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Tuesday, July 24, 2012

SoundExchange Tops $1B in Payments to Artists and Labels



For those unfamiliar with SoundExchange, it's time to take a closer look. The independent non-profit performance rights organization, established by the Copyright Royalty Board of the U.S. Library of Congress  in 2000, collects royalties from providers of non-interactive digital streaming services (think Pandora, Sirius XM, cable music channels, etc). Not to be confused with PROs such as ASCAP, BMI and SESAC (which collect on behalf of music publishers and composers), SoundExchange collects money on behalf of recording artists and master recording owners (the latter traditionally being the record label). Thus, when a recording of a song is streamed on a service like Pandora, the recording artists, record label, songwriters and music publisher all get paid (assuming they have all accurately registered their music).

SoundExchange recently announced that it has surpassed $1 Billion in total payouts to artists and labels and paid out a record breaking $108.6 million in Q1 2012. While collection efforts have made some very promising headway in recent years, they were notably challenged earlier this year as Sirius XM pursued direct licenses from content owners (thereby circumventing SoundExchange), and sued both SoundExchange and A2IM for alleged interference (both of the latter organizations initiated awareness campaigns to educate interested parties on what direct licenses would mean for them, including the lost guarantee of money going directly to recording artists).

Read more about SoundExchange and details of the lawsuit: http://www.billboard.biz/bbbiz/industry/digital-and-mobile/soundexchange-top-1-billion-in-total-payouts-1007352952.story

In other news, SoundExchange recently named three new members to its Board of Directors. Read about them here: http://www.billboard.biz/bbbiz/industry/publishing/soundexchange-names-three-new-board-of-director-1007568952.story

Learn how to register your music and begin collecting digital performance royalties! Visit the SoundExchange website: http://www.soundexchange.com/

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