What is a Performing Rights Organization (PRO)?
A Performing Rights Organization, or PRO for short, is a company that collects money from songwriters and music publishers when their songs are played in public. This includes when songs are played on the radio, on TV, in bars and restaurants, and even in elevators. The PRO then pays this money, known as royalties, to the songwriters and publishers.
Why PROs exist
Imagine you wrote a song. Whenever that song gets played on the radio or performed at a concert, you deserve to get paid for it since you created it. But it would be tough to keep track of every single time and place your song was played and collect money from all those places yourself. That’s where PROs come in. They work for you so you can focus on creating music.
How PROs work
When you join a PRO as a songwriter or publisher, you tell them which songs you wrote or owned. The PRO then collects money from all the places that play music, like radio stations, TV channels, bars, clubs, and live music venues. They determine which songs were played and then pay the songwriters and publishers based on that.
The PRO keeps a small percentage of the money to cover its costs. The rest goes to the music creators and copyright holders. So, in a way, PROs act as middlemen between songwriters and the places that use their music.
Core Functions of a PRO
The main jobs of a PRO are:
Licensing
PROs give businesses a license to play or perform copyrighted music. This legal agreement lets them use the music in exchange for paying royalties. Businesses pay a blanket license fee to the PRO, which gives them access to all the songs in the PRO’s catalog.
Tracking music usage
PROs track where and when songs are played. They do this differently, like getting playlists from radio stations or using music recognition technology in bars and clubs. This lets them know which songs were used so they can pay the right songwriters and publishers.
Collecting royalties
PROs collect royalties (payments) from all places with a license to play music. They chase down payments from anyone who doesn’t pay or uses music without permission.
Distributing royalties
After collecting royalties, PROs distribute that money to their member songwriters and publishers. The amount each person gets depends on how often and where their songs are played.
Fighting for music creators’ rights
PROs advocate for the rights of songwriters and publishers. They lobby governments to ensure fair copyright laws and take legal action against businesses that use music without payment.
Major PROs Around the World
There are PROs in many countries across the globe. Some of the biggest and most well-known are:
United States
- ASCAP (American Society of Composers, Authors, and Publishers)
- BMI (Broadcast Music, Inc.)
- SESAC (Society of European Stage Authors and Composers)
Canada
- SOCAN (Society of Composers, Authors and Music Publishers of Canada)
United Kingdom
- PRS for Music (Performing Right Society)
Germany
- GEMA (Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte)
France
- SACEM (Société des auteurs, compositeurs et éditeurs de musique)
Japan
- JASRAC (Japanese Society for Rights of Authors, Composers and Publishers)
Australia/New Zealand
- APRA AMCOS (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society)
Pros and Cons of PROs
Like anything, there are pros and cons to PROs. Let’s look at some of the main ones.
Pros
They collect money you’d otherwise miss out on
It would be impossible for most songwriters to track down every place that plays their music and get paid. PROs have the resources and systems to do that, so you don’t miss out on royalties you’ve earned.
They save you time and hassle.
Collecting royalties on your own would take considerable time and effort. By joining a PRO, they handle all the administrative work for you. That frees you up to spend more time making music.
They have more negotiating power.
As an individual, you have very little power to negotiate reasonable royalty rates or chase up missed payments. PROs represent thousands or even millions of songs, so they can get better deals and put more pressure on music users to pay up.
They offer other benefits to members.
Many PROs offer extra perks to their members, like health insurance, discounts on music gear, workshops and classes, showcases to perform at, and more.
Cons
They take a cut of your royalties.
PROs don’t collect royalties for free. They keep a percentage (usually 10-20%) to cover operating costs. Some songwriters feel this cut is too high.
You give up some control.
When you join a PRO, you give them exclusive rights to license your songs. That means you can’t make separate licensing deals on your own. Some see this as giving up too much control.
They may not represent all your songs
.PROs deal with performance royalties (for music played in public). But there are other kinds of royalties, like mechanical royalties (for music reproductions/sales) or sync fees (for music in film/TV). You may need separate companies or deals to collect these.
Lower royalties for smaller members
The royalty distribution system of most PROs favors big, popular songs. So, if you’re a smaller songwriter with a niche audience, you may feel you aren’t paid fairly for your plays.
How to Maximize Royalties with a PRO
If you want to get the most out of your PRO membership, here are some tips:
Register all your songs
This seems obvious, but make sure every song you’ve written or published is registered with your PRO. You won’t get paid for it if it’s not in their system.
Keep your info up to date.
Please inform your PRO if you change your address, bank details, or contact information. If they can’t find you, they can’t pay you.
Promote your music
The more your music gets played, the more royalties you’ll earn. So please do what you can to get your songs out there, whether it’s through social media, gigging, radio plugging, playlist pitching, or sync licensing.
Understand your royalty statements.
PROs should send you regular updates on what royalties you’ve earned. Take time to read and understand these statements. Don’t be afraid to ask questions if something doesn’t look right.
Join foreign PROs, too.
If your music gets played abroad, you must collect royalties from PROs in those countries. You can do this by joining them directly or by signing up for sub-publishing deals. Chat with your home PRO about the best option.
The Importance of Understanding PROs as a Music Creator
If you’re a songwriter, composer, or publisher, you must understand what PROs are and how they work. They are vital in ensuring you get paid fairly for your creative work.
Without PROs, a massive chunk of your income would go missing. Songs could get played millions of times on the radio or in bars, and you’d never see a dime from it.
But PROs are not a perfect system and are not the only piece in the royalties puzzle. You can make informed choices about managing your rights and maximizing your earnings by educating yourself on the different types of music royalties and the various organizations that collect them.
As the music industry continues to change and evolve, it’s more important than ever for music creators to stay on top of these issues. So whether you’re an established hitmaker or an up-and-coming indie artist, do your homework on PROs. Your career and livelihood could depend on it.
FAQs about PROs
Do I have to join a PRO? No, you’re not legally required to. But if you don’t, you’ll likely miss out on many of the performance royalties you owe.
Can I join multiple PROs? Not usually. Most PROs demand exclusivity, meaning you can only enter one at a time. But you can always switch if you’re unhappy with your current PRO.
How much does it cost to join a PRO? It varies. Some have an up-front joining fee, while others take a percentage of your royalties as a commission. There may also be annual membership dues.
How do I know which PRO to join? Research the options in your country or region. Look at factors like royalty rates, joining fees, member benefits, and reputation among music makers. You can also ask for advice from other songwriters or industry groups.
How often will I get paid by my PRO? Most PROs distribute royalties quarterly, so every three months. However, they can take longer to collect and process payments, especially abroad. So you may have to wait 6-12 months for royalties for a song’s plays.
What happens if I co-wrote a song with another writer? You must agree on a split, e.g., 50/50 or 70/30. Then, you’ll each need to register the song with your PRO, indicating your percentage share. The PRO will divide the royalties accordingly. Your PRO will handle the split if your co-writers are with different PROs.
