2. Public performance. Anywhere music is performed publicly (radio play, airplay, etc.) and the venue is making money in that environment, it must pay the songwriters and publishers for the use of that music. Radio stations, MTV, bars, music clubs, restaurants and catering facilities, health clubs, stores, etc. all pay what is called a blanket license, which is a one-shot fee per year based on their gross revenue (usually about two percent), to ASCAP, BMI, and SESAC for the use of all the copyrights those societies represent. Basically, these performing rights organizations act as collection agencies, for a percentage. (The Internet, incidentally, is a whole new medium that seems to be rewriting the rules somewhat, as discussed in previous articles.) Public performance royalties represent about 33 percent of publisher's revenues. That's a hefty amount. (See Should Music Be Free?)
3. Synchronization. Anytime your audio is synchronized to a visual, such as when up a song is used on TV, advertising, or film, publishers get paid a lump sum for it. (Music videos are a different story, because they are considered promotional.) The synchronization license is negotiated with the producer, and the fee varies depending on how big the usage is, how prominent it is, how hot the song is at the moment, the length of the term of the use, the number of territories it will be played in, whether it's an exclusive license, etc. It can range from a couple of hundred bucks to millions. For example when Microsoft used the Rolling Stones' "Start Me Up" to kick off Windows 95, they paid four million dollars for the privilege. There's no rulebook on this. Additionally, when a song is used on TV, not only do you get a synchronization fee, but TV is monitored by the performing rights organizations, so performance royalties are paid as well.
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