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Music Business

include mechanical, performance, special uses, synchronization and grand rights. The first performance rights organization established in 1914 is the American Society of Composers, Authors, and Publishers (ASCAP). ASCAP’s income is derived from the following places in the music industry:1.20% to 25% from reciprocating foreign licensing organizations.2.About half from television stations and networks3.Radio generates about 25%4.Annual fees are figured on a small percentage of the adjusted gross incomeMembership of ASCAP is comprised mostly of composers and lyricists of Broadway shows, movie musicals, and pop songs. To become a member of ASCAP you must have at least one song commercially recorded, available on rental, or performed in media licensed by the society. ASCAP has a board of twelve writers and twelve publishers. In weighting performances ASCAP takes into account the following: 1.The medium in which the performance takes place2.The weight of the station on which the performance is carried3.The weight of a television network4.The type of performanceThe organization pays its members on the basis of census and sample surveys of performances. These are usually done at random at places that have commercial airplay. The data is then figured on an average and royalties are paid based on the average.Broadcast Music Inc. is set up different from ASCAP in its financial structure. BMI is owned by stockholders. It’s board of directors consists of those who own shares in the company; several hundred people. The affiliates of BMI are songwriters from genres including jazz, rhythm and blues, country, rock, gospel and much more. Unlike ASCAP, BMI has no members, but has writer and publisher affiliates. BMI accepts those who have written a musical composition and have recorded or performed the work commercially. BMI pays higher for songs that originate in a Broadway show or feature film. As the song is play or performed m...

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