why was bmi formed as an alternative to ascap? course here

by Lucie Rolfson 5 min read

BMI was started as a more affordable alternative to ASCAP, instantly bringing competition and giving radio stations, and other businesses an alternative. In 1941, most radio stations in the U.S. cut ties with ASCAP and went to BMI.

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Should you join BMI or ASCAP?

Aug 28, 2021 · BMI also looked for artists that ASCAP overlooked and purchased catalogs from independent music publishers and artists whose ASCAP contracts were nearing expiration dates. To attract new talent, BMI offered to compensate artists using a fixed performance fee, instead of using a tiered system like ASCAP.

What are the alternatives to ASCAP?

ASCAP defines a blanket license as an agreement between a PRO and a business, allowing that business to play any item within that PRO's library. Rather than submitting playlists and getting permission to play each song on that playlist, a business can work on one agreement to play absolutely anything. In some cases, it is the most efficient way ...

What is the difference between BMI and SESAC?

Feb 18, 2020 · Again, BMI gets a slight edge for songwriters here: joining BMI is free for songwriters, while ASCAP requires a one-time $50 fee. However, if you’re a publisher, then you may want to go with ASCAP: joining ASCAP as a publisher is only $50, but BMI charges $150 for individual publishers and $250 for publishing corporations.

How much does it cost to join ASCAP?

Feb 03, 2021 · Most independent artists and songwriters in the US are likely to choose BMI, simply because it’s free to register. The differences are chiefly in the organization model and the company culture. Because ASCAP is slightly smaller and is owned and operated by its members, they’re very democratic, communal, and transparent in everything they do.

Why is BMI better than ASCAP?

BMI and ASCAP are very similar in how they collect and payout performance royalties, and have similar perks and benefits, but the lack of signup fees and faster payouts can make BMI a slightly smarter choice for songwriters.Feb 18, 2020

What is the purpose of BMI and ASCAP?

BMI and ASCAP are performance rights organizations (PROs) that serve to protect the interests of songwriters. Anyone who plays songs publicly is required to pay royalties to the songwriter if that songwriter has indicated they desire payment and they are a member.Oct 11, 2019

What's the difference between BMI and ASCAP?

It gets a little confusing, but they're essentially talking about the same money split up in exactly the same way. It's just that ASCAP uses percentages that are based on total performance royalties (thus 50/50), while BMI splits those halves FIRST, and then distributes 100% of each half to the appropriate entities.]Dec 19, 2014

Which PRO is better ASCAP or BMI?

ASCAP is the oldest and second-largest PRO in the US with great benefits, at a $50 registration fee. However, they do take the longest to pay out royalties at 6,5 months after the end of each quarter. BMI is the largest PRO in the US, with free registration but fewer benefits than the others.Jan 8, 2020

Did BMI and ASCAP merge?

New York – (July 26, 2017) – ASCAP and BMI, the nation's two leading performing rights organizations, have joined forces to create a single, comprehensive database of musical works from their combined repertories that will deliver an authoritative view of ownership shares in the vast majority of music licensed in the ...Jul 26, 2017

What is the role of ASCAP and BMI in the recording industry quizlet?

Rights Organizations or PROs (in the US that's BMI, ASCAP, and SESAC) collect songwriting performance royaltiesfrom music users, and then pay songwriters and rights holders (publishers).

Does BMI collect royalties from other countries?

BMI has reciprocal agreements with performing rights organizations (PROs) throughout the world that allow those PROs to license your works and collect fees on your behalf when your music is performed outside of the United States.

Can I be a writer with BMI and a publisher with ASCAP?

Yes, a BMI writer can have an ASCAP publishing entity.Apr 24, 2017

What is BMI used for in music?

ASCAP stands for is the American Society of Composers, Authors, and Publishers and BMI stands for Broadcast Music Inc. ASCAP is a membership association that has over 400,000 composers, songwriters, music publishers, and lyricists from the United States.

What are the PROs and cons of using BMI to measure body composition?

Body Mass Index Advantages and DisadvantagesAdvantages: Accurate Measurements Across a Group.Disadvantage: BMI Misses Normal Weight Obesity.Disadvantages: BMI Overestimates Risk for Some.Take a Holistic Approach to Measurements.

What are the benefits of ASCAP?

As an ASCAP member, you get an exclusive package of benefits, designed to make your life as a music professional a little bit easier.Wellness.Creation Tools & Gear.Education.Instrument & Studio Insurance.Marketing.Merchandise.Travel.

What does BMI do for songwriters?

BMI collects performance royalties owed to songwriters and publishers. A “public performance” of a song you wrote is when: You or another performer plays your song at a concert. A public place (like a brewery or restaurant) plays your song over the sound system.Oct 11, 2021

Who is the BMI?

ASCAP is home to big names like Justin Timberlake, Katy Perry, and Ariana Grande while BMI represents Lady Gaga, Taylor Swift, and Kendrick Lamar.

What is BMI compensation?

To attract new talent, BMI offered to compensate artists using a fixed performance fee, instead of using a tiered system like ASCAP. Consequently, BMI drastically expanded their scope, representing artists from gospel, blues, jazz, county, folk, and rock and roll.

What is a performing rights organization?

Performing rights organizations ( PROs) exist to help musicians manage the licensing and rights to their work, so they get the royalties they are entitled to. Two of the biggest in North America are the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI). If you’re a musician and looking for a PRO ...

How does BMI work?

BMI works similarly to ASCAP. It collects license fees from businesses that want to use its artists’ recordings and distributes them as royalties. Its catalog includes more than 15 million songs from more than one million artists across many genres.

When was ASCAP started?

ASCAP was one of the first PROs. It was started back in 1914 as a non-profit that protected its members’ copyrighted music from being performed in public. This eventually included radio, television broadcasts, as well as live performances.

How many members does BMI have?

Today, BMI represents more artists and songs than ASCAP, though ASCAP numbers remain extremely impressive. BMI has a million members and about 15 million songs, while ASCAP has about 735,000 members and 11.5 million songs. Payments from the two are pretty similar.

When was BMI founded?

BMI was founded in 1939 as an alternative to ASCAP. That year, ASCAP announced that radio stations would have to pay for a blanket license, which gave them a fixed percentage of the station’s revenue, regardless of how many songs were played from ASCAPs catalog.

What is blanket license?

ASCAP defines a blanket license as an agreement between a PRO and a business, allowing that business to play any item within that PRO's library. Rather than submitting playlists and getting permission to play each song on that playlist, a business can work on one agreement to play absolutely anything.

How many channels does SiriusXM have?

SiriusXM, for example, was once known for music that played in cars across the country. Now, the company offers a Music for Business program with 30 channels made for business. There is no customization allowed for these channels, as they run from a satellite.

Can you play music with a pro?

If working with a PRO sounds confusing, you're not wrong. In order to get full protection for the music you want to play, you might need to spend hours on negotiations and compliance. And even then, there are times when you won't be protected. The costs can also add up as you include more and more of these PROs and blanket licenses.

What is a BMI?

Now, let’s take a closer look at those collection societies: 1. BMI. BMI is a nonprofit organization that was founded in 1939 (oh, how different the music industry was then), and is the largest of the PROs.

What are the benefits of BMI?

Songwriters can join BMI for free, while individual publishers must pay $150 and publishing companies must pay $250. Membership with BMI comes with a number of benefits, including: 1 Songwriting camps and workshops for musicians 2 Membership discount to BMI affiliates 3 Discount for songwriters Hall of Fame 4 Discounts for many songwriting apps and services 5 Discounts on Bilboard Latin Conference, Billboard touring conference, Video Games Live

What is a SESAC?

3. SESAC. Unlike BMI and ASCAP, SESAC is a for-profit organization that was founded in 1930. Much smaller than the two above PROs on this list, SESAC represents over 30,000 songwriters and 400,000 musical compositions. In 2016, SESAC collected between $400-500 million in licensing fees.

How does AMRA work?

Typically, royalties travel through a complicated pipeline that not only takes a long time but also loses some of the royalties in the process. AMRA cuts out the intermediaries — collecting royalties directly — and uses an advanced technological approach to minimize errors and enhance efficiencies.

Is every dope artist a member of a pro?

Every dope artist you’ve ever heard of is a member of a PRO, and every time you’ve heard that artist’s most famous songs in public it’s probably earned them bank thanks to a PRO. Joining one is more or less a necessity for songwriters, so here are the basics.

Is ASCAP free?

Unlike BMI, ASCAP isn’t quite free: songwriters have to pay $50 to join, though the price for publishers is also $50 (a bit lower than BMI). Here are some of the perks you get with an ASCAP membership: Membership in MusicPro program, which provides discounts on health, dental, instrument, and life insurance.

How long has BMI been around?

It’s been around since 1939 , and represents over 900,000 members. Here are some key highlights of their model, and the added benefits of signing with BMI: It’s completely free to apply for membership at BMI. After you’re accepted, you are locked in for two years at a time.

How much does it cost to join ASCAP?

To join ASCAP, members pay a one-time application fee of $50, and after that, contracts are renewed annually at no cost. Quarterly payments go out to writers each year. Royalties are usually sent for performances that took place about two quarters ago. They pay 88% of collections to their members.

What are the benefits of BMI?

BMI is the largest PRO in the US. It’s been around since 1939, and represents over 900,000 members. Here are some key highlights of their model, and the added benefits of signing with BMI: 1 It’s completely free to apply for membership at BMI. After you’re accepted, you are locked in for two years at a time. 2 Quarterly payments go out to writers each year. Royalties are usually sent for performances that took place about two quarters ago. 3 They pay 88% of collections to their members. Payouts are split evenly between publishers and writers (that unfortunate publisher’s share mentioned earlier, which writers are unable to collect on their own). 4 You can register all of your compositions online. 5 New BMI writers have plenty of opportunities to expand their network and hone their craft: workshops, showcases, scholarships, grants, etc. 6 BMI is affiliated with a few of the flashier organizations such as Billboard, and members are offered special access and discounts to awards shows, conferences, and festivals, as well as discounts on musical goods and services such as ArtistShare and FanBridge.

What is the oldest pro in the US?

ASCAP is the oldest PRO in the US. It’s been around since 1914, and has since grown to represent over 800,000 members. Here are some key highlights of their model, and the added benefits of signing with ASCAP:

What is composition royalties?

Composition royalties are songwriting royalties, earned by the somewhat abstract notion of the composition. A composition is defined loosely by its lyrics and/or melody, and you can think of it as, essentially, the song itself, an entity separate from any specific performance or recording of it.

What is a pro in music?

In short: a PRO hunts down the places your music is performed, and makes sure you get paid for it.

What is the right to copyright a song?

Intellectual properties, like songs, are protected from theft by copyrights. If you write a song or create a recording, you own its copyright, which essentially gives you the sole permission to use, record, perform, distribute, and profit from it.

ASCAP

The American Society of Composers, Authors and Publishers (ASCAP) is a not-for-profit organization. It is unique in that it's controlled entirely by the composers, writers, and music publishers that make up its membership. Launched in 1914, ASCAP is the oldest of the "Big Three" by about 16 years.

BMI

Broadcast Music, Inc. (BMI) is also a not-for-profit organization that represents over 12 million musical works from over 750,000 artists.

SESAC

SESAC is the only for-profit private company among the "Big Three" PROs. Based out of Nashville, SESAC serves around 400,000 musical works from over 30,000 affiliated writers.

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When did BMI start?

BMI officially began on October 14, 1939.

What is an ASCAP license?

ASCAP, the pre-eminent royalty/licensing agency for more than two decades, required radio stations to subscribe to "blanket" licenses granting ASCAP a fixed percentage of each station's revenue, regardless of how much music the station played from ASCII's repertoire .

Who founded the ASCAP?

ASCAP was founded on February 8, 1914 by a group of nine composers and publishers among them Raymond Hubbell, Victor Herbert, publishing representative George Maxwell, copyright attorney Nathan Burkan banding together with several others to formalize procedures for licensing for public performance of music.

What was the role of radio in the 1930s?

In the 1930s, radio was coming to prominence as a source of musical entertainment that threatened to weaken record sales and opportunities for "live" acts. The Great Depression was already draining artist revenues from recordings and live performances.

When did copyright laws change?

This was especially true after copyright laws were expanded in 1897 to include royalties for performance of songs along with the sale of sheet music. The new law said that consent must be given from the copyright holder before it could be used in a public performance. Not to do so would open up the user to damages.