BMI (Broadcast Music, Inc.): Performance Royalties and Music Licensing

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Definition

BMI (Broadcast Music, Inc.) is one of the largest Performance Rights Organizations (PROs) in the United States. As a non-profit, it collects and distributes public performance royalties for songwriters, composers, and music publishers. It serves as a critical link between music creators and those who publicly perform or broadcast their work.

The organization’s primary role is to ensure creators receive fair payment when their music is used. This includes performances on radio, television, streaming platforms, in live venues, and in commercial environments. To accomplish this, BMI issues licenses to music users and distributes collected fees as royalties to the rights holders.

Founded in 1939, BMI emerged as a response to ASCAP’s exclusion of certain genres like jazz, blues, and country. It quickly became a champion for emerging and underrepresented artists. Today, the organization manages royalties for over 1.4 million songwriters and more than 22 million musical works across every genre.

How BMI Works

BMI operates as an intermediary between music creators and those who use music in public settings. It licenses, tracks, and pays for music use so that creators get compensated fairly and consistently.

Core Functions

BMI licenses businesses, broadcasters, and digital services to legally play music in public. This includes everything from radio and television stations to bars, restaurants, concert halls, and streaming platforms like Spotify or YouTube. These licenses make it possible for music to be used without negotiating individual deals with each songwriter.

To know what to pay and to whom, BMI tracks where and when music is performed. It uses broadcast logs, cue sheets from film and TV productions, and audio recognition technology to monitor usage. This system ensures that even small performances or background uses are accounted for.

Once usage data is collected, BMI processes payments. It distributes royalties every quarter to songwriters, composers, and publishers based on how often their works were used. About 15% of collected fees go toward administrative costs, with the rest paid out directly to rights holders.

Who BMI Represents

BMI supports individual music creators by allowing songwriters to register for free. Once enrolled, they can list their songs and receive royalties when those works are performed publicly. This includes radio plays, live performances, and online streams.

Composers, especially those writing for film, TV, and advertising, also benefit. They can register instrumental pieces, score cues, and background music to earn royalties when their music is broadcast or performed.

Publishers play a different role. They typically manage catalogs that include works from one or more songwriters. While publishers must pay a one-time fee to join BMI, they receive a matching share of performance royalties alongside the writers they represent.

Together, BMI’s roster spans independent artists, emerging composers, and global stars. It represents creators working in pop, jazz, country, hip-hop, classical, and everything in between. This broad reach allows BMI to serve a wide spectrum of musical voices.

BMI vs. Other PROs

BMI Licensing & Royalties

Broadcast Music, Inc. helps music creators earn money when their songs are played in public – on radio, TV, at events, or online. It also gives businesses legal permission to use that music through licensing.

Types of Licenses BMI Issues

The organization offers different licenses to match how music is used. Each one allows legal public use of BMI’s catalog, depending on the setting.

Blanket License: Covers BMI’s entire music catalog. This license is often used by radio stations, TV broadcasters, and streaming platforms so they can play any song BMI represents without needing separate permissions.

Per-Program License: Applies to specific shows or broadcasts using BMI music. This is helpful for TV producers or networks that use licensed music only in certain programs.

Live Performance License: Required for venues or organizers who play music during concerts, festivals, or public gatherings. This includes everything from small bars to stadium events.

Digital/Streaming License: Needed by online platforms like Spotify, YouTube, and Apple Music. It ensures music streams are tracked, and creators get paid.

How BMI Calculates Royalties

BMI collects data from many sources to figure out how much each song earned. The bigger the audience and the more frequent the use, the higher the payout.

Radio and TV: Royalties are based on how many times a song is played and the size of the audience. Bigger stations and prime-time slots usually pay more.

Live Events: BMI calculates payouts using venue capacity, ticket sales, and setlists reported by performers.

Streaming: Royalties depend on the number of plays and how much money the platform pays BMI. Popular songs earn more.

How Songwriters Get Paid

Songwriters sign up for a free BMI account and register their songs. BMI tracks performances through reports and digital tools. After processing the data, BMI pays royalties every quarter, minus administrative costs.

BMI Membership: Pros & Cons

Joining BMI can help songwriters collect royalties and build a music career. But like any organization, it has strengths and weaknesses depending on your goals.

Benefits of Joining BMI

Free for Songwriters: BMI doesn’t charge songwriters a fee to join, which makes it more accessible than ASCAP. This is especially helpful for new artists or those just starting to release original music.

Global Coverage: BMI works with performance rights groups in other countries. If your music gets played overseas, BMI can collect and send you those royalties without needing a separate agreement.

Career Support: BMI offers more than royalty collection. It hosts music showcases, gives out annual awards, and runs events where creators can meet industry professionals. These programs can help build exposure and long-term relationships.

Limitations and Criticisms

Lower Payouts: Some artists say BMI’s royalty rates are lower than what SESAC or GMR pay. This matters more if your songs are getting heavy radio or TV play and you’re comparing earnings across PROs.

Less Exclusivity: BMI’s open-door policy lets anyone register, which makes the catalog huge. That can be good for access, but it also means your work competes with millions of other tracks.

Transparency Issues: BMI doesn’t always show how each payment is calculated. Some creators have raised concerns about how decisions are made and what data is used.

Even with these issues, BMI is still a reliable choice for many independent and mid-level music creators who want access to a large network and proven royalty systems.

BMI in the Digital Age

BMI has adapted to major changes in how music is shared online. It now uses artificial intelligence and audio recognition to identify when and where songs are played. This tech-driven approach helps make sure that creators get credit and payment when their music is used, especially in fast-moving digital spaces.

To support artists on social and streaming platforms, BMI works directly with companies like YouTube, TikTok, and Instagram. These partnerships make sure music is licensed properly and royalties are collected, even for short clips or user-generated content. BMI also encourages artists to enter complete metadata when registering songs, so payouts don’t get lost or delayed.

On the legal side, BMI actively supports higher royalty rates for songwriters. It regularly participates in Copyright Royalty Board hearings to argue for fairer pay, especially as streaming becomes the main way people listen to music. These efforts help creators get a better share of digital revenue.

BMI also supported the Music Modernization Act of 2018, which updated how royalties are tracked and paid in the digital era. By backing modern laws and pushing for better policies, BMI works to protect music creators in a changing industry.

How to Join BMI

For Songwriters and Composers

Sign Up Online: Go to bmi.com and create a free songwriter account.

Submit Songs: Register your compositions through BMI’s web portal.

Start Earning: Once your music is performed and tracked, royalties accrue and are paid quarterly.

For Publishers

Pay a Registration Fee: Independent publishers pay around $250 to join.

Rights Ownership: Must hold legal publishing rights for the songs they register.

Access Publisher Royalties: Publisher and songwriter royalties are paid separately.

Both individuals and companies can set up publishing entities with BMI.

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