How does BMI calculate royalties for music used in movies?

BMI (Broadcast Music, Inc.) is one of the major performing rights organizations (PROs) that collects and distributes performance royalties for musical compositions. While I can provide a general overview of how BMI calculates royalties for music used in movies, it's important to note that the specific details may vary based on individual contracts and agreements between BMI and the artists.

Here's a general breakdown of the process:

• Cue Sheet: The movie production company and/or music supervisor is responsible for submitting a cue sheet to BMI. The cue sheet provides detailed information about the music cues used in the movie, including the title, composer, publisher, performing rights organization affiliation, and specific usage details.

  

  
  

• Performance Data: BMI collects performance data through various sources, such as monitoring TV broadcasts, radio airplay, and digital streaming platforms. They use this data to track and calculate the frequency and duration of music performances in the movie.

  
  
  
  

• Weighted Performance Ratio: BMI employs a weighted performance ratio to determine the share of royalties for each musical composition. This ratio considers factors such as the specific performance rights organization affiliation of the composition, the overall music usage in the movie, and the type of performances (e.g., background, theme, featured, etc.).

  
  

• Distribution Pools: BMI places the collected royalties into different distribution pools. These pools are categorized based on factors like music usage type, media type (TV, film, etc.), and geographic region.

  
  

• Royalty Distribution: Once the royalties are in the respective distribution pools, BMI distributes the funds to the rights holders. The specific percentage breakdown for the artist's share can vary, but typically, the royalties are divided among the composer(s), publisher(s), and other rights holders. The division of royalties is based on individual agreements and the ownership percentages associated with each musical work.

It's worth noting that while BMI provides a general framework for royalty calculations, the actual payments can be influenced by various factors, including the terms of the licensing agreements, international collection agreements, specific distribution policies, and any negotiated deals or exceptions.

For precise and detailed information about royalty calculations, it's recommended to consult with BMI directly or review the specific terms outlined in the artist's agreement with BMI.

If you're interested in having your music placed in movies and want to learn more about it, click here.