![]() ![]() ![]() The way these PROs make money to pay their songwriters and publishers royalties is PROs collect money from thousands of venues (radio stations, TV stations, department stores, bars, live venues, etc) by requiring them to purchase “blanket licenses” which gives these venues permission to play music in their establishment (or on the air). These are organizations that collect performance royalties (NOT mechanical royalties – we’ll get to those in a bit). These organizations represent songwriters NOT artists. In the US, these are ASCAP, BMI and SESAC. ![]() Traditionally, publishing companies (because they own the composition and represent songwriters) collect royalties for compositions. Sound recordings are not to be confused with compositions. Traditionally, labels (because they own the master), collect royalties for sound recordings. Some call this the “master.” It’s the actual recording. Publishing companies represent songwriters. “Diamonds” was written by 4 songwriters: Sia Furler, Benjamin Levin, Mikkel S. Typically whatever name is on the album, is the artist. She did not write her song “Diamonds.” So she is not the songwriter. First, some terms you need to understand: ArtistĪrtists record sound recordings. We’re not quite there yet, but we’re getting closer every day.įor indie artists without a label or a publisher, you have to know what these royalties are and know where and how to get them. But they can be tracked much easier through sonic recognition and content ID software. With physical sales plummeting, and people shifting from downloading to streaming (like Spotify and Apple Music) and the rise of digital radio (like Pandora and Sirius/XM), there are suddenly more royalties out there. But there were fewer platforms to consume music, so there were far fewer royalty streams to worry about. It’s a who’s who of music.īefore the digital age, royalties were difficult to track. This is part of the reason why so many established artists and songwriters have jumped ship from their major labels (and major publishers) and headed over to Kobalt.Īnd I’m not just writing that. They look out for their own best interests and use artists’ ignorance (and blind pursuit of fame) to manipulate and deceive. The major labels have always tried to screw artists out of money. ![]()
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