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These services ensure that creators are compensated fairly for their music whenever it is broadcast or licensed for use in other media. In the complex world of music rights, these services play a critical role in tracking usage and distributing royalties.
There are several key types of royalties that music royalty services handle: performance, mechanical, and synchronization royalties. When music is played on the radio, in a cafe, or streamed online, performance royalties are due. Mechanical royalties are generated when music is sold or reproduced in a format like CDs or digital downloads. Sync royalties, on the other hand, occur when music is used in visual media like films, TV shows, or commercials.
Notable music royalty services include ASCAP, BMI, SESAC, and SoundExchange. ASCAP and BMI are non-profit organizations specializing in performance royalties while SESAC works exclusively with invited artists. SoundExchange, meanwhile, handles royalties for digital streaming services, which is especially valuable for todays streaming landscape.
These royalty services collect licensing fees from venues, broadcasters, and streaming services for commercial music solutions use of music.
These services play a vital role in making the music industry more sustainable for artists.
