What is a PRO?
A PRO, or Performing Rights Organisation, is an agency responsible for collecting and distributing the public performance royalties of songwriters, composers, and publishers.
PROs are concerned with earnings collected from the composition side of musical work (rather than the sound recording). This refers to the lyrics, melody and structure of a piece, which was created songwriters and composers.
Where do PROs collect from?
- Public performances (gig, concerts and other live music events)
- Broadcast (plays on radio and TV)
- Public spaces (background music in pubs, clubs, restaurants, shops etc.)
- Streaming (on digital streaming platforms such as Spotify and Apple Music)
How do they work?
Whenever music is played on the radio, tv, in a public place eg bar/shop/restaurant, as a live performance, or streamed on DSPs, PROs collect performance royalties and ensure that rightsholders are compensated for their work being performed.
Who needs one?
Anyone who had performance rights to a musical composition should be registered with a PRO. This includes all songwriters and composers (namely anyone who contributed to the lyrics, melody, or structure of a musical piece) as well as music publishers.
How do I register?
The registration process varies depending on the PRO, however generally you will need information such as personal details (proof of identity, payment info) and details on the song(s) you’re registering (including title, ISRCs, writer splits and CAE numbers etc.) For some PROs, there are membership fees for joining, for instance the PRS in the UK has a one-off cost of £100 to register.
How many PROs are there?
In the UK, there is only one PRO which is the PRS (Performing Right Society). Meanwhile, the US has three major PROs, including BMI, SESAC, and ASCAP. You only need to sign up to one PRO in your country of residence as PROs have agreements with PROs in other countries to allow them to collect international royalties for songwriters.
How do I collect my royalties from PROs?
Providing that all your song, writer, and payment information is registered correctly, royalties will be automatically paid into your bank account when they are distributed by your PRO.
When are royalties distributed by PROs?
PROs usually pay royalties quarterly, or every 3 months. However, the exact frequency can vary depending on the PRO you’re registered with, as well as territories that you are earning royalties from. There can also be a delay in receiving payments, for example international royalties may have different cut-offs and therefore take longer to be collected and paid to songwriters.
PROs and Live Performance Earnings
For every live performance, a percentage of earnings from box office sales is claimed by PROs to distribute to songwriters as compensation for performing their musical works. While the amount varies depending on the venue type and capacity, these earnings are distributed to all performers based on the lineup and set time (for example, a headliner with a 1-hour set would get more than a support act with a 30-minute set).
Key Take Aways
- PROs collect royalties relating to the public performance of musical work, ranging from radio and streaming to live performances
- Songwriters, composers (ie anyone who has contributed to the musical composition) as well as music publishers are all paid by PROs
- PROs vary depending on location, but you generally only have to register with one as they have agreements with each other enabling international royalty collection
