These services ensure that creators are compensated fairly for their music whenever it is broadcast or licensed for use in other media. In the multifaceted world of music rights, these services are crucial for managing royalty collection and payout.

There are several key types of royalties that music royalty services handle: performance, mechanical, and synchronization royalties. When music is played on the radio, in a cafe, or streamed online, performance royalties are due. Mechanical royalties are collected from the sale or reproduction of music in a physical or digital format. come from using music in movies, advertisements, or video games.

In the U.S., major music royalty services include ASCAP, BMI, SESAC, and news SoundExchange. While ASCAP and BMI are open to most artists, SESAC selects members by invitation. SoundExchange, meanwhile, specializes in collecting royalties from digital platforms making it essential in today’s streaming-centric music industry.

These royalty services ensure that businesses, venues, and streaming platforms pay licensing fees that use music commercially.

These services play a vital role in making the music industry more sustainable for artists.