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The Importance Of Royalties In The Sound And Music Industry

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The importance of royalties in The Sound and Music Industry

For an artist, having a source of income is necessary and one of these sources include royalties. This article will cover everything you need to know about royalties and licensing.

What are royalties?
Royalties are what an artist is due when his music is aired on the radio/TV, performed live or downloaded. They are defined legally as an agreement between an artist/creator and the person who uses that creation. A royalty will usually be a percentage of the future profit from sales or the regular income earned.
There are four different types of royalty revenue in the music industry:
-mechanical royalties
-Public performance royalties
-Synchronized fee
-Print music income
However, the …show more content…

It is the UK’s leading collection society as it groups the societies MCPS and PRS together and it offers collective rights management for musical works on behalf of its 125,000 members.
(Collective Rights management- the licensing of copyright and related rights by organizations acting on behalf of rights owners)

The role of an MCPS is to collect and distribute mechanical royalties on behalf of songwriters, composers and music publishers. This means that royalties would be collected every time their music is reproduced as a physical product, For example, CDs, DVDs, digital downloads and broadcast online.

Music Licensing
A license is a document or agreement that allows a person or a company to use an artist’s music, usually involving a fee being paid in return. It is important to note that licensing does not mean losing the rights to the music but simply letting the person/company to use it for a specific project.
Music licensing is very important as it ensure that composers, songwriters and musicians and musicians are paid for the work they …show more content…

It also helps to avoid confusion as percentages of royalties should be agreed on by the creator and the person/company that uses the song.
Music licensing and royalties are very important to artists/creators because if someone does want to use their work then they get a royalty fee, which will help increase their income. This will help a song creator to invest more money in building bigger projects such as writing an entire

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