Resource

The 2 Types of Streaming Royalties & How You Can Collect Both

Ken Consor on Aug 4, 2014
Image Source: Flickr

As streaming has become increasingly important in today's music market, it is imperative that you understand how streams turn into publishing royalties - and of course, how to get those royalties into your wallet.

Let's divide streaming into two different types: Interactive and Non-Interactive. These are defined by the listener's ability to choose the songs that play next (ability to 'interact' with the streaming service, if you will).

1) Non-Interactive Streaming: 

Definition: Listeners play music, without the ability to choose the songs that play next.

Also Known As: Internet Radio.

Examples: Pandora, Sirius XM, NPR.

Royalties Generated: Performance royalties.
(These are performances like radio, but digital. Thus, terrestrial radio and other radio-like services generate only performance royalties.)

How to Collect: Join a PRO (ASCAP, BMI, SESAC, SOCAN). PROs are responsible for tracking and collecting performance royalties generated from terrestrial and internet radio.

2) Interactive Streaming:

Definition: Interactive streaming services allow listeners to CHOOSE the songs that are played.

Also Known As: On-demand streaming.

Examples: Spotify, Rdio, Rhapsody, Google Play, Beats Music.

Royalties: Performance royalties &  Mechanical royalties.

How to collect: To collect the performance royalties, you will need to join a PRO. To collect the mechanical royalties, you will need to become a publisher affiliate at Harry Fox Agency (to do so on your own, you must have a commercially distributed record release in the US within the last year). Or, join Harry Fox by joining Songtrust. You'll also need to cover international royalties, which you can do by joining Songtrust.

 

Author: Ken Consor

Related Articles

The World of Music Publishing Royalties: Webinar Recap

Throughout November and December, we held a webinar series revolving around The World of Music Publishing Royalties. Over the course of five sessions, hosted by Songtrust's own Noelle Gambuti and Elizabeth McBride, Publishing Specialists, and various special guests, we dove into the major themes of music publishing royalties. We covered topics from the types of royalties your song can earn you to specialized royalties like YouTube and streaming royalties. The turnout was tremendous and those that attended asked a lot of excellent questions.

Dec 13, 2018

How to Get The Most Out of Your Soundcloud Account

Soundcloud has become a critical tool for any songwriter or musician who wants to reach an audience of potential fans – but it isn’t as easy to do as simply pushing a button. As the largest online music community, Soundcloud affords an independent music maker a significant platform, but one that’s crowded with thousands and thousands of other artists, too. Here are some important steps to keep in mind when using Soundcloud to make sure your work stands out and finds the receptive audience you want.

Dec 11, 2018

Producers & Publishing

The beat of a song (the drum, digital, or other percussive "beat" that serves as a core element in the song) can sometimes be as important – or even more important, especially in EDM and hip-hop music – than lyrics or melody in making a song a hit. But when a beat is created by someone other than a songwriter, such as a producer, what rights do they have to publishing royalties or writing credits? The short answer is – it's complicated.

Nov 27, 2018