How many years do royalties last
Radio royalties payouts system works by first having the radio station purchase a blanket license from the local performance rights organization s.
Then, the radio station reports the songs it has broadcasted back to the PRO, which uses that data to allocate and distribute the royalties due to proper artists and their representatives. In the US, however, that is not the case. So, for the American-based music industry, only songwriters and their publishers owners of the composition copyright are paid performance royalties for airplay.
Accordingly, since this article focuses on the US context, from here on out, we will only cover the royalties due to songwriters and their publishers. As for the neighbouring rights on the master side, we will get to it in one of the future articles, so stay tuned!
So, the radio public performance royalties flow from broadcasters to artists through dedicated administration bodies, known as PROs. On the first step of the radio royalty payout process, the radio stations have to acquire a blanket license from a PRO that will allow them to play all music represented by the PRO.
Generally speaking, a PRO will both represent the entirety of the local repertoire and have partnerships in place with PROs around the globe to license the music they represent. That means that in most of the world where there is only one PRO per country a blanket license from a PRO will give the radio station a right to play all music in the world.
But the US does it a little differently as they often do : the States are one of the few counties in the world that have several competing PROs. For example, for noncommercial educational broadcasters i. The amount of details here is massive, but the one thing you need to remember is that the bigger the radio — the bigger the blanket license fees. And, since those fees are the first step of the radio royalty funnel, the bigger the radio — the bigger the royalty to pay to the artists.
So, a spin on big commercial radio is likely to drive times more than a college radio broadcast. Then comes the broadcast itself. The radio plays a song, puts together broadcast logs, and reports them back to the license-issuing PRO.
The PRO collects and compiles this data to allocate the blanket license fees between the songwriters featured on the air, according to their contribution to the broadcasts. The process of radio reporting poses an issue in itself. Given the scale of the operation, the inevitable human errors sift in, which means that these radio logs are often riddled with missing details and errors typically due to lack of attention to reporting.
Adding up to the heap of music metadata issues , incomplete broadcast logs mean that songwriters around the globe miss out on millions in potential revenue. Covering over 1, radio stations in 69 countries around the globe, Soundcharts has proved to be an indispensable tool for music professionals working closely with radio — whether to claim the radio royalties due or optimize local radio promotion campaign.
They can speed up the collection process considerably, especially when it comes to mechanical royalties - and there are many sources we cannot collect from at all without associated ISRCs. If you have a significant amount of streams and don't think you are receiving the correct amount of royalties, email us at support songtrust.
We'd be happy to take a closer look at your catalog. Interested in learning more? Check out our Blog post on the registration process and timeline.
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