SESAC (Society of European Stage Authors and Composers) is one of three major performing rights organizations (PROs) operating in the United States.
While the other two major PROs are nonprofit organizations, SESAC is a for-profit organization. It also negotiates contracts with businesses like yours differently than the other PROs.
We’ve outlined how to work with SESAC to play music in your business, avoid fines, and navigate other ways that SESAC protects its artists.
What Is SESAC?
SESAC, or the Society of European Stage Authors and Composers, is a PRO founded in 1930. The company was founded to represent European authors and composers who created works that were performed within the United States. They deserved American royalties, and SESAC was founded to collect them.
During the 1940s and 1950s, SESAC created recordings of their protected works and gave them to American radio stations. Country and jazz performers like Chet Akins and Duke Ellington were part of this movement.
In the 1960s, the types of music SESAC represented were becoming less and less popular. Consumers wanted to listen to folk artists, rock music, and more. SESAC signed artists like Bob Dylan and Neil Diamond in response. They also signed up Christian musicians.
By the 1990s, SESAC had developed a deep bench of artists from a variety of different genres. Many people weren’t aware of how many people were affiliated with SESAC until the organization blocked all of their music on YouTube.
Now, the company works with a variety of artists, such as these:
- The Avett Brothers
- Bob Dylan
- Neil Diamond
- Mumford & Sons
- RUSH
- Adele
SESAC works a little like an intermediary for the artists it serves. The artists form an agreement with SESAC, and the organization enforces copyright on the artists' behalf. Money brought in is distributed to the artists.
Q: What Does SESAC Stand For?
A: The Society of European Stage Authors and Composers (SESAC) is a for-profit performing rights organization (PRO) that collects royalties for its member artists, songwriters, and publishers.
How SESAC Licensing Works
As a PRO, SESAC holds enforcement rights for each connected copyright. Each time a protected piece of music is played, SESAC expects to collect a fee. A portion of that fee is distributed to the composers, songwriters, and publishers associated with that piece of music.
SESAC is one of the only PROs that operates on a for-profit basis. That status could make this company slightly more aggressive about getting fees for protected music, as the company must pull in money to remain profitable. Nonprofit PROs may not have this same drive.
SESAC’s website makes it easy to sign up to play licensed music, including playing it in your business. You can even pay through their website, so the process is streamlined with you, the customer, in mind.
Pros & Cons of SESAC
SESAC isn’t the only PRO offering licensed music for businesses. Digging into the benefits and drawbacks can help you determine if this is the right partnership for you.
This table gives you an idea of pros and cons at a glance, but keep reading to find out about these issues in detail.
Pros of SESAC
When you sign up with SESAC, you ensure you’re playing music legally, while respecting the rights of musicians, songwriters, publishers, and other creators. Other benefits associated with SESAC include the following:
- Easy selections: SESAC offers a blanket license, so you can play all the music in the catalog with one agreement.
- Lots to choose from: SESAC offers a full repertory, including all sorts of different types of music, from Top 40 to regional Mexican to hip-hop.
- Plenty of contract options: Industry-specific license agreements are available for businesses hoping to play music in their establishments.
Cons of SESAC
While signing up ensures you’re playing music legally, other issues could make this a difficult choice. These are a few of the drawbacks associated with SESAC:
- Vague fees: It’s difficult to determine a contract's cost, as SESAC doesn’t make fee tables public information.
- Strong enforcement: If you don’t sign up with SESAC, the organization can fine you for the violations, and the fees can be very high.
- Catalog restrictions: Your fees don’t allow you to play everything. SESAC has a large music catalog, but some songs and artists are contracted with other PROs.
SESAC License Cost
SESAC recommends that business owners contact the company directly to understand the required fees, as each contract can be slightly different.
SESAC doesn’t provide an official summary of fees, even on the organization’s FAQ page. Bloggers and writers suggest fees for a blanket license could be about $700 per year, but confirming your music licensing cost without a call is impossible.
Your SESAC fees could vary based on the following factors:
- Industry: The type of establishment you operate could impact your required fees.
- Speakers: The more speakers you have, the more the organization might charge.
- Hours: The longer you play music, the more you might be asked to pay.
- Use: Fees could change if you hope to play music on a website, as part of a video, or in another venue.
For example, SESAC may charge a small to mid-sized hotel approximately $700 for an annual blanket license. They might charge a bustling Las Vegas casino several thousand dollars for the same license. Since more people will be listening to the music, through more speakers in a bigger space, the licensing fees go up.
Penalties & Fees for Playing Music Without a SESAC License
Playing SESAC music without an agreement in place is risky. Representatives from the organization can visit your facility unannounced, and when they arrive, they can demand that you sign a contract and pay a fine. They can also send letters with enclosed payment envelopes.
Fines for playing music without a license are enshrined in U.S. copyright law. If SESAC takes you to court, you could face penalties from $750 to more than $30,000 per infringement. If the court finds you’ve willfully ignored the copyright, you could be asked to pay up to $150,000 in damages.
SESAC vs. Other PROs
SESAC is one of several performing rights organizations (PROs) operating within the United States. Each one is slightly different.
This chart breaks down how the different PROs work:
Why Choose SESAC?
When comparing SESAC to other PROs, catalog size stands out. BMI and ASCAP, two other PROs, represent far more organizations, artists, and songs. If you connect with SESAC, you’ll have just 1+ million songs to choose from, compared to BMI’s 20+ million.
SESAC is also the only for-profit PRO working in the United States. This status could make them more aggressive about collecting fees, as they need to bring in money to make profits for their stakeholders.
Why Choose ASCAP?
ASCAP has a smaller catalog than other PROs. However, plenty of very important artists work with this organization, including Stevie Wonder and Katy Perry. Unlike SESAC, ASCAP makes music licensing costs relatively transparent, so there are no nasty surprises. For example, ASCAP says licenses for gyms cost less than a bottle of water per day. ASCAP also offers discounts for businesses, which can further reduce your overall bill.
Why Choose BMI?
BMI has one of the largest music libraries of all of the PROs we’ve mentioned. With more than 20.6 million songs from more than 1.3 million artists, there’s something for everyone. BMI also makes their pricing transparent, unlike SESAC. For example, if you run a hotel, your prices for recorded music in one to nine locations will range from $294.93 to $2,515.23 per year for audio-only performances. The prices vary by square footage. If you want to enter a negotiation with plenty of information, BMI is a good choice.
Why Choose GMR?
GMR has a relatively small library of songs, but important artists like Lizzo and Drake are included among them. Unlike SESAC, licensing with GMR is simple. You don’t have to specify how you want to use music with GMR. Instead, your fee gives you a blanket license to use music in almost any way within your business.
Alternatives to SESAC
Rather than working with any PRO, you could choose alternative sources of music. Alternatives to PRO licenses include the following:
- Public domain music: Songs recorded before 1926 are no longer protected by copyright. You can play these very old recordings without using a PRO at all, but remember that newer recordings are protected.
- Royalty-free music: Some musicians offer up their songs free of ongoing copyright payments in exchange for more exposure. A contract with a group like this could help you get music without paying high fees.
- Original music: If you write, play, and record your own songs, you could play them in your space without paying anyone for them.
- Radio: The rules regarding radio are strict, but in general, small locations with just a few speakers can play radio broadcasts without paying a fee
How to Obtain a License With SESAC
If you know you want to play songs from SESAC’s library in your business, you need to either obtain a license from SESAC directly, or you can use a commercial streaming service that has a relationship with SESAC. To get a license from SESAC, follow these steps:
1. Contact the Organization Online
SESAC asks business owners to start the conversation with an online form. Go to the company’s website, and choose the type of facility you operate. You must also tell SESAC the name of your establishment and provide your contact information.
2. Give More Information
On the next screen (which you can’t see until you provide your contact information), SESAC will ask for more information about your organization and the type of music license you might need. The questions can vary by business type, but they can include the following:
- The size of the room in which the music will play.
- The number of people who might hear the music.
- How many days and hours music will play.
- Whether you’ll play recorded music or live music.
3. Wait for Contact
The SESAC sales team will either email you or call you to talk about your license. The person will have all of the data required to give you a price, but know that you can negotiate during this discussion.
The person may open with a price, but you can ask for ways to lower the fee. For example, if the price is based on playing music seven days per week but you’re only open for six, maybe clarifying that issue could keep your bill smaller.
4. Finalize the Details
Once you’ve negotiated the deal, you’ll be provided with a contract to sign and a fee to pay. Once you take those two steps, you can play music as it’s outlined in the document.
What to Know About SESAC Music for Business
SESAC offers a music licensing program, allowing you to access the company’s entire catalog of protected songs with one fee.
SESAC doesn’t disclose typical fee structures or price ranges. Instead, if you’d like to know how much a SESAC partnership will cost, you must take the following steps:
- Identify your business. SESAC pricing is determined, in part, by the type of business you own.
- Answer questions. SESAC asks where your facility is located, and if you have more than one, you’ll identify each location. SESAC also requires contact information, so a salesperson can call you.
- Pay a fee. SESAC accepts online payments, so you can get started with your music right away.
Note that your fees only allow you to play the songs protected by SESAC. Choose something outside the catalog, and you might be required to connect with a different PRO. When a business needs a music license with plenty of options and flexibility, SESAC can seem very limiting.
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Frequently Asked Questions About SESAC
We’ve compiled some of the most frequent questions about SESAC, along with answers written by our experts.
What artists are covered by SESAC?
A few of the artists who work with SESAC include Adele, Neil Diamond, Mariah Carey, Bob Dylan, Ariana Grande, and Kesha.
Can you avoid or get an exemption from SESAC?
You can’t play music protected by SESAC without an agreement. SESAC does not offer any exemptions allowing you to play music that exists within the catalog.
What should you do if you receive a letter or email from SESAC?
SESAC and other PROs sometimes send letters to businesses in response to copyright violations. Typically, these letters explain what SESAC thinks has happened, and there may be an envelope enclosed for payments. You should respond to this letter, either by paying the fine or explaining how you’ve fixed the copyright problem with a contract.
Why do I need a SESAC license?
Copyright laws ensure that creators are paid for their very important contributions. A SESAC license is one way to ensure that you’re honoring copyright laws and paying creators appropriately. Without this or a similar arrangement, you’re subject to fines.
References
Frequently Asked Questions. SESAC.
17 U.S. Code Chapter 5: Copyright Infringement and Remedies. Cornell Law School.
About Music Licensing. SESAC.
Music Licensing Paying the Piper. Special Events.
Get a License. SESAC.