Your distributor automatically pays you streaming royalties from activity on interactive platforms like Spotify and Apple Music. But if your song gets played on non-interactive services like Pandora and SiriusXM in the U.S., you’re owed a different kind of recording royalty called digital performance royalties. This kind of royalty is unique to the U.S. and requires some specific steps to collect. In this article, you’ll learn everything you need to know about digital performance royalties.
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What are digital performance royalties?
If your music plays on digital radio, it can generate royalties for the use of the sound recording. In the U.S. these are called digital performance royalties — and they’re restricted to non-interactive, internet radio services like SiriusXM and Pandora because artists do not earn royalties for the uses of the sound recording on terrestrial AM/FM play in the U.S. Outside of the U.S., royalties generated from airplay on radio stations (terrestrial or digital) are called neighboring rights royalties.
What’s the difference between digital performance royalties and performance royalties?
Though similar in name, these two types of royalties stem from opposite forms of copyright.
Digital performance royalties stem from a sound recording and are paid to featured artists and sound recording rights owners when recordings play on certain non-interactive digital services, such as SiriusXM and Pandora.
Performance royalties stem from a composition and are paid to songwriters and publishers when a song is performed publicly, including on radio, TV, at live venues, and on streaming platforms.
Who gets paid digital performance royalties?
SoundExchange is the sole organization designated by the U.S. government to collect digital performance royalties for artists and labels.
SoundExchange divides U.S. digital performance royalties into three shares:
- 50% to the sound recording rights owner, such as an artist, label, or royalty administrator.
- 45% to the featured artist or artists on the recording.
- 5% to a fund for nonfeatured performers, such as session musicians and backup vocalists.
If you release your own music, you may be both the sound recording rights owner and a featured artist. You can collect the rights owner share through CDB Boost, while claiming your featured artist share directly through SoundExchange.
How do I collect digital performance royalties?
CD Baby artists can add CDB Boost to a release to have CD Baby register eligible recordings with SoundExchange and collect the 50% rights owner share on their behalf. CD Baby sends that share to your CD Baby account after SoundExchange pays it.
Frequently asked questions
Do Spotify and Apple Music streams generate digital performance royalties?
Their on-demand streams generally don’t generate SoundExchange digital performance royalties. Your distributor pays recording royalties for those streams. They may also generate separate composition royalties, such as mechanical and performance royalties.
Are digital performance royalties the same as songwriter performance royalties?
No. Digital performance royalties pay performers and sound recording rights owners for certain digital plays of the recording. Songwriter performance royalties pay writers and publishers for public performances of the composition, and are typically collected through a PRO.
Do I need CDB Boost if I already registered with SoundExchange?
It depends on which share you’re collecting. Artists can register directly with SoundExchange to claim their featured artist share. CDB Boost lets CD Baby collect the sound recording rights owner share on your behalf. If you already collect that share independently, review your current setup before opting in.
Can cover songs earn digital performance royalties?
Yes. These royalties relate to the sound recording, so a cover recording can earn them when it plays on an eligible service. The featured artists and sound recording rights owner may be entitled to their respective shares.
How can I check whether SoundExchange has royalties for me?
Register with SoundExchange and search for your artist name and recordings in its catalog. Confirm that your artist profile and recording details are complete so the organization can match plays and pay the right people.
Collect your digital performance royalties with CD Baby
Ready to start collecting the revenue you’re owed for airplay on internet radio? Add CDB Boost to your latest release with CD Baby today.