Have you ever wondered how your favorite music creators make money when their songs play on the radio? It’s all about something called “radio royalties.” In this blog post, we’ll break down radio royalties and make it easy to understand how radio stations pay music creators for their music.
Understanding Music Royalties
Before we jump into radio royalties, let’s get the basics down. Music royalties are payments that musicians and songwriters receive when their music gets used. This can happen on the radio, on streaming services, during live performances, and more.
When it comes to the radio, there are two main types of royalties: performance royalties and mechanical royalties. Check out our previous blog “From Streams to Stages: Your Guide to Understanding Music Royalties” (will add the link when it’s posted) to learn more about performance royalties and mechanical royalties.
How Radio Stations Pay Music Creators
Now that we know about the two types of royalties, let’s see how radio stations pay musicians:
- Performance Royalties: Radio stations pay performance royalties to organizations like ASCAP or BMI. These organizations figure out how often songs are played on the radio and collect money from the radio stations. Then, they share that money with the musicians and songwriters.
- Direct Deals: Sometimes, radio stations make special agreements directly with musicians, songwriters, or record labels. These agreements can involve paying a fixed amount for playing certain songs or sharing advertising revenue. It’s like a custom deal that suits both the radio station and the artists.
- Digital Performance Royalties: Nowadays, many people listen to the radio online or on streaming platforms. When this happens, musicians also get paid digital performance royalties. Just like traditional radio, online platforms pay these royalties to organizations that then distribute the money to the artists.
Radio royalties may sound complex, but they’re just a way to make sure music creators get paid for their hard work. When you hear a song on the radio, know that a system of royalties is at play behind the scenes, ensuring that music creators receive their fair share. It’s a win-win situation: you get to enjoy great music, and artists get compensated for bringing it to your ears.
Are you a musician or songwriter looking to learn more about how to make the most of your music career? Take the next step towards understanding your royalties and how to succeed in the music business by scheduling a Free Music Biz Assessment today. Your talent deserves to be rewarded, and we’re here to help you make it happen!