Music royalties are payments that are generated from the use of copyrighted music. The money collected from music royalties goes to the songwriter, composer, or record label that owns the copyright for the work.
The way that music royalties work can be a little confusing because there are so many different types of licenses and ways to use music. However, in this blog post, I will explain the basics of music royalties and how they are generated.
The money that is generated from music royalties comes from a few different places. The main sources of revenue are the sale of CDs, downloads, and streaming services like Spotify. Royalties can also be generated by using copyrighted music in TV shows, movies, ads, and other types of media.
Music royalties have been around for centuries. In fact, the first royalties were paid out as early as 1662 when opera composer Jean Baptiste Lully was granted a royalty on any copies sold of his work.
The music industry has changed drastically over the last few decades and we have seen huge shifts in how people listen to music with the rise of digital downloads and streaming services like Spotify. This has led to a decline in CD sales and a corresponding drop in music royalties. However, the music industry is starting to rebound and we are seeing a resurgence in vinyl sales and streaming grew 26% in 2021. This could lead to an increase in music royalties in the future.
The bottom line is that music royalties are payments that are generated from the use of copyrighted music. As Web3 continues to evolve the opportunity for fans to invest in music royalties and own shares of the songs they love is only growing. SongVest was created to help artists and fans support each other. In this reciprocal relationship fans and artists can thrive together by directly supporting each other. The more invested the fans are in promoting their favorite songs and artists because they share in success, the more succesful the artists may become.