Understanding Music Royalties Part II

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This is the second part of our series on understanding royalties. As we went over in part one, royalties are there to ensure that artists, publishers, and others involved with the creation and distribution of a piece of music are paid their fair share for the work they put in.

What Are Digital Performance Royalties?

Differing significantly from Streaming Royalties, Digital Performance Royalties are connected to non-interactive streaming services like Pandora and Sirius XM, who pay artists whenever one of their songs is played through their services.

What Are Synchronization Royalties?

As the name would suggest, Synchronization Royalties are generated when copyrighted music is synced with visual media, including movies, TV, advertising, games, and other types of visual media. For copyrighted music to be used, there needs to be a Synchronization license which gives the holder permission and ability to use it. If someone plans to use a song by an artist in its original version, it’s important to note that a Master Use License needs to be purchased in addition to the Synchronization license.

The different types of royalties can be complicated to understand, but they’re essential to keeping the industry running smoothly. Unfortunately, the necessary data and information is sometimes difficult to comprehend, even for members of the industry itself. As opaque as royalty statements can seem, the entire industry benefits from a better understanding of how they work. Utopia is bridging the data gap to make the whole value chain more transparent.