Public Performance / Blanket Licenses

Description

Public Performance / Blanket Licenses

(For use in public venues, events, broadcast, online streams, etc.)

• Purchased through PROs (ASCAP, BMI, SESAC, etc.) — varies by venue size, audience, and region. Typical business blanket licenses range from hundreds to thousands per year depending on usage and location.

• Public Performance License: Required for publicly performing a musical work. Performing Rights Organizations (PROs) like ASCAP, BMI, SESAC (in the US), and PRS (in the UK) collect royalties on behalf of songwriters and publishers. Businesses that play music publicly (e.g., restaurants, bars, retail stores, online streaming platforms) obtain blanket licenses from these PROs. The cost depends on factors like the size of the venue, the number of attendees, the type of music being played, and whether admission is charged. Larger venues and events with higher attendance will incur significantly higher fees. Note that the PROs handle the performance rights for the composition, not the sound recording.
• Annual blanket licenses for businesses range from hundreds to thousands of dollars, depending on size and usage; Event licenses vary greatly based on attendance.

Critical Factors Influencing License Costs

Several factors intricately affect the cost of music licenses. Understanding these nuances is crucial for accurate budgeting and negotiation:

• Song Popularity and Recognition: As a general rule, the more popular and recognizable a song is, the more expensive the license will be. This is because popular songs have higher perceived value and greater potential impact on the project they’re used in. The fame of both the composer and performer matters.
• Usage Duration: The length of time the music is used in a project directly impacts the cost. A five-second clip will typically be cheaper than using the entire song.
• Media Format: Where the music will be used is a significant factor. Using music in a globally distributed film will be far more expensive than using it in a local YouTube video.
• Territory: The geographical area where the project will be distributed also influences the cost. A worldwide license will be more expensive than a license limited to a single country.
• Prominence: How prominently the music is featured in the project matters. If the music is used as background ambience, it will likely be cheaper than if it’s featured prominently in a key scene.
• Negotiation Skills: The ability to negotiate effectively can significantly impact the final cost. Understanding the value of the project to the rights holder and presenting a compelling case for a lower fee can be advantageous. Rights holders will often consider use case – if the content is educational or charitable in nature, for example.
• Type of License: The specific type of license required also affects the cost. As outlined earlier, different license types cover different rights and usages.