These services help creators collect payment for their music for business whenever it is publicly played or used in commercial projects. In the multifaceted world of music rights, these services play a critical role in tracking usage and distributing royalties.

Music royalty services manage several forms of royalty payments, including performance royalties, mechanical royalties, and synchronization royalties. When music is played on the radio, in a cafe, or streamed online, performance royalties are due. Mechanical royalties are generated when music is sold or reproduced in a physical or digital format. come from using music in movies, advertisements, or video games.

In the U.S., major music royalty services include ASCAP, BMI, SESAC, and SoundExchange. ASCAP and BMI focus on performance royalties and represent a wide range of artists, while SESAC operates on an invitation-only basis. SoundExchange, meanwhile, handles royalties for digital streaming services, making it essential in today’s streaming-centric music industry.

By charging businesses and streaming services fees, these companies make sure artists are compensated when their work is used.

In summary, music royalty services support creators by tracking music use and distributing earnings, allowing artists to keep producing music.