As a performing artist, I know all too well how ASCAP and BMI work. They are actually artist organizations (they don't represent the labels) that pay the artist directly for "performances" of their music. Any public performance of an ASCAP or BMI artist's music is supposed to be supplemented by payment, usually in the form of a contract between the venue and ASCAP/BMI. The money the venue pays to the organization goes into a pot - and then this money is distributed to the artists. Nice idea, in theory. The problem begins when one looks at how these organizations pay the artists. It is almost entirely based upon radio airplay, so the system doesn't work particularly well except for the big players in the game.
ASCAP is well-known in cities for cracking-down on places like coffee houses that have live music - they send in what are essentially thugs to scare the venue into paying what works out to be "protection money" to keep ASCAP from suing them in the event someone plays an ASCAP-artist song during an open mic or live music event. Rather than trying to come off on a more positive marketing angle of trying to help out the music business and the artist, which ASCAP could easily create a pretty compelling argument for, they instead use strongarm legal language and intimidation. I know many coffee houses who simply won't allow live music due to a scary visit from ASCAP or BMI thugs.
Much like the RIAA, these "artist" companies, due to their plainly nasty way of dealing with their clients and the public, are simply in the business of making money off other people's work. This is why I am not a member of any of these organizations and work hard to support venues who don't cave-in to the pressures these organizations place on them. Original live music, owned by the performer - that cannot be touched by these cads.
