Tale of the tape: BMI vs. ASCAP
There are four major performing rights organizations (PRO), with the two largest being Broadcast Music, Inc. (BMI) and the American Society of Composers, Authors and Publishers (ASCAP), so which one is better?
WordPlay T. Jay recently changed his publishing administrator to TuneCore, and an email from the company saying his PRO was missing led him to do some more research about the two biggest companies.
Originally, T. Jay was with the Society of European Stage Authors and Composers, a PRO that requires artists to be invited or apply for membership. T. Jay sent a request and was accepted, and after a few years, decided to switch to ASCAP. Now, he is looking more into BMI, which is a society put together by broadcasting companies and recommended by TuneCore.
Embarking on his research quest, T. Jay found a video by Tynia Coats, who spent many years in the music industry and had some inside information about the PROs.
Coats said one of the biggest differences between BMI and ASCAP is how many countries they are registered in. ASCAP has 83 foreign agencies compared to BMI’s 93.
T. Jay also researched revenue and payouts from each company. ASCAP earns $1.27 billion and pays out $1.18 billion, while BMI brings in $1.28 billion and pays out $1.19 billion — a 92.9 percent payout rate for both companies. T. Jay said for him, that didn’t make much difference.
One other thing Coats mentioned was the contracts. She said ASCAP has some foggy and vague terms, and it keeps the right to change the contract at any time. BMI, on the other hand, is more transparent to its clients.
The ways to leave each group are different, as well. For ASCAP, there is a three-month window correlating to the date on which you sign up that you may opt out of renewing a year-long contract.
For BMI, you have to notify the company you are leaving six to three months prior to the end of your contract.
“It’s clear BMI seems to be the winner, but the margin is so slim,” T. Jay said. “BMI is also the largest PRO, and ASCAP is No. 2. I’m not giving suggestions on who to join. You have to do what’s best for you.
“But, think about what BMI has to offer with the 10 more foreign agencies. On the other hand, it’s only a 10-country difference right now. ASCAP may catch up and you might get more down the road if you stick where you are.”
T. Jay added everyone should have a PRO if they make music, but artists only need publishing administration, like TuneCore, if they manage a lot of artists or have to register a lot of songs.