ASCAP vs. BMI: What Every Musician Needs to Know

ASCAP and BMI are the two largest performance rights organizations (PROs) in the United States, responsible for collecting and distributing public performance royalties to songwriters, composers, and publishers. While both serve the same fundamental purpose, they differ in membership structure, royalty calculation methods, and additional benefits, making the choice between them a critical decision for musicians.

Etymology / Origin

The American Society of Composers, Authors and Publishers (ASCAP) was founded in 1914 by a group of prominent composers, including Victor Herbert and John Philip Sousa, to protect the rights of music creators. At the time, songwriters had no way to collect royalties when their works were performed publicly, leading to widespread uncompensated use. ASCAP established the first blanket licensing system, allowing venues to pay an annual fee for unlimited access to its catalog. This model became the foundation for performance rights management worldwide.

Broadcast Music, Inc. (BMI) emerged in 1939 as a competitor, created by radio broadcasters who felt ASCAP’s fees were too high. BMI offered lower rates and actively sought out genres that ASCAP had overlooked, such as country, blues, and early rock ‘n’ roll. The rivalry intensified during the 1940s when ASCAP attempted to double its rates, leading to a boycott by radio stations that instead played BMI-licensed music. This period forced ASCAP to negotiate and ultimately diversified the music landscape. Today, ASCAP and BMI together represent the vast majority of music performed in the U.S., with ASCAP boasting over 800,000 members and BMI over 1.1 million. A third, smaller PRO, SESAC, also operates but is invitation-only and not covered by the same consent decrees.

How It Works

Performance rights organizations act as intermediaries between music users (venues, broadcasters, streaming services) and rights holders (songwriters, composers, publishers). When a song is performed publicly—whether live, on the radio, on TV, or streamed—the PRO collects a licensing fee from the user and distributes it as royalties to the affiliated writers and publishers. The key distinction is that PROs only handle the performance right for the musical composition (the notes and lyrics), not the sound recording itself, which is managed by organizations like SoundExchange.

ASCAP and BMI both issue blanket licenses, which grant the licensee access to the PRO’s entire catalog for a set fee, typically based on the size and type of the business. For example, a small coffee shop might pay a few hundred dollars annually, while a major television network pays millions. The PROs then use different methods to determine which songs were performed and how to allocate the collected fees. ASCAP employs a combination of census tracking (for digital and major broadcast) and sample surveys (for smaller venues and radio), while BMI relies more heavily on sample surveys and digital monitoring, supplemented by member-reported performances through its BMI Live program. Royalties are split 50/50 between the writer and publisher shares. If a songwriter is self-published, they can collect both shares by registering as both writer and publisher with the PRO. Both organizations deduct a small percentage for administrative costs before distributing royalties, typically on a quarterly basis for ASCAP and monthly for certain BMI income streams.

Legal & Licensing

The legal framework for PROs in the U.S. is governed by the Copyright Act, which grants copyright owners the exclusive right to perform their works publicly. PROs operate under consent decrees with the Department of Justice, originally put in place in 1941 to prevent anti-competitive behavior. These decrees require ASCAP and BMI to offer non-exclusive licenses and to submit fee disputes to a federal rate court if negotiations fail. The consent decrees have been periodically reviewed, most recently in 2019, with ongoing debates about whether they should be modified to reflect the digital age.

For musicians, understanding licensing is crucial. When you join a PRO, you grant it the non-exclusive right to license your public performances. This means you cannot directly license those rights to a venue that already holds a blanket license from your PRO. However, you can still issue direct licenses for uses not covered by the blanket license, such as synchronization (music in video) or mechanical reproductions. The Music Modernization Act of 2018 further clarified digital licensing and created a new collective for mechanical royalties, but it did not fundamentally alter the PRO system. Venues, from concert halls to restaurants, are legally required to obtain performance licenses if they play music publicly. Musicians performing their own songs in these venues are entitled to royalties, which the PRO collects and distributes. It is important to note that PROs only collect for the composition, not for the sound recording.

Planning Checklist

Choosing between ASCAP and BMI requires careful consideration. Here is a step-by-step checklist for musicians:

1. Assess your genre and network. Research which PRO is more prevalent in your musical community. For example, ASCAP has a strong presence in film/TV and classical music, while BMI is dominant in pop, rock, and R&B. However, both represent all genres.
2. Compare membership fees. ASCAP charges a one-time $50 fee for songwriters (no annual dues), while BMI is free for songwriters. Publishers pay fees to both, but the structures differ.
3. Evaluate royalty distribution methods. If you perform live frequently, BMI’s BMI Live program allows you to report setlists directly for potential royalties. ASCAP also collects live performance data but relies more on venue reports and surveys.
4. Consider international reach. Both have reciprocal agreements with foreign PROs, so your royalties will be collected worldwide regardless of which you choose.
5. Review additional benefits. ASCAP offers workshops, awards, and advocacy programs; BMI provides similar resources, including showcases and networking events. Look at which aligns with your career goals.
6. Register your works promptly. Once you join, register all your songs with the PRO to ensure they are tracked. Keep your catalog updated, especially if you co-write with members of the other PRO.
7. Understand the publisher role. If you self-publish, you’ll need to create a publishing entity and register it with the PRO to collect the publisher’s share. This may involve additional steps and fees.

Budget Considerations

For independent musicians, the cost of joining a PRO is minimal. ASCAP’s one-time $50 fee is the only direct expense for songwriters; BMI charges nothing. However, there are indirect costs to consider. Both PROs deduct administrative fees from royalties before distribution—typically around 10-15%—so you’ll receive slightly less than the gross amount collected on your behalf. If you establish a publishing company to collect the publisher’s share, you may incur business registration fees and, in the case of ASCAP, a one-time publisher membership fee (currently $50). BMI charges publishers an annual fee based on revenue, but independent publishers with low earnings may qualify for a reduced rate.

The real budget consideration is the opportunity cost of not joining: unaffiliated songwriters forfeit performance royalties that could amount to significant income over time. A single radio play might earn only a few cents, but a TV placement can generate hundreds of dollars, and a hit song streamed millions of times can yield substantial royalties. Cost-saving strategies include self-administering your publishing to avoid sharing the publisher’s share with a third-party administrator, and diligently reporting live performances to maximize royalty collection. Both PROs offer online tools to track your works and earnings, helping you manage your music business efficiently.

Case Examples

Indie Folk Artist: An acoustic singer-songwriter who tours small clubs and coffeehouses joins BMI because of the free membership and the ease of reporting setlists via BMI Live. She registers all her original songs and submits her performances after each show. Over a year, she earns several hundred dollars in live performance royalties, which helps fund her next recording.

Film Composer: A composer specializing in orchestral scores for independent films chooses ASCAP due to its strong reputation in the film/TV sector and its detailed cue sheet processing. He works closely with directors to ensure cue sheets are filed correctly, resulting in substantial royalties when the films are broadcast on television.

Co-Writing Duo: Two songwriters collaborate on a pop hit. One is an ASCAP member, the other BMI. They sign a split sheet agreeing to equal shares. When the song is played on radio and streaming platforms, ASCAP collects and pays the first writer’s share, while BMI handles the second. The song’s publisher is affiliated with ASCAP, so the publisher’s share flows through ASCAP. This arrangement works seamlessly, demonstrating that co-writers can belong to different PROs without conflict.

Band Switching PROs: A rock band initially joined ASCAP but later switched to BMI after realizing that most of their touring circuit venues were more familiar with BMI’s reporting systems. The transition required terminating their ASCAP membership and re-registering all works with BMI, but the band found the process worthwhile for the improved live performance royalty collection.

Notable Examples in Songs

The following songs have been performed acoustically at benefit concerts, showcasing the power of music for charitable causes:

• “We Are the World” – USA for Africa
• “Do They Know It’s Christmas?” – Band Aid
• “Imagine” – John Lennon
• “The Times They Are a-Changin'” – Bob Dylan
• “Hallelujah” – Leonard Cohen
• “What’s Going On” – Marvin Gaye