Performance royalties for background music are managed through performance rights organizations (PROs) like ASCAP, BMI, and SESAC. These organizations collect fees from businesses using the music and distribute royalties to the songwriters, composers, and publishers based on usage data and licensing agreements.

Changes in music consumption, such as streaming over physical sales, impact performance royalties by shifting revenue models. Artists and rights holders often earn less per stream compared to traditional sales, necessitating higher play counts for comparable income, thus altering how royalties are calculated and distributed in the digital age.

Performance royalties are audited by examining financial records, usage reports, and licensing agreements. Auditors verify that royalties are accurately calculated and paid based on actual usage data from broadcasters, streaming services, and venues. Discrepancies are identified and corrected to ensure rightful payments to artists and rights holders.

Restaurants and bars pay performance royalties by obtaining licenses from performing rights organizations (PROs) like ASCAP, BMI, and SESAC. These licenses grant them legal permission to play copyrighted music, and fees are typically based on factors like venue size, music usage, and audience capacity.

Blanket licenses are agreements that allow entities, like radio stations or venues, to legally play any song from a collection managed by a performance rights organization (PRO). In exchange for a fee, these licenses cover all performance royalties, simplifying the process of using a wide range of music legally.

Performance royalties from TV broadcasts are collected by Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC. These organizations monitor broadcasts, track song usage, and then collect fees from broadcasters. The collected royalties are subsequently distributed to songwriters, composers, and publishers based on the frequency and duration of their works’ usage.