Music Royalties in 2023 (Summary)

All major streaming services pay royalties based on an artist’s share of overall streams across the platform. Although none of the platforms share their exact formula for their pay per stream, there are estimates available. Below are approximate figures reported by Ditto in 2020 for US-based streams:

In general, there are four major factors that are used to calculate the payout for each stream:

• The listener’s country and location
• Whether the listener has a paid subscription or free account
• The specific artist’s royalty rate (depending on their contract)
• The pricing & currency conversion between regions

While we may not be able to predict the exact payout from every stream, there are calculators that help provide estimation on how much you will earn from various streaming platforms. To get an estimate for your 2023 royalties, check out this calculator from Ditto Music.

Further Context

Music streaming services have become a dominant mode of music consumption in recent years, providing access to vast catalogs of music at the fingertips of millions of listeners worldwide. With the rise of streaming, the question of how much royalties music streaming services pay to music creators has become a topic of widespread discussion and debate in the music industry. In this article, we will explore the complex world of music streaming royalties, including how they are calculated, the challenges and criticisms surrounding streaming royalty rates, and the efforts being made to ensure fair compensation for music creators.

Music streaming services generate revenue through subscription fees paid by users or through advertising revenue from free-tier or ad-supported services. These services then pay royalties to music creators based on various factors, including the number of streams, the type of subscription or service, the territory, and the rates agreed upon in licensing agreements or determined by industry practices. However, the calculation of streaming royalties is often considered opaque and complex, with different services and territories having their own unique formulas and practices.

One of the key factors in determining streaming royalties is the “per-stream” rate, which refers to the amount paid to music creators for each individual stream of a song. Per-stream rates can vary widely depending on the streaming service, the subscription tier, and the geographic location. For example, premium subscription tiers, which generally offer higher sound quality and more features, tend to have higher per-stream rates compared to free-tier or ad-supported services. Additionally, per-stream rates can also vary depending on the popularity of the artist or the genre of music, with higher rates often paid for more popular or mainstream content.

However, determining the actual per-stream rate can be challenging, as streaming services often do not disclose their exact royalty rates publicly. This lack of transparency has led to criticism and concern among music creators, who argue that they do not have enough visibility into how their music is being valued and compensated on streaming platforms. In response, some music creators have called for greater transparency and standardized royalty rates across the industry to ensure fair compensation for their creative works.

Another factor in streaming royalty calculation is the revenue share model, which determines how the revenue generated from subscriptions or advertising is divided between the streaming service and the music creators. Revenue share models can vary depending on the streaming service, but typically involve a percentage split between the service and the music creators. For example, a streaming service may allocate 70% of its revenue to royalties, with the remaining 30% retained as operating costs and profit. However, the actual percentage allocated to royalties can vary and may be negotiated in licensing agreements or determined by industry practices.

Territory also plays a role in streaming royalty calculation, as royalty rates can vary depending on the country or region where the music is streamed. This is due to different licensing agreements, legal requirements, and economic factors in different territories. For example, streaming services may have different royalty rates for the United States compared to Europe or Asia, based on factors such as market size, consumer spending habits, and local regulations.

It’s important to note that streaming royalties are not the only source of revenue for music creators. In addition to streaming, music creators may also earn royalties from other sources, such as performance royalties, mechanical royalties, synchronization royalties, and print royalties, as discussed in the previous sections of this article. However, the rise of streaming has led to increased reliance on streaming royalties for many music creators, especially independent artists who may not have access to other revenue streams.

Despite the growing popularity of streaming, there have been widespread concerns and criticisms about the perceived low royalty rates paid to music creators.

Some music creators argue that the current royalty rates are not sufficient to sustain a viable income for artists, especially for those who are not household names or who do not have significant bargaining power in licensing negotiations. Critics argue that the disparity between the revenue generated by streaming services and the royalties paid to music creators is unfair and unsustainable, particularly considering the enormous profits generated by some of the major streaming platforms.

One of the main criticisms of streaming royalty rates is that they are often perceived to be too low, especially for independent or lesser-known artists. Many music creators argue that the per-stream rates and revenue share models offered by streaming services are inadequate to compensate them for their creative work, and that they struggle to earn a fair income from streaming royalties alone. This is especially true for artists who may not have a large fan base or who may not generate millions of streams, as the per-stream rates can be extremely low, sometimes amounting to just fractions of a cent per stream.

Some music creators also argue that the revenue share models used by streaming services are not transparent and may not be equitable. While streaming services typically allocate a percentage of their revenue to royalties, the actual percentage allocated can vary, and may not always be disclosed to music creators. This lack of transparency can make it difficult for music creators to understand how their music is being valued and compensated, and whether they are receiving a fair share of the revenue generated by streaming platforms.

Moreover, there have been concerns about the market dominance of a few major streaming platforms, which can result in an imbalance of bargaining power between these platforms and individual music creators. Some argue that major streaming platforms may have significant leverage in licensing negotiations, which can result in unfavorable royalty rates for music creators, particularly independent artists who may have limited negotiating power. This has led to calls for more equitable and standardized royalty rates across the industry, as well as greater transparency in the negotiation and determination of royalty rates.

In response to these concerns, there have been efforts to advocate for fairer royalty rates and greater transparency in the music streaming industry. For example, some music industry organizations, advocacy groups, and artists have called for increased transparency in the calculation of royalties, including the disclosure of per-stream rates and revenue share models used by streaming services. They argue that greater transparency would allow music creators to better understand how their music is being compensated and whether they are receiving a fair share of the revenue generated by streaming platforms.

There have also been efforts to standardize royalty rates across the industry. For example, some organizations have proposed the adoption of a “user-centric” or “follower-centric” royalty distribution model, where royalties would be paid based on the actual listening habits of individual users, rather than a pro-rata model where royalties are distributed based on overall market share or popularity. Proponents of a user-centric model argue that it would result in a more equitable distribution of royalties, particularly for niche or independent artists whose music may not generate millions of streams but may have a dedicated fan base.

In addition, there have been calls for increased regulation and government intervention to ensure fair compensation for music creators in the streaming era. Some countries have already taken steps to implement legislation or regulations aimed at addressing the issue of streaming royalties. For example, in 2020, the French government passed a law that requires streaming services to disclose their royalty rates and revenue share models to music creators, and to negotiate royalty rates in good faith. Other countries, such as the United States and the United Kingdom, are also considering or have proposed similar legislation to address the concerns of music creators regarding streaming royalties.

However, there are also challenges and complexities in implementing standardized royalty rates or increased regulation in the music streaming industry. Some argue that determining standardized royalty rates could be difficult, as different services, territories, and business models may require different approaches. For example, premium subscription tiers that offer higher sound quality and more features may require higher royalty rates compared to free-tier or ad-supported services. Moreover, major streaming platforms may have different operating costs and profit margins, which could impact the percentage of revenue allocated to royalties.

Another challenge is the potential impact of standardized royalty rates or increased regulation on the business models of streaming services. Some argue that imposing higher royalty rates could lead to increased subscription costs for consumers, which may affect the affordability and accessibility of streaming services, particularly for price-sensitive markets. This could potentially result in a decline in overall streaming revenue and impact the viability of the streaming business model.

Furthermore, there are also differing perspectives among music creators themselves on what constitutes fair royalty rates and how they should be determined. While some advocate for higher per-stream rates or a user-centric model, others argue that the current revenue share models and pro-rata distribution based on overall market share are fair and should not be changed. Finding a consensus among music creators and other stakeholders on what constitutes fair compensation for music in the streaming era can be challenging.

In addition, there are concerns about the potential unintended consequences of increased regulation or standardized royalty rates. For example, some worry that increased regulation may stifle innovation and competition in the music streaming industry, as it may limit the flexibility of streaming services to adapt their business models and pricing strategies. There are also concerns about the potential for increased administrative burdens and costs associated with implementing and enforcing regulations related to streaming royalties.

Despite the challenges, there is a growing awareness and recognition of the need for fair compensation for music creators in the streaming era. Many stakeholders, including music creators, streaming services, industry organizations, and policymakers, are actively engaging in discussions and negotiations to address the issue of streaming royalties. Solutions may involve a combination of increased transparency, standardized royalty rates, and regulatory interventions that balance the interests of music creators, streaming services, and consumers.

Conclusion

The issue of streaming royalties and fair compensation for music creators is complex and multifaceted. While streaming has revolutionized the way music is consumed and has generated significant revenue for the industry, concerns about the fairness and sustainability of current royalty rates persist.

Efforts are being made to advocate for increased transparency, standardized royalty rates, and regulatory interventions, but finding a balance among the interests of various stakeholders remains a challenge. As the music streaming landscape continues to evolve, it will be important for all parties to engage in constructive dialogue and work towards solutions that ensure fair compensation for music creators in the digital age.

Additional Reading

Note that your digital music distributor probably doesn’t collect your full royalties from streaming services. You’ll also want to register your music with Songtrust & SoundExchange to get more of the royalties that your streams create. Read our article to learn more about the difference between the two.

Do you use plugins like IzoTope and FabFilter? Read our article to see a comparison between the two.

The music distributor RouteNote and the site Musician Wave both have excellent articles that also discuss streaming royalties.

Interested in finding a solid midi controller for music production? Read our article about the 6 of the best midi controllers. Also, here are 9 of the best microphones for musicians and 9 great headphones for music production

Breve Music Studios publishes music to Spotify, YouTube Music, Amazon Music and more. Follow our pages on Facebook, Instagram, Twitter, TikTok, and YouTube.

Listen to our ensembles: Breve Orchestra, Breve Music Ensemble, Breve Low Brass Ensemble, Breve Woodwind Ensemble, and Jermaine Harris on Spotify.

ASCAP vs BMI vs SESAC

Introduction to PROs

A performing rights organization (PRO) is a collective management organization that represents songwriters, composers, and music publishers in the administration of their performing rights. Performing rights refer to the right to publicly perform musical compositions, such as in live performances, broadcasts, streaming, and other public uses.

PROs play a vital role in the music industry by monitoring, collecting, and distributing royalties on behalf of their members for the public performance of their musical works. They negotiate licenses with businesses and organizations that use music publicly, such as radio stations, TV networks, live music venues, restaurants, and streaming platforms, to ensure that their members are compensated for the use of their music.

PROs also track and collect royalties from international performances through reciprocal agreements with PROs in other countries. They use advanced technology and databases to identify and track performances of their members’ works, and they distribute royalties based on various factors, such as the frequency and popularity of performances.

In addition to royalty collection and distribution, PROs also provide valuable services to their members, including copyright registration, advocacy for fair compensation and copyright protection, educational resources, and support for disputes or legal issues related to public performance rights.

Some examples of well-known performing rights organizations include ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music, Inc.), SESAC (Society of European Stage Authors and Composers), and SOCAN (Society of Composers, Authors, and Music Publishers of Canada). Each PRO has its own membership criteria, fee structures, and distribution policies, and songwriters, composers, and publishers often choose to affiliate with one or more PROs to ensure that their music is properly represented and monetized.

ASCAP vs BMI vs SESAC

Want to know which performing rights organization (PRO) to sign up for? Continue reading to learn which one will be the best choice for you.

Cost

ASCAP has the lower cost when compared to BMI. SESAC has no upfront fee, but it isn’t accessible for everyone

Pay

ASCAP and BMI openly share their royalties payment calendar; however, SESAC does not publicly disclose when they pay royalties.

ASCAP pays out between ~88% and 90% of the royalties that they collect [1],[2].

BMI also pays out approximately 88% of royalties.

Contract Length

ASCAP has a minimum, one year contact for songwriters, and BMI contracts are for two years.

Discounts

All three PROs offer discounts for other companies if you’re a member. For example, being a member of ASCAP allows you to get a discount for Doc on the Go, Bandzoogle, and on some travel expenses.

ASCAP vs BMI vs SESAC – Which one should you pick?

When it comes to choosing a PRO in the United States, there aren’t a whole lot of options. ASCAP, BMI, and SECSAC are the biggest ones and the latter is only accessible by invitation.

For most musicians in the US, that means you’ll be looking at ASCAP vs BMI. Practically speaking, you can pick either one because their isn’t much of a difference. They have nearly identical payout percentage and collect royalties from the same sources (e.g. radio stations, music venues, amusement parks, and hospitals).

According to an article on Ari’s Take, BMI pays more for sync royalties and ASCAP pays more for radio royalties, based on their experience. Take that with a grain of salt.

Common Misconceptions About PROs

There are many common misconceptions about performing rights organizations, including:

PROs are only for big-name artists

Many people believe that PROs are only for famous musicians, but this is not true. PROs collect royalties for all types of music creators, including songwriters, composers, and publishers, regardless of their level of fame or success.

PROs only collect royalties for live performances

While PROs do collect royalties for live performances, they also collect royalties for other uses of music, such as radio airplay, TV and film placements, and digital streaming. In fact, digital streaming has become one of the most important revenue streams for music creators, and PROs play a critical role in collecting and distributing these royalties.

PROs are monopolies

While it is true that PROs have a dominant position in the music licensing industry, they are not monopolies. In fact, many PROs around the world compete with each other for the right to represent music creators and collect royalties on their behalf. Moreover, in some countries, there are multiple PROs operating in the same market, which provides music creators with more choice and competition.

PROs take a percentage of all music revenue

PROs only collect royalties for specific uses of music, such as live performances, radio airplay, and streaming. They do not take a percentage of all music revenue generated by music creators. Instead, they deduct a small percentage from the royalties they collect on behalf of music creators as an administrative fee.

PROs only benefit established music creators

PROs provide benefits to all music creators, regardless of their level of success or experience. They help to ensure that music creators are fairly compensated for their work, and they provide valuable resources and support to help music creators build their careers and protect their rights.

Conclusion

Regardless of which PRO you choose, you’ll still need to use a digital distributor such as Distrokid or Landr to publish your music to streaming platforms. Read out article that compares different distributors (Distrokid vs Landr vs CdBaby vs RouteNote).

Breve Music Studios publishes music to Spotify, YouTube Music, Amazon Music and more. Follow our pages on Facebook, Instagram, Twitter, TikTok, and YouTube.

Listen to our ensembles: Breve Orchestra, Breve Music Ensemble, Breve Low Brass Ensemble, Breve Woodwind Ensemble, and Jermaine Harris on Spotify.

What is a Digital Music Distributor?

A digital music distributor is a service that acts as an intermediary between musicians or record labels and online platforms where music can be streamed, downloaded, or purchased. These online platforms may include popular streaming services like Spotify, Apple Music, Amazon Music, Tidal, and many others. Digital music distributors provide a bridge between the artist or label and these platforms, making it possible for artists to get their music out to a global audience without the need for a physical distribution network or a record label.

Digital music distributors (like DistroKid) offer a range of services that allow artists to upload their music to the platform, generate revenue from streaming and sales, and manage their music catalog. The distribution process typically involves uploading the music to the distributor’s platform, providing relevant metadata such as song titles, album art, and release dates, and selecting the platforms and territories where the music should be distributed. Once the music is uploaded and the release is scheduled, the distributor takes care of delivering the music to the designated platforms and managing the royalties and revenue generated from the music’s performance.

How Do They Work?

The process of using a digital music distributor typically involves several steps. Let’s take a closer look at the typical workflow of how a digital music distributor works:

Sign Up and Upload

Artists or record labels sign up for an account with a digital music distributor and provide the necessary information, such as contact details, tax information, and payment preferences. Once the account is set up, the artist or label can begin uploading their music to the distributor’s platform. This typically involves providing the audio files in a specified format, along with relevant metadata such as song titles, artist name, album art, and release dates.

Distribution and Platforms

After uploading the music and metadata, the artist or label selects the platforms and territories where they want their music to be distributed. Digital music distributors typically have agreements with various online platforms and streaming services, allowing them to distribute music to these platforms on behalf of the artist or label. The artist or label can choose from a list of supported platforms and territories, and the distributor takes care of delivering the music to these platforms.

Royalty and Revenue Management

Once the music is distributed, the digital music distributor tracks the performance of the music on the platforms and collects the royalties and revenue generated from the music’s performance. This typically includes revenue from streams, downloads, and other monetization methods. The distributor then manages the royalties and revenue, deducts any fees or commissions as per their pricing plan, and pays out the remaining earnings to the artist or label according to the agreed-upon terms.

Reporting and Analytics

Digital music distributors also provide reporting and analytics tools that allow artists and labels to track the performance of their music on the various platforms where it is distributed. This includes data on streams, downloads, revenue, and other key metrics that help artists understand how their music is performing and make informed decisions about their music distribution strategy.

Additional Services

In addition to the core distribution services, many digital music distributors offer additional services to help artists and labels promote their music and grow their fan base. These may include features such as playlist pitching, social media promotion, marketing tools, and promotional campaigns, which can help artists gain more visibility and increase their chances of success in the competitive digital music landscape.

Why Should Artists Use Music Distributor?

Digital music distribution has become essential for artists and record labels in today’s music industry for several reasons:

1. Global Reach: One of the biggest advantages of using a digital music distributor is the ability to reach a global audience. With digital distribution, artists can make their music available on popular streaming services and online platforms worldwide, without the need for physical distribution networks or record labels. This allows artists to expand their reach beyond their local markets and connect with fans from all around the world, potentially leading to increased exposure, fan engagement, and revenue opportunities.
2. Independence and Control: Digital music distribution empowers artists and record labels to retain control over their music and their careers. Artists can release their music on their own terms, without the need for a record label or a traditional distribution deal. This gives artists the freedom to choose their own release strategies, pricing, and marketing approaches, and retain ownership of their music and creative vision. Digital music distribution also allows artists to have a direct relationship with their fans and collect valuable data and insights on their audience, which can inform their future music releases and marketing efforts.
3. Cost-Effective: Digital music distribution can be a cost-effective way for artists to release their music and generate revenue. Many digital music distributors offer flexible pricing plans, allowing artists to choose the one that best fits their budget and needs. In most cases, artists can upload their music to the platform for a relatively low cost, and the distributor takes care of the distribution process, including delivering the music to various platforms and managing royalties and revenue. This eliminates the need for artists to invest in physical manufacturing, inventory, and distribution costs, making it accessible to artists of all sizes and budgets.
4. Revenue Generation: Digital music distribution provides artists with the opportunity to generate revenue from their music through various monetization methods, such as streaming, downloads, and other digital sales. Artists can earn royalties based on the performance of their music on the platforms where it is distributed, and digital music distributors typically provide transparent reporting and analytics tools that allow artists to track their earnings and make informed decisions about their music business. This revenue can be an important source of income for artists, especially independent artists who may not have other revenue streams, and can help support their music careers and fund future projects.
5. Flexibility and Adaptability: The music industry is constantly evolving, and digital music distribution offers artists the flexibility and adaptability to keep up with the changing landscape. Artists can release their music on their own schedule, adapt their release strategies based on the performance of their music, and easily make changes to their distribution plan as needed. This allows artists to be nimble and responsive to market trends, audience preferences, and their own creative direction, and make adjustments to their music release strategy in real-time.
6. Additional Services: Many digital music distributors offer additional services beyond core distribution, such as playlist pitching, social media promotion, marketing tools, and promotional campaigns, that can help artists promote their music and grow their fan base. These additional services can provide artists with valuable promotional opportunities, increase their visibility, and enhance their chances of success in the competitive music industry.

Now that you understand what a music distributor is, let’s highlight Distrokid. Then we’ll dive into a comparison between Distrokid and its competitors.

DistroKid vs Landr vs CD Baby vs RouteNote

What music distribution company should I use? You may be asking yourself that now. In this article, we’ll be highlighting four music distributors for you to consider. Distrokid, Landr, RouteNote, and CD Baby.

Overview

All of these distributors release music to the most popular streaming services (i.e. Spotify, Apple Music, Tidal, and Amazon Music). None of these distributors keep any of the rights to your releases. Each have different subscription models available. Below we’re going to discuss the pricing.

Pricing

Distrokid

• 1 artist = $19.99/yr; 0% commission
• 2 artists = $35.99/yr; 0% commission
• 5 artists = $79.99/yr; 0% commission
• 10 artists = $139.99/yr; 0% commission

Landr

• $89/yr plan: Unlimited releases; 0% commission
• $20/yr plan: single = $5 EP & Album = $19; 9% commission
• Free plan: single = $9 EP & Album = $29; 15% commission
• $15/single for copyrighted songs

CD Baby

• Basic plan: $9.95/single & $29/album; 9% commission
• Pro plan: $29.95/single & $69/album; 9% commission

RouteNote

• Free plan: $0/release; 15% commission
• Premium plan: $10/single & $20-$45/album; $10/year; 0% commission

Summary

Each of these four platforms have their own use cases.

RouteNote has a great free plan for those who are okay with the 15% service fee. Their premium plan could work for those who do not release a lot of albums per year, other the fee can add up quickly.

CD Baby is great for artists who don’t want to pay an out-of-pocket fee every month or year AND that don’t release a large amount of albums (since they charge per release). Two drawbacks to keep in mind are the 9% commission and the charge per UPC ($5/single) or $20/album)

Landr is great for those with multiple artists and/or for people looking for help with mastering their music. We also recommend it for people who make arrangements of copyrighted music. At the time of writing, their unlimited release plan’s pricing isn’t dependent on the number of artists (but this could change). They also have two other plans where they charge per-release and take a commission.

Distrokid is great for single artists because of their pricing model. However, if you have 7 or more artists/bands as part of your distribution plan, Landr’s pricing may be better for you.

Personal Experience with DistroKid and Landr

Full disclosure, we personally use DistroKid, Landr, and RouteNote. The customer service for Landr and RouteNote have been helpful. We haven’t had to reach out to anyone from DistroKid. Overall, we enjoy using Landr the most and recommend them because of their site design and cost. We started using RouteNote in 2017 and shifted to Landr and DistroKid in 2022 to keep more of our profits.

RouteNote tends to have more lax publishing requirements, however their track name requirement can be inconsistent.

Landr also has its issues, particularly with handling copyrighted music. At times, there were delays in securing the rights for the songs we arranged. They occasionally matched some songs to the incorrect artist. As always, it is important to keep an eye out on your metadata in platforms like Spotify and Apple Music.

Distrokid has been the fastest to approve albums and singles. Sometimes we have had to wait a few days, but at least half of our releases were approved within an hour (if not a few minutes). The biggest con for Distrokid is its website design. It could definitely use a makeover.

Conclusion

In today’s digital music landscape, a digital music distributor is an essential tool for artists and record labels to release their music and reach a global audience. It provides artists with the opportunity to distribute their music to popular streaming services and online platforms worldwide, retain control over their music and creative vision, generate revenue from their music, and access additional services to promote their music and grow their fan base. Digital music distribution has democratized the music industry, allowing artists of all sizes and budgets to release their music independently and on their own terms.

With its cost-effective, flexible, and adaptable nature, digital music distribution has become a vital component of an artist’s music career strategy, enabling them to thrive in the competitive digital music landscape. As the music industry continues to evolve, digital music distribution offers artists the opportunity to connect with their fans, generate revenue, and build a sustainable music career on their own terms. Whether you are an independent artist or a record label, partnering with a digital music distributor can provide you with the tools and resources you need to succeed in today’s dynamic music industry.

Additional Reading

Now that you’ve learn more about Distrokid, take some time to read our other articles. Want to know more about music business? Check out our article about Songtrust and SoundExchange to learn why you should sign up for both.

Here are also a few tips on how to run a successful record label.

In addition to publishing articles like these, Breve Music Studios publishes music to Spotify, YouTube Music, Amazon Music and more. Follow our pages on Facebook, Instagram, Twitter, TikTok, and YouTube.

Listen to our ensembles: Breve Orchestra, Breve Music Ensemble, Breve Low Brass Ensemble, Breve Woodwind Ensemble, and Jermaine Harris on Spotify.

SoundExchange vs SongTrust

SoundExchange vs Songtrust? This is a common question for those in the music business (whether new or experienced). In this article, we’ll be highlighting the differences between the two and why we think both are a good fit for musicians with published work.

Tl;dr: Register for both. SoundExchange collects royalties from services like iHeartRadio, whereas Songtrust collects your share of the composition rights from platforms like Spotify and Apple Music.

SoundExchange administers the statutory license, which allows services to stream music while paying a fixed rate for each play. They collect and distribute royalties for the featured artist and the sound recording copyright owner when content is played on a non-interactive digital source (i.e. satellite radio providers, webcasters and digital cable music providers).

Pricing

Registering with SoundExchange is free.

They do take a percentage of royalties as an administrative rate. Unfortunately, they are not as transparent about what the fee is. Here is an article where they describe the benefits to signing up. They claim to offer “one of the lowest administrative rates in the music industry”, but don’t mention what that rate is. Their FAQ section includes the question “Is There An Administrative Fee?”, and the answer also asserts that their admin fee is low.

More transparency of the cost associated with using SoundExchange would be appreciated, however we still recommend registering with them because they’ll be collecting royalties that you otherwise would not receive at all.

Additional Terms

SoundExchange does not take any ownership of your rights. They are just the administrator the statutory license, which means they collect and distribute royalties for the featured artist and the sound recording copyright owner when content is played on a non-interactive digital source.

Check out their FAQ for more information about SoundExchange

Songtrust

Songtrust collects your share as the songwriter of a streamed or digitally purchased song. Streaming services pay the sound recording licensing fee to artists to your distributor, e.g. Distrokid or Landr. They also pay mechanical licenses, but those are usually not collected by your distributor.

In order to collect your portion of the publisher’s share (whether it is 1%, 100%, or somewhere in the middle), you must sign up with Songtrust, or one of its few competitors.

Songtrust has a great resource here that describes how they differ from Performing Rights Organizations (PROs) like ASACP and BMI. We recommend taking a look at that link to see the bigger picture of how Songtrust describes their role in the music industry.

Pricing

Songtrust charges a one-time, $100 fee per songwriter. There is no annual or per-release fee. There is also no limit to the number of songs. This fee allows them to start their up-front catalog management work. Click here to learn more about the workflow of catalog management.

You keep 85% of all royalties. They charge a 15% administration fee for all royalty types, from all global sources.

Additional Terms

You can cancel your Songtrust account at anytime, but if you do, they’ll continue collecting on any songs you delivered to them for 12 month.

Songtrust doesn’t take any copyright ownership of your songs. This means you keep 100% of your share.

Further Reading

After reviewing our list of some of the best brass VSTs currently on the market, feel free to check out our other articles.

Do you also use orchestral strings or woodwinds instruments in your mixes? Read our article about the 10 Best Orchestral VSTs and 10 of the top Woodwind VSTs.

Breve Music Studios publishes music to Spotify, YouTube Music, Amazon Music and more. Follow our pages on Facebook, Instagram, Twitter, TikTok, and YouTube.

Listen to our ensembles: Breve Orchestra, Breve Music Ensemble, Breve Low Brass Ensemble, Breve Woodwind Ensemble, and Jermaine Harris on Spotify.

I hope you enjoyed this overview about SoundExchange and Songtrust. Register your music today with both sites to start earning your full royalties!

3 Fundamental Music Business Tips

My music business began in 2017 with a laptop and Audacity. I used my first music distributor, Routenote.com, to release Solfeggio Frequencies. Since then, a lot has changed and I’ve learned a lot about the music business.

I’ve started publishing music with more instruments (i.e. Breve Orchestra and Breve Music Ensemble)

Here are 3 music business tips that can help you grow your music business:

1. Sign up for a Performing Rights Organization (PRO) like ASCAP or BMI. digital, terrestrial (i.e. AM and FM radio) and live royalties.
2. Distribute your music like Distrokid and Landr collect your master recording rights.
3. Make an account with SongTrust AND SoundExchange. SongTrust allows you to capture all your mechanical royalties from streaming platforms. SoundExchange collects royalties from radio programs.

Common Revenue Streams in Music Business

The music industry has undergone significant changes. With the rise of online streaming services, social media platforms, and other digital distribution channels, musicians have more revenue streams available to them than ever before. Let’s take a closer look at some of the modern revenue streams for musicians.

1. Mechanical streaming royalties

With the growth of music streaming services like Spotify and Apple Music, streaming royalties have become a crucial revenue stream for musicians. These platforms pay artists based on the number of streams their music receives. While the amount paid per stream may seem small, with the right marketing and promotion, streaming royalties can add up quickly. Your music distributor collects your royalty from the audio copyright, but you need to register with SongTrust to secure your composition royalty (when a song is streamed).

2. Merchandise

Merchandise sales have long been a source of revenue for musicians. From t-shirts to vinyl records, merchandise can help artists connect with fans while also providing a steady stream of income. In recent years, digital merchandise has also become popular, with artists selling items like virtual concert tickets, exclusive content, and limited edition digital downloads.

3. Sync licensing

Sync licensing involves placing music in TV shows, movies, and commercials. This is a lucrative revenue stream for musicians as it provides exposure to new audiences and pays well. With the growth of online streaming services and content creation, sync licensing opportunities have increased.

4. YouTube revenue

YouTube has become a platform for artists to promote their music and connect with fans. YouTube revenue comes from ad revenue on videos, as well as revenue from sponsored content and partnerships. By building a strong presence on YouTube, musicians can earn a significant amount of money.

5. Crowdfunding

Crowdfunding has become a popular way for musicians to fund their projects and connect with fans. Platforms like Kickstarter and Patreon allow artists to raise money for recording projects, tours, and other expenses. By offering exclusive perks to their supporters, musicians can build a loyal fanbase and secure funding for their creative endeavors.

6. Live performance

Live performances have always been an essential part of a musician’s revenue stream. In recent years, the rise of virtual concerts has provided new opportunities for musicians to perform and earn money. With the ability to reach a global audience, virtual concerts can be a lucrative revenue stream for musicians.

The music industry has changed significantly in recent years, providing musicians with a range of modern revenue streams. From streaming royalties to merchandise sales, sync licensing to YouTube revenue, crowdfunding to live performances, musicians have more options than ever before to monetize their talent and connect with fans. By embracing these revenue streams and adapting to the changing music industry landscape, musicians can achieve financial success while also pursuing their creative passions.

Ethics in Music Business

Ethics play a crucial role in any business, including the music industry. In fact, ethical conduct is fundamental to the sustainability and success of the music business. The music industry involves a complex web of relationships, transactions, and interactions that require honesty, integrity, and respect. Ethical conduct helps to build trust, strengthen relationships, and enhance the reputation of music industry professionals.

Here are some of the key ways in which ethics are essential to the music business:

Fair Treatment of Artists and Music Industry Professionals

Ethics in the music industry demand that artists and music industry professionals are treated fairly and equitably. This includes ensuring that artists are compensated fairly for their work and that their rights are respected. Music industry professionals should also be paid fairly for their services and provided with a safe and respectful working environment. Ethical conduct in this area can help to build trust and foster long-term relationships between artists and music industry professionals.

Transparency and Honesty in Business Practices

Ethical business practices require transparency and honesty in all transactions and interactions. This means being clear and upfront about fees, contracts, and other terms and conditions. Music industry professionals should also be open and honest in their communication with clients and colleagues. This helps to build trust and can prevent misunderstandings or conflicts down the line.

Respect for Intellectual Property Rights

The music industry is built on intellectual property, including copyrights and trademarks. Ethical conduct in the music industry requires respect for intellectual property rights. This includes obtaining permission to use copyrighted material and giving credit where credit is due. Music industry professionals who engage in ethical conduct in this area can help to promote creativity and innovation, while also protecting the rights of artists and other creators.

Support for Diversity and Inclusion

The music industry is diverse, with artists and industry professionals from all backgrounds and cultures. Ethical conduct in the music industry requires support for diversity and inclusion. This means providing opportunities for artists and industry professionals from all backgrounds, as well as promoting respect and understanding across cultural divides. By embracing diversity and promoting inclusion, the music industry can benefit from a wide range of perspectives and ideas.

Commitment to Social Responsibility

Ethical conduct in the music business also requires a commitment to social responsibility. This means supporting causes and initiatives that benefit society as a whole. For example, many music industry professionals use their platforms to raise awareness about important issues, such as climate change, social justice, and human rights. By using their influence for good, music industry professionals can make a positive impact on the world around them.

Ethics are essential to the success and sustainability of the music industry. By promoting fair treatment, transparency, respect for intellectual property rights, diversity and inclusion, and social responsibility, music industry professionals can build trust, strengthen relationships, and enhance their reputation. By embracing ethical conduct, the music industry can continue to thrive and evolve in a rapidly changing world.

Artist Management

Artist management is a crucial aspect of the music business, helping artists navigate the complex world of music business, from recording and releasing music to touring and marketing. The role of an artist manager is to act as a liaison between the artist and the music industry, providing support, guidance, and representation to help artists achieve their goals and reach their full potential.

Here are some key aspects of artist management in music business:

Career development

An artist manager is responsible for helping their artist develop their career, setting goals and creating a plan to achieve them. This includes developing a strong brand, identifying the artist’s target audience, and creating a marketing and promotional strategy.

Contract negotiation

Artist managers are skilled negotiators and are responsible for negotiating contracts with record labels, publishers, booking agents, and other industry professionals on behalf of the artist. They ensure that the artist gets the best deal possible, including fair compensation and favorable terms.

Financial management

An artist manager is responsible for managing the artist’s finances, including budgeting for recording sessions, tours, and other expenses. They also ensure that the artist is receiving fair compensation for their work and that they are paid on time.

Touring and live performance

An artist manager is responsible for booking gigs and tours, arranging transportation and accommodations, and ensuring that the artist has everything they need to perform at their best. They also work to build relationships with promoters, venue owners, and other industry professionals to help the artist expand their fan base and reach new audiences.

Creative development

An artist manager is often involved in the creative process, working closely with the artist to help them develop their sound and style. They may provide feedback on new music, help with songwriting and production, and provide guidance on branding and visual aesthetics.

Overall, artist management plays a crucial role in the success of musicians in the music industry. By providing support, guidance, and representation, artist managers help artists navigate the complexities of the music business and achieve their goals. A strong artist-manager relationship is built on trust, communication, and shared vision, and can make all the difference in an artist’s career.

Conclusion

Marketing your music requires a combination of online and offline strategies. Building a strong online presence, collaborating with other musicians and brands, releasing your music on streaming platforms, utilizing video content, playing live shows, and using paid advertising are all essential aspects of marketing your music successfully. Remember to stay consistent, engage with your fans, and always be open to new opportunities.

Additional Reading

After reviewing these music business tips, feel free to check out our other articles.

Do you also use orchestral strings or woodwinds instruments in your mixes? Read our article about the 10 Best Orchestral VSTs and 10 of the top Woodwind VSTs.

Also, check out this article comparing compressors and limiters. You can also learn about gain staging.

Breve Music Studios publishes music to Spotify, YouTube Music, Amazon Music and more. Follow our pages on Facebook, Instagram, Twitter, TikTok, and YouTube.

Listen to our ensembles: Breve Orchestra, Breve Music Ensemble, Breve Low Brass Ensemble, Breve Woodwind Ensemble, and Jermaine Harris on Spotify.