Thursday, September 29, 2022

How Are Music Royalties Calculated

Where Do Song Royalties Come From

How to Calculate Music Streaming Royalties

Music licences

Almost all businesses and organisations use music. Think of your favourite café, hairdresser, nightclubs, festivals, radio stations, television ads, streaming services, and YouTube videos. APRA AMCOS offers licences to these businesses and organisations to use your music. We also track what music they use. We then pay songwriters, composers and music publishers their share of the licence fees we collect, after deducting our administration costs.

Live performances

Do you play live at pubs, clubs, cafes, or other live music venues? You can get song royalties for these performances by submitting a Performance Report via the Writer Portal or .

Just tell us what songs youve performed in which venues over the past financial yearfrom 1 July to 30 Juneand you could receive royalty payments for playing your original music live. Submit after the show or when it is convenient for you, royalties are paid quarterly.

Make sure you also tell us about any covers you perform so the original songwriters can get paid royalties. If someone else performs your song live, you’ll get the song royalties.

Samples Medleys And Parodies

BMI accepts for registration works which “sample” other works, provided all parties have agreed to the share percentages on the new work. These shares cannot exceed 200%. The percentages must be noted on the BMI registration form for the work and a copy of the sample license agreement must be provided to BMI upon request.

Standard rates for a popular song will be paid. The same rules apply when two or more works are utilized in a single recording as a medley.

A parody is a satirical imitation of a work. Permission from the owner of the copyright is generally required before commercial exploitation of a parody. BMI will credit the parody based upon the shares authorized by the publisher of the parodied work.

How Do You Collect Royalties For Your Music

There are different memberships available at PRS depending on whether youre a writer or a publisher. For writers, its worth joining if you have created an original song or piece of music being broadcast or performed in any format.

Anyone who owns the rights to recorded music in the UK can join PPL. They will receive their royalties when music is broadcast or is being played in public. Its also worth noting that artists who have performed on recorded music can join PPL as a performer member but not all performer contributions will be eligible for royalties.

Generally, all audible contributions such as playing an instrument or singing will be eligible.

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Music Streaming Royalty Calculator

How much do streaming services pay artists? Use our music streaming royalty calculator to estimate how much your streams are worth on popular music streaming services.

Calculate potential royalties from Spotify, Apple Music, Google Play, Amazon Music, Pandora, SoundCloud, Napster, Deezer, TIDAL, and YouTube.

Please Note: This music streaming royalties calculator provides U.S. estimate earnings based on public information on various websites. The calculations are approximate fees, and they may change.

The estimated royalties do not include percentage splits from music distribution services, record labels, music publishing companies, etc. Actual royalty amounts will also change depending on music streaming memberships, country, currency values, and various other factors.

Read:How Music Royalties Work in the Music Industry. This guide breaks down the complexities of music royalties and music copyrights in the music industry.

How Are Music Royalties Calculated

Music Royalties Calculator

Performing rights organisations such as PPL will first collect royalties from licensees. They will then work with collective management organisations to calculate the total sum. The total sum will be distributed to record labels and publishing companies, who then allocate royalties to the artists. Royalties are distributed based on sales figures, or the number of times a song has been played.

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How Apra Amcos Royalty Payments Work

We pay you royalties when your music is used by businesses. We take the headache out of tracking which businesses use your music, how they use your music, and when they use your music.

We do the work for you, so you can spend more time writing music, and less time on administration.

That Was Our Guide To Music Royalties

Getting royalties for music is one of the best ways to boost your music business. If income from royalties is due to you, you should learn how to claim it.

This article has set out all the basic knowledge you need to get royalties from your music. You will have learned about all the basic tools needed to start or boost your adventure in the music business.

To summarise, here are the main tips to help you on your way:

  • Management of royalties can vary a lot between different countries. So when you decide to claim royalties, keep that in mind.
  • There are different types of music royalties and you might be owed more than one. Youll have to join one or more royalty companies to be sure to collect all of your royalties.

Now its time to get started!

Dont forget to share this article with your fellow musicians and give us a tag on your socials @musicgateway! We would love to hear what you think about this guide, so feel free to share your thoughts in the comment section below!

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Music Streaming Royalty Rates

Spotify now provides streaming services to over 248 million paid monthly users. 2019s most-played artist, Post Malone, boasted over 6.5 billion streams this year alone. Spotify also announced in May that they were increasing their pay-per-play rate to $0.00437 . To put this into context, 100,000 plays on Spotify generates a total of £330 in royalties.

Many of this years most-streamed songs were created by UK songwriters and composers. This is reflected in figures provided by PPL. They reported a 17% increase in royalty income from digital platforms in 2019, to a total of £145.7m.

Digital streamings generate both mechanical and performance royalties. These royalties will be shared amongst the contributors to the song. The percentage share, however, depends on how the song has been used. If the song is played on a streaming service, royalties are split evenly across mechanical and performance royalties. However, if the song has been permanently downloaded, 75% of the funds are allocated to mechanical royalties.

Audio Visual Royalty Calculation

How Do Music Royalties Work?

For performances of music in the BMI repertoire that occur on Network, Cable, Local or Digital Service, royalties will be paid according to the following rules: Royalty payments are based upon the license fees that BMI collects from each network, station, or digital service provider. Royalty payment rates will vary from quarter to quarter depending upon the amount of the license fees. In addition, the rates may fluctuate from quarter to quarter depending upon the total performances of music in the BMI repertoire for each quarters Distribution.

For all Audio Visual Sources BMI will calculate and pay royalties for two categories, called the CURRENT ACTIVITY PAYMENT and the SUPER USAGE PAYMENT. The rules for each are as follows:

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How Much Do Music Streaming Services Pay Musicians

Music streaming services like Spotify, Apple Music, Deezer, Tidal and Amazon donât have a fixed âpay-per-streamâ rate when it comes to paying out music royalties to artists.

There are lots of factors that affect how much money one stream is worth in royalties. The main factors include:

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This makes things complicated when trying to predict what you’ll earn in streaming royalties. It’s just about impossible to accurately calculate exactly how much youâll make from a certain number of streams, as all these factors need to be into account.

Howeverâ¦

This study based on information collected from real musicians and third-party websites provides a general look at the estimated royalties currently being paid out to artists in the USA by the worldâs biggest music streaming platforms.

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Fashion Merchandising And Other Direct Sells

Selling non-music products like perfumes, paraphernalia and clothing lines is an easy money-making strategy that artists have been taking advantage of for decades but in the digital era, musicians can also get creative with their methods, expanding well beyond traditional merch tents at concerts and posters on a website.

Artists are also starting to ask for money from audiences directly via crowdfunding or creating custom channels of communication with their fans outside of social media platforms like Instagram and Twitter. The Voice star Angie Johnson raised roughly $36,000 on Kickstarter to record an upcoming album, for instance. More groups are releasing dedicated apps or subscription packages for their music or selling bespoke products like artist-curated festivals, email subscriptions and limited music releases. Pitbull has his own cruise.

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The Different Types Of Music Copyright

No Tommy Wiseau, we are not kidding. There are actually two types of music copyright and both are important if you want complete control of your music and your music royalties. The two types of copyright for every song consist of the Sound Recording Copyright and the Songwriting Copyright for the actual musical composition itself.

Approaches To Royalty Rate

Calculate Your Music Royalty Now!
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The rate of royalty applied in a given case is determined by various factors, the most notable of which are:

  • Territorial extent of rights

To correctly gauge royalty rates, the following criteria must be taken into consideration:

  • The transaction is at “arms-length”
  • There is a willing buyer and a willing seller
  • The transaction is not under compulsion

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In Short: Types Of Music Royalties And Who Gets Paid

If you dont have time to read the full post, you can make do with the following summary.

The Music Royalty
CDs, vinyl, and digital downloads.
Plays on Spotify, YouTube, Apple Music, etc
Plays in concerts, restaurants, bars, night clubs, etc.
Plays in concerts, restaurants, bars, night clubs, etc.
Plays on Pandora, Sirius XM, cable TV, etc.
Syncing into movies, shows, commercials, video games, etc.
Plays in dramatic stage performances.
Printing composition in sheet music or songbooks

How Much Does Spotify Pay Per Stream

Its estimated the per stream rate for Spotify is $0.00318. However, Spotify doesnt technically pay artists one standard per stream rate.

Spotify pools its revenue from memberships and advertising, takes a percentage for themselves, and then divides the rest by the number of plays it has received that month.

Spotify then multiplies this by the amount of streams youve received.

This is a simplification of the whole overall process. Things can get confusing when you start to factor in the different values put on paid / free streams.

We havent included YouTube in our streaming royalty calculator, as the payment structure is too complex to create a realistic estimate per stream. This is something we will be looking to include in future so be sure to bookmark this tool for future use.

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How Are Tiktok Royalties Calculated

As TikTok continues to grow in popularity and create music stars seemingly overnight, more and more artists are becoming curious about how their royalties are calculated on the platform.

Guest post from Horus Music

As TikTok has become increasingly popular across the globe in recent years, were pleased to offer our clients the opportunity to distribute their music to this platform. With the option to set preview times to highlight your catchy chorus for followers to lip sync to, or create trend-worthy dance routines, TikToks unprecedented growth over the past few years has led to it becoming a very popular platform providing a great opportunity for you to reach your audience.

The big question a lot of our clients are asking is How are my royalties are calculated from TikTok?.

In comparison to other major platforms such as Spotify who pay per total number of streams, TikTok operates differently when calculating royalties and base calculations on the number of videos made using your music, as opposed to the number of times the video is watched. This can often become confusing if you are measuring the way royalties are worked out against other stores, so its important to understand the main difference here is that big watch numbers dont equal large royalty payments.

If you have any questions or queries related to your royalties and in particular TikTok royalties, you can contact the distribution team at who are on hand to help.

How Are Spotify Royalties Calculated

Songwriting Royalties: How to Earn Royalties For Your Music From YouTube | Producers & Artists 2019

Royalty calculators are calculated based on a few major factors. These are:

  • The type of music streaming platform There are two types of music streaming platforms, and these are on-demand and non-interactive. On-demand is whats more popular nowadays because these are platforms that allow listeners to listen to whatever songs they like and whenever they like. On the other hand, non-interactive platforms are like radio channels or podcasts where the music being played is random and listeners dont get to choose what to hear.
  • The music streaming platform Every music streaming platform has its own version of the payout calculator. This is because the platform can include other factors that tie into how much you get paid per stream, such as how popular you are, if you are a paid subscriber, or if the fans listening to your songs are also paid subscribers or not. These are some of the other factors that can determine how much revenue you get from streaming your songs on a platform. In addition, each platform pays differently or has different fees. So, keep in mind that the royalty calculator of a platform, including the Spotify royalties calculator, may calculate a different total than another music streaming platform.

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The Streaming Hits Bonus

Beginning with the Q1 2015 Performances, BMI has implemented a new value system for the most-streamed works on digital services. For the applicable service BMI will calculate a bonus on a per-stream basis for the most streamed BMI works. Note, the bonus funds comes from a general licensing pool, not directly from digital music service fees, which has been the industry practice since BMI opened its doors. The new value system will begin with royalties distributed in September 2015. Additional services will be added going forward.

What This Guide Will Not Do

I want to take a moment to be clear. Following the steps in this guide is not guaranteed money today, so dont quit your job just yet. These steps, once implemented, just open the pathways for money to stream into your bank accountbut you need to turn on the cash flow with your music. The key to a music income is growing your fanbase slowly and steadily, and with the steps below, you will grow your income as you grow your fanbase. Are you ready?

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Types Of Music Royalties: Full Breakdown

The most successful Independent artists and music producers have mastered the art of living off of their music. There are various ways to monetize from your music such as – sale of the CDs/ Vinyl or downloads, booking live gigs, selling merch, etc.

But an often overlooked and confusing topic is Music Royalties.

Let’s assume you’ve already got your music on Spotify and other major music retailers.

In this article, you’ll learn the 5 different types of music royalties, how they’re generated, who can collect them, as well as how to collect them. A full music royalties breakdown.

Before we start, Let me explain what these royalties actually are.

How Much Do Music Streaming Services Pay Musicians In 2021

Music Royalties Calculator â¡ï¸? Lightrains Technolabs

Exactly how much streaming services pay out to musicians in royalties has always been a hot topic.

In truth, there’s no simple answer, but we’ll try to explain how much your music could be earning in streaming royalties from platforms like Spotify, Apple Music and more as well as the different factors that affect royalty payments.

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Rate Determination And Illustrative Royalties

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There are three general approaches to assess the applicable royalty rate in the licensing of intellectual property. They are

  • The Cost Approach
  • The Comparable Market Approach
  • The Income Approach
  • For a fair evaluation of the royalty rate, the relationship of the parties to the contract should:

    â be at “arms-length”
    â be viewed as acting free and without compulsion

    Cost approach

    The Cost Approach considers the several elements of cost that may have been entered to create the intellectual property and to seek a royalty rate that will recapture the expense of its development and obtain a return that is commensurate with its expected life. Costs considered could include R& D expenditures, pilot-plant and test-marketing costs, technology upgrading expenses, patent application expenditure and the like.

    The method has limited utility since the technology is not priced competitively on “what the market can bear” principles or in the context of the price of similar technologies. More importantly, by lacking optimization , it may earn benefits below its potential.

    However, the method may be appropriate when a technology is licensed out during its R& D phase as happens with venture capital investments or it is licensed out during one of the stages of clinical trials of a pharmaceutical.

    Comparable market approach

    37.3% 23.6%

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