Performance Royalties & PROs
Performance royalties are paid to songwriters and music publishers when their compositions are publicly performed — including broadcast on radio and television, played in restaurants, clubs, and retail establishments, streamed on non-interactive services, and performed live. Performing Rights Organizations (PROs) — primarily ASCAP, BMI, and SESAC in the United States, plus SoundExchange for digital performance royalties on master recordings — collect and distribute these royalties through blanket licenses. Understanding PRO structures, rate-setting mechanisms, and distribution methodologies is essential for music attorneys advising songwriters, publishers, and music users.
Performance royalties are one of the most significant ongoing revenue streams for songwriters and publishers — often generating more income than mechanical royalties for active radio and streaming catalog. The PRO rate-setting system is complex and contested, with ongoing litigation over digital performance rates. Failure to register with a PRO means royalties go uncollected, and the distribution methodology — which determines how royalties are allocated among registered works — directly affects how much income a songwriter or publisher receives.
The exclusive right to publicly perform copyrighted musical compositions — the right licensed through PRO blanket licenses.
Federal consent decrees require ASCAP and BMI to offer licenses to all applicants at reasonable fees and prohibit certain anti-competitive practices. Currently under review by the DOJ.
Digital performance rights in sound recordings — SoundExchange collects digital performance royalties for master recordings (not compositions) from non-interactive streaming services, satellite radio, and internet radio.
The performance royalty landscape is actively evolving as streaming has become the dominant music consumption format. Non-interactive streaming (Pandora, internet radio, satellite radio) generates SoundExchange royalties for master recordings in addition to ASCAP/BMI royalties for compositions. Interactive streaming generates mechanical royalties (through the MLC) but not performance royalties in the traditional sense. The complexity of how different streaming services generate different royalty types is a source of ongoing confusion for songwriters and publishers.
Every songwriter should register with one of ASCAP, BMI, or SESAC before releasing music commercially — royalties for unregistered works go uncollected.
Advise songwriter clients that registration alone is insufficient — each song must be registered in the PRO's database to receive royalties. Regular catalog registration updates are essential.
SoundExchange collects digital performance royalties for master recordings separately from ASCAP/BMI — recording artists who record under their own name should register with SoundExchange directly.
PRO affiliation is permanent for the term of the agreement — songwriters cannot simultaneously be members of ASCAP and BMI. Choose based on catalog type, fee structure, and distribution methodology.
International performance royalties are collected by foreign PROs and remitted to U.S. PROs for distribution to U.S. members — confirm that a songwriter's PRO has reciprocal agreements with relevant foreign PROs.
PROs (ASCAP, BMI, SESAC) collect and distribute performance royalties for musical compositions — all songwriters should register with one.
SoundExchange collects digital performance royalties for master recordings separately — recording artists and labels must register independently.
ASCAP and BMI are governed by DOJ consent decrees that require them to license all applicants at reasonable rates.
Performance royalties from interactive streaming (Spotify, Apple Music) are separate from mechanical royalties — both must be tracked and collected.
Unregistered works and unreported catalog do not generate royalties — regular catalog registration is as important as initial PRO membership.
All three are performing rights organizations that collect and distribute public performance royalties for musical compositions. ASCAP is member-owned and non-profit; BMI is also non-profit. SESAC is a private for-profit company with selective membership. The main practical differences are distribution methodology, payment timing, and advances. A songwriter can only be a member of one U.S. PRO.
SoundExchange collects digital performance royalties for sound recordings (masters) — not musical compositions — from non-interactive digital music services including Pandora, SiriusXM, and internet radio stations. These royalties are split 50% to the featured recording artist, 45% to the label or master owner, and 5% to session musicians and background vocalists.
Yes — live concert performances of copyrighted compositions generate performance royalties, which venues typically pay through ASCAP and BMI blanket licenses. The live performance license fee is typically based on venue capacity and ticket price. Royalties flow to the songwriters and publishers of the performed compositions.