Music venue operators demand transparency in royalty payments and licensing fees

May 05, 2025 | Austin, Travis County, Texas


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Music venue operators demand transparency in royalty payments and licensing fees
The government meeting held on May 5, 2025, in Austin focused on the challenges faced by local music venues regarding music licensing and royalties. The discussions highlighted the frustrations of venue operators with the current system of performance rights organizations (PROs) and the complexities involved in paying for music licenses.

One venue operator expressed that the process often feels like extortion, as they are required to pay multiple licensing companies every few months. This operator noted a trend where PROs are fracturing into smaller entities, complicating the licensing landscape. They explained that while they understand the importance of supporting musicians through royalties, the financial burden on venues is significant, especially for smaller establishments with tight margins.

The operator detailed how PROs like BMI, ASCAP, and CSAC manage music catalogs and license them to venues, but the costs can become overwhelming. They mentioned that despite paying these fees, the actual royalties that trickle down to musicians are minimal, often amounting to only a few dollars per quarter.

Another commissioner echoed these sentiments, emphasizing the need for transparency in the financial breakdown of expenses related to PROs. They suggested that a public searchable database be established to help venues identify and claim royalties more effectively. Additionally, they proposed the creation of a local artist priority fund to support musicians directly.

The meeting concluded with a call for further discussions on these issues, highlighting the need for a more equitable system that ensures musicians receive fair compensation while allowing venues to operate sustainably. The commissioners expressed their commitment to addressing these concerns in future meetings.

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