If you’re a songwriter, composer, or music publisher, you may be wondering whether you need both ASCAP and BMI licenses. These two organizations are the biggest performing rights organizations (PROs) in the United States, and they represent more than 90% of the music industry. While they offer similar services, they are separate entities, and it’s important to understand the differences between them.
ASCAP and BMI both offer licenses that allow businesses to play music in public. These licenses ensure that the creators of the music are compensated for the use of their work. While the licenses offered by ASCAP and BMI are similar, they represent different repertoires of music. Therefore, it’s possible that you may need to obtain licenses from both organizations to ensure that you have the necessary rights to play all the music you want. However, there are situations where only one license may be necessary.
Understanding ASCAP and BMI
ASCAP and BMI are two of the largest performing rights organizations (PROs) in the music industry. They are responsible for collecting and distributing royalties to songwriters, composers, and publishers for the public performance of their music.
ASCAP (American Society of Composers, Authors, and Publishers) was founded in 1914 and currently represents over 800,000 members. BMI (Broadcast Music, Inc.) was founded in 1939 and represents over 1 million members. Both organizations offer similar services, but there are some differences between them.
One of the main differences between ASCAP and BMI is their membership requirements. ASCAP requires potential members to have at least one work that has been publicly performed, while BMI does not have any such requirement. This means that BMI may be a better option for new and upcoming songwriters who have not yet had a public performance.
Another difference is the way that each organization calculates royalties. ASCAP uses a weighted system that takes into account the frequency of performances, the size of the venue, and other factors. BMI, on the other hand, uses a more straightforward system that is based on the number of performances.
It is important to note that while both ASCAP and BMI offer similar services, they do not represent the same catalog of music. Each organization has its own unique set of members and songs. Therefore, it may be beneficial to join both organizations in order to maximize your earnings.
ASCAP and BMI are two of the largest PROs in the music industry. They offer similar services but have some differences in their membership requirements and royalty calculations. It may be beneficial to join both organizations to ensure that you are receiving royalties for all of your public performances.
Why You Might Need Both
If you are a musician or composer, you may be wondering whether you need both ASCAP and BMI. While each PRO has its own strengths and weaknesses, there are some cases where it may be beneficial to have both.
Increasing Exposure
One reason to consider having both ASCAP and BMI is to increase your exposure as a musician. While both organizations work to license and collect royalties for their members, they have different affiliations with different industry professionals.
For example, BMI has a strong presence in the television and film industries, while ASCAP has a strong presence in the radio and live music industries. By having memberships with both organizations, you increase your chances of having your music heard and licensed in a variety of mediums.
Diversifying Royalty Streams
Another reason to consider having both ASCAP and BMI is to diversify your royalty streams. While the two organizations have similar functions, they may collect royalties from different sources.
For example, ASCAP may collect royalties from live performances and radio airplay, while BMI may collect royalties from television and film placements. By having memberships with both organizations, you increase your chances of collecting royalties from a variety of sources.
It’s important to note that having memberships with both organizations may also come with additional fees and administrative tasks. However, if you are serious about your music career and want to maximize your exposure and royalty streams, it may be worth considering having memberships with both ASCAP and BMI.
Potential Drawbacks
Costs
One of the potential drawbacks of having both ASCAP and BMI memberships is the cost. Joining both PROs means paying two separate membership fees, which can add up quickly. For independent musicians and songwriters, this can be a significant financial burden. It is important to weigh the potential benefits against the costs to determine if it is worth it for your specific situation.
Administrative Complexity
Another potential drawback of having both ASCAP and BMI memberships is the administrative complexity. Each PRO has its own set of rules and regulations, and keeping track of both can be time-consuming and confusing. Additionally, if you have music registered with both PROs, you will need to report your earnings and performances to both, which can be a daunting task.
To avoid administrative headaches, some musicians and songwriters choose to register their music with only one PRO. However, this means potentially missing out on royalties from the other PRO. It is important to carefully consider the administrative complexity of having both memberships and determine if it is worth it for your specific situation.
while there are potential drawbacks to having both ASCAP and BMI memberships, it ultimately depends on your individual needs and goals as a musician or songwriter. It is important to carefully weigh the pros and cons before making a decision.
How to Decide Between ASCAP and BMI
As an independent artist in the United States, you need to choose between ASCAP and BMI. Both organizations perform the same function, but there are a few differences between the two that you should consider before making a decision.
Here are some factors to consider when deciding between ASCAP and BMI:
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Membership Fees: ASCAP requires a one-time membership fee with no annual dues, while BMI charges an annual fee. Keep in mind that the fees for both organizations are tax-deductible.
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Affiliated International PROs: ASCAP is affiliated with several international PROs, including PRS for Music in the UK and SACEM in France. BMI is affiliated with only one international PRO, the international division of BMI.
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Members: ASCAP has a larger membership base than BMI, with over 700,000 members compared to BMI’s 1 million members. However, both organizations represent a significant number of songwriters and publishers.
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Service Provisions Based on Royalty Collection: ASCAP and BMI have different service provisions based on royalty collection. ASCAP collects royalties for public performances, while BMI collects royalties for public performances and mechanical rights.
Ultimately, the decision between ASCAP and BMI comes down to personal preference and what works best for your career. You can also choose to join both organizations, but keep in mind that you cannot use both at the same time for the same compositions.
It’s important to do your research and carefully consider your options before making a decision. Both ASCAP and BMI offer valuable resources and support for independent musicians, so take the time to determine which organization aligns with your goals and needs.
Conclusion
whether or not you need both ASCAP and BMI depends on your specific situation. Both PROs offer similar services, but they have different strengths and weaknesses. Here are some key points to consider:
- Licensing coverage: ASCAP and BMI have different catalogs of music, so it’s possible that one may have more of the music you need to license than the other. You should research both PROs’ catalogs to see which one is a better fit for your needs.
- Membership fees: Both ASCAP and BMI charge membership fees, which can add up if you belong to both organizations. If you’re on a tight budget, you may want to choose one or the other.
- Royalty rates: ASCAP and BMI have similar royalty rates, but they may vary slightly depending on the type of license you need. You should compare the rates of both PROs to see if one offers a better deal for your specific situation.
- Customer service: Both ASCAP and BMI have customer service departments that can help you with any questions or issues you may have. However, some users report that one PRO has better customer service than the other. You should research both PROs’ customer service reputations before making a decision.
Ultimately, the decision of whether or not to join both ASCAP and BMI is up to you. It’s important to carefully consider your needs and budget before making a decision. If you’re still unsure, you may want to consult with other professionals in the music industry to get their opinions and advice.
