Unfair Gaps🇺🇸 United States

Musicians Business Guide

8Documented Cases
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All 8 Documented Cases

Suboptimal PRO and Publishing Choices Reducing Net Royalty Income

For an ASCAP writer earning $10,000/year in performance royalties who never sets up a publisher, the loss is roughly $5,000/year; admin commissions can further reduce the publisher share by 15–25%, equating to hundreds to thousands of dollars per year per catalog

Artists frequently make structural decisions that reduce their effective royalty take, such as ASCAP writers failing to form a publishing entity (thus only receiving 50% of performance income) or signing admin deals that layer 15–25% commissions on publishing royalties. Educators in the field explicitly warn that if ASCAP writers do not register a publisher, they 'will only get half' of their money, while admin publishers then take another 15–25% of the publisher share they do collect.

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Unclaimed and Misdirected Performance Royalties Due to Registration and Affiliation Gaps

Tens of millions of dollars per year industry‑wide; individual songwriters commonly forfeit hundreds to tens of thousands of dollars annually in unclaimed PRO royalties

Large amounts of performance royalties never reach songwriters because works and rightsholders are not properly registered with ASCAP/BMI/SESAC or are affiliated in ways that block collection. PROs state they simply cannot identify or pay composers if works are not correctly registered, so these royalties remain uncollected or sit in 'black box' pools instead of reaching musicians.

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Slow, Multi‑Month Lag Between Performance and Royalty Payment

Implicit financing cost on 4–7 months of delayed cash flow; for a songwriter owed $20,000/year, this can equate to hundreds of dollars in annual financing cost and liquidity stress, scaled to millions industry‑wide

ASCAP, BMI, and SESAC typically take several months between a performance and the corresponding royalty payout, creating a long time‑to‑cash cycle. Published payout comparisons show BMI takes about 5.5 months, ASCAP about 6.5 months, and SESAC pays roughly 90 days after the end of the quarter, so a January play may not be paid until June.

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Manual Setlist and Performance Reporting Causing Lost Royalties and Admin Overhead

Commonly hundreds to low thousands of dollars per active touring artist per year; scaled across tens of thousands of acts this represents multi‑million‑dollar annual under‑collection

To collect live performance royalties for concerts and bar/club gigs, many PROs require artists to manually submit setlists and venue details. Guidance from industry experts notes this can be a 'pretty good chunk of change', yet many artists either do not know about these programs or fail to file, leading to both administrative burden and lost revenue from unreported shows.

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