Complete Guide to Taxes in Florida
Find out about tax rates, exemptions, and how to stay compliant with Florida’s tax requirements to maximize your benefits.
The landscape of the music industry has changed significantly in recent years, especially with the rise of streaming platforms like Spotify. According to a report published by Loud & Clear, Spotify paid a record $9 billion in royalties, an amount that has tripled over the past six years. Most surprisingly, half of that amount, $4.5 billion, went to independent artists.
Additionally, the report highlights that half of the artists who earned at least $10,000 come from non-English speaking countries, with Spanish being the most listened to language after English. In Latin America, the music industry continues to grow, and songwriters play a crucial role in this ecosystem. However, to take advantage of these opportunities, it’s vital to understand the different sources of royalties and how to register with the correct copyright organizations.
In this blog, we will explore how you can receive royalties as a songwriter, the types of royalties available, the copyright organizations that will help you collect them, and the necessary steps to ensure you receive everything you’re entitled to.
These royalties are generated every time your music is played on the radio, television, concerts, and in public places like restaurants and stores. Collective management organizations like ASCAP, BMI, and SESAC in the United States, and SAYCO in Colombia, are responsible for collecting and distributing these royalties.
Mechanical royalties are earned from the reproduction of your music in physical formats (CDs, vinyl) and digital formats (downloads and streaming). These royalties are managed by entities like the Harry Fox Agency in the United States and other international organizations.
These royalties are generated when your music is used in sync with an image in media such as movies, TV shows, commercials, and video games. Synchronization agreements are negotiated directly with content producers and can be a significant source of income.
Digital rights royalties come from streaming your music on digital platforms like Spotify, Apple Music, and YouTube. It is essential to be registered on platforms like SoundExchange to collect royalties from internet radio services and other digital transmissions.
Receiving royalties as a songwriter is a process that requires diligence and knowledge of the various income sources. Registering with the correct collective management societies and digital platforms is crucial to ensure you receive all the payments you are entitled to. With the growth of the music industry in Latin America and the increasing opportunities for independent artists, now is the perfect time to ensure you are maximizing your royalty income.