@Ernest BywaterWhat you are saying is directly opposite the situation in the US. I am not saying that might not be the case in other countries.
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General โข 12 min read
Radio Royalties: How Do Radio Stations Pay Artists?
By Soundcharts Team
Published January 21, 2020
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How do radio royalties work?
1. Radio acquires a blanket license(s) from its local PRO(s)
2. A song is played on a radio, and the airplay is reported to a PRO
3. The PRO distributes royalties and songwriter gets paid
The songwriter is paid the royalties due
Why songwriters are paid instead of artists
Are deceased songwriters still paid radio royalties?
Conclusion
Some might think that radio stations just cut a check to the artists they put on the air, but this is the music industry we're talking about, so it shouldn't come as a surprise โ it's much more complicated. There are thousands of radio stations out there, each playing hundreds of songs every single day and at such a scale the direct payment system just doesn't work. So, the PROs (Performing Rights Organizations) act as a middleman of sorts, doing the administrative work of collecting performance royalties and distributing them to proper artists or their representatives (and taking a cut in the process).
Now, the way that the process is set up is very intricate and also market-specific. In some countries, both the recording artists (owners of the master copyright) and the songwriters (owners of the composition copyright) earn royalties when their songs (and composition) are played on the radio. Then, on each respective side of the music copyright, there's local legislation dictating who gets paid what. Those entanglements are way too complex to cover in a single article, so, a disclaimer: in this overview, we will focus primarily on the US context.
By the time the artist receives the royalty, it has often passed through many hands, and if artists (and their representatives) want to maximize their earnings, they need to know precisely how it works and how much they deserve. So, let's outline the typical scenario of how the money flows from the radio and into the artist's pocket.
How do radio royalties work?
Radio royalties payouts system works by first having the radio station purchase a blanket license from the local performance rights organization(s). Then, the radio station reports the songs it has broadcasted back to the PRO, which uses that data to allocate and distribute the royalties due to proper artists and their representatives. This process can take a while โ it's not uncommon for artists to get their royalties more than a year after the actual broadcast took place.
As we've mentioned earlier, in most markets, both songwriters and recording artists are typically paid royalties any time their music is played on the radio. In the US, however, that is not the case. So, for the American-based music industry, only songwriters and their publishers (owners of the composition copyright) are paid performance royalties for airplay. Accordingly, since this article focuses on the US context, from here on out, we will only cover the royalties due to songwriters and their publishers. As for the neighbouring rights on the master side, we will get to it in one of the future articles, so stay tuned!
https://soundcharts.com/blog/radio-royalties
Mechanical royalties are handled entirely differently.