAP and BMI usually take a small percentage of the royalties to cover their operating expenses. This percentage can vary and is used to fund their operations so that they can continue to collect and distribute royalties on behalf of their members. The specific rates should be checked on their official websites.
What kind of customer support do ASCAP and BMI provide?
Both ASCAP and BMI offer customer support to their members via phone and email. They also have dedicated staff to handle specific inquiries related to membership, royalty collection, and distribution. Additionally, their websites offer a range of support materials and FAQs.
Can producers get retroactive payments for performances prior to joining ASCAP or BMI?
It is unlikely to receive retroactive payments for performances that occurred before you joined either ASCAP or BMI unless those performances fall within a certain timeframe that each organization allows for retroactive royalty claims. Check with each PRO for their specific policies regarding retroactive royalties.
What happens if my music is played internationally?
ASCAP and BMI have reciprocal agreements with foreign PROs, which allow them to collect royalties on behalf of their members for performances that happen outside the United States. These international royalties are then distributed to the members through ASCAP or BMI.
How does online streaming affect my royalties with ASCAP or BMI?
Online streaming services are licensed by ASCAP and BMI to play their members' music, and royalties from streaming are collected and distributed in a similar way to traditional broadcasting. Each stream counts as a public performance and is factored into the royalty calculation.
Are there alternatives to ASCAP and BMI?
Yes, there are other PROs, such as SESAC and the relatively new GMR (Global Music Rights), that composers, lyricists, and publishers can consider. Each PRO has its own unique benefits, and research should be done to determine which best fits an individual's needs.
Can ASCAP or BMI help in resolving copyright disputes?
While ASCAP and BMI do not typically mediate copyright disputes directly, they do have resources to help members understand their rights and obligations under copyright law. It may be recommended to seek legal counsel for specific copyright disputes.
Does affiliate status with ASCAP or BMI affect my rights to my music?
No, joining ASCAP or BMI as an affiliate does not affect your rights to your music. Membership with these organizations is about ensuring you receive the performance royalties you’re due, while maintaining full ownership of your works.
How often are royalty payments made by ASCAP and BMI?
ASCAP and BMI distribute royalties on a quarterly basis. The payments are typically made a few months after the end of each quarter to allow for processing time. The exact distribution schedule can be found on the websites of ASCAP and BMI.
Can I leave ASCAP or BMI if I'm dissatisfied?
Yes, both ASCAP and BMI have processes for members to terminate their affiliation. There are specific conditions and notice periods required to do so. It’s important to review your membership agreement and contact the organization for guidance on the process.
Deciding between ASCAP and BMI as a producer might seem tricky, but with careful consideration of your specific needs and preferences, you can make the right choice. Remember, the performance rights organization you choose can significantly impact your music career. Enjoyed reading this article? Feel free to share it with fellow producers or artists. For more fascinating insights, continue exploring Lyric Assistant's guides on music production.
