In the US, every AM and FM radio station, UHF, VHF, cable and television network must carry either or both ASCAP and BMI licenses in order to air copyrighted music. Since the internet is also a public forum, new media programmers and content producers in the US must also abide by these federal rules and regulations.
“It's important to understand that ASCAP and BMI are not record companies, music publishers, concert promoters, booking agencies or management companies,” said Dan Scott of PayForView.com. “ASCAP and BMI are the largest music license organisations which control performance rights and represent songwriters, composers and music publishers worldwide.”
Both ASCAP and BMI work on a percentage. These organisations collect money from any firm that uses their music and then pays out that money as royalties to the composers and publishers of the songs and compositions released to the public in any manner. Fees vary widely among the different kinds of customers. For example, a local radio station will pay a lower fee than a national television network.
The equivalent organisations in the UK are the Performing Rights Society and the Mechanical Royalties Society.