Music royalty companies play a vital role in safeguarding the rights and earnings of musicians, songwriters, and composers every time a song or composition is played on the radio, streamed online, or performed publicly.

There are several types of royalties that these organizations handle, including performance royalties, mechanical royalties, and sync royalties. Public performance royalties are created when music is played publicly, at a concert, on TV, or on the radio. Artists earn mechanical royalties when their music is sold on platforms like iTunes or streamed on services like Spotify. Sync royalties are collected if it’s used in movies, commercials, or video games.

In the U.S., music royalty companies like ASCAP, BMI, and SESAC are well-known, each of which caters to different aspects of royalty collection and distribution. BMI and ASCAP are open to nearly all artists Fees are paid to these companies by venues, radio stations, and streaming platforms for the right to play licensed music. They then pay a portion of these earnings back to artists and composers, giving them a steady income for their work.

In short, music royalty companies ensure artists are compensated fairly, so artists can continue creating commercial music. These organizations are vital for protecting artists’ financial rights in an industry where earnings are sometimes inconsistent.