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These services help creators collect payment for their music whenever it is publicly played or licensed for use in other media. In the multifaceted world of music rights, these services are crucial for managing royalty collection and payout.
There are several key types of royalties that music royalty services handle: performance, mechanical, and synchronization royalties. Performance royalties are generated when a song is played in public spaces or streamed online. Mechanical royalties are generated when music is sold or reproduced in a physical or digital format. Sync royalties, on the other hand, are collected when songs are placed in visual media like films, TV shows, or commercials.
Notable music royalty services include ASCAP, BMI, SESAC, and SoundExchange. ASCAP and BMI focus on performance royalties and additional resources represent a wide range of artists, while SESAC works exclusively with invited artists. SoundExchange, meanwhile, specializes in collecting royalties from digital platforms which is especially valuable for todays streaming landscape.
By charging businesses and streaming services fees, these companies help artists and songwriters earn income from their music.
These services provide crucial support in making the music industry more sustainable for artists.
