Streaming Royalties

Royalties are the payments made to an artist/writer for the use of a song. Royalties have long been of concern to artists, writers, publishers and record labels; the constant changes in the business have caused individuals to pay more attention to the changes in royalty rates.  Streaming services have introduced new concerns regarding fair compensation and royalty rates.

It is important that artists and writers understand the royalty system and how to monetize their content outside of record sales.  One of the best way to ensure an artist/producer receives the proper royalties are to register with a Performance Rights Organization such as ASCAP or SoundExchange. These organizations collect and distribute royalties on behalf of the content creator for services such as music streaming.

Services such as Pandora and Spotify have repeatedly made the news for their streaming royalty practices.  Several artists and record labels disagree with Spotify’s pay structure and have opted against their content being available on the service. On the other hand, industry execs and artists are looking forward to the addition of a streaming service from iTunes.  Apple direct licenses with labels the pay rates are expected to be higher than current streaming services. Apple’s newest streaming service could easily become a favorite among industry execs eliminating competition in the market.

Peoples, G. (2014, Aug. 6). This Music Royalty Cheat Sheet Can Help You Understand a Complicated System. Retrieved Aug. 7, 2014, from http://www.billboard.com/biz/articles/6207107/this-music-royalty-cheat-sheet-can-help-you-understand-a-complicated-system.

 Royalty. (n.d.). The American Heritage® New Dictionary of Cultural Literacy, Third Edition. Retrieved August 10, 2014, from http://dictionary.reference.com/browse/royalty

The Payout: How iTunes’ Royalty Rates Will Work. (2013). Billboard, 125(35), 25.