The Differences Between ALLTRACK, ASCAP, BMI, and SESAC

Estimated reading time: 7 minutes

As an indie musician, you should understand the role of performing rights organizations (PROs) if you want to seek compensation for your creative works. We’ll explore some key differences between ALLTRACK, ASCAP, BMI, and SESAC, the four prominent PROs in North America. These details matter for music creators, rights holders, and anyone managing an account with a PRO. Short notes about other PROs and SESAC members also help musicians compare different PROs.

With insight into the features, eligibility requirements, royalty collection, distribution systems, and artist services, you can make informed decisions to choose the right PRO to protect and collect your music royalties and licensing payouts. General music licensing questions, ASCAP contracts, and licensing costs are common topics for creators and producers, especially when working with companies, licensees, or business owners who pay licenses to businesses.

Benefits and business differences between PROs 

What is a PRO?

A PRO is a collective management organization that safeguards and administers public performance rights on behalf of songwriters, composers, and music publishers. PROs ensure that musicians receive royalties whenever their music is publicly performed, broadcasted, or streamed. They accomplish this by monitoring and tracking performances, collecting royalties, and distributing them to their affiliated members based on various factors, including radio airplay, live performances (either by you or when someone else covers your song), and digital streaming. These processes follow standard copyright laws that protect creators.

Long story short: PROs scour the world to make sure you get paid whenever your music is played or broadcasted. This system also works alongside mechanical royalties, music distributor payouts, and Apple Music reporting, though those are separate revenue streams.

What are ALLTRACK, ASCAP, BMI, and SESAC?

ALLTRACK launched in 2017 to serve emerging and professional independent music creators with a PRO built for their needs. Its model is designed for transparency and fairness by paying every member the same rate per performance instead of awarding bonuses only to its top-tier songwriters like the legacy PROs. As a result, ALLTRACK typically pays its creators the highest royalty rates of any PRO. In addition to paying streaming and broadcast royalties, it pays royalties for all bona fide live shows, not only major tours. Further, it is the only PRO that lets creators collect multiple royalty streams through one integrated platform instead of requiring registration with numerous services.

ASCAP (the American Society of Composers, Authors and Publishers), founded in 1914, was created by a group of composers, including Victor Herbert and John Philip Sousa, who sought to protect the rights of songwriters and ensure they received fair compensation for their works. The establishment of ASCAP marked a turning point in the industry as it recognized the importance of performance royalties and pioneered the concept of collective rights management. These historical details continue to define many ASCAP members and their long-standing pros and cons.

BMI (Broadcast Music, Inc.), established in 1939, emerged as a response to ASCAP’s restrictive membership policies at the time. BMI’s founders included radio executives and songwriters who aimed to create an inclusive organization that represented a broader range of musical genres and provided fairer opportunities for songwriters and publishers. Many BMI affiliates today appreciate this wide-genre approach.

SESAC, founded in 1930, originated in Europe and later expanded its operations. While smaller in scale compared to ASCAP and BMI, SESAC differentiated itself by focusing on European repertoire and maintaining a more selective membership. Its commitment to representing quality and commercially viable music has made it a preferred choice for certain songwriters and publishers. SESAC is invite-only, so it’s not as easy to join as ALLTRACK, ASCAP or BMI. Some SESAC members value its curated system.

Many companies and licensees interact with these PROs differently depending on their business needs.

The differences in royalty collection and distribution

Because SESAC is invite-only, we’re going to focus on ALLTRACK vs. ASCAP vs. BMI.

ALLTRACK, ASCAP and BMI employ different approaches to royalty collection and distribution.

ALLTRACK licenses streaming services, TV stations, radio stations, concert venues and millions of businesses around the world to collect royalties for its music creators. Unlike ASCAP and BMI which funnel non-trackable royalties collected from local businesses to their top writers through radio bonuses, ALLTRACK distributes these royalties fairly across all of its creators.

ASCAP operates on a blanket license system, where license fees are paid by music users, like radio stations and venues, for unlimited access to the PRO’s entire repertoire. ASCAP then distributes the collected royalties to its members based on performances and other factors. These systems are standard in the music industry.

BMI follows a similar model, with blanket licenses and distributed royalties.

ALLTRACK, ASCAP, and BMI allow members to co-own the rights to their compositions. So if a song has multiple songwriters, each writer can choose a different PRO to represent their share of the song. Some songwriters even manage their own publishing company to streamline their account setup.

Services for the artists

ALLTRACK, ASCAP, and BMI offer various benefits and services to their members.

ALLTRACK is the only PRO that enables creators to collect multiple types of royalties through a single platform. Members can receive worldwide performance royalties as well as mechanical, lyrics and neighboring rights royalties, choosing any or all of these services as needed. For creators, this direct access removes the complexity of needing to register each song with dozens of different platforms to collect royalties. ALLTRACK also offers strong customer support and extensive educational resources.

ASCAP is the only US PRO that is a membership organization operating on a not-for-profit basis with nearly 90¢ of every dollar collected paid back to members in royalties. ASCAP provides educational resources, workshops, and networking opportunities to help artists navigate the music industry. It also offers assistance in licensing, copyright protection, and global royalty collection through their partnerships with international PROs. This complements many ASCAP licensing needs.

BMI offers similar services, including workshops, showcases, and seminars for artists. Additionally, BMI has a strong focus on supporting independent artists and emerging genres. They provide resources for music distribution, licensing, and songwriting collaborations. BMI often appeals to indie creators and various producers looking for flexible music licensing support.

These pros and cons can influence business owners and music creators choosing a PRO.

Choosing the right PRO: organization, music approach, & royalties

When deciding between ALLTRACK, ASCAP, and BMI, there are several factors to consider. Evaluate your individual goals as a musician and the genre of your music.

ALLTRACK serves all genres and is free for all new writer and publisher members. ASCAP has a more extensive presence in the mainstream commercial music industry, while BMI has a strong presence in various genres, including indie, hip hop, and electronic music.

ASCAP has a more extensive presence in the mainstream commercial music industry, while BMI has a strong presence in various genres, including indie, hip hop, and electronic music. ASCAP has a more extensive presence in the mainstream commercial music industry, while BMI has a strong presence in various genres, including indie, hip hop, and electronic music.

BMI represents over a million artists, while ASCAP represents over 930,000 songwriters, composers, lyricists, and music publishers. These differences matter to rights holders who want clarity around payouts and royalty payments.

Additionally, BMI has a one-time fee of $75 to join as a songwriter or composer. ASCAP is free for all new writer members.

Consider your career aspirations and the types of opportunities and support you require.

ALLTRACK’s focus on maximizing royalties for independent creators, integrating multiple rights types in one platform, offering free signup and paying royalties for all bona fide live shows may make it the best fit for creators looking for a modern alternative to the legacy PROs.

ASCAP’s focus on education, networking, and international partnerships may be appealing to artists aiming for global recognition. BMI’s emphasis on independent artists and emerging genres can be advantageous for those seeking grassroots support and exposure.

Ultimately, your personal requirements and how it matches with the benefits, services, and reputation of each PRO will help you choose the one that aligns best with your artistic vision and long-term objectives. Any financial difference between PRO payouts is tied to performance data and not to licenses to businesses or external companies.

Understanding licensing costs and how music licensing structures work helps guide this choice.

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Philip Kinsher

Articles: 68 Years: 2023

Philip Kinsher is a writer, editor, and musician with a predilection for YA Sci-fi Fantasy books and rock and roll. And golf and pickleball.

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