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Warner Music Group and TikTok struck a multi-year licensing deal allowing creators on the short-form video app to use WMG music on Tuesday, marking the first publicly announced deal between a major music company since the popular social media platform since licensing renegotiations began about 18 months ago.
The companies said in a joint statement that the multi-platform agreement licenses the full repertoire of Warner Recorded Music and Warner Chappell Music to TikTok, TikTok Music, CapCut, and TikTok’s Commercial Music Library.
It is the first sizeable deal struck since WMG’s Chief Executive Officer Robert Kyncl took over in January, and it marks the cooling of what has at times been tough negotiations between TikTok and the music industry establishment.
Kyncl and TikTok’s chief execurtive Shou Chew said the agreement would benefit artists.
“We are very excited to partner with Warner Music Group to create a shared vision for the future in which artists, songwriters, music fans and the industry can all benefit from the power of discovery on TikTok platforms,” Chew said.
While terms of the deal were not disclosed, Kyncl described the deal as an “expanded and significantly improved partnership for both companies. We can jointly deliver greater value to WMG’s artists and songwriters and TikTok’s users.”
TikTok has been engaged in ongoing negotiations for roughly the last year over remuneration to the 100-plus rights holders through whom it must license music played on its app. Billboard reported that TikTok had struck short-term licensing deals in 2020 with most major music companies–shorter than the 18-24-month licenses common between the music and tech industries–to use 30-second clips of songs.
But negotiations to reach more permanent agreements had been fraught, with the music industry pushing for greater incentives for rights holders and TikTok exploring what music was really worth on its platform.
Kyncl’s WMG being the first to announce it struck an agreement with TikTok comes after he signaled a friendlier tone during comments he made at a banking conference in March. Kyncl expressed empathy for executives at TikTok at the Morgan Stanley conference, who he said are at “a company that’s kind of embattled today with lots of different institutions around the world.”
“That’s all I look for, fair setup on both sides and to grow a business together,” Kyncl said in March.
A whole generation of live music fans is being trained to expect the worst when it comes to purchasing tickets for concerts, according to National Independent Venue Association (NIVA) president Dayna Frank.
“It’s imperative to the future of live music, especially for the emerging class and the emerging artists, to be able to make buying a ticket and going to a show at even club level venues easy and simple,” Frank said at the NIVA ’23 conference in Washington, D.C. “It’s devastating what we’ve trained young people to expect when they go buy a ticket: how hard it is, you’ve got to be online at a certain time, you might not get it, you might pay $85 when there are $25 tickets available.”
Frank was speaking on the panel “Fix The Tix: How We Stop Predatory Ticketing Practices from Harming Fans and Artists,” which was held at The Anthem on July 10. Appearing alongside her was Lyte CEO Ant Taylor, who agreed with Frank’s assessment of the bleak ticket-buying process for music fans in 2023.
“The thing that we forget about or that we frequently don’t talk about is that on the other side of all this bulls— is the fan,” said Taylor. “How many fans aren’t even coming to an onsale anymore because they’ve given up because of all the points of friction?”
Since concerts restarted following COVID-19 lockdowns, obtaining tickets for high-profile artists like Taylor Swift and Beyoncé has become a game of uncertainty and chance due to factors including bots, unscrupulous brokers and high demand from fans who have waited years to see their favorite artists. And while neither of those superstars will have their livelihoods affected by ticketing issues, smaller artists, venues and promoters in the live music ecosystem can be severely impacted, particularly by brokers who scoop up tickets and place them on the secondary market at markedly higher prices. Because fewer fans are willing to buy tickets at those higher prices, post-pandemic “no-show” rates — or the percentage of people who buy tickets but don’t attend a show — have remained frustratingly high.
“I don’t know how many folks are tracking how many of their tickets are on the secondary markets the day of the show, but we’ll easily see 20-30 tickets just sitting there, unsold,” said Frank, who also owns famed independent venue First Avenue in Minneapolis.
Frank stated that a common no-show rate was around 7% prior to the pandemic. Now, even though no-shows have gone down from their pandemic high, independent venues are continuing to see rates of 12-15% regularly. That means fewer bar and merch sales, which can often be the revenue that makes or breaks a show for small artists and venues.
The current state of concert ticketing in the United States was a major concern for attendees of the second annual conference that hosted independent venues, promoters, agents and ticketers from July 9-12 in the nation’s capital. The “Fix the Tix” panel focused on issues facing the ticketing industry and possible solutions – many of which can be found in the Fix the Tix Act NIVA is lobbying for the federal government to pass. The legislation would ban the sale of speculative tickets (tickets that brokers don’t have in their possession) and the use of bots, as well as require up front pricing and caps on resale prices while providing funds for enforcement.
“The Fix the Tix proposal says that promoters and artists should be able to put terms and conditions on the tickets as they transfer hands,” said Frank, who added that brokers have been lobbying the federal government to make non-transferable tickets illegal for well over a decade. The brokers’ argument, according to Frank, is that they own a ticket and have the right to do anything they want with it — but live music professionals believe the ticket is actually a license, she says.
“That ticket can change hands 25 times, but ultimately the product is the show that we’re responsible for,” Frank continued. “As the people responsible for the product, we should be able to have terms and conditions on this license…Our product involves people coming into our houses which we are legally responsible for. We have to have oversight of how those tickets are transferred.”
Fellow panelist Frank Riley of High Road Touring agreed. “The only way to put this genie back in the bottle is to regain control of who’s in charge of the ticket, and that’s been the artist and the promoter,” said Riley. “Any other solution that’s out there will not work.”
Riley said that putting a cap on how much a ticket can be resold for would be a major hit to brokers on the secondary market. “If you eliminate the profit motive out of the secondary market [as we know it], it will disappear,” he said.
As NIVA, the National Independent Talent Organization, Universal Music Group and many other music industry entities who have signed on to the Fix the Tix legislation are fighting for federal regulation over ticketing, University of Chicago Booth School of Business professor of economics and entrepreneurship Eric Budish suggested that transparency about where the funds go could bolster those efforts.
“Congress or somebody else should figure out who made how much money on the Taylor Swift tour. Taylor Swift made a lot of money and good for her,” Budish said. “But if a ticket got resold for $2,000, there’s 35% fees on that, give or take, so the resale platform probably made more on that ticket than Taylor Swift did. The broker made more money on that ticket than Taylor Swift did. The search engines made a bunch of money in aggregate on those tickets. I’d love to see that money added up. I think that could be really persuasive to a large number of consumers.”
Another approach to tackling the issue came from panelist Neeta Ragoowansi, executive director of Folk Alliance International and president of Music Managers Forum in the United States. Ragoowansi explained that selling fake tickets or listing tickets that a seller does not actually own constitutes copyright infringement, since the seller is using the name of an artist and/or venue to sell an item without permission. She suggested taking legal action against brokers or search engines who are allowing them to operate these illegal practices, similar to how the National Music Publishers’ Association filed suit against Twitter for copyright infringement over its failure to license music.
Naming NIVA, NITO, Music Managers Forum and the Recording Academy, Ragoowansi said, “There’s a variety of interested parties that have members who have standing to file suit there. File suit on mass, class action or even just 15-20 parties who have a variety of causes of action.”
A class action against the brokers or search engines could make substantial headlines, says Ragoowansi, adding it would “allow for the parties to come to the table and start talking about settlement and creating a precedent so that others don’t come in.”
“There is a myth that at the SACEM restaurant, there are people serving food with white gloves and an orchestra playing,” the organization’s CEO, Cécile Rap-Veber, says with a hint of amusement in her voice. “It is a good story, but it is not true.”
Rap-Veber, who joined SACEM in 2013 and got the top job in 2021, is referring to what she calls its “old-fashioned” reputation. SACEM, which stands for Société des Auteurs, Compositeurs et Éditeurs de Musique, was founded in 1851 after composers Ernest Bourget, Victor Parizot and Paul Henrion refused to pay their bill at the Paris cafe Les Ambassadeurs until they got paid for the use of their compositions there. It became the first music collecting society, as well as the model for those that followed, and over the years, it grew into something of a French cultural institution: important, successful and perhaps overly aware of it.
Rap-Veber is not running your père’s SACEM, however. As a result of European Union (EU) legislation, collective management organizations (CMOs) in Europe now compete to represent and license online rights throughout the continent (and in some other countries) on behalf of songwriters and publishers. “We are now a global society,” she says.
SACEM still licenses public performance rights in France, but it now competes with other societies, most significantly ICE — a licensing hub owned and operated by the U.K. CMO PRS, the German GEMA and the Swedish STIM — to license works to online services in many international markets. (The United States is not one of them, but SACEM represents online rights in many markets for ASCAP and Universal Music Publishing Group, among others.)
Rap-Veber has pursued a “SACEM 3.0” strategy that she describes as “maximizing rates and minimizing costs,” plus offering new services like URights, which can track the use of music internationally, and MusicStart, which lets creators register their works on a blockchain-based system.
A statuette celebrating the diamond certification of the soundtrack to the 2006 movie musical Le Soldat Rose.
Matthew Avignone
These strategies appear to be working. In June, SACEM announced that 2022 was its best year ever. CMOs across Europe are benefiting from the return of live music and growth in streaming. But SACEM grew more than its peers — its collections increased 31% in 2022 to 1.4 billion euros ($1.5 billion). Even as growth boosts the entire sector, “I have to prove that we deliver the best services at the best cost,” she says. “And honestly, I think we can prove that.”
Congratulations on setting a record for SACEM.
It might be a worldwide record as well. And there is nearly 300 million euros [$328.8 million] more on top of it. In France, we collect neighboring rights [royalties for sound recordings] and private-copy levies [on blank media, which are distributed among rights holders in various businesses] for all the culture industries. So if I talk about the performance of our team, it’s not 1.4 billion euros — it’s 1.7 billion euros [$1.9 billion]. And when I look at the first quarter of 2023, that’s also very good.
Why so good?
In the first quarter of 2022, France still had some COVID-19 restrictions, and then the summer and the rest of the year were great. We also have new agreements — with Hipgnosis, with [Hungarian CMO] Artisjus to collect online, and with ASCAP — plus renewed agreements with better rates, especially for online. And now we collect [for online uses] in more than 150 countries directly.
You talk about running SACEM like a business. Is that a reflection of the competition among the various societies?
There was a time when there was a kind of monopoly in each country. There was no consciousness of the cost because there was no competition. Then the European Commission said any rights holder can withdraw his rights for online uses, and suddenly we were in competition. And we have the highest tariffs in the world.
Rap-Veber’s husband made this painting from a photo he took at a private 2007 Amy Winehouse concert booked by former Universal managing director Valery Zeiton.
Matthew Avignone
How do they compare with U.S. royalties under the new Copyright Royalty Board settlement?
They have reached 15.1%, and it will rise. We already had 15% when Apple Music released its service in 2015. And it’s not just the rate — it’s the minimum per subscriber. Ours is higher since it’s independent of discounts. When you see our effective net rate, it’s above 15%. I’m sure it’s easier for us than for a small Eastern European society: It’s the strength of your repertoire, and it’s unbelievable the repertoire we represent.
What’s your reaction to claims that streaming payouts are less fair for songwriters and publishers than recorded-music rights holders?
The highest tariff we had on CDs was 9% of the gross price. Then iTunes forced the community to agree on 8% on each download. Now we’re above 15%. Digital has become our biggest source of revenue. I think the main issue is that [the revenue is] going to very few people. There are people, especially in urban music, who are very happy.
CMOs are coming under pressure from some of the big publishers and platforms, both of which would rather strike direct deals than go through organizations like SACEM.
To go direct with one publisher? What does that mean? We represent [the publisher-led mechanical rights organization] IMPEL, [Canadian rights organization] SOCAN, Artisjus, ASCAP and Universal Music Publishing [among others], so we mutualize our cost [of operations] and we decreased our commission on digital for our members to 9%. That’s what I’m most proud of in the last [few] years. I want to use technology to process more at a lower cost. I think it’s the wrong way to think to go direct: It’s one thing for the majors, but what about the others?
You got the top job at SACEM in an interesting way. The tradition at CMOs is that the chief executive retires with a gold watch, but you basically replaced Jean-Noël Tronc as CEO in 2021.
Jean-Noël had been here for 10 years, and I was about to quit because — honestly, I had a job opportunity, OK? So I left SACEM, and Jean-Noël and the board had a discussion, and they decided to stop their relationship. The board asked me to take the interim job, but I already had this new job. And the team here said, “Are you kidding? You’re not going anywhere!” So I went back to the board and said, “I’m interested if you agree with my plan [for] SACEM 3.0,” and they did.
For a long time, there were no women running CMOs. Now there are many: Beth Matthews at ASCAP, Andrea Martin at PRS, Jennifer Brown at SOCAN and Cristina Perpiñá-Robert at SGAE. What took so long?
There was a lot of ego. It was a small circle of people: “We are so smart, ho ho ho! Let’s have lunch and a cigar.” CEOs then were more focused on an institutional view, and now we’re more focused on day-to-day matters and how to reduce costs. Women know how to reduce costs.
What’s your favorite song?
There are so many, it depends on the mood. The songs of the moment…
That’s cheating.
Serge Gainsbourg’s “Initials B.B.,” for sure. Songs by David Bowie, “Goodbye Yellow Brick Road” by Elton John, The Beatles, “Live and Let Die” from Wings. When you want to feel better, listen to “Sunny” by [German disco act] Boney M. Or Queen of the Night [the aria in “The Magic Flute”] from Mozart.
Rap-Veber says she discovered this photo of Jane Birkin and Serge Gainsbourg, which was taken for their 1969 joint album, when she was looking for ways to monetize Universal Music Group’s archives. “It had never been exploited before I found it,” she says.
Matthew Avignone
SACEM operates in a very different legal environment from the United States. France has stronger copyright laws to protect creators but also regulations that require SACEM to set aside money to fund culture.
It’s part of our DNA because that’s what a “collective” is. With SACEM, you have the highest rates in the world: concerts, more than 8%; broadcasters, more than 3%. If we take tiny amounts [for cultural funding], you will still get paid more than from any other CMO.
Some Americans hate this idea on principle.
Many of these cultural funds come from private copy levies that don’t exist in the Anglo-American system. By law in France, and this is typically French, 25% of this revenue must be allocated to cultural action. So we pay out the 75% that no one else in the world pays, except GEMA. The publishers benefit from it, too, because it helps them develop new creators.
According to EU regulations, I am required to ask you about artificial intelligence.
Last year, it was the metaverse, but this will last much longer. We see opportunities and dangers. Opportunities: As a tool, it can help musicians create music. The main issue for us is how we know whether or not our works have been used in a new product [and] how we can get paid. It’s a worldwide discussion, but I think Europe — and I hope France — will be at the center of it. We already have 120,000 songs uploaded a day, and 60% of the 100 million tracks on Spotify have less than 100 streams a year. Why do the platforms take all of this nothing music?
A lot of songwriting talent in Africa is turning to SACEM or other European societies to license their online rights internationally. How are you handling that?
African creators are usually with their local societies for their home countries, but many are SACEM members for the rest of the world. One problem is that many of these societies in Africa are controlled by the government. The only thing I can do is partner with them to help them improve their systems. In Senegal and Côte d’Ivoire, we just entered worldwide digital agreements so we can represent their repertoire for the world. We’re working with Morocco, too, and PRS is doing partnerships in some English-speaking countries. The idea is to be a bridge between the continents. I don’t wantto be seen as a colonialist — I want to be a partner.
TikTok has announced the launch of ‘Elevate,’ its program to uplift emerging artists both through in-app promotion and the sponsorship of in-person events. The inaugural class for Elevate includes artists CHINCHILLA, Sam Barber, Omar Courtz, Isabel LaRosa, Kaliiii, and Lu Kala.
In an exclusive interview with Billboard, TikTok’s North America artist partnerships lead, Rachel Dunham, says the program is designed to “represent artists across diverse genres and backgrounds, signed and unsigned,” she says. “The main intention of this program is really to help artists create sustained careers.”
To do this, the Elevate program will provide its talent with promotion on the @musicontiktok social handles and will host concerts in each of them in their hometowns until the end of the program in October. This year’s class is from is from a range of places, including Canada, Georgia, Maryland, Missouri, Puerto Rico, and the U.K. and TikTok’s artist team will “amplify” their local, in-person activations with Elevate artists “so that the rest of the world can be introduced to them through the lens of their hometowns and their roots,” says Dunham.
The news comes as the social media app continues to expand its reach into the music business. Earlier this month, TikTok launched a “social media streaming service” called TikTok Music in Brazil and Indonesia, replacing previous TikTok-founded streaming service Resso, which was launched in March 2020 in India, Indonesia and later Brazil. The new TikTok Music will be a subscription based service that allows users to synch their existing TikTok accounts in order to listen to, share, and download the tracks they discover on the social media app.
The company is also continuing to build its roster with SoundOn, its music distribution service that is aimed at helping independent emerging artists get music onto all streaming services. The tool was originally launched in Brazil and Indonesia in early 2022 and then in the U.S. and the U.K. shortly after. It was expanded to Australia in February 2023.
According to Dunham, Elevate is “separate from those efforts, but as those efforts continue to build we will absolutely leverage them when possible.”
TikTok joins the likes of YouTube, Spotify, Soundcloud and others in forming a program geared towards amplifying young talent through on-platform promotion, but Dunham highlights a key difference in TikTok’s Elevate: “The level of discoverability that TikTok provides I think is truly unparalleled. That’s a huge credit to our recommendation system as well,” she says. “I think it’s also pretty incredible that unlike other platforms where artists just share content to their fans, on TikTok, the fans are sharing content back and using the artists’ music to soundtrack their lives too. It creates this incredible feedback loop.”
According to the company, more details will be revealed about Elevate as the program continues into the fall.
Tony Yip, the chief strategy officer for Chinese audio streaming company Tencent Music Entertainment (TME), will step down on August 31, the company announced Monday (July 17). He plans to spend more time with his family overseas and pursue other personal interests, according to the press release. The company did not indicate who will replace […]
LONDON (AP) — Kevin Spacey’s lawyers enlisted the help of an A-list star Monday in his sexual assault trial, calling on Elton John and his husband David Furnish to cast doubt on one of the Oscar winner’s accusers at the end of the defense case. John appeared briefly in the London court by video link […]
Latin music, long seen as a trend that ebbed and flowed through the years, is finally being seen as a true market player — with mainstream American labels, TV shows and even management companies increasingly courting (and signing) Latin acts.
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But to truly succeed in the Latin market, those mainstream players must proceed with caution and cultural intelligence. That was the sentiment among industry leaders at a recent “State of the Latin Industry” panel during the Latin Alternative Music Conference in New York July 12.
“Obviously it’s a natural consequence of what’s happening with Latin music globally and it was to be expected,” said Roberto Andrade, managing director for Warner Music Latina. “[But] it’s positive as long as you work in partnership. In our case, we signed [Argentina rising star] María Becerra to Warner Latina, but we’re associated with [American label] 300 Entertainment, so they can also bring opportunities to the table. As Gus said, ‘Work in what you know.’”
He was referring to Gustavo López, CEO of Saban Music Group, who earlier in the panel had been particularly passionate when talking about the industry’s current gold rush regarding regional Mexican music — a market López worked with extensively during his days as president of Mexican labels Fonovisa and Disa, between 2008 and 2011.
“It saddens me when people talk about a Mexican music ‘boom,’ when it’s been 60% of the Latin music market for the past 40 years,” he said. “Make no mistake: Companies like Del, Rancho Humilde, have taken advantage of the opportunity major companies left to the side, and they’ve done it very well, and they’ve done it with the right teams. I ask labels to not get into genres they don’t know without the right teams, because they’ll f–k it up.”
Gustavo Lopez, Colleen Theis, Alex Gallardo, Leila Cobo, Mickey Sanchez and Roberto Andrado pose at the LAMC State of Latin Music Panel on July 12, 2023 in New York, NY.
The same principle, he said, applies to mainstream American labels rushing into Latin. But, he adds, “It’s also the artist’s responsibility to decide who he goes with. That’s where it all starts. If you’re simply going with X executive because he did a thousand things in another market, and now he’s going to do it in the Latin market, be very careful. If they don’t have the right team to execute, it’s going to be tough. It’s not just about money. The biggest danger for an artist is to take money from a place that doesn’t add knowledge.”
In the past year, many record labels and management companies, big and small, have made moves into the Latin market. Among the most noteworthy: J Balvin recently signed a management deal with Roc Nation after three years with SB Projects. In turn, Ozuna signed a management deal with SB Projects. Karol G signed to Interscope, and last year, regional Mexican sibling trio Yahritza y su Esencia unleashed a bidding frenzy before signing with Columbia Records.
Historically, however, there are few, if any, long-term success stories of core Latin acts either managed or signed to mainstream companies. Instead, the big wins have come from artists who partner with labels from both sides of the aisle.
“Partnerships are the smart way to go,” says Alex Gallardo, president of leading Latin label Sony Music U.S. Latin, which has the longest history of partnering with its mainstream counterparts with acts like Shakira and currently, Rosalía, whose EP RR with fiancé Rauw Alejandro (another Sony Latin act) is a joint release between Columbia and Sony Music US Latin. From the other end, DJ Marshmello has been releasing a string of successful singles featuring Latin artists under Sony Latin, including the global hit “El Merengue” with Manuel Turizo.
“I feel many Anglo labels sign stuff without understanding the language, the culture or the media,” said Gallardo, making the parallel with partnerships between Latin majors and indies. “I help you go further because I bring you my knowledge. But what knowledge can I bring you if I don’t understand your world or what you’re doing?”
From an observer’s point, it is impossible not to recognize the opportunism displayed by many who for decades, paid scant attention to Latin music. But Latin music can’t be ignored anymore, not at a global scale; this week, 47 tracks on Billboard’s Global 200 chart are in Spanish, and typically, 30% of Spotify and YouTube’s weekly global charts are Latin. It can’t be ignored in the U.S. either, where, according to Luminate’s midyear music report, Latin music registered a 21.9% percentage growth year over year, more than any other genre except for World Music (which encompasses non-U.S. genres like K-Pop and Afrobeats). Latin also managed to grow its overall share of the market significantly over the same period last year, from 6.25% to 6.72.
Gallardo says he’s conflicted by what these numbers represent to those who have long been outside the Latin market: “Are you signing this artist simply because you want your little piece of market share, because the numbers are good, or because you are really the best partner possible to take a career to the next level? The latter should always be the true reason.”
Which is not to say that mainstream companies cannot do a good job with Latin music. Witness The Orchard, which has been entrenched in the Latin market for decades and has distributed Bad Bunny from the beginning of his career.
“We’ve been working in Latin music from the onset,” said Colleen Theis, COO of The Orchard, noting that the distributor has had its Latin team in place for over 20 years. “For The Orchard, we put music out, and we pull people in rather than deciding what people are interested in. That really underlies that for us Latin music IS general market music, and we work in the general market. I’d rather empower the label base that we have to be the general market, than give those key artists to an American label who is Anglo.”
Universal Music Group has elevated Manusha Sarawan to oversee its efforts and market-leading label roster across southern and eastern Africa. In her new Johannesburg-based role as managing director, Southern and East Africa, Sarawan will continue to work closely with Adam Granite, UMG’s evp of market development, who said she was “ideally suited” for the role. Sarawan was […]
Since the rise of digital music technology in the 1990s, royalties from online music have proved bountiful for star performers.
But back then, forward-thinking music industry executives and musicians helped make sure that non-featured performers on recordings, like session players and backup singers, could also share in digital music royalties. One of those income streams — the AFM & SAG-AFTRA Intellectual Property Rights Distribution (IPRD) Fund, which marks its 25th anniversary this year — reports paying out $650 million to date to such artists.
For the 12-month period ending March 31, 2021 — the most recent full year for which its finances are available — the nonprofit fund has distributed $57.2 million to eligible performers.
Most of the fund’s revenue comes from SoundExchange, which collects royalties for every song played on digital radio like Pandora, webcasters like iHeartRadio and satellite radio services like SiriusXM. Those royalties are split: 50% to the record label, 45% to the featured artist and 5% to non-featured performers.
Fund participants span a spectrum of musical skills and styles. They include vocalists such as Carmen Carter (who has recorded with Beyoncé, Céline Dion, Whitney Houston and Luis Miguel), Wendy Moten (Carrie Underwood, Buddy Guy, Cece Winans) and Dan Navarro (Dolly Parton, Julio Iglesias, Neil Young), as well as musicians like guitarist Michael Landau (Enrique Iglesias, Diana Ross, LeAnn Rimes), keyboardist Greg Phillinganes (Michael Jackson, Mariah Carey, Elvis Costello, Stevie Wonder) and drummer Abraham Laboriel Jr. (Paul McCartney, Sheryl Crow, Miley Cyrus), among many others.
But while collecting royalties from Sound Exchange is easy and many musicians are easy to find, tracking down every performer who should get a cut can be a challenge. Though the fund paid out royalties to some 27,000 non-featured musicians last year, many are still unaware of its existence — or that they might have royalties to be claimed, says fund CEO Stefanie Taub.
“The big thing for us is we really want to make sure that the non-featured performers are aware that we’re here and there is this money source for them,” says Taub, a 25-year AFTRA and SAG-AFTRA veteran who prior to leading the fund sat on its board of directors.
The SoundExchange royalties paid to labels and performers are the result of the Digital Performance Right in Sound Recording Act of 1995 and the Digital Millennium Copyright Act of 1998, which between them amended copyright law so that, among other things, digital and satellite radio services pay royalties for recorded music. (Terrestrial radio doesn’t make any payments to record labels and performers but pays royalties to songwriters and music publishers.)
As part of the revamped copyright law, AFM (American Federation of Musicians) was designated to be the agent to pay out half, or 2.5%, of the 5% due to non-featured musicians on songs played on digital and satellite radio, while AFTRA (American Federation of Television and Radio Artists) was designated to oversee the other half (2.5%) of the royalties for non-featured singers.
The two unions agreed to collaborate on a single administrator to collect and pay out the royalties. Thus, the AFM & SAG-AFTRA IPRD Fund was born.
“Back then, it made sense to create this fund so they didn’t waste money with duplicate efforts,” Taub says. “So it’s very unique that these two completely separate unions came together to create this fund.”
Stefanie Taub
Courtesy of AFM SAG-AFTRA Fund
How do you view this anniversary of the fund?
We’re very proud of the fact that we paid over a half-billion dollars to non-featured performers in our 25 years. We’re in a unique space because many people are aware of how featured artists — name artists on recordings — get paid for their music. But there’s not as much awareness that our fund exists and that it pays the non-featured performers. People really don’t know we exist, especially when we first started out. Back then, we were collecting a very small amount: under $100,000 a year. Nowadays, we collect more than $50 million a year. So that is something we really want to promote: This money is there for these performers, and we are here to pay it to them.
Does a musician need to be in the union to qualify for funds?
That’s a misconception. Even though the unions created this fund, their executives sit on the board, and our name includes the unions; the fund distributes to all performers without regard to union status. We’re required by law to distribute to everyone [regardless of] status.
Where does the Screen Actors Guild, which represents and pays actors, come into the picture? Are its funds blended into what you collect?
SAG represents mostly actors but also other performers in film and TV, [so] if a singer did a song in a film, that would be represented by SAG; if they do a record, they are represented by AFTRA. But the SAG funds are completely separate, and what we collect is completely separate from anything that the unions do on their own.
Your financial statement for the fiscal year ending March 31, 2021, shows that the fund collected $63.1 million in royalties. How much came from SoundExchange?
It fluctuates, but it has been around $50 million or more for [each] of the past five or six years.
Foreign royalties also flow into the fund. What’s the source of those monies?
They are due to copyright treaties and to reciprocal agreements with collection organizations in other countries — and those royalties consist of many different things, including what they call “private copying”; in some foreign countries, they collect a royalty on devices like iPhones and iPads and things like that. Some countries do pay the U.S. [royalties] on broadcast terrestrial radio and even [on] what they call “communication to the public,” like songs played in nightclubs and restaurants. Every country is a little bit different in what royalties they pay to the U.S.
So, percentagewise, what would you say the breakout is from SoundExchange versus the other sources of income?
I would say SoundExchange is about 80% of what we collect. But we’re growing in the international space every year, and we’re hoping to increase that as time goes on. We had a very good year last year. Our financials are not showing yet for that, but we collected over $25 million internationally last year.
Are there other challenges your organization faces in paying out royalties?
When we reach out to people [eligible for payments], some don’t believe us because no one has ever gotten a secondary income stream from their recordings. Of course, we need to verify their identity and we ask for certain information. And these days, everybody’s concerned about their privacy, so they think it’s a scam sometimes. But the more we can get our message out, the more that creates awareness, so [that] people actually do sign up for us.
How do you reach musicians who might be due money?
We have a whole department called artist relations, and their only job is to either take incoming inquiries or to actively search for folks where we’ve seen their names on credits but need to find them. We use all types of resources, whether it’s the internet, social media or other publicly available information. We also try to get other participants who have been paid to let their friends know about our fund.
A big question for funds like yours is, how much of what you collect do you match with eligible recipients and pay out every year?
Our current percentage is about 82% payout, and we are reducing the unmatched number every year.
And your administrative costs are about 14% of your revenue.
We have an obligation to make sure we’re doing the right thing with other people’s money. It’s not my money, so I always look at the most efficient way to get the job done so that as much of what we collect as possible can go out the door to the performers.
What if the album credits don’t specify who played on what song?
When we get the money from SoundExchange, we do our research on a track-by-track basis and by individuals. It’s very difficult because, depending particularly on the age of the recording — or where it was done — sometimes there’s no information at all. That’s why we really encourage people to also look at the list on our website of all the recordings that we have money for. If they make a claim on a recording, then we always require proof that shows they are on the recording. That proof could be a union contract, liner notes or something printed somewhere on the internet. And we cross-check multiple sources to make sure that everything’s matching.
What if the featured artist says, “Yeah, he played on my track”?
We accept that, too. Or often there might be other side musicians on the track who vouch for the third, and we will accept that.
How many titles do you research and pay out on?
In April 2023, the fund distributed royalties on 50,000 titles. And we’re increasing that every day. But it’s very time-consuming to research non-featured artists, especially now when there is often no printed [credits] because there is no physical recording. But there’s a current drive to get more metadata to be included in a lot of [digital] tracks.
It’s the record labels that should make sure songwriters, publishers, side musicians and singers are listed.
Yes, and they’re not as driven to make sure that the non-featured artists are getting credit.
There have been some recent grievances with the fund, including a suit over $45 million in undistributed funds and another complaint about a data purchase and service fee paid to the unions. What has happened with those complaints?
The former was settled in November 2020, and the latter was resolved in March 2022. We welcome the resolution of these matters so we can focus our resources on what we do best, which is putting money into artists’ pockets.
Are there any other messages you would like to get out?
Just to let people know that they should take a look at our website and make sure that if they’ve done any non-featured work on songs, they should sign up and create an account so that we can find them and pay them. That’s the whole reason we exist — to pay performers. We want to make sure that we’re creating that awareness.
This story originally appeared in the July 15, 2023, issue of Billboard.
BRISBANE — Budjerah signs with United Talent Agency (UTA) for representation in the Americas, Billboard can exclusively reveal.
The fast-rising Australian singer and songwriter is repped by global touring agent Noah Simon, whose roster has included Post Malone, Ms. Lauryn Hill, Jacob Collier, Masego and others.
Hailing from Fingal Head, New South Wales, Budjerah is one of the most promising young artists in his homeland. The 21-year-old singer and songwriter was the inaugural winner of the Michael Gudinski prize at the 2021 ARIA Awards, won his first APRA Music Award in 2022 for most performed R&B/soul work of the year for “Higher” with Matt Corby, and collected best new artist at the 2023 Rolling Stone Australia Awards.
The young man with the golden voice has several chances to add to his collection next month at the 2023 National Indigenous Music Awards (NIMAs); he’s in the hunt for artist of the year, song and film clip of the year, both for “Therapy,” which has chalked up more than 6 million streams.
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On the live front, Budjerah supported Ed Sheeran on the Brit’s 2023 stadium tour (and jumped on a remix of Sheeran’s “2step”), performed a sold-out headline show at the Sydney Opera House for Vivid LIVE, scored a slot on the For The Love festival run, and he’s booked for the traveling Spilt Milk fest in November and December.
The Coodjinburra artist’s career is guided by Lemon Tree Music, Regan Lethbridge and David Morgan’s Australia-based artist management company, whose stable includes Tones And I and Tash Sultana.
“I am thrilled to represent Budjerah and proudly welcome him to the UTA family,” comments Simon. “He is undoubtedly a singular talent with a timeless voice and in close collaboration with Lemon Tree, we’re excited to introduce his exceptional artistry to the Americas.”
To celebrate the UTA pact, Budjerah shares the new single “Video Game” (via Warner Music Australia), a “thank you to all my fans who’ve supported me at my shows over the last year,” he says in a statement.
Penned by Meg Mac, Matt Corby and Chris Collins, the stripped-back track explores the emotions behind growing up and finding himself, and can be streamed below.
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