Publishers And Rights Holders Can Now See Specific Spotify U.S. Per Stream Mechanical Royalty Rates For Compositions
Audiam, the New York-based digital rights management company acquired in 2016 by Canadian performing rights organization SOCAN has launched a new website showing the actual US Spotify per streaming mechanical royalty rates from 2014 – 2016 as well as providing a mechanical royalty calculator for rights holders to calculate how much they earned.
“There’s been a lot of misinformation as to what mechanical royalty rate Spotify pays songwriters for each stream of licensed compositions,” says Audiam CEO Jeff Price. “Rights holders can now see the rates for their compositions broken out by month, year and specific Spotify service (ad supported or premium) as well as calculate how much they are owed based on stream count, Spotify service and percentage of the composition controlled. As one example, to generate $100 in mechanical royalties December, 2016 on the US Spotify Ad Supported service you needed 448,672 streams.”
The per stream mechanical royalty rates seen on the page were sourced from statements supplied to Audiam by Spotify under the terms of composition licenses for publishing catalogs that Audiam currently represents. The rates are for United States “mechanical” royalties. The rates for sound recordings and the rates in other countries are different and not included here. However, these rates follow the same trend as the mechanical rates.
The mechanical royalty rate varies month to month based on:
- How many total streams occur in Spotify in the US in that month
- How much money Spotify in the US has made in that month
- Which Spotify service the stream occurred on: the “free,” ad supported service or the “premium” Spotify subscription service.
When licensed, these royalties are not paid to TuneCore, CD Baby, DistroKid, InGrooves, The Orchard or any distributor or record label for them to be paid through to the music publisher. They must be paid directly to the entity representing the songwriter/publisher.
Audiam currently represents the publishing catalogs of thousands of songwriters and composers, including Bob Dylan, Red Hot Chili Peppers, Metallica, Jason Mraz, Steve Miller, Hyvetown, Carol King, Round Hill Music, Third Side Music, Clear Box Rights, Pretty Lights, Ruthless, Jimmy Buffett, Victory, Epitaph and Sumerian. To date the company has recovered millions of dollars in royalties earned through YouTube, Spotify Apple Music and other streaming services. Through its unique technology, Audiam locates metadata for every sound recording of a specific composition, determines licensing status and recovers past revenue and assures future payments for the songwriters, composers and music publishers who have fairly and rightfully earned royalties. Audiam is wholly owned by SOCAN – the Society of Composers, Authors & Music Publishers of Canada.
SOCAN is a member-based organization that represents the Canadian performing rights of more than four-million Canadian and international music creators and publishers. SOCAN is proud to play a leading role in supporting the long-term success of its more than 135,000 Canadian members, and the Canadian music ecosystem overall. SOCAN licenses more than 125,000 businesses in Canada, and distributes royalties to its members and music rights organizations around the world. SOCAN also distributes royalties to its members for the use of their music internationally in collaboration with its peer societies.
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