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These services ensure that creators are compensated fairly for their music whenever it is broadcast or licensed for use in other media. In the complex world of music rights, these services play a critical role in tracking usage and distributing royalties.

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 for business in a format like CDs or digital downloads. Sync royalties, on the other hand, are collected when songs are placed in visual media like films, TV shows, or commercials.

In the U.S., major music royalty services include ASCAP, BMI, SESAC, and 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 collect licensing fees from venues, broadcasters, and streaming services for commercial use of music.

In short, music royalty services support creators by tracking music use and distributing earnings, allowing artists to keep producing music.

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