U.S. Music Streaming and Royalties Collection

There are two music streaming types in U.S., interactive and non-interactive.

The definition is based on the listener's ability to choose the songs that play next (ability to "interact" with the streaming device).

1) Non-Interactive Streaming:

Definition: Listeners play music, without the ability to choose the songs that play next.

Also Known As: Internet Radio.

Examples: Pandora, Sirius XM, NPR.

Royalties are generated from digital performance.

Collection of Royalties: Join a PRO (ASCAP, BMI, SESAC, SOCAN). PROs (Performing Rights Organizations) are responsible for tracking and collecting performance royalties generated from terrestrial and internet radio.

ASCAP and BMI deduct operating expenses (usually about 10-18 percent of royalties) before paying song writers and publishers. What publishers keep as a fee before paying songwriters varies. SESAC, GMR and other international organizations may have different rates.

2) Interactive Streaming:

Definition: Listeners are allowed to choose the songs that are played. Also known as: On-demand streaming.

Examples: Spotify, Rdio, Rhapsody, Google Play, Beats Music.

Royalties are generated by performance and mechanical royalties.

To collect the performance royalties, you will need to join a PRO. To collect the mechanical royalties, you will need to become a publisher affiliate at Harry Fox Agency (to do so on your own, you must have a commercially distributed record release in the US within the last year).