Hey, it’s TJ Miller, you want some game? Let's Tip Unda The Hat!
This week, SoundExchange, what is that? Let’s go -
Ever heard of SoundExchange? Well SoundExchange is a non-profit organization founded by the Copyright Royalty board. What they do is collect and distribute digital performance royalties on behalf of recording artists and master rights owners; these can be record labels, publishers or indie artists that own their masters. This is different from PRO’s that collect and distribute performance royalties for songwriters and publishers and not the performing artist. See the difference? Currently, there is no performance right (or money for the artist) for over-the-air traditional broadcasts. Artists and record labels are not compensated when their creative works are used by traditional radio. A PRO collects royalties by issuing licenses to TV’s, terrestrial radio, businesses, streaming platforms and even local bars and clubs. So why Soundexchange? Currently there is no performance right for the over the air broadcasts. Artists and record labels are not compensated when they get airplay from traditional radio.
SoundExchange on the other hand collects digital royalties from three main sources: 1) Non-interactive webcasters like Pandora radio, 2) Satellite and digital cable TV like Music Choice or Muzak (now Mood Media), 3) Satellite Radio Services like SiriusXM. So the recording artist CAN make money from satellite radio, but not terrestrial radio - ain’t that crazy? Digital Radio Services send playlists with songs played and money to SoundExchange which then get to the recording artists and master rights owner. By law 45% of digital performance royalties are paid directly to the featured artist(s) or the person or group that is most prominently featured on the project, and 5% to a fund for the non-featured artists such as session musicians, or background vocalists. The other 50% of the performance royalties are paid to whoever owns the master sound recording. Get it now? Yeah in this digital age, you need SoundExchange. Now the paperwork is no joke, don’t let it deter you, get in there and make yo money mane!
This week's #IAOTW - Independent Artists Of The Week is Chaptabois, two of the hottest film to music rappers that you’ve never heard of, straight out of Houston TX.
For more information or to hire Unda The Hat as your brand or label consultant send a message via undathehat.com. See you next Tuesday.