In music licensing, a “Per Program” license lets organizations like radio stations, TV networks, and media outlets pay for music on a per-program basis instead of a blanket license. This option can be more cost-effective for broadcasters and content creators who use music in only a few programs. In this article, we’ll explore what a “Per Program” license is, how it works, and who might benefit from it.
What Is a “Per Program” License?
A “Per Program” license allows broadcasters or content creators to pay for music in individual programs or episodes instead of paying a single fee that covers all music across their channel or platform. This model benefits organizations that only need music for specific programs, rather than for their entire schedule.
Unlike a blanket license, which grants unlimited access to a music catalog for a set period, a “Per Program” license requires the licensee to track and report each instance of music use. This ensures that royalties are paid based on actual usage rather than a flat fee.
How Does a “Per Program” License Work?
When an organization opts for a “Per Program” license, they typically engage with a performance rights organization (PRO) like ASCAP, BMI, or SESAC in the U.S., or similar organizations internationally. Here’s how it usually works:
Program Identification:
The organization identifies the specific programs or episodes where music will be used. Each program is licensed individually, meaning only the music used within that particular program incurs licensing fees.
Music Usage Reporting:
The organization tracks and reports the specific music cues used in each program. This includes details like the music title, composer, duration, and type of usage (e.g., background music, theme song).
Royalty Payments:
Based on reported music usage, the PRO calculates royalties owed for each program and distributes payments to the rights holders, including composers, songwriters, and publishers.
Cost Efficiency:
Since the license applies only to specific programs, costs are often lower than with a blanket license, making it attractive to broadcasters who use music sporadically or in limited contexts.
Who Needs a “Per Program” License?
This license is ideal for:
Radio Stations with Mixed Programming:
Stations that primarily broadcast talk shows or news but occasionally feature music programs can find this license more cost-effective than a blanket license.
Television Networks with Limited Music Use:
TV channels that air a mix of content, like news and sports, with only a few music-heavy programs, benefit from paying only for the music used in specific shows.
Podcasters and Online Content Creators:
Podcasters or online video creators who only use music in certain episodes can keep costs down by paying only for the music they actually use.
Businesses with Special Event Programming:
Companies that host occasional live events or webinars with music might choose a “Per Program” license to cover specific instances without needing a year-round blanket license.
Advantages
Cost-Effectiveness:
For organizations that don’t use music extensively, this license can be more affordable than a blanket license, limiting costs to only those programs that require music.
Flexibility:
This license offers flexibility by allowing organizations to manage their music licensing needs on a program-by-program basis, which is useful for diverse content that may not always require licensed music.
Accurate Royalty Distribution:
Since music usage is reported per program, royalty payments are more accurately distributed to rights holders, ensuring fair compensation based on actual usage.
Disadvantages
Administrative Burden:
This license requires meticulous tracking and reporting of music usage, which can be time-consuming, especially for larger organizations with many programs.
Limited Scope:
If an organization uses music extensively across all its programming, a blanket license may be more cost-effective and simpler to manage than a “Per Program” license.
Conclusion
A “Per Program” license is valuable for broadcasters, content creators, and businesses that use music selectively. By paying on a per-program basis, organizations can save costs and gain flexibility compared to a blanket license. However, it does require careful tracking and reporting to ensure accurate royalty payments. For those who fit the profile, a “Per Program” license can be an efficient and economical way to use music legally in media productions.
