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50 Income Streams Music Creatives Should Know About…

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50 Income Streams Music Creatives Should Know About… 50 Income Streams Music Creatives Should Know About… 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 Sound Royalties Guide to Music Royalties and Revenue www.soundroyalties.com © 2021 Sound Royalties, LLC. Unauthorized reproduction of the foregoing material is strictly prohibited. Recording Artist (sound recording copyright) 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
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