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All the revenue streams for musicians

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Presented Sept 17, 2014 at the Americana Music Conference in Nashville, TN. For more information: http://money.futureofmusic.org

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All the revenue streams for musicians

  1. 1. All the Revenue Streams
  2. 2. Two copyrights in a song Songwriters Publishers Sound recording copyright owner Recording artist notes and lyrics make up a musical composition sound recording is a recorded performance of a musical composition Background musicians and singers
  3. 3. In most cases, composition royalties are separate and distinct from sound recording royalties.
  4. 4. Even if you are both the songwriter and the recording artist, you need to think about these roles separately.
  5. 5. Based on the contours of copyright law and business practice, this list includes all the possible ways that US-based musicians can make money off their compositions, sound recordings, performances, brand, or knowledge of their craft.
  6. 6. 42 Revenue Streams Revenue Streams: Existing, Expanded, New money.futureofmusic.org/40-revenue-streams/ money.futureofmusic.org/revenue-streams-existing-expanded-new/
  7. 7. Compositions/being a composer 1. Publishing advance 2. Mechanical royalties 3. Commissions 4. Public performance royalties 5. Streaming mechanical royalties 6. Composing original works for broadcast 7. Synch licenses 8. Sheet music licensing/sales 9. Lyric display 10. Ringtones 11. Songwriter awards programs 12. Publisher settlements money.futureofmusic.org/40-revenue-streams/ C
  8. 8. 1. Publishing advance The rate: No standard rate What it’s for: Advance on publishing earnings, as part of a publishing deal Who pays it: Publishing company Who gets the money: Songwriter/composer money.futureofmusic.org/40-revenue-streams/ C
  9. 9. 2. Mechanical royalties The rate: 9.1¢ per manufactured track What it’s for: Reproductions of recordings of your songs/ compositions – either physical or digital Who pays it: Record labels, publishers or aggregators Who gets the money: Songwriters/composers money.futureofmusic.org/40-revenue-streams/ C
  10. 10. 3. Commissions The rate: No standard rate What it’s for: Payment for creating an original musical composition Who pays it: Ensemble, presenter, orchestra, dance company or other entity Who gets the money: Songwriter/composer money.futureofmusic.org/40-revenue-streams/ C
  11. 11. 4. Public performance royalties The rate: Varies according to performance/venue/ licensee What it’s for: Generated when your songs are played publicly on radio, TV, in clubs and restaurants Who pays it: Broadcasters, venues, TV networks, restaurants, webcasters, streaming music services Who gets the money: Collected by ASCAP, BMI and SESAC and split 50/50 between publisher and composer money.futureofmusic.org/40-revenue-streams/ C
  12. 12. 5. Streaming mechanical royalty The rate: 10.5% of revenue minus payments to PROs What it’s for: Revenue generated when your compositions are streamed on on-demand services (Rhapsody, Spotify, Rdio) Who pays it: Service pays publisher or mechanical licensing agent Who gets the money: Composer and publisher money.futureofmusic.org/40-revenue-streams/ C
  13. 13. 6. Composing original works for broadcast The rate: No standard rate What it’s for: Typically a commercial request to compose an original jingle, soundtrack, score, or other musical work Who pays it: Film producer, TV or cable show, ad agency Who gets the money: Songwriter/composer money.futureofmusic.org/40-revenue-streams/ C
  14. 14. 7. Synch licenses The rate: No standard rate What it’s for: Typically licensing an existing work for use in a movie, documentary, TV, video games, internet or a commercial Who pays it: Movie studio, ad agency, game company, etc. Who gets the money: Songwriters/composers and publishers share publishing money. (Recording artists and labels get a separate fee for master use of sound recording) money.futureofmusic.org/40-revenue-streams/ C
  15. 15. 8. Sheet music licenses or sales The rate: No standard rate What it’s for: Sale or licensed use of sheet music Who pays it: Ensembles, schools, students, musicians. Sometimes your fans if you’re selling sheet music directly Who gets the money: Composer, sometimes via publisher money.futureofmusic.org/40-revenue-streams/ C
  16. 16. 9. Lyric display The rate: A fee for term, or percent of gross revenue from site (subscriptions or advertising revenue). What it’s for: Revenue generated by the licensed display of song lyrics. Who pays it: Online lyric sites pay publishers. Who gets the money: Composer, sometimes via publisher money.futureofmusic.org/40-revenue-streams/ C
  17. 17. 10. Ringtones The rate: No standard rate What it’s for: Generated from licensing your songs/ compositions for use as ringtones Who pays it: Sprint, Verizon, AT&T, etc. Who gets the money: Composer, sometimes via publisher, label or Harry Fox money.futureofmusic.org/40-revenue-streams/ C
  18. 18. 11. Songwriter awards programs The rate: $100 and up What it’s for: Awarded to writer members of any genre whose performances are primarily in venues outside of broadcast media Who pays it: Both ASCAP and BMI Foundation have programs Who is eligible to apply: Composers/songwriters who earn less than $25,000 in annual domestic performance royalties money.futureofmusic.org/40-revenue-streams/ C
  19. 19. 12. Publisher settlements The rate: Varies by lawsuit What it’s for: Payments from publishers to writers for litigation settlements Who pays it: Entities that lost the lawsuit pay a fee to publishers, which should pass it along to writers and composers whose work was infringed Who gets the money: Publishers and writers money.futureofmusic.org/40-revenue-streams/ C
  20. 20. Sound recordings/recording artist 13. Record label advance 14. Record label support 15. Retail sales 16. Digital sales 17. Sales at shows 18. Interactive service payments 19. Digital performance royalties 20. Master use synch license 21. AARC royalties 22. Neighboring rights royalties 23. Film and Secondary Market Fund royalties 24. Sound Recording Special Payments Fund royalties 25. AFTRA Contingent Scale payments 26. Label settlements money.futureofmusic.org/40-revenue-streams/ RA
  21. 21. 13. Record label advance The rate: No standard rate What it’s for: Paid to artist as part of signing a record deal, usually an advance on future record sales Who pays it: Record label Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  22. 22. 14. Record label support The rate: No standard rate What it’s for: Money from label for recording or tour support. Usually recoupable against album sales Who pays it: Record label Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  23. 23. 15. Retail sales The rate: Varies based on record label deal. Usually 10-15% of wholesale price, but some labels pay 50%. What it’s for: Revenue generated from selling physical music (CDs/vinyl) in retail stores or via mailorder Who pays it: Retail stores pay distributor which pays label, CD Baby for mailorder, or direct from mailorder customers at your own website Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  24. 24. 16. Digital sales The rate: Varies. Artists on label may get 10-15% of wholesale price, but some labels pay 50%. Self-released artists get a bigger percentage. What it’s for: Revenue generated from selling music digitally/online (iTunes, Amazon, Bandcamp, your own site) Who pays it: Retailers pay labels and aggregators like CD Baby or TuneCore, or direct from customers at your own website money.futureofmusic.org/40-revenue-streams/ RA
  25. 25. 17. Sales at shows The rate: Varies. What it’s for: Revenue generated from selling recorded music (CDs/vinyl/cassettes) at shows/live performances Who pays it: Fans Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  26. 26. 18. Interactive service payments The rate: About half a penny per play What it’s for: Revenue generated when your sound recordings are streamed on on-demand services (Rhapsody, Spotify, Rdio) Who pays it: Service pays label, or digital aggregator like CD Baby/TuneCore Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  27. 27. 19. Digital performance royalties The rate: Varies by platform, but rates are published What it’s for: Revenue generated when your sound recordings are played on internet radio, Sirius XM, Pandora Who pays it: Webcasters pay SoundExchange, which then pays labels 50%, featured performers 45%, background musicians and singers 5% Who gets the money: Recording artist money.futureofmusic.org/40-revenue-streams/ RA
  28. 28. 20. Master use synch license fees The rate: No standard rate What it’s for: Typically licensing an existing sound recording for use in a movie, documentary, TV, video games, internet or a commercial Who pays it: Movie studio, ad agency, game company, etc. Who gets the money: Recording artists and labels share a fee for licensed use of sound recording money.futureofmusic.org/40-revenue-streams/ RA
  29. 29. 21. AARC royalties The rate: It’s complicated What it’s for: Collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties Who pays it: Audio hardware and blank CD manufacturers pay AARC, which then pays performers and record labels Who gets the money: Recording artists and labels money.futureofmusic.org/40-revenue-streams/ RA
  30. 30. 22. Neighboring rights royalties The rate: Varies from country to country What it’s for: Collected for the foreign performance of your sound recordings Who pays it: Foreign broadcasters pay this money to foreign collection societies Who gets the money: Recording artists and labels. Note that collecting this money is very difficult because US does not have reciprocal rights money.futureofmusic.org/40-revenue-streams/ RA
  31. 31. 23. Film Musicians Secondary Markets Fund The rate: It’s complicated What it’s for: Paid to performers on recordings made for, or used in, film or TV Who is eligible: Performers who have worked on recording done under AFM collective bargaining agreement Who pays it: AFM collects these funds and distributes it to performers who have credits on recording money.futureofmusic.org/40-revenue-streams/ RA
  32. 32. 24. AFM/Sound Recording Special Payments Fund The rate: It’s complicated What it’s for: Paid to performers on recordings based on the sales of recorded music Who is eligible: Performers who have worked on recording done under AFM collective bargaining agreement Who pays it: Record labels pay portion of sales revenues to SPF, which then distributes it to performers who have credits on recordings money.futureofmusic.org/40-revenue-streams/ RA
  33. 33. 25. SAG-AFTRA contingent scale The rate: It’s complicated What it’s for: Payments paid to non-royalty artists when a recording hits certain sales plateaus Who is eligible: Non-royalty artists appearing on recordings that reach certain sales levels in the US Who pays it: Record labels pay portion of sales revenues to SAG-AFTRA, which then distributes it to non-royalty artists who have credits on recordings money.futureofmusic.org/40-revenue-streams/ RA
  34. 34. 26. Label settlements The rate: Varies by lawsuit What it’s for: Payments from labels to recording artists for litigation settlements (MP3.com, Limewire) Who pays it: Entities that lost the lawsuit pay a fee to record labels, which should pass it along to recording artists whose work was infringed Who gets the money: Recording artists and labels money.futureofmusic.org/40-revenue-streams/ RA
  35. 35. Live performance/being a performer 27. Salary as part of an orchestra, ensemble or band 28. Live performance fee/guarantee money.futureofmusic.org/40-revenue-streams/ P Session or sideman work 29. Session work/freelancer in studio 30. Session work/freelancer on tour 31. AFM/AFTRA Fund P
  36. 36. 27. Salary as member of orchestra, band or ensemble The rate: No standard rate, but consistent paycheck What it’s for: Income earned as a salaried member of an orchestra, band or ensemble Who pays it: Orchestra, band or ensemble Who gets the money: Performer money.futureofmusic.org/40-revenue-streams/ P
  37. 37. 28. Show or performance fees The rate: No standard rate, but either a guaranteed fee and/or a percent of ticket sales What it’s for: Revenue generated from playing in a live setting (for non-salaried players). Who pays it: Concert promoter, presenter or venue Who gets the money: Performer money.futureofmusic.org/40-revenue-streams/ P
  38. 38. 29. Session musician/studio fees The rate: AFM scale, or rate set by freelancer and producer What it’s for: Payments to studio musicians/freelancers/ sideman for work in recording studio Who pays it: Studio, producer, featured artist or record label, depending on situation Who gets the money: Session player money.futureofmusic.org/40-revenue-streams/ P
  39. 39. 30. Session musician/live fees The rate: AFM scale, or rate set by freelancer and producer What it’s for: Payments to studio musicians/freelancers/ sideman for work in a live setting/on tour Who pays it: Featured artist, presenter, promoter or record label, depending on situation Who gets the money: Session player money.futureofmusic.org/40-revenue-streams/ P
  40. 40. 31. AFM/SAG-AFTRA payments The rate: It’s complicated What it’s for: AFM/SAG-AFTRA Intellectual Property Rights Distribution Fund distributes recording and performance royalties to non-featured artists Who pays it: Primarily, this is the 5% that SoundExchange collects from digital broacasters that is then paid to non-featured performers. Who gets the money: Non-featured performers money.futureofmusic.org/40-revenue-streams/ P
  41. 41. Knowledge of the craft 32. Teacher 33. Producer 34. Honoraria/speaker fees money.futureofmusic.org/40-revenue-streams/ KC
  42. 42. 32. Music teacher The rate: Varies/set by teacher What it’s for: Payment for teaching your musical craft Who pays it: Students, schools, conservatories, foundations Who gets the money: Music teacher or performer money.futureofmusic.org/40-revenue-streams/ KC
  43. 43. 33. Producer The rate: Varies. Could be a flat fee or “points” on a project What it’s for: Payment for producing another artist’s work in the studio or in a live setting. Sometimes producers also get writing credits for work in studio Who pays it: Labels, featured artists, studios, presenters, foundations, depending on situation Who gets the money: Musician or producer money.futureofmusic.org/40-revenue-streams/ KC
  44. 44. 34. Honoraria or speaker fees The rate: Set by musician and host organization What it’s for: Payment for conducting a lecture, workshop or master class Who pays it: School, conservatory, presenting organization Who gets the money: Musician money.futureofmusic.org/40-revenue-streams/ KC
  45. 45. Your brand 35. Merchandise sales 36. Fan club subscriptions 37. YouTube partner program 38. Ad revenue 39. Persona licensing 40. Product endorsements 41. Acting 42. Fan funding 43. Sponsorship 44. Grants money.futureofmusic.org/40-revenue-streams/ KC B
  46. 46. 35. Merchandise sales The rate: Varies by item What it’s for: Revenue generated from selling branded merchandise (t-shirts, hoodies, posters, etc.) Who pays it: Fans, sometimes retailers Who gets the money: Musician or performer money.futureofmusic.org/40-revenue-streams/ B
  47. 47. 36. Fan club The rate: No standard rate, but usually an annual fee What it’s for: Money directly from fans who are subscribing to your fan club Who pays it: Fans and supporters Who gets the money: Musician or performer money.futureofmusic.org/40-revenue-streams/ B
  48. 48. 37. YouTube partner program The rate: Not disclosed What it’s for: Shared advertising revenue generated by plays on YouTube. Can also include plays of user-generated content that uses your music, as identified by YouTube’s Content ID program Who pays it: Advertisers pay YouTube, which passes along money to rightsholders Who gets the money: Rightsholders: record labels, artists money.futureofmusic.org/40-revenue-streams/ B
  49. 49. 38. Ad revenue The rate: Varies What it’s for: Miscellaneous income generated by your website properties (click-thrus, commissions on Amazon sales, etc.) Who pays it: Advertisers, services that offer commissions Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  50. 50. 39. Persona licensing The rate: Varies What it’s for: Payments from a brand that is licensing your name or likeness (video games, comic books, etc) Who pays it: Advertisers, video games, lifestyle brand companies Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  51. 51. 40. Product endorsement The rate: No standard. Sometimes payment is free product instead of cash What it’s for: Payments from a brand for you endorsing or using their product Who pays it: Music instrument manufacturers, beverage companies, other companies Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  52. 52. 41. Acting The rate: No standard rate What it’s for: Payments for appearances in TV, commercials, movies Who pays it: Movie and TV producers Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  53. 53. 42. Fan funding The rate: No standard rate What it’s for: Money raised directly from fans to support or pre-sell an upcoming recording project or tour (Kickstarter, IndieGogo, Pledge Music) Who pays it: Fans and supporters Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  54. 54. 43. Sponsorship The rate: No standard rate What it’s for: Corporate support for a tour, or for your band/ensemble Who pays it: Companies/corporations Who gets the money: Musicians money.futureofmusic.org/40-revenue-streams/ B
  55. 55. 44. Grants The rate: No standard rate What it’s for: Foundation or public arts grants to support your work/project Who pays it: Foundations, arts councils, endowments, state or federal agencies Who gets the money: Performers, composers, ensembles, collaborations money.futureofmusic.org/40-revenue-streams/ B
  56. 56. Producer and songwriter: gross income 2010-11 Songwriter/producer/ arranger fees 50% PRO royalties Synch licensing fees Mechanical royalties 5% Sheet music licensing 5% 10% 25% Ringtone licensing 5% Years active: 1994-present Roles: Songwriter, producer, arranger Percent of time: 100% Percent of income: 95% Genres: R&B, hip hop and pop 2010 Activity: wrote about 450 songs to pitch to artists, participated in 50 writing sessions, worked with 25 different recording artists money.futureofmusic.org/case-studies/
  57. 57. Recording artist: gross income 2010-11 Publisher support 25% Merchandise sales 10% Live performance fees 25% Record royalties 10% Record label support 30% Years active: 2006-present Roles: Recording artist, composer, performer, producer Percent of time: 100% Percent of income: 100% Genres: indie rock, pop 2010-11 Activity: One recording, 50-100 live performances money.futureofmusic.org/case-studies/
  58. 58. Jazz manager: gross income 2010-11 Teaching 10% Composer commission 7% CD sales on the road 6% Live performance fees 62% Record label advance 7% PRO royalties 5% Session musician 2% Years active: clients range from fewer than 10 years, 10-20 years, 30-40 years Roles: Recording artist, composer/ arranger, performer, band leader, producer, side musician, educator Percent of time: 100% Percent of income: 100% Genres: jazz Typical 2010 Activity: One recording, 40 live performances money.futureofmusic.org/case-studies/
  59. 59. Nashville session player: gross income 2010-11 Years active: 1974-present Roles: Performer, session musician, producer, bandleader, songwriter, journalist, label owner Percent of time: 100% Percent of income: 100% Genres: country, bluegrass, rock, jazz 2010-11 Activity: 1 album as leader, produced 2 albums, 30-40 recording sessions, 40 live performances Record sales 11% Session player: studio 30% Mechanicals and PRO royalties 3% AFM/AFTRA Fund 4% SR Special Payments Fund AFM Secondary Markets Fund 4% 6% Producer 22% Live performances 17% Digital performance royalties 3% money.futureofmusic.org/case-studies/
  60. 60. Classical performer: gross income 2010-11 Live performance fees: City Opera salary 46% AFM/AFTRA Fund 1% Live performance fees: City Ballet sub Freelance performance fees AFM Secondary Markets Fund 7% 14% 28% Session player: studio fees for film music 3% Teaching 1% Years active: 1979-present Roles: Performer, session musician, teacher Percent of time: 100% Percent of income: 100% Genres: classical 2010 Activity: 5-10 recording sessions, 150-200 live performances money.futureofmusic.org/case-studies/
  61. 61. Freelance violinist: gross income 2012 Sideman: live, in studio, on TV 71% Administrator/Curator 25% TV Residuals 1% Live performance (Leader) 1% Mechanical royalties 1% Sound Recordings Special Payments Fund 1% Years active: 2001-present Roles: Performer, producer, session musician/freelancer, composer Percent of time: 30% Percent of income: 18% Genres: contemporary classical, jazz, indie, americana 2012 Activity: 6 recordings, 75 shows with 12 different groups money.futureofmusic.org/case-studies/
  62. 62. Retired indie rocker: gross income 2012 Recording sales royalties 52% Digital performance royalties 48% Years active: 1990-1997 Roles: Performer, recording artist, songwriter Percent of time (now): 5% Percent of income: 3% Genres: indie rock 2012 Activity: collected royalties on 4 albums money.futureofmusic.org/case-studies/
  63. 63. Indie rock composer/performer: gross income Live Performance 30.5% Salary 29.8% CD Sales on the Road 12.1% Publishing Royalties 9.4% PRO Royalties 6.2% Publishing Advance 5.6% Record Sales 3.5% TV Royalties 0.4% Producer 0.7% Session Musician 1.5% Years active: 1999-present Roles: Performer, composer, session/sideman work Percent of time: 100% Percent of income: 100% Genres: rock, world, avant, folk rock money.futureofmusic.org/case-studies/
  64. 64. Chamber music ensemble: gross income 2002-10 Years active: 1997- present Roles: Performer, session/sideman work Percent of time: 100% Percent of income: 100% Genres: classical, new music, contemporary jazz money.futureofmusic.org/case-studies/
  65. 65. Jazz bandleader: gross income 2001-11 Live Performance 77.8% Grants and Awards 7.5% Record Label Advance 5.0% Commission 2.6% Sideman Record Sales 1.8% 1.7% PRO Royalties 0.8% Other 2.8% Years active: 1995- present Roles: Composer, performer, bandleader, session/sideman work, teacher Percent of time: 100% Percent of income: 100% Genres: jazz, classical, hip hop money.futureofmusic.org/case-studies/
  66. 66. Salaried orchestra player: gross income 2001-11 Years active: 2000- present Roles: Performer, session/sideman work Percent of time: 100% Percent of income: 100% Genres: classical Salary: orchestra 64.8% Freelance: live 27.3% Knowledge of Craft 3.1% Freelance: studio Prize Money 1.9% 1.8% Recording Income 0.8% Radio Royalties 0.3% money.futureofmusic.org/case-studies/
  67. 67. Sideman: Performance 32.4% Live Performance 15.0% Administrator 14.9% Grant 11.6% Teaching CD Sales on the Road 0.4% Recording 0.9% PRO Royalties Sideman: 10.5% Performance + Organizer 8.0% 2.1% Sideman: Recording 4.3% Jazz sideman: gross income 2004-10 Years active: 1999- present Roles: Performer, composer, bandleader, session/sideman work, administrator, consultant, teacher Percent of time: 100% Percent of income: 100% Genres: jazz, contemporary classical, world music money.futureofmusic.org/case-studies/
  68. 68. Revenue streams have become atomized. More important than ever that creators understand how the money flows back to them as songwriters and recording artists. Mechanical royalties Streaming mechanicals Mechanicals for cloud storage, lockers Commissions Composing original works for broadcast Sheet music Lyric display Retail sales Sales at shows Digital downloads Cloud storage payments Digital performance royalties Interactive service payments YouTube partner program Synchs Performances Session work Merchandise Persona licensing Fan funding Sponsorships Grants
  69. 69. Resources Artist Revenue Streams Research money.futureofmusic.org 42 Revenue Streams Revenue Streams: Existing, Expanded, New money.futureofmusic.org/40-revenue-streams/ money.futureofmusic.org/revenue-streams-existing- expanded-new/
  70. 70. Resources Music and How the Money Flows infographic HOW THE MONEY FLOWS BACK TO songwriters, artists, publishers & labels How are musicians and songwriters compensated when their music is played on the radio, sold on digital platforms, broadcast radio terrestrial broadcast of any AM or FM station webcast, or streamed on interactive services? C PROs ASCAP, BMI, SESAC songwriter publisher performance of composition In the US, terrestrial broadcasters do not pay performers or sound recording copyright owners performance of sound recording performance of composition For digital stores and on-demand streams, * At the end of 2012, Universal Music Publishing Group and Sony/ATV-EMI pulled their digital rights from ASCAP and BMI, seeking to get a higher rate by negotiating directly with webcasters. how the money flows depends on what entity negotiated the license. For record labels that have a direct deal with services: digital sale iTunes • Amazon Google Play • eMusic SR record label publisher songwriter mechanical reproduction of composition artist/band* sale of sound recording 9.1¢ /track 10-50% * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. 0.5% Sound Recording Special Payments Fund # musicians # Labels contribute a small percent of sound recording sales income. If recording was made under the AFM’s recording agreement, payments are disbursed to musicians who were paid scale wages during the recording session. C PROs ASCAP, BMI, SESAC futureofmusic.C UMPG and Sony ATV-EMI* org/moneyflow * At the end of 2012, Universal Music For record labels that are represented by a digital aggregator/distributor: SR aggregator mechanical reproduction of composition artist/band* sale of sound recording publisher songwriter IODA/The Orchard record label 9.1¢ /track @50% 85% AFM & SAG-AFTRA Fund webcast or digital performance Pandora • Sirius XM • NPR streaming any webcast stations C PROs ASCAP, BMI, SESAC* SR SoundExchange songwriter publisher record label performer(s) 50% 45% 5% performance of composition digital performance of sound recording background singers and musicians UMPG and Sony ATV-EMI* UMPG and Sony ATV-EMI C songwriters songwriter songwriter on-demand stream Spotify • Rdio • Rhapsody SR record label artist/band* streaming mechanical royalty licensed use of sound recording 10-50% 10.5% minus payment to PROs publisher performance of composition publishers Publishing Group and Sony/ATV-EMI pulled their digital rights from ASCAP and BMI, seeking to get a higher rate by negotiating directly with services. UMPG and Sony ATV-EMI songwriters PROs ASCAP, BMI, SESAC songwriter publisher on-demand C * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. * Rate of payment from label to artist/band depends on terms of contract, and whether digital sale is classified as a sale or a license. performance of composition big labels indie labels For radio and radio-like services, blanket licenses determine who gets paid, and how much. digital sale iTunes • Amazon Google Play • eMusic New Business Models Digital Distribution and how to participate futureofmusic.org/nbm futureofmusic.org/dd
  71. 71. For composers and publishers www.ascap.com www.bmi.com www.sesac.com www.harryfox.com
  72. 72. For performers and sound recording copyright owners www.soundexchange.com
  73. 73. For performers www.raroyalties.org www.fmsmf.org
  74. 74. For performers www.aarcroyalties.com www.sound-recording.org
  75. 75. Future of Music Coalition @future_of_music www.futureofmusic.org money.futureofmusic.org Kristin Thomson @kristinthomson kristin@futureofmusic.org

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