Yes, YouTube absolutely pays both ASCAP (American Society of Composers, Authors and Publishers) and BMI (Broadcast Music, Inc.). These payments are part of licensing agreements that allow YouTube to legally host and perform copyrighted music on its platform.
Understanding Performing Rights Organizations (PROs)
Performing Rights Organizations, or PROs, are crucial entities in the music industry. Their primary role is to represent songwriters, composers, and music publishers, ensuring they receive royalties for the public performance of their musical works. In the United States, the two largest and most prominent PROs are ASCAP and BMI, though others like SESAC and GMR also operate.
PROs work by:
- Licensing: They issue licenses to businesses and platforms—including digital platforms like YouTube, radio stations, TV networks, and venues—for the right to publicly perform the music in their vast catalogs.
- Collecting Royalties: They collect licensing fees from these businesses.
- Distributing Royalties: They then distribute these collected fees as royalties to their members (songwriters, composers, and publishers) whose music has been performed.
YouTube's Licensing Agreements with PROs
As one of the world's largest platforms for video content, much of which includes music, YouTube maintains comprehensive licensing agreements with performing rights organizations to ensure that rights holders are compensated.
YouTube and ASCAP
YouTube pays a licensing fee to ASCAP for the right to perform the music of its members within YouTube videos. ASCAP represents a vast network of over one million songwriters, composers, and music publishers. The fees collected from YouTube are then distributed as royalties to these ASCAP members, compensating them for the public performance of their musical works on the platform. This system ensures that creators whose music is used in popular videos receive their rightful share of earnings.
YouTube and BMI
Similarly, YouTube holds licensing agreements with BMI. Just like with ASCAP, these agreements allow YouTube to legally play and display musical works represented by BMI. BMI ensures that its affiliated songwriters, composers, and music publishers receive royalties when their music is publicly performed on the platform.
Here's a simplified overview of how YouTube's relationship with these PROs works:
| PRO | Role & Relationship with YouTube |
|---|---|
| ASCAP | Represents over one million songwriters, composers, and music publishers. YouTube pays ASCAP a licensing fee for the right to perform their members' music in videos, which ASCAP then distributes as royalties to its members. |
| BMI | A similar performing rights organization that represents a large catalog of musical works. YouTube also holds licensing agreements with BMI, ensuring their affiliated artists and publishers are compensated for public performances of their music on the platform. |
How Royalties Are Generated and Distributed
When a video containing copyrighted music is uploaded and viewed on YouTube, especially if it's monetized, a portion of the advertising revenue or subscription fees contribute to the pool of royalties. PROs like ASCAP and BMI track public performances of music within their repertoires and then calculate the royalties owed to their members based on these performances.
This system is vital for the sustainability of the music industry, providing a steady income stream for creators whose works are enjoyed by millions globally on platforms like YouTube.
