MUSIC INDUSTRY|
BY: JOZI RECORDS
Being an independent artist is a huge undertaking.
Not only are you responsible for creating your music - you’re also taking on the music business, an industry that’s complicated, constantly changing, and, oftentimes, not really looking out for the artist. That being said, we at trac wanna remind you that you can do this. And we’re here to help.
One of the major obstacles for independent artists today is not getting paid.
Even when you’re releasing kick ass music that’s getting streams, playing regular live gigs, building your brand - if you haven’t taken all of the necessary steps to get paid, you may miss out on significant earnings that are due to you.
That’s why I’ve put together a step by step guide to make sure you get paid all of your earnings.
For a quick checklist that you can follow to make sure you get paid, read to the bottom! Now bear with me while we travel into the strange and complicated world of music royalties…
Understanding music rights and royalties
When you release music that you own, whether you have full or partial ownership, you will be paid in royalties: a compensatory payment made for the streams, downloads, physical sales, and performance of a song. What kinds of royalties you receive depend on the type of Copyright ownership, or rights, that you have.
*Note, the moment a song is written/recorded, the creator immediately has one or both of the following types of rights; however, in order for these rights to be legally secured, you will want to register your music with the Copyright Office as soon as possible.
Music Copyrights can be divided into two categories:
1. Sound Recording Copyright (A.K.A. Master Rights): the rights of those who own part or all of a master recording
2. The royalties due to Sound Recording Copyright holders are:
1. Digital Performance Royalties
3. Master Recording Royalties
4. Composition Copyright (A.K.A. Publishing Rights): the rights of those who own part or all of a composition
5. The royalties due to Composition Copyright holders are:
1. Mechanical Royalties
6. Performance Royalties
You can think of it like splitting the song itself in half: one half being the music and lyrics that can be written down on paper (Composition), and the other half being the sound recording that listeners hear when they stream or download your music (Master). Depending on what part(s) of the song you own, you have certain rights and are owed certain royalties, accordingly.
So how do you go about getting these royalties?
Start by finding the right music distributor for you.
When an independent artist wants to release their music on DSPs like Spotify, Apple Music, Deezer, etc., they have to use an independent music distributor. Distributors take your submitted music and send it out to the places where the public can stream, download, or purchase it. After your music is live, your distributor will collect all of the master recording royalties that are due to those with a Sound Recording Copyright. While many distributors take a small percentage of the master royalties that you make, Jozi Records let’s you keep all of it!
Next, affiliate with a PRO and a Music Publishing Administrator.
Distributors typically only collect royalties for the sound recording half of the song. To receive royalties for the composition, you will need to affiliate with a Performance Rights Organization (PRO) and a Music Publishing Administrator.
PRO’s differ from country to country, but their role remains the same: they collect performance royalties, the royalties that are due to Composition Copyright holders any time your song is played live (whether that be a live performance or the use of your recording in a public space, such as an airport, restaurant, or bar.) If you are a songwriter, composer, or owner of a composition, associating with a PRO is key to receiving your composition royalties.
You will also need a Music Publishing Administrator, to collect and return to you the mechanical royalties collected every time your music is streamed, downloaded, or purchased. These mechanical royalties are the composition counterpart to the master recording royalties.
Your Publishing Admin will also collect and return to you the performance royalties collected by your PRO, so that all of your composition (publishing) royalties are consolidated. Some Music Publishing Administrators will affiliate you with a PRO on your behalf, if you have not done so already.
Don’t Forget About Neighboring Rights
Neighboring Rights allow Master Rights Holders to earn an often overlooked revenue stream: digital performance royalties. These are royalties paid to the Master Copyright holder(s) and generated from the broadcast of a song on terrestrial radio (outside of the SA), streaming radio, and public use of a song at a club or venue (i.e. being on a playlist used by a restaurant, retailer or venue). In SA, Samro is the collector of such royalties. If you reside outside of SA., regional organizations with a global reach can ensure that you receive your digital performance royalties.
Royalty collection can be overwhelming…
but here at Jozi Records, and at the other collection organizations that you will affiliate with, there are plenty of people who care about your livelihood as an artist. Let us help you earn all that you are due for the difficult, complex, and critical work that you provide as an artist.
Royalty Collection Checklist
1. Register your song with the Copyright Office
2. Submit your release through a music distributor
Royalties Collected
Master Recording Royalties
Who Receives Royalties
Sound Recording (Master) Copyright Holder(s)
3. Affiliate with a Performing Rights Organization (PRO)
Royalties Collected
Performance Royalties
Who Receives Royalties
Composition (Publishing) Copyright Holder(s)
4. Register with a Music Publishing Administrator
Royalties Collected
Mechanical Royalties
Performance Royalties
Who Receives Royalties
Composition (Publishing) Copyright Holder(s)
5. Register with Samro or your region’s Neighboring Rights Collection Agency
Royalties Collected
Digital Performance Royalties
Who Receives Royalties
Sound Recording (Master) Copyright Holder(s)
* A Note about Sync Royalties
There is one other potential source of royalties that I have not included called Sync Royalties (Synchronization Royalties). These royalties are collected when your music is placed in a commercial / television / film. Sync placements are a great way to promote your music and earn income, as most sync deals include an advance payment (a sum paid to both the Sound Recording Copyright holder(s) and the Composition Copyright holder(s) ahead of time) as well as residual royalties.
Comments
Post a Comment