Are you a songwriter looking for a performance rights organization?

SESAC could be an option worth considering.

In this article, we will explore the pros and cons of SESAC, a performance rights organization that operates on an invite-only basis, in comparison to ASCAP and BMI.

Knowing SESAC's strengths and weaknesses will aid in choosing the most fitting PRO for your songs.

Personalized Attention and Enhanced Transparency with SESAC

One of the main advantages of SESAC is its favorable member-to-rep ratio.

With fewer members per representative, writers can expect more personalized attention and support. This close relationship can be invaluable, especially for emerging songwriters looking to navigate the music industry.

Additionally, SESAC stands out for its commitment to transparency in royalty streams. The organization utilizes third-party watermarking and fingerprinting data to enhance the accuracy and clarity of royalty payments.

This means that you can have confidence in the integrity of the compensation you receive for your work.

Monthly Payments and Engagement with Members

Another benefit of SESAC is its monthly payment system for certain performance royalties. Unlike ASCAP and BMI, which make quarterly payments, SESAC offers more frequent disbursements.

This can provide financial stability and predictability for songwriters, allowing them to better plan and manage their income.

Furthermore, SESAC actively engages with its members through feedback and support. The organization demonstrates a genuine willingness to listen to its writers and address their concerns. This commitment to member interaction fosters a sense of community and trust, creating an environment where you can feel heard and supported as a songwriter.

Limitations of an Invite-Only Approach and Ownership Structure

While SESAC's invite-only approach ensures a high level of exclusivity, it can also be limiting for songwriters who lack the right connections. This barrier to entry may prevent talented writers from accessing the benefits and opportunities offered by SESAC.

Additionally, it is essential to note that a private equity firm owns SESAC.

As a for-profit organization, SESAC's primary focus is on generating profits rather than prioritizing the welfare of its writers.

In comparison, ASCAP is a non-profit organization subject to specific regulations and more inclined to advocate for the interests of songwriters.

Controversy and Opportunities for Comparison

Another factor to consider is the recent Music Modernization Act, which revealed differing positions between SESAC, ASCAP, and BMI. This disagreement stirred controversy within the music industry.

While it is too early to draw definitive conclusions about this change, it is important to stay informed and consider the potential implications for your music career.

Comparing SESAC, ASCAP, and BMI

Let’s take a look at the main differences between the major PROs in the United States: ASCAP, BMI, and SESAC.

ASCAP: American Society of Composers, Authors, and Publishers

ASCAP, founded in 1914, is the oldest PRO among the "Big Three." It is a not-for-profit organization that is entirely controlled by its members, including composers, songwriters, and music publishers.

ASCAP represents over 10 million musical works from more than 550,000 members.

Benefits of ASCAP

• Membership Discounts: ASCAP offers discounts on memberships to prestigious organizations such as the Songwriters Hall of Fame and the U.S. Alliance Federal Credit Union. These discounts can provide financial savings and additional perks to ASCAP members.
• Insurance and Health Benefits: ASCAP members can access discounts on dental, health, instrument, and life insurance through the MusicPro program. This can be particularly beneficial for artists looking for affordable insurance options.
• Annual ASCAP "I Create Music" Expo: ASCAP organizes an annual expo that brings together industry professionals, artists, and music enthusiasts. This event provides networking opportunities, educational sessions, and showcases for attendees.
• Web Tools and Retail Discounts: ASCAP offers its members discounts on web-based marketing and sales tools through ASCAP Web Tools. Additionally, members can access discounts on music-related retail products and services.
• Control and Governance: As a member-controlled organization, ASCAP provides its members with a voice in the decision-making process and ensures that their interests are represented.

Drawbacks of ASCAP

• Membership Fee: ASCAP charges a one-time membership fee of $50 for both songwriters and publishers. While this fee helps cover administrative costs, it can be a barrier for artists with limited resources.
• Competition for Royalties: As one of the largest PROs, ASCAP represents a vast number of artists and works. This means that royalties may be distributed among a larger pool of members, potentially resulting in smaller individual payments.

BMI: Broadcast Music, Inc.

BMI, established in 1939, is another prominent PRO in the United States.

It is also a not-for-profit organization that represents over 12 million musical works from more than 750,000 artists.

Benefits of BMI

• Free Membership for Songwriters: BMI offers free membership for songwriters, making it an attractive option for emerging artists. This eliminates any financial barriers to joining the organization.
• Discounted Registrations: BMI offers discounted registrations for various industry events such as the Billboard Latin Conference, offering additional opportunities for networking and professional development.
• Wide Range of Affiliates: BMI has affiliations with organizations such as LARAS, NXNE, and Video Games Live, providing exclusive discounts and opportunities to its members.
• Songwriting Support: BMI offers resources such as FanBridge and Musician's Atlas to assist songwriters in building their careers and reaching a wider audience.
• Monetization on YouTube: BMI's partnership with YouTube allows its members to monetize their videos without worrying about copyright claims.

Drawbacks of BMI

• Publisher Membership Fee: BMI charges a membership fee of $150 for individual publishers and $250 for publishing companies. While this fee is lower than ASCAP's one-time fee, it can still be a financial burden for some artists.
• Royalty Distribution: Like ASCAP, BMI represents a large number of artists and works, which can result in smaller individual royalty payments. However, the overall distribution of royalties is subject to the frequency of performances and the popularity of the works.

SESAC: Society of European Stage Authors and Composers

SESAC is a unique PRO among the "Big Three" as it is the only for-profit private company.

Founded in 1930, SESAC serves around 400,000 musical works from over 30,000 affiliated writers.

Benefits of SESAC

• Monthly Radio Royalty Payments: SESAC offers its members the option to receive monthly radio royalty payments, in addition to the quarterly payments received by ASCAP and BMI members. This can provide more regular income for artists.
• Exclusive Discounts: SESAC offers exclusive discounts for its members, including discounts at Sprint, Berkleemusic.com, and various other services and products.
• Personalized Service: As a smaller PRO, SESAC can offer more personalized attention and support to its members. This can be beneficial for artists seeking a more hands-on approach.
• Diverse Catalog and Affiliates: SESAC has a diverse catalog of musical works and represents a range of affiliated writers, providing opportunities for collaboration and exposure.

Drawbacks of SESAC

• Invite-Only Membership: Unlike ASCAP and BMI, SESAC operates on an invite-only basis. Artists must be invited and approved to join the organization, which can limit accessibility for some artists.
• Higher Fees: SESAC is known for charging higher fees compared to ASCAP and BMI. These fees, along with the for-profit nature of the organization, may be a deterrent for artists with limited financial resources.
• Limited Public Information: SESAC's operations and royalty distributions are less transparent compared to ASCAP and BMI. This lack of public information can make it challenging for artists to fully understand how their royalties are calculated and distributed.

Which One to Choose? ASCAP, BMI, or SESAC?

In the ASCAP vs BMI vs SESAC debate, there is no one-size-fits-all answer.

• If you value control and governance, ASCAP may be the right choice for you. It offers membership discounts, insurance benefits, and an annual music expo.
• If you're a songwriter looking for a no-cost option, BMI provides free membership for songwriters. It offers discounted registrations, affiliations with industry events, and resources to support your songwriting career.
• If you're seeking more regular income through monthly radio royalty payments, SESAC might be worth considering. However, keep in mind the invite-only membership and higher fees associated with this for-profit organization.

Consider factors such as membership fees, royalty distribution policies, additional benefits, and the level of personal attention and support you desire. By selecting the right PRO, you can protect your music, collect the royalties you deserve, and take your music career to new heights.