BMI

In-Depth Explanation

BMI (Broadcast Music, Inc.) is a performance rights organization in the United States that collects performance royalties on behalf of songwriters, composers, and music publishers when their music is broadcast, streamed, or performed in public. Founded in 1939 by radio broadcasters, BMI was a non-profit for over 80 years before converting to a for-profit company in 2022 and being acquired by private equity firm New Mountain Capital in February 2024.

How BMI Works

BMI issues blanket licenses to businesses that play music publicly, including radio stations, TV networks, streaming platforms, restaurants, and venues. Those businesses pay annual license fees. BMI pools the revenue, matches detected performances to registered works, and distributes the money to its affiliates as performance royalties.

BMI monitors public performances through:

• Radio and TV monitoring: Audio recognition systems and cue sheets track broadcast usage.
• Streaming reports: Platforms like Spotify and Apple Music submit usage data directly.
• Live venue setlists: Venues submit setlists, and BMI uses sample-based surveys to estimate live performance royalties.

The Shift to For-Profit and Private Equity Ownership

In March 2022, BMI's board voted to convert from a non-profit to a for-profit company. In November 2023, New Mountain Capital announced it would acquire BMI for a reported $1.7 billion. The deal closed in February 2024. As part of the acquisition, BMI affiliates (songwriters and publishers) received a $100 million payout from the sale proceeds.

This transition changed BMI's financial structure in several ways:

• Margin increase: BMI raised its operational margin from 10% to 15% of collections, meaning it now retains a larger share of revenue before distributing royalties.
• Payout target: BMI targets paying out approximately 85% of its licensing revenues to affiliates, compared to ASCAP's roughly 90%.
• Financial disclosure: As a private, for-profit company, BMI no longer publishes detailed annual financial results. Its last publicly reported fiscal year (ending June 30, 2022) showed $1.573 billion in revenue and $1.471 billion in distributions.

In early 2025, BMI renewed its licensing agreement with Spotify without dilution for audiobooks bundled into Spotify's music service. BMI also renewed agreements with Disney (Disney+, Hulu, ABC), NBC broadcast and cable, and after years of negotiations, concluded a deal with Paramount Global covering Paramount+, CBS, Viacom, and Pluto TV.

BMI vs. Other US PROs

BMI represents over 22 million musical works and licenses more than 176,000 businesses. It is the second-largest US PRO by market share, behind ASCAP.

Both BMI and ASCAP operate under Department of Justice consent decrees, which require them to license their entire catalogs to any business that requests a license at reasonable rates. SESAC and GMR (Global Music Rights) are not bound by consent decrees.

ASCAP remains a non-profit, member-owned organization with a 10% overhead rate. BMI's shift to for-profit ownership has raised concerns among some songwriters about whether royalty distributions will keep pace with revenue growth, since the company must now generate returns for its private equity owners.

Joining BMI

BMI is free to join. Membership is open to any songwriter, composer, or publisher. You can register online at bmi.com.

Real-World Example

A songwriter joins BMI in January 2026. She sets up two accounts: a Writer account and a Publisher account. She registers her new single "Midnight Drive" with BMI, listing herself as 100% writer and 100% publisher.

In March, a regional radio station plays "Midnight Drive" 40 times. BMI's monitoring system detects the plays. The station pays BMI a blanket license fee of $12,000 per year. BMI pools all radio revenue and distributes it based on detected airplay.

For those 40 plays, BMI calculates a performance royalty of $320. BMI splits it 50/50: $160 goes to her Writer account, $160 goes to her Publisher account. Because she owns both accounts, she receives the full $320. BMI deducts its 15% operating margin from the collection side, so she receives approximately 85% of what was collected, compared to ASCAP's 90%.

Meanwhile, the same song generates 50,000 streams on Spotify. Spotify reports those streams to BMI. The performance royalty for those streams is approximately $22 (performance royalties from streaming are separate from the mechanical royalties that The MLC collects).

Why It Matters for Independent Artists

Joining a PRO is one of the first and most important business steps a songwriter must take. If you write songs and do not belong to a PRO, you are leaving performance royalties uncollected.

Three rules for working with BMI:

1. Register every song immediately after writing it. Log into your BMI dashboard and enter the title, co-writers, and percentage splits. If a song is not registered, BMI cannot pay you when it detects performances.
2. Set up both a Writer and Publisher account. If you only have a Writer account, you forfeit the publisher's share (50% of your performance royalties) to BMI's unclaimed funds. Setting up a vanity publishing company costs nothing and doubles your collection.
3. Pick one PRO and stick with it. You cannot join both BMI and ASCAP simultaneously. Compare their fees, distribution schedules, and tools before choosing. BMI is free to join. ASCAP charges a one-time $50 fee.

Read our guide on How to Register Music with a PRO for step-by-step instructions, compare PROs in our PRO Comparison Guide, or see our full list of Best Royalty Collection Services for 2026.

Use our Streaming Royalty Calculator to estimate your earnings across platforms.

Related Terms

• PRO
• Performance Royalties
• Blanket License
• ASCAP
• SESAC