Digital Music Royalties (US)

Here is an overview for my approach to being an independent musician in the US.  This information will be constantly evolving as I figure out new ways of controlling and growing the music that I have worked to create. 

Being a musician is fun and personally rewarding, but it can also be a lot of work to properly create, record, distribute, publish, and promote.  I wanted to write a post that shares what I found to be my personal strategy to keep the music I make and avoid as much as possible contracts, companies, and deals that take away from the musician.  Some musicians prefer to work with a third party company that handles the paperwork and technical details so they can just concentrate on making music, but those companies take a percentage of the earnings.  I just want to show resources that are available for musicians so they can keep most of what is rightfully theirs.

The Digital Music Royalties Landscape

1. Copyright

Once your song is recorded make sure you register your work(s) with the U.S. Copyright Office

https://www.copyright.gov/ 

Copyright Fees 

Register Your Work: Registration Portal 

Copyright Essentials

What Musicians Should Know about Copyright

Use Form SR for registration of published or unpublished sound recordings. Form SR should be used when the copyright claim is limited to the sound recording itself, and it may also be used where the same copyright claimant is seeking simultaneous registration of the underlying musical, dramatic, or literary work embodied in the phonorecord. 

Nature of Authorship: Sound recording authorship is the performance, sound production, or both, that is fixed in the recording deposited for registration. Describe this authorship in space 2 as “sound recording.” If the claim also covers the underlying work(s), include the appropriate authorship terms for each author, for example, “words,” “music,” “arrangement of music,” or “text.” Generally, for the claim to cover both the sound recording and the underlying work(s), every author should have contributed to both the sound recording and the underlying work(s). If the claim includes artwork or photographs, include the appropriate term in the statement of authorship. 

2. Digital Distributor

Once you have recorded your song and you want to send it out to the world you need a digital distributor to release your music to online stores like Spotify, Apple Music, YouTube Music, or a website that offers options for selling your music. 

I use Distrokid but there are many others

Another option is to use a site like Bandcamp or your own website hosted on Bandzoogle.  Bandzoogle will let you sell music directly from your website.

Where to sell your music online 

3. The MLC

The MLC administers blanket mechanical licenses for eligible streaming and download services in the United States, collecting royalties due under those licenses and paying music publishers and administrators; self-administered songwriters, composers, and lyricists; and ex-U.S. collective management organizations (or "CMOs").

4. Performing rights organizations (PRO)

You can generate additional revenue by joining a performing rights organization (PRO)

A PRO is an agency that ensures songwriters and publishers are paid for the use of their music by collecting royalties on behalf of the rights owner. 

PROs collect public performance royalties. When a song is played in public, like on any kind of radio (AM/FM, streaming, or satellite), in a venue, or TV shows and commercials, it is required that they pay for the use. The PRO collects those payments, and distributes them to the rights holders.  I use ASCAP

5. SoundExchange 

Non-profit organization SoundExchange will collect and distribute digital performance royalties for your sound recordings.

International Royalties

I am researching how to collect international royalties, but it's looking complicated.  If anyone has any insight into a simple approach to handling international royalties that do not rely on a third party company that takes 15% or more of all of your earnings (including US royalties) please send me a message.

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