SoundExchange Distributions More Than Double
SoundExchange announced Wednesday that it was a record year with total year-end royalty payments reaching approximately $462 million (up 58 percent). Fourth quarter 2012 distribution increased with more than 22,000 payments totaling approximately $134.9 million, a nearly 10% increase over the 2011 distribution. Royalties are paid by Internet radio, satellite radio and cable radio services for their performance of sound recordings.
SoundExchange President Michael Huppe writes, “SoundExchange’s increasing annual royalty payments are a positive indication of where the industry is heading. As digital radio continues to grow, so should the amount that performing artists and rights owners receive for the use of their content. Our distribution represents another record-breaking year for SoundExchange, but more importantly, it means more money in the pockets of the creators of music. We’re optimistic about the industry’s future, and look forward to maximizing digital performance royalties for the people we serve and finding new ways to propel the music industry forward.”
SoundExchange also made the following announcements:
•Announced more than $1 billion in royalties paid to the creators of music since the organization’s inception.
•Reached thousands of artists and record labels through ongoing outreach as well as several high-profile and effective database matches with partner organizations such as BandPage, CD Baby, American Federation of Musicians (AFM) and The AFM and AFTRA Intellectual Property Rights Distribution Fund (“The AFM and AFTRA Fund”).
•Launched a new online platform to streamline registration and membership process, resulting in the registration of more than more than 15,000 new artists, labels and rights holders in 2012.
•Created a dedicated International department, and signed 10 new agreements for the exchange of royalties with foreign counterparts.
•Increased capacities for processing royalty data and payments through technical overhaul that will continue throughout 2013.
SoundExchange maintains one of the lowest administrative rates in the industry, with an administration rate of 5.3 percent in 2011. (Note: 2012 admin figures are not final as payments are still being received.)
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