#MusicBusinessMonday: Music Producers

Music Producers: You’re often the underdog in the royalty fight. Although the Recording Academy’s Producers & Engineers Wing is pushing for an amendment to the U.S. Copyright Act that would provide an allocation of non-interactive digital streaming royalties (SoundExchange royalties) to producers, no laws currently stipulate that you must receive sound recording royalties from your work when Pandora, SiriusXM, Music Choice, Slacker, iHeart Radio, or any of the other 2,500 digital services perform music that you produced (however, producers can receive publishing income if you’re a “writer” on the song).

So, what’s the solution? How do you make more money from your works when retail record sales royalties are becoming a myth?

1. Make sure that your production contracts with artists include: a.) an allocation of the artist’s non-interactive royalties to you, and b.) a requirement to complete and submit a LOD (Letter of Direction) to SoundExchange with the release date as the effective date. (Join SoundExchange’s Creative Affiliates Program.)
2. If you play an instrument, consider playing an instrument on the recording. Instrumentalists on recordings do have royalties allocated to them from a number of sound recording income streams distributed by AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund.

Related: Learn how you can manage your music catalog and streamline your music business administration with TuneRegistry.