CMOs & Royalties
How Collective Management Organisations work, what they collect, and why every composer needs to register
What is a CMO — and Why Do They Exist?
Imagine trying to personally track every single performance of your music across the world — every concert, every radio broadcast, every streaming play, every background music use in a restaurant. Then imagine negotiating a payment for each one individually. It would be impossible for a single composer, and equally impossible for individual concert halls or broadcasters to negotiate with every composer whose music they use.
This is exactly the problem that Collective Management Organisations (CMOs) — also called collecting societies or Performing Rights Organisations (PROs) — were created to solve. A CMO pools together the rights of thousands of composers and publishers, issues licences collectively to music users (broadcasters, streaming services, venues, shops), and then distributes the collected royalties back to rights holders.
For you as a composer, this system means: you register once with your CMO, and from that point forward, the CMO works on your behalf around the clock and around the world — collecting money that you are legally entitled to, that you would otherwise never see.
A concert hall, radio station, or streaming service wants to use music. They pay a licence fee to the CMO (often a blanket licence covering all CMO-registered works).
The CMO collects all these fees from thousands of music users simultaneously.
Usage is tracked through concert reports, broadcaster playlists, streaming data, and audio monitoring technology.
The CMO calculates what portion of the total collected money is attributable to each registered work.
Royalties are distributed to members — typically every three to six months.
BUMA & STEMRA: The Dutch System in Detail
For Dutch-based composers, the two primary CMOs are BUMA and STEMRA. Although they are separate organisations in terms of the rights they manage, they are both administered by the same entity — Buma/Stemra BV — and you generally register with both at the same time through one process.
BUMA collects royalties whenever music is performed or communicated to the public:
- • Live concert performances in all venues
- • Radio and television broadcasting (national and regional)
- • Public streaming (music played in shops, cafés, hotels)
- • Online streaming platforms (Spotify, Apple Music, etc.)
- • Cinema film screenings with music
- • Live events and festivals
STEMRA collects royalties whenever music is reproduced — recorded and duplicated in any form:
- • CD and vinyl production and sales
- • Digital download sales (iTunes, Bandcamp)
- • On-demand streaming (each stream is a mechanical reproduction)
- • Music in video games and interactive media
- • Ringtones, apps, and digital products
- • DVDs and Blu-ray releases with music
Buma is a membership association (vereniging) with approximately 26,000 personal members (composers, lyricists) and 1,300 publisher members. Two 'wings' (geledingen): authors and publishers.
- • ALV (General Members' Meeting) — highest authority
- • RvT (Supervisory Board) — 9 members incl. 4 composers, 2 publishers
- • Raad van Rechthebbenden — advises management
- • Repartition Committee — monitors fairness of distributions
- • Blanket licence — flat fee or % of income (radio/TV)
- • One-off licences for festivals and events
- • Theatre, cinema, and classical ensemble licences
- • Collective licences with amateur associations (hafabra, choirs)
- • Sector deals (hospitality, retail) via trade associations
Standard licence rate: 7% of concert box-office income (minimum 80% protected repertoire on the programme).
Linking collected money to specific works is called garing. It happens in two ways:
Every registered soundfile is 'fingerprinted' — its unique audio DNA is extracted. The company Soundaware scans all major radio and TV broadcasts and matches them against registered fingerprints. The DJ Monitor system does the same for live dance events.
For live performances, bands submit setlists via the Buma website or app. Films and commercials use cuesheets (exchanged internationally). Classical concerts submit programme reports directly. As a composer, always ensure your performances are reported!
The social & cultural deduction funds: composer/publisher pensions, the Sociaal Fonds Buma, professional association subsidies, and cultural events like Noorderslag and Amsterdam Dance Event. The split between social and cultural purposes is approximately 50:50.
Stemra normal split (works registered after 1 January 2019): 1/3 publisher — 2/3 author for all works (including instrumental). Earlier works: 50% publisher for instrumental; 33.3% for works with text.
- Visit bumastemra.nl and create a member account (free of charge)
- Complete the membership application — personal details, composer status, bank account
- Register each work in the online catalogue with: title, instrumentation, duration, co-composer shares, publisher details, and a soundfile (mandatory for media music; needed for fingerprinting)
- Works are registered via ICE — a shared database platform run by PRS, STIM, and GEMA (with Buma as partner). This means your work only needs to be registered once for all partner CMOs.
- Your work receives an ISWC code — the unique international work identifier used by all CMOs worldwide
- Royalties collected for registered works are paid into your account at each distribution cycle
How Streaming Royalties Are Split: Mechanical vs Performance Rights
When a listener plays your music on Spotify, Apple Music, or any other streaming service, the platform pays out royalties that are divided into two fundamentally different rights categories: a mechanical royalty (for reproducing the work) and a performance royalty (for communicating it to the public). Understanding this split is essential — each stream you receive is essentially two separate payments travelling through two entirely different pipelines.
Each stream is simultaneously a performance (communicating the work to the public) and a mechanical act (reproducing it). Buma/Stemra must therefore divide the online royalty between its two organisations. For streaming, it allocates 75% to performance (Buma) and 25% to mechanical (Stemra). For downloads, the split is reversed: 75% mechanical (Stemra) and 25% performance (Buma) — because a download is primarily a reproduction, not a communication to the public.
This is one of the most complicated aspects of the entire royalty system: the same online play generates two different rights, split differently depending on whether it is streamed or downloaded, and paid out by two different organisations on two different timelines.
Goes to the owner of the recording (label, distributor, or self-releasing artist)
Not managed by CMOs. Managed via SENA (NL) for neighbouring rights.
Goes to the owners of the composition (composer + publisher)
Self-published? You keep both shares.
Self-published? You keep both shares.
Every stream triggers two royalty payments. If only one is arriving, something is wrong with your registration.
If you have a publisher, the publisher's 50% share (both mechanical and performance) is defined in your publishing contract. Always check what percentage of the publisher share is passed through to you.
If you self-publish, you collect both the writer share and the publisher share — but you must actively register as a publisher with both BUMA and STEMRA to claim this.
The master recording royalty is entirely separate and not managed by CMOs at all — it belongs to whoever owns the recording (label, distributor, or you).
Major CMOs Worldwide
Thanks to a network of reciprocal agreements between CMOs, when you register with BUMA/Stemra, you are effectively enrolling in a global collection system. Every major CMO in the world has a bilateral agreement with BUMA/Stemra to collect on their behalf and transfer the money home. Here is an overview of the key organisations:
| Organisation | Country | Focus | Scale |
|---|---|---|---|
| BUMA/STEMRA | Netherlands 🇳🇱 | Public performance (BUMA) + mechanical rights (STEMRA) | ~€2–5 per minute of broadcast; varies per medium |
| PRS for Music | United Kingdom 🇬🇧 | Combined PRO for composers, lyricists, publishers | £1.3 billion distributed annually (2022) |
| GEMA | Germany 🇩🇪 | Performance, broadcast, mechanical, online rights | ~€1.1 billion per year |
| SACEM | France 🇫🇷 | All categories of rights management | ~€1.5 billion per year |
| ASCAP / BMI / SESAC | United States 🇺🇸 | Performance rights (US has separate mechanical MROs) | ASCAP: $1.6B; BMI: $1.57B annually |
| SOCAN | Canada 🇨🇦 | Public performance and communication rights | ~CAD $400 million annually |
| APRA AMCOS | Australia 🇦🇺 | Performance and mechanical rights combined | ~AUD $600 million annually |
| SENA | Netherlands 🇳🇱 | Neighbouring rights for performers and producers | Separate from BUMA; covers recordings |
How Royalties Are Calculated
A question composers frequently ask is: "How much will I actually receive?" The honest answer is that CMO royalty calculations are complex and vary significantly by territory, medium, and usage type. However, understanding the general principles helps you set realistic expectations and identify when you might be receiving less than you should.
Broadcasters, streaming services, and concert venues report what music they use. Most streaming platforms (Spotify, Apple Music) provide detailed play-by-play data. For live performances, reporting depends on the venue submitting a programme — which is why it's important to ensure performances are reported. CMOs also use audio fingerprinting technology to monitor broadcasts automatically.
Not all plays are worth the same amount. A primetime national television broadcast of a 10-minute orchestral work pays vastly more than a community radio play of the same work. The key factors are: broadcast medium (TV > radio > streaming), time slot (prime time vs overnight), audience size, work duration, and territory.
Royalties are typically divided between the composer (writer share: 50%) and the publisher (publisher share: 50%). Some CMOs pay both shares directly to the composer if no publisher is involved. If you have a publisher, your contract should specify how much of the publisher share is passed through to you — this varies and is a key contract negotiation point.
Most CMOs distribute royalties quarterly or semi-annually. There is an inherent time lag in the system — typically 6–18 months between a performance occurring and you receiving payment. This is simply the time it takes for usage reports to be processed, matched to works, and calculations finalised.
CMOs retain a percentage of collected revenue to fund their operations — typically between 10% and 25%, depending on the CMO and the type of rights. This is standard and unavoidable. BUMA/Stemra publishes its distribution rules and deduction rates annually; you can check these on their website.
These are approximate figures for the Netherlands (BUMA) — actual amounts vary considerably:
- • National radio broadcast (NPO Radio 4), 10-minute work: approximately €80–150
- • Live concert at major Dutch venue (reported programme): approximately €30–80
- • Streaming (Spotify, 1,000 plays of a 10-minute work): approximately €3–10
- • International radio broadcast (BBC Radio 3, 10-minute work): approximately €100–200 (via PRS reciprocal payment)
These figures are illustrative only. A work performed and broadcast 20–30 times per year across multiple territories can generate several hundred to a few thousand euros annually.
NORMA and Other Dutch CMOs
Beyond Buma/Stemra and SENA, several other Dutch collective management organisations are relevant to composers and publishers:
NORMA represents all performing artists — including actors. Its primary task is collecting and distributing collective remuneration: cable, home copying (thuiskopie), and lending right (leenrecht) income.
When do you receive NORMA income vs SENA income?
- • A released recording broadcast on TV → via SENA
- • A live performance recorded and broadcast on TV → via NORMA (you are treated as an 'actor' in that context)
- • Soundtracks/leaders composed and performed for films/series → via NORMA
- • Archive footage of a TV performance broadcast again → via NORMA
Levies on devices sold in the Netherlands (audio equipment, USB sticks, computers) that can be used to copy music. Collected by this foundation and distributed to Buma, Stemra, and SENA according to fixed split keys.
Collects lending fees from public libraries (per borrowed copy of books and recordings). Distributes to FEMU, Stemra, and SENA. Composers and publishers receive a share for scores and recordings that are lent.
Reprorecht collects photocopying levies from government, education, and businesses. About 2% of annual income covers sheet music use — paid to FEMU for distribution. FEMU also licenses websites, karaoke, and anthologies that use music notation or lyrics.
CvTA: Independent Oversight of Dutch CMOs
Because each CMO is effectively a legal monopoly or cartel — music users have nowhere else to go — Dutch CMOs operate under statutory government supervision by the CvTA (College van Toezicht Auteursrechten), the Dutch Copyright Supervision Authority.
- • Statutes and governance structures
- • Handling of complaints and disputes
- • Remuneration of directors
- • Business operations and cost levels
- • Almost all board decisions (including ALV resolutions) require CvTA approval before taking effect
- • CMOs may not spend more than 15% on operational costs — exceeding this requires explanation, and repeated violations can lead to fines
- • Collected royalties must normally be distributed within 9 months of collection
- • Complaints must be resolved within 6 months (max. 3 years)
- • CvTA is funded by the CMOs themselves (i.e. from composer/publisher income)
Grand Rights: The Exception to the CMO System
There is one important category of rights that falls entirely outside the CMO system: grand rights (also called dramatic rights). Understanding this distinction is important, especially for composers working in opera, music theatre, or ballet.
Grand rights (also called dramatic rights) cover the use of music in staged dramatic works — opera, musical theatre, ballet with narrative, and song-cycle dramatisations. The key distinction is that the music is used in the context of a dramatic story, with sets, costumes, and staging. These are NOT administered by CMOs and must be licensed directly.
Standard CMO blanket licences are designed for simple, repeated uses — a song played on the radio thousands of times. Grand rights performances are complex individual events involving significant fees. Licence costs depend on the prestige and size of the venue, number of performances, ticket prices, repertoire duration, and whether the work is a world premiere.
Publishers like Donemus handle grand rights negotiations on behalf of their composers. This is one of the key advantages of having a professional publisher — they have existing relationships with opera houses, theatre companies, and festivals, and understand how to price and structure these deals. Self-published composers must negotiate directly.
Grand rights fees for major works at prestigious venues can be very substantial — a premiere of a new opera at a national opera house can generate thousands of euros in licencing fees alone, plus subsequent performances. For smaller staged works, fees are proportionate. Always ensure grand rights are clearly addressed in your publishing contract.
Templates & Downloads
Practical documents to use in your work as a composer
Practical Action Plan: Maximising Your CMO Income
- Register as a member of BUMA/Stemra (Netherlands) or your country's equivalent CMO
- Register every work you have composed in the CMO catalogue — even older works
- Ensure each work receives an ISWC (International Standard Work Code)
- If you perform on your own recordings, consider SENA membership for neighbouring rights
- Verify with your publisher what share registration they have done on your behalf
- Log in to your CMO member portal and check your statement at each distribution cycle
- • Report every live concert performance to your CMO — use the online reporting form and submit promptly after the event
- • Ask concert organisers to submit their own programme reports (most major venues do this automatically, but smaller venues may not)
- • Search your CMO's online portal for unmatched or unclaimed royalties
- • When you sign a recording deal, ensure the label registers the recording properly with STEMRA and SENA
- • Keep your contact details and bank account up to date with your CMO to avoid payment delays
- • Review your CMO statements carefully — errors in work registration or performance matching do occur and can be corrected
How Do European CMOs Compare? Insights from Berenschot (2025)
A 2025 whitepaper by management consultancy Berenschot — "Who gets paid when the music plays?" — provides the most recent comparative analysis of royalty collection and distribution across the top-15 European CMOs. The findings are striking: there are enormous differences in how efficiently CMOs collect and distribute royalties, even within similarly wealthy countries.
Berenschot introduces a key metric called the Distribution Ratio: the percentage of royalties collected in a given year that is actually paid out to member composers. A higher ratio means more of the money ends up in composers' pockets.
Note: A DR above 100% can occur when a CMO distributes royalties collected in previous years (as seen in Austria and Poland).
| Country / CMO | Total collected | Online share | CMO costs | Distribution Ratio |
|---|---|---|---|---|
| 🇫🇷 France · SACEM | €1,601M | 40.6% | 10.6% | 81.3% |
| 🇬🇧 UK · PRS | €1,371M | 33.6% | 12.0% | 87.9% |
| 🇩🇪 Germany · GEMA | €1,332M | 23.3% | 14.9% | 83.0% |
| 🇳🇱 Netherlands · BumaStemra | €313M | 25.1% | 13.3% | 78.3% |
| 🇸🇪 Sweden · STIM | €291M | 36.5% | 11.0% | 86.2% |
| 🇩🇰 Denmark · KODA ★ | €183M | 34.3% | 10.9% | 90.7% |
Source: Berenschot (2025), based on 2024 CMO annual reports. ★ = European benchmark for royalty collection per capita.
The Metadata Gap: Why Royalties Go Uncollected
Even when your works are registered with a CMO, royalties can still fail to reach you — not because the system doesn't collect the money, but because of broken links in the metadata chain. A 2024 UK IPO report on music streaming metadata, based on interviews with 96 industry stakeholders across labels, publishers, CMOs, distributors, and DSPs, reveals the scale of this problem.
The music industry uses several international identifier codes to link recordings to works and people. When these are missing or mismatched, royalties end up unallocated or delayed.
Identifies the musical composition (your score). CMOs use this to match streams to your work and calculate royalty payments.
Frequently absent at the time of release. The ISWC is often only assigned after a recording has already been delivered to streaming platforms — meaning royalties accumulate without a link to the correct work.
Identifies the sound recording (the audio file). Labels assign this and deliver it to DSPs with the release.
Duplicate ISRCs are common (4–23% of recordings at DSPs have duplicates). When a label acquires a catalogue, new ISRCs are sometimes incorrectly issued for the same recording, breaking the link to existing royalty history.
Identifies individual composers and publishers within the CMO database. Required for ISWC allocation and royalty matching.
Most labels have zero IPI numbers in their systems. Labels cannot access the IPI database. This means the link between a recording and its composer is often just a name — which breaks when names are misspelled, use pseudonyms, or are shared by multiple people.
Identifies performing artists for neighbouring rights (SENA) purposes.
Rarely included in metadata delivered to DSPs — only present in around 1% of recordings at some platforms. Session musicians especially are often uncredited in digital metadata.
The ISRC standard does not include a dedicated "composer" or "writer" field — and it does not link to ISWC codes. Much classical music has no distinct or descriptive title (e.g. Symphony No. 4), making identification almost entirely dependent on the composer name being correct and present. Because composer names don't fit neatly into standard metadata fields, composers are often listed as "artists" — which is inaccurate and complicates CMO matching. This is identified in the IPO report as a structural gap specifically affecting contemporary classical music.
Additionally, classical releases often have complex contributor structures — one track may involve a composer, arranger, conductor, orchestra, and multiple soloists — which most metadata templates are not designed to handle accurately.
The average delay between a recording appearing on a DSP and the publishing industry identifying the musical work is 3–6 months. If the ISWC is not linked on delivery, CMOs cannot process claims until after that window — sometimes years later.
When writer splits are disputed or incomplete at the time of streaming, royalties accumulate in an undistributed pool. These 'black box' funds may eventually be distributed by market share — meaning they go to the most-streamed artists, not necessarily to you.
Without IPI-linked composer identification, CMOs and DSPs can accidentally link a recording to a differently-spelled version of your name (a 'ghost account') — directing your royalties to an unlinked account that can't reach you.
Credits on streaming platforms are linked to the same metadata. Missing or wrong composer credits also affect eligibility for awards (Grammy, Britt), which in turn affects future commissions and opportunities.
Coloured boxes throughout the chapters carry consistent meaning: