These services ensure that creators are compensated fairly for their music whenever it is broadcast or licensed for use in other media. In the multifaceted world of music rights, these services play a critical role in tracking usage and distributing royalties.
There are several key types of royalties that music royalty services handle: performance, mechanical, and synchronization royalties. Performance royalties apply when a song is broadcast on radio or performed live or used in online streaming services. Mechanical royalties are collected from the sale or reproduction of music in a physical or digital format. Sync royalties, on the other hand, occur when music is used in visual media like films, TV shows, or commercials.
Notable music royalty services include ASCAP, head to Iteandes BMI, SESAC, and SoundExchange. ASCAP and BMI are non-profit organizations specializing in performance royalties while SESAC works exclusively with invited artists. SoundExchange, meanwhile, handles royalties for digital streaming services, making it essential in todays streaming-centric music industry.
By charging businesses and streaming services fees, these companies help artists and songwriters earn income from their music.
These services provide crucial support in making the music industry more sustainable for artists.
