How are performance royalties tracked and calculated? Remember that performance royalties are tracked and paid out by the performance rights organizations like ASCAP, BMI, SESAC, and SoundExchange.
The royalty trail begins when the song is registered with one of the three performing rights organizations mentioned above. Once a song is registered, it becomes part of that PRO's collection and is available to all of its users. Most of those users have a "blanket license" to use any or all of the PRO's music, however some users license on a per program basis and only pay for the music they actually use. (This is good for users who don't use that much music.) The PROs deduct money for their operating expenses and the rest goes to the songwriters and publishers.
PRO customers include just about anyone who plays music in a public place -- even those who play "hold" music for their business. These include television networks, cable television stations, radio stations, background music services like MUZAK, colleges and universities, concert presenters, symphony orchestras, Web sites, bars, restaurants, hotels, theme parks, skating rinks, bowling alleys, circuses, you name it -- if they play music, they have to have a license and pay royalties.
Read the entire article@
http://entertainment.howstuffworks.com/music-royalties7.htm
Monday, February 4, 2008
Performance Royalties
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