Q & A
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MusicBizAdvice.com answers your questions about the music industry.
SESAC License Concerns
Q. I own a Curves
Fitness Center & am happy to pay license fees to both BMI & ASCAP for the music
that we play in our club. I have been contacted by SESAC about a license fee from them. It
doesn't cost much but, aren't I paying double here? I know that the artists & writers
get royalties from ASCAP & BMI but aren't all artists, etc. covered by these two
entities? --Andy C.
A. SESAC is the third
performance rights society. Each songwriter is either ASCAP, BMI, or SESAC exclusively. If
a song has three songwriters--let's say as a fictitious example, John Jovial, Rickie
Sunborn, and Desi Kidd--John's writer's royalties could be ASCAP, Rickie's could be BMI,
and Desi's could be SESAC.
For a more visual illustration, let's say the writers' royalties were a
protein bar. John, Rickie, and Desi would each get 1/3 of that protein bar...not a separate protein bar for each guy.
Although the majority of songwriters in the US are
with BMI or ASCAP, during the past few years, SESAC has sought to increase
its profile. Many people in the US aren't aware of its
existence, because it's been perceived as more difficult to get into. (SESAC's
affiliation process is "more selective," according to a SESAC rep, and the
affiliation process is somewhat mysterious even to some industry veterans.)
So, although SESAC is growing, most US songwriters go with ASCAP or BMI.
SESAC traditionally
has been perceived as the home of European songwriters and gospel artists, but
in recent years recently has begun to more aggressively market themselves to
mainstream artists, resulting in the affiliations of songwriters and
composers who have written for such artists as Mary J. Blige, Justin
Timberlake, Nelly Furtado, Timbaland, and the Pussycat Dolls. Bob Dylan and
Neil Diamond are also SESAC affiliates.
The article on
Publishing and Royalties
in our Features section briefly discusses SESAC:
Hope that helps!
Q.
Follow
up question: Since SESAC has 3-5 % of the industry, why should they be asking for the same
amount that I pay ASCAP & BMI? --Andy
C.
A. Thanks
for clarifying your question. The answer is, SESAC has 3-5% of the industry, depending which musical
genre or area of the world you pose your question from...If you were
European writer doing business in Europe, or were inquiring about some classical, new age, gospel, or electronica music, SESAC's share would be much higher than that.
Europeans who have
businesses that use mainly European classical, new age, gospel, or electronica music
probably wonder the same thing you asked, only in reverse: "Why should I pay ASCAP
this amount, when they mainly work with American rock musicians???"
If it makes you feel any better, at least
ASCAP, BMI, and SESAC fees are tax deductible...And we at MBADC respect you for running
your business ethically and paying the license fees!
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Answers in the MBADC Q&A are to be taken as general advice only and are not intended
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