50 Income Streams Music Creatives Should Know About…

Home , Music publisher, Recording contract, Record label, Right Here (Departed)

And Where To Find Them

Music royalties, licensing fees and the numerous other streams of revenue available to songwriters, performers and producers can be difficult to navigate. The good news is, the rapid growth of technology has produced more opportunities for distribution, new forms of music royalties and more ways than ever to track and collect monies due to you. The challenge is in knowing what types of royalties and fees are out there.

In the world of music royalties, it all starts with the song. Each song is protected by copyrights in two categories:

1. A copyright for the songwriting, or “composition”, categorized as the Composition 2. A copyright for the performance, categorized as the Sound Recording.

Depending on your role in the writing, production or recording of any given song, you may earn royalties in one copyright category or both.

Beyond copyright royalties, there are a wide range of fees and profit centers that can encompass the earnings of a music professional. It is critical for creatives to be familiar with these revenue sources and have expert help whenever possible to track and collect the royalties, fees and income to which you are entitled. There is much to know, but there is also a wealth of information online, whether through sources like Wikipedia, official websites for Performing Rights Organizations (PROs) like ASCAP, BMI and SESAC, or right here, in this royalty income guide that Sound Royalties has put together for you.

In the new digital music economy the creator is king. As an artist-friendly company, Sound Royalties is dedicated to the empowerment of creative talent. To help you flourish and sustain your career, here is our guide to royalty and revenue streams all music creatives should know about.

Songwriters, click here. Recording Artists, click here. Producers, click here. Musician/Performer, click here.

* The music industry continues to evolve daily and this is meant to be a living document. Please forward any additions or changes to this document to [email protected] to help us keep this updated for all creatives and to ensure you’re collecting everything you should be.

Sound Royalties Guide to Music Royalties and Revenue www.soundroyalties.com © 2021 Sound Royalties, LLC. Unauthorized reproduction of the foregoing material is strictly prohibited. Songwriter (composition copyright)

Songwriter Public Publishing Public Performance Mechanical Royalties Mechanical Royalties Streaming Revenue Performance Royalties (Physical) (Digital) Royalties

Earned when a song is Earned when a song is sung or played Earned with the sale of music in Earned with the sale of music On-demand song streams played (live or via (live or via recording) on radio, TV, physical form (CD, cassette, (including covers) in digital through digital services such recording) on the online, at live events or in public places vinyl, DVD, etc.) This includes download form and interactive as Spotify or Apple Music that terrestrial radio, TV, online (restaurants, bars, stores, parks, cover versions of songs/music. streams. Paid to the copyright are paid from the streaming and at live events or in concerts, festivals, etc.). Typically split Royalties are paid to the owner: the publisher (or services by a direct license to public places 50/50 between songwriter and copyright owner: the publisher administrator). the major publishers and/or (restaurants, bars, stores, publisher in a co-pub deal, or much less (or administrator) and *PROs do not handle mechanical mechanical licensing agents stadiums, concerts, for the co-publisher if it is just an songwriter, based on the royalties. (i.e., Harry Fox (US)). These festivals, etc.). Collected administration deal. These are paid publishing agreement. The funds are then paid to the and paid directly to the through PROs (Performance Rights current statutory rate is 9.1 songwriter. While sometimes The Mechanical Licensing songwriter through a Organization) such as ASCAP, BMI or cents per song under 5 these are not paid out, soon Collective was formed to to the publisher or administrator Performance Rights SESAC . minutes. administers licenses for streaming they all will be paid to Organization (PRO) such as Note this is typically in a separate and download services in the US. publishers registered with the ASCAP, BMI or SESAC. account than the songwriter account. They collect royalties due from the Music Licensing Collective *PROs do not handle (MLC), under the MMA . PRO’s listed by . DSP's and pay songwriters, List of publishers in the U.S. with mechanical royalties. (Music Modernization Act) . country contact information composers, lyricists, and music

. Contact info: ASCAP, . publishers. National Music Publisher . Paid by the label to Harry . Understanding the BMI, SESAC, GMR Association (NMPA) Fox Agency (HFA) or *If you self-publish, you can Music Modernization . NSAI -Worlds largest . Association of Independent Canadian Musical register through their website. Act and MLC not-for-profit Music Publishers (AIMP) Reproduction Rights Otherwise, your publisher will do Songwriter . Music Publishers Association Agency (CMMRA) that for you. Association (MPA) . Mechanical Royalties . How and when to find a music explained . The MLC Website publisher. Composing Original Synch Licenses Publisher Advance Lyric Display Ringtones Sheet Music Publisher Works For Broadcast Sales Settlements

Paid for original music Income for music used Bulk payment given to Paid by online lyric This counts as a The sale or licensed Payment from composed for commercial in a TV show, movie, the songwriter or sites to songwriter reproduction and reproduction of publishers to writers broadcast use. Paid from video game, composer from a via publisher/admin generates a your songs in sheet for litigation the buyer or agency commercial, etc. publisher as part of a co- for licensed display mechanical royalty. music form settlements. contracting the work to Collected and paid by publishing deal. of song lyrics. Paid to songwriter including digital the the directly via their print rights (Ebooks . Spotify publisher/administrator. publisher/administrator NOTE: Publishers that . When Lyrics publisher/admin, or and digital sheet Settlement This includes jingles, or through a direct provide creative services Get Posted agency (i.e., Harry music). Paid with NMPA soundtracks, scores licensing deal if self- such as marketing take a Online, Who Fox) for the licensed through your and/or other published. larger percentage then Gets Paid use of your songs as publisher/admin or compositions. Administrators who . musixmatch ringtones. directly to the . Guide to Signing primarily enforce and . LyricFind songwriter if sold the Best Sync collect royalties due. . How to Create online or at Deal Possible Administrators also don’t and Sell events. This royalty typically offer advances. Ringtones is typically 20% of the retail pricing. . Understanding Co- Publishing and . Print Music Admin Deals Publishers . Music Publishing (Alfred Music explained and Hal . Guide to Music Leonard) Publishing

Digital Performance Digital Royalties (Digital On-Demand Streaming AARC Royalties Neighboring Rights Royalties Sales) Royalties Paid to recording artist when Revenue generated from the sale Paid to artist when recordings Earned with the sale of devices Foreign public performance songs are played on internet of recordings as a permanent are streamed through on- and media, including blank CDs, royalties paid to either a radio like Pandora or SiriusXM. download. Paid to artist by the demand platforms like personal audio devices, recording artist or their label. Paid by SoundExchange (a PRO label or digital distributor. Rhapsody, Apple Music or automobile systems, media for the Sound Recording side of Spotify. Revenue is issued by the centers, and satellite radio NOTE: Since the U.S. does not the business for digital radio.) . Links to CD Baby, artist’s label or digital devices that have music recognize traditional neighboring Register with them in addition to TuneCore, Band Camp, aggregator. recording capabilities. Paid to rights, countries that participate the income you receive as an others U.S. artists through the Alliance in neighboring rights payments artist from your label. . What is Music Distribution of Artists & Recording have historically not paid U.S.- Companies (AARC), a non-profit based acts, but this is rapidly . How to register with U.S. royalty collective. changing. SoundExchange . Alliance of Artists & . What Are They and Why Recording Companies They’re Important (AARC) . A Look Inside the Fair Play Fair Pay Act Synch Licenses (Master Record Label Advance Royalty Advance YouTube Royalties YouTube Partner Program Recording Use)

Fee charged to user for use of Paid to artist up front as part of a Lump sum paid to artist based on Royalties paid by YouTube for Shared advertising revenue paid sound recording in a movie, recording contract signed with a an analysis of future royalty music streaming and use content to program partners by YouTube. documentary, TV show, video record label. earnings. ID. game, commercial, online, or . YouTube Partner Program sampling. Paid to label or to . How Much Advance Do . Sound Royalties – How It . How Artists Make Money overview & eligibility artist via direct licensing deal. Record Labels Give, And Works on YouTube How Much Should You Try . Synchronization Rights and Get? Explained Recording And Touring Retail Sales Film Musicians Secondary Sound Recording Special Label Settlements From Support Markets Fund Payments Fund Litigation Payments from record label for Earnings from sales of physical Paid to performers on film, TV Annual supplemental wages to Payments from labels to recording or tour support. recordings through store or mail and other uses of music by the musicians under the collective recording artists for litigation order, paid by the label or third- Film Musicians Secondary bargaining agreement between settlements. . The Pros and Cons of party services like CD Baby or Markets Fund. the American Federation of Independent Record Label Bandcamp that help move CDs, Musicians (AFM) and the . How To Collect Your Share Deals tapes, vinyl, etc. . Film Musicians Secondary recording industry. of $43.5 million Spotify Markets Fund Songwriter, Publisher . The Recording Industry . Sound Recording Special Setlement Association of America Payments Fund . Pandora to pay record (RIAA) . List of musicians who are labels $90M in lawsuit . RIAA – US Sales Database owed money: Check for over streaming pre-1972 your name here! music

Music Sales At Shows Merchandise Sales Brand Sponsorships Fan Funding (Kickstarter, Fan Club Income/Fees Indiegogo, Etc) Direct income to artists derived Revenue derived from sales of Corporate support for an artist, Generated directly from fans for Income from fans for club from the sale of recordings at branded merchandise such as t- ensemble, event or often even support or pre-sale of an subscriptions and other club live performances. shirts, hats, posters and other tour support. upcoming recording project or benefits. products. tour. . How to Sell Merch and . Can Your Band Get Music . When And How To Make Music at Shows without . Learn How Tour Tour Support . KickStarter A Fanclub Being ‘Sales-y’ Merchandising Works . INDIEGOGO . An Idiot’s Guide to . Patreon Running a Fan Club

Llikeness Licensing Endorsements Acting

Fees earned for the use of the Financial or in-kind Paid for appearances in TV show, artist’s name or likeness for compensation for the films or movies. commercial purposes (video endorsement of a product, brand games, comics, etc.) or company. . Learn how others did it. 16 Musicians Who Became Successful Actors

Producer Points Digital Performance Writer’s Credit Studio Production Musical Contribution Producer Fees Royalties Fee (Non- Copyright)

Royalty percentage for Producers with points in a Royalties paid if a Fee income earned for Producers often contribute Paid for producing or co- contributions to the sound recording copyright deal are producer makes a studio production work to performing some of the producing another artist’s recording of another paid a share of the artist contribution that earns a based on a negotiated music on the track and work. Contracted and paid creative’s work. Also royalty, usually from all songwriting credit on the rate. don’t realize this may by featured artist, label, referred to as points, sources including those paid publishing copyright deal. entitle them to studio or other entity. album points, producer by SoundExchange (a PRO for Producers with background musician percentage, or producer digital performance royalties). songwriting credits royalties. As non-featured . Three Contracts royalties. Paid by the label, Note that SoundExchange will should refer to the session musicians and/or Every Music artist, studio or others require a Letter of Direction “Songwriter” table in this background vocalists, it’s Producer based on contract terms. from the artist to the guide for additional important that the Should Know… producer. It’s best to get this royalty collection producer is credited as an . How Do Producer signed during the creation information. instrumentalist on the Points Work in a process. track, or that they get a Record Deal? letter from the label . How Do Producer . Producer’s Share of stating that they And Songwriter SoundExchange performed on it. Splits Work Royalties . How to register with . AFM SAG- SoundExchange AFTRA Fund

Musician/Performer

Instrumentalist Non- Show/Performance Fees Band, Orchestra Or Session/Sideman Musician Royalty Splits Featured Artist Ensemble Salary Fees 5% of digital public performance Revenue earned for live Recurring income earned for Paid from the label, producer or If a musician negotiates points royalties collected by performances (unless donated full-time or regularly scheduled recording artist for a musician’s on the sound recording SoundExchange are directed to pro-bono or for publicity). work, whether live or in studio. work as sideman, freelancer or copyright, they are entitled to the AFM SAG-AFTRA intellectual Typically paid by the venue or session player in live or recorded royalty earnings based on the property rights distribution promoter unless already . How Much Money Do settings. contract terms (digital fund. These fees are paid to included in a set contract or Orchestra Musicians performance, digital non-royalty artists when a salary. Make? . What Does a Session mechanical, streaming recording hits an established Musician Do? mechanical, etc). sales plateau in the U.S. . A Musician’s Guide to Booking Concerts and . How Music Royalties . AFM SAG-AFTRA Fund Gigs Work

Teaching Honoraria/Speaking Grants Management/Adminstrator Next-Generation Royalty Financing Income earned from teaching Payment for conducting a Foundation or public arts grants Fee payment for serving as a Upfront cash, usually covering music technique, songwriting, lecture, workshop or master to support a project or some business administrator or manager creative production expenses, production or a related subject class, typically paid by the aspect of your career, available of a band or artist. secured with future royalty of expertise. school, conservatory or through non-profits and state or income. Specialists like Sound contracting organization. federal agencies. . How to Become a Great Royalties advance funding to Band Manager creatives without putting . Funding For Musicians: copyright ownership at risk. Music Grants In The USA . Terms based on the royalty income, not the individual. No credit qualification required. . Can receive overflow royalty income. . Choose payment terms from a set of flexible options. . Artist always keeps ownership of copyrights.