Radio stations play a crucial role in performance royalty payments by tracking and reporting the music they broadcast. This data is used by performance rights organizations to distribute royalties to songwriters, composers, and artists, ensuring they are compensated for the public performance of their work.
Artists can ensure proper registration for performance royalties by joining performance rights organizations (PROs) like ASCAP, BMI, or SESAC. They should also register their works with these organizations, maintain accurate records, and regularly update their information to ensure they receive all entitled royalties.
Blanket licenses allow entities like radio stations and venues to legally play any song from a catalog for a set fee. They simplify the process of obtaining permissions and ensure that songwriters and publishers receive performance royalties whenever their music is played publicly, thus supporting their income.
Digital streaming services calculate performance royalties based on a combination of factors including the number of streams, the service’s total revenue, and the specific agreements with rights holders. Payments are typically divided among songwriters, publishers, and artists, with rates varying by platform and country.
ASCAP and BMI are non-profit organizations that collect performance royalties for songwriters and publishers, while SESAC is a for-profit entity. ASCAP and BMI operate under government consent decrees, requiring them to offer blanket licenses, whereas SESAC negotiates licenses individually, often resulting in higher fees for users.
In co-publishing music deals, advances are upfront payments given to songwriters by publishers. These advances are recouped from future royalties generated by the music. Both parties share ownership and revenue, with the publisher typically handling administrative tasks, licensing, and promotion, while the songwriter focuses on creating music.