How to Receive Royalties as a Songwriter

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.

Types of Royalties for Songwriters

Public Performance Royalties

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

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.

Synchronization Royalties

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

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.

How to Register to Receive Royalties

Collective Management Societies

• ASCAP (American Society of Composers, Authors, and Publishers): ASCAP is one of the leading collective management societies in the United States that collects and distributes public performance royalties. Registering with ASCAP is a straightforward process and ensures you receive payments for all public performances of your music.
• BMI (Broadcast Music, Inc.): Another important organization specializing in managing public performance royalties. By registering with BMI, you can monitor and receive payments for when your music is played on the radio, television, and other public places.
• SESAC (Society of European Stage Authors and Composers): A collective management society offering similar services to ASCAP and BMI, with a more personalized and selective focus on its members.

International Organizations

• SAYCO (Society of Authors and Composers of Colombia): The organization responsible for collecting and distributing public performance royalties in Colombia. Registering with SAYCO ensures you receive payments for the use of your music in this country.
• SACM (Society of Authors and Composers of Mexico): The entity responsible for managing public performance royalties in Mexico. It is crucial to register with SACM if your compositions are used in this country.

Digital Platforms

• SoundExchange: Manages royalties for non-interactive digital transmissions in the United States. Registering with SoundExchange allows you to receive payments for streaming your music on services like Pandora and SiriusXM.
• YouTube Content ID: A tool that allows you to identify and claim revenue generated by videos on YouTube that use your music. Registering and setting up Content ID is crucial to ensure you don’t miss out on income from this massive platform.
• CD Baby Pro Publishing: Not only distributes your music to digital platforms but also manages your publishing and public performance royalties. It’s an all-in-one solution for songwriters looking to maximize their income.

Steps to Ensure Your Royalties

1. Register Your Songs: Make sure to register all your compositions with the relevant collective management societies and digital platforms.
2. Monitor the Use of Your Music: Use monitoring tools to track where and how your music is being used. This will allow you to claim unpaid royalties.
3. Claim Your Royalties: Regularly submit claims to the collective management societies and digital platforms to ensure you receive all the payments due.
4. Stay Updated: The music industry is constantly changing. Stay informed about new opportunities and platforms to maximize your royalty income.

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.