Each of these PROs perform exactly the same function, with minor differences. However, SESAC is a very different cat. It is the
only for-profit company on the list. Mostly, their membership qualifications are very different. You must apply to be a member
of SESAC, and may, in fact, be rejected. ASCAP and BMI will take anyone who signs up. Again, each of these PRO’s handle
the one right from your Bundle of Rights: the right to public performance. But if you’ve reviewed your rights, you realize there’s
actually a SECOND public performance right - via digital transmission--but these PROs do not handle it. Who does?
The Fourth Pro
That’s where SoundExchange comes in. They deal exclusively with the right of digital public performances. That means Spotify,
Sirius/XM, and internet radio, the largest-growth segment in the industry. And while the other PROs are exclusive--you can
only belong to one--everyone can be a member of SoundExchange. Because it’s a separate right from standard public
performance, it is a separate royalty--and requires a separate company to handle it.
It’s also important to note: this right deals only with the sound recording, not the song copyright itself. While the Big 3 pay out
to songwriters and publishers, SoundExchange pays not just the owners of the sound recording (aka the master), but the
performers on the recording itself.
If you’re an independent artist who writes, performs and releases your own music, it is this writer’s humble opinion you should
immediately become a member of SoundExchange. With the dramatic growth of music streaming in the last half decade, this
is an equally growing area of potential revenue. In our personal experience, we have received far more money in
SoundExchange royalties than from our traditional PRO.
Buzzword Metadata—and a Blatant Plug
Now, if you’ve read the papers lately, you know Spotify and other streaming services are in legal hot water over not properly
paying out royalties to songwriters, publishers and master rights owners. Spotify alone is loo