Royalties
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Songwriters and publishers are due nearly $400 million in additional payouts following the Copyright Royalty Board‘s Phonorecord III final determination in August, according to information the Mechanical Licensing Collective (the MLC) released on Friday (Feb. 23). During the Phono III blanket license period (2021-2022), the MLC reports that digital service providers like Spotify, Amazon Music, […]
Catch Point Rights Partners, the private-equity backed music rights acquisition firm that has purchased the publishing of such artists/songwriters and/or producers as Brantley Gilbert, Yelawolf and All Time Low, is now offering a program through which it will buy performance rights income streams from songwriters while allowing them to retain ownership and control of all of […]
LONDON — The British government’s Intellectual Property Office has said that bringing streaming in line with TV and radio broadcasts in the U.K. by obligating record companies to pay performers ‘equitable remuneration’ does not provide “a simple solution” to creators’ concerns over low returns from services like Spotify and Apple Music – and is “unlikely to yield a net positive income for the industry at large.”
In its report into the potential impact of equitable remuneration on the U.K. music business, published Monday, the Intellectual Property Office (IPO) says its introduction could result in labels reducing their investment in developing new acts and would see rightsholders paying out “a significant sum of money” in administration costs.
The report goes on to say that more work is needed to fully assess whether labels’ ability to negotiate competitive deals with streaming services on behalf of artists would be weakened — as claimed by record labels – by changing how royalties are paid out for music streams.
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“While not a satisfying conclusion, it is clear that more research is required into the nuances of how best to balance the incentives to create with the need to monetise creation,” states the report.
The IPO research paper into equitable remuneration is the latest chapter in a long and ongoing series of government-led interventions into the U.K. music industry fuelled by artist discontent over low payments from streaming.
In 2021, a Parliamentary inquiry into the music streaming business called into question the major record labels’ dominance of the industry and branded the global streaming model as unsustainable in its current form, saying it “needs a complete reset.”
One of the key proposals made by the Parliamentary inquiry was changing the revenue model for music streaming by forcing record labels to pay performers equitable remuneration — equivalent to a 50/50 royalty split — on music streams, which it called “a simple yet effective solution to the problems caused by poor remuneration.”
A similar statutory right to equitable remuneration has existed in the U.K. since 1996 for TV and radio broadcasts, where revenues are split 50/50 between labels and performers and distributed via by the collecting society PPL. The statutory right guarantees royalties to non-featured performers, such as session musicians, whenever a song they played on is broadcast on U.K. radio or television.
By contrast, under the current music streaming model only the copyright owner receives payment from streaming platforms, which it then shares with the artist according to the terms of their contract. Average royalty rates are typically set between 25% and 30% on new artist deals and far less on legacy contracts, while some indie labels now offer artists 50/50 profit-share deals. (Session musicians do not typically receive any royalties from music streaming).
The IPO’s report examines what impact equitable remuneration would have on the U.K. music business by applying several predictive models to streaming over a five-year period.
When equitable remuneration is applied to 100% of streaming income — based on a scenario where a record company invests £150,000 and a release generates £240,000 (3 times the recoupable advance) — earnings for featured artists almost double to just under £115,000, while record label revenues move from a £90,000 profit to a loss of almost £13,000. Session musician income jumps from zero to just under £30,000.
In instances where equitable remuneration is applied to 35% of streaming income, the same metrics see label revenues drop from £90,000 to just under £54,000, while featured artists’ income rises from a flat £60,000 advance to almost £100,000 (including recoupable costs spent).
The research also models the impact on loss making deals and instances where 7x the record company advance is generated, as well as the impact of equitable remuneration on DIY artist deals.
The IPO’s modeling surmises that equitable remuneration would make record label investment “more risky and more difficult to justify,” while DIY artists would see increase in administration costs and receive little financial gain or, for heavily streamed releases, a reduction in profits.
“If the intention is to better support the careers of current and future artists then there is a significant risk that introducing” a full version of equitable remuneration “would make it more difficult for the current label investment model to continue,” says the report.
The research paper, which was carried out by the IPO in conjunction with a working group made up of industry stakeholders, additionally looks at the potential impact of the U.K. introducing a version of equitable remuneration similar to what already exists in Spain.
In Spain, 5.6% of streaming income is currently shared out between featured artists and non-featured performers, with equitable remuneration paid by streaming platforms, not labels. However, the practice has been mired in litigation since its introduction in 2006 and critics say that it resulted in only marginal gains for artists and performers.
When applying the so-called ‘Spanish model’ to the U.K. business, researchers found that it offers a much less significant shift in revenue than other ER methodologies but raises unanswered questions around whether it would make “a material difference” to creator earnings.
The report warns that if an equivalent to the Spanish version of ER was introduced in the U.K. streaming services might look to recover “some or all” of the extra revenue they would have to pay out from their deals with rights holders.
Reaction among U.K. music trade groups to the IPO’s findings was mixed.
Jo Twist, CEO of labels trade body BPI, said the report reinforces record company’s long-held concerns around equitable remuneration. Making such a change to how streaming royalties are shared “would undermine the essential role that labels play in investing in and supporting artists,” Twist said in a statement.
The Council Of Music Makers noted that the IPO report “reaches no conclusions, and no decisions should be made on the basis of its ambiguous findings.” The trade group said it would continue to work with all industry stakeholders on a “wider discussion” around creator remuneration from streaming and various solutions that have been proposed.
Responding to the IPO’s research, government ministers Julia Lopez and Viscount Camrose said that “in light of the risks” highlighted in the report, “the government does not intend to apply the ‘broadcast model’ of equitable remuneration to on-demand streaming.”
Instead, the findings “lend weight to the view that the best way to address creator concerns is through dialogue among industry and, where appropriate, industry-led actions,” said Lopez and Camrose in an open letter to Dame Caroline Dinenage, chair of the Culture, Media and Sport Select Committee.
For Will Bratton, the best part of Super Bowl LVIII was not when Kansas City Chiefs wide receiver Mecole Hardman caught the game-winning pass for an overtime touchdown or when Chiefs kicker Harrison Butker nailed a 57-yard field goal. It was when Chiefs tight end Travis Kelce, during the trophy ceremony after the game, belted out an impromptu, raggedy chorus of “Viva Las Vegas” on the CBS broadcast.
Those three words, repeated several times in a pacing and melody only vaguely resembling Elvis Presley’s classic 1964 hit, have delivered an unexpected payday for the song’s rights holders.
“We were very excited about him doing that,” says Bratton, president of Pomus Songs Inc., namesake publisher for the late Doc Pomus, who wrote the song with Mort Shuman. “Royalties are paid for that performance through BMI.”
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Kelce’s rendition constituted an “ephemeral use,” according to Rachel Jacobson, who oversees film and TV for Warner Chappell Music (WCM), which administers Pomus’ recordings. As when a marching band plays an off-the-cuff snippet of a song during a televised football game, the use generates a royalty payment through BMI as a public performance. “Anything beyond that, then you come and clear it,” she says.
Although Bratton couldn’t say how much money Pomus Songs made from Kelce’s performance — “BMI’s generally three quarters behind, so we won’t have that data until probably next December” — the revenue is likely to continue. Late-night talk shows airing Kelce’s version would have to pay for a “previewing synch license,” according to Bratton, which would lead to a negotiated fee as opposed to the ephemeral use royalty payment. WCM’s Jacobson is not aware of any requests for such a license involving Kelce’s rendition of “Viva.”
For the Super Bowl, Bratton says, “It was also licensed to CBS Sports for a pre-game show and it was shown once during the game over a viewing of Taylor Swift. That paid — I don’t want to say how much, but it was good money.”
Written for the Presley film of the same name, “Viva” has come to symbolize Las Vegas glamor-and-gambling culture and has been covered by Bruce Springsteen, Dead Kennedys, ZZ Top and Shawn Colvin. Bob Dylan wrote a chapter about the song in his 2022 book, The Philosophy of Modern Song: “This is a song about faith. The kind of faith where you step under a shower spigot in the middle of the desert and fully believe water will come out.”
The song was also in The Big Lebowski and a Viagra commercial (“Viva Viagra”), which, Bratton recalls, “was a very nice synch license momentarily — but I’m not sure if we regret it or not.”
Pomus, a Rock and Roll Hall of Fame songwriter who wrote classics such as The Drifters’ “Save the Last Dance for Me” and “This Magic Moment”; The Coasters’ “Young Blood”; and Presley’s “Little Sister,” was a “sports fanatic,” according to Bratton, who is married to Pomus’ daughter, Sharyn Felder. “He would have been thrilled that his song was used like that,” he says of Kelce’s “Vegas” rendition. “It was more of a holler than a sing. It was his enthusiasm that was notable.” He adds: “We just like it to make money.”
The recording and publishing catalogs of late country star Toby Keith continue to bring in a combined $9 million per year in streaming and sales activity, according to Billboard estimates.
Keith, who died Monday (Feb. 5) at age 62, had slowed his output considerably over the last decade, releasing just two proper studio albums over that period: 2015’s 35 MPH Town and 2021’s Peso in My Pocket. But a vast stable of past smashes over the past 30 years, including the multi-platinum albums Pull My Chain, Unleashed and Shock’n Y’all along with 20 No. 1 hits on Billboard’s Hot Country Songs chart, including “Who’s That Man,” “Should’ve Been a Cowboy” and “How Do You Like Me Now,” allowed his catalog to remain lucrative up to the present day.
Over the last three years, Keith’s catalog has averaged nearly 475,000 album consumption units per year in the United States, according to Luminate. That consists of an average of nearly 61,000 albums (CDs, LPs, downloads) per year, as well as 152,000 tracks and about 570 million on-demand streams.
While streaming has helped country music begin to gain an international audience, some artists in the genre are racking up fans outside the United States faster than others, and Keith’s audience remained largely a domestic one. As it is, Keith’s U.S. streaming accounts for about 83% of the 686 million streams his music averaged on a global basis annually over the last three years. Likewise, his U.S. song downloads make up 91% of his annual average of 167,000 downloads over the last three years.
Overall, Billboard estimates that Keith’s album sales and streaming activity generated about $5.3 million in revenue on average over each of the last three years for his recorded music catalog, while his publishing has brought in about $3.7 million per year. However, since Keith has a stake in close to 50% of his songs, and because he likely owned the albums he released since he started his Show Dog Nashville label in 2005, he likely gets the bulk of that revenue as his take-home pay. Before Show Dog, he released music on Universal Music Group-distributed labels including Mercury, A&M and Dreamworks Nashville.
Keith was diagnosed with stomach cancer in 2021 but didn’t publicly reveal the news until the following year. He died less than two months after he performed his final shows: a trio of December concerts at Dolby Live at Park MGM in Las Vegas.
A year into SoundCloud’s fan-powered royalties, a departure from the traditional “pro rata” method of calculating streaming royalties, artists have a better understanding of their fan bases and a better chance to monetize their listeners, according to a new report by author, podcaster and economics professor Will Page.
Fan-powered royalties — known more broadly as user-centric royalties — is a method for calculating streaming payouts to independent artists based on individual fans’ listening on SoundCloud. The traditional, pro-rata model divvies up a large revenue pool based on a track’s total number of plays. In that scenario, an up-and-coming artist shares the same royalty pool as the biggest superstar.
User-centric royalties turn a big pool into smaller silos by splitting a listener’s subscription or advertising revenue based on only the tracks they streamed. If a listener streams only independent artists, most or all of the user’s subscription or advertising revenue will go to those artists. Since SoundCloud first announced fan-powered royalties in 2021, Warner Music Group and Merlin have agreed to use the calculation approach for their artists.
SoundCloud singles out an artist’s biggest fans and gives artists the tools to engage with those supporters through person-to-person messaging. With the help of tools that help artists engage directly with their fans on the SoundCloud platform, a small number of what SoundCloud calls “true fans” will provide an “outsize” share of an artist’s royalties. (Page did not define “true fan” or explain the threshold that separates them from less passionate ones.) The combination of the engagement tools and the fan-powered royalties “make this true fan game the most desirable to play,” wrote Page.
The promise of fan-powered royalties is a more sustainable business model for up-and-coming and working-class musicians. For SoundCloud, a well-known springboard for young musicians’ entry into the big leagues, a model that benefits independent artists over major-label superstars would help cement that platform’s credentials in the creator community.
So, Page offered three case studies that examined artists in different stages of their careers. In 2022, Rapper Lil Uzi Vert opted into fan-powered royalties and gave SoundCloud an exclusive on the track “Space Cadet” from his Red & White EP. As a result, according to Page, “more of Uzi’s listeners became true fans, and those true fans made up an even greater proportion of the overall revenue.” With fan-powered royalties and insights from the platform, true fans accounted for 6.5% of the rapper’s audience in July 2022, up from 5.2% in the previous month, as well as 71.8% of his revenue, up from 54.6%. The audience he gained was engaged: 6% of them were true fans, 69% were classified as engaged and only 9% were passive listeners.
To show that fan-powered royalties can help a mid-tier, independent artist, Page offers the example of Kelow LaTesha, a rapper with about 14,000 SoundCloud followers. LaTesha used fan-powered royalties to reach more listeners. True fans’ share of her revenue jumped to 45.7% in July 2022 from 32.2% in June 2022. The number of true fans increased, but because she gained a greater share of passive listeners, LaTesha’s true fans accounted for 1.4% of her listeners, down from 1.7%.
The do-it-yourself case study, focusing on EDM producer/DJ ShortRound, improved both his true fans and his revenue from those fans. From June to July 2022, true fans’ share of DJ ShortRound’s SoundCloud audience climbed from 3% to 4.4% and their share of his revenue jumped from 77.7% to 82%.
SoundCloud’s adoption of fan-powered royalties pre-dated a larger effort to make streaming more financially viable for labels and artists. Universal Music Group partnered with streaming service Deezer in 2023 to improve payouts to professional musicians while reducing payouts to background noise and other types of audio content that arguably provide less value to listeners. In Europe, politicians are calling for “fairer models of streaming revenue allocation” for artists.
SoundCloud’s approach might not be the best approach for all streaming platforms, but the handful of case studies is evidence that the approach works for SoundCloud. The combination of fan-powered royalties and creator tools “opens a new path to prosperity that the entire music industry should understand,” wrote Page.
Since unveiling Spatial Audio in June 2021, Apple Music has been pushing labels and artists to rework their music in the immersive format. Now, the platform is offering a financial incentive in the form of increased royalties.
In a letter sent out by Apple Music to its partners on Monday (Jan. 22) and obtained by Billboard, the streamer revealed that beginning with month-end royalty payments in January, music available in Spatial Audio — which is supported by Dolby Atmos — will receive a royalty rate up to 10% higher than content not available in the format.
“Pro-rata shares for Spatial Available plays will be calculated using a factor of 1.1 while Non-Spatial available plays will continue to use a factor of 1,” the letter reads. “This change is not only meant to reward higher quality content, but also to ensure that artists are being compensated for the time and investment they put into mixing in Spatial.”
The letter offers an update on the format’s adoption by artists and users, including a claim that more than 90% of Apple Music listeners have experienced the format and that “plays for music available in Spatial Audio have more than tripled in the last two years.” It additionally states that the number of songs available in the format has increased nearly 5,000% since launch and more than doubled over the last year alone. The company further claims that more than 80% of songs to have charted on the platform’s Global Daily Top 100 in the past year are available in Spatial Audio.
Seemingly to deter bad actors, the letter includes a mention of Apple Music’s “zero-tolerance policy against deceptive or manipulative content,” noting the service has a “quality control process that includes flagging content not delivered in accordance with Apple Music’s Spatial Audio specifications and standards of quality.”
Spatial Audio officially rolled out on June 7, 2021. The format, which provides a surround sound experience in users’ headphones, is offered at no additional cost for Apple Music users, seemingly to speed adoption. As part of this effort, Spatial Audio tracks also enjoy enhanced visibility on the app’s home page, sitting higher than even new music releases. Early adopters of the format included Taylor Swift, Katy Perry, The Weeknd, Billie Eilish, J. Cole and Post Malone.
In a June 2021 interview with Billboard, Eddy Cue, Apple’s senior vp of internet software and services, conceded that encouraging artists to mix their tracks for Spatial Audio would be a challenge given the time, work and financial investment required.
“This is not a simple ‘take-the-file that you have in stereo, processes through this software application and out comes Dolby Atmos,’” Cue said at the time. “This requires somebody who’s a sound engineer, and the artist to sit back and listen, and really make the right calls and what the right things to do are. It’s a process that takes time, but it’s worth it.”
At the SONA Warrior Awards in October, hitmaker Justin Tranter used his acceptance speech as an opportunity to warn the music business: “If we’re not careful,” he said. “We’re just not going to have any songwriters left.”
It used to be a lot easier to make a living as a songwriter. In the days of physical records, songwriters would get paid with each album sale, even if they had the least popular song on the album. Now, in the streaming era, songwriters say the only way to get a livable wage is to write the album’s breakout single. Getting a song on AM/FM radio is still a good way to make money, but radio hits are tough to come by. Plus, there’s the problem with artists demanding cuts of publishing income, even if they didn’t pen the song, and writing rooms have grown bigger than ever. For these reasons and more, songwriters like Tranter say the current business has led to the “decimation of the songwriter middle class.”
To try to alleviate some of the strain facing songwriters, three small independent labels – Tranter’s Facet Records, The Other Songs and Good Boy Records – have made a new pledge they hope will catch on: giving songwriters a percentage of master royalties— or “points” — on every single record.
“We didn’t feel like the industry was changing fast enough to fix this,” says Billy Webber, co-founder of London-based indie label The Other Songs, which has Ren, Navy and SUPER-Hi on its roster. His company, founded alongside brother Alastair Webber, started first as a series of events, offering songwriters the chance to perform their unused pitch songs in front of a crowd of publishers and advertisers. From the start, Webber says, they knew they wanted to not only take care of their artists, but also to look after the writers behind their records.
In 2020, The Other Songs started offering four points to songwriters on every recording, split between however many writers there are. (The policy excludes writers who are also the artist or producer, roles which already receive cuts of the master income.) They call it the “TOS Writer Royalty,” and it is taken from the label’s share of revenue — not the artist’s.
Tranter’s Facet Records — home to emerging talent like Jake Wesley Rogers, Shawn Wasabi and Shea Diamond — announced earlier this year that it would start a similar program, offering three points from the label’s share to songwriters, also split between however many non-performing writers were on the track.
Jaime Zeluck-Hindlin — founder of Nonstop Management which represents hitmakers JKash, Michael Pollack, and Ryan OG — says she has been calling for a standardized system for songwriter master points for years. She explains that her larger writers can sometimes get half a point or a point on a master when they have enough leverage to negotiate it, but it is still considered a luxury for anyone to receive. “It’s not the norm yet,” she explains. These days Zeluck-Hindlin asks for points for all her clients, not just the hitmakers, and has been making some headway, but she notes it’s a careful conversation that varies project-by-project. “More than ever,” she says, “it’s so hard for songwriters to make money, so I don’t feel as bad asking anymore.”
Writers and their teams are in a difficult position when asking for master points: They don’t want to push too hard and threaten getting cut out of sessions for being labeled “too demanding,” and if an A-list artist wants to cut a song, their name and image alone could propel it to success.
Songwriters historically have not received payment for the master recording, because they are not part of that formal recording process like producers and artists. But now, citing economic hardship for writers — even with a song that is a streaming “success” — it has become more common. “I’ve noticed people are way more open to the conversation than they were before,” says Zeluck-Hindlin.
It might seem like giving a songwriter master income is a band-aid for a larger issue, but those who are fighting for it feel it is the best option available, given the current system. Streaming rates on the publishing side have always been considerably lower than on the master side, and in the U.S., publishing income is regulated by the government, making it much more difficult to make changes.
Good Boy Records, a label started by producer Elie Rizk and entrepreneur and manager John Zamora that represents Mazie, Judith and Georgee, is also working on their own system for master points. “We want to give out one point per songwriter,” says Rizk. The team at Good Boy started to work on finding a way to cut in songwriters since Mazie hit it big with her song “dumb dumb,” which helped Good Boy recoup its distribution deal with Virgin and see “real money” for the first time earlier this year.
By May, the team paid every songwriter who had ever worked with the emerging label a small non-recoupable fee as a thank you. “Since then, we have gotten savvier with our system,” says Zamora. “We treat songwriters like we treat producers – with fees and points every time, but we are still evolving as we go.”
Some producers are also hoping to address the economic problems facing songwriters. Producer, Tre Jean Marie, posted to Instagram this summer that he would be giving £500 of his production fee to non-performing songwriters on every major label release he has. “I believe that the record labels, turning over billions of pounds in revenue every year, should shoulder the responsibility of ensuring songwriters are compensated for their time and work, but until that happens, I want to help,” he wrote. Rizk says he has also shared a portion of his producer fee and points with songwriters on the recent single “Heartbroken” by Diplo, Jessie Murph, and Polo G to makes the payments more equitable.
The heads of the three indie labels say that they hope that by being public about their new offerings for songwriters it will encourage other labels, especially larger ones with much greater financial impact, to follow suit. Tranter says they are already talking with one “pretty large company” to discuss how to implement a similar system at that company and is hopeful for more to follow suit.
But he is not confident the majors will accommodate songwriters anytime soon, especially those that are publicly traded. He thinks there are still other changes that can be made within any label to make it more songwriter-friendly, like offering per-diems, free lunch or free transportation to sessions.
“If we can do it [as a new label], then pretty much any record label that’s really taking itself seriously can do it as well,” Webber says. “Songwriters are basically the beating heart of our industry. Without them, we’re not going to have any masters anyway.”
Songwriters and publishers will see a royalty bump in the new year for physical sales (including vinyl, cassettes and CDs) and digital downloads. According to a new document, published in the Federal Registrar on Tuesday (Dec. 12), the Copyright Royalty Board (CRB) upped the U.S. statutory mechanical royalty rate from the current rate of 12 cents to 12.40 cents if the song has a run time of five minutes or less. (If over five minutes, the rate is 2.39 cents per minute.)
This rate change is based on the Consumer Price Index for All Urban Consumers (U.S. City Average, all times) that was published by the Secretary of Labor.
This form of publishing royalty is paid to songwriters and publishers by record labels, which license their compositions for sound recordings that are then made into digital downloads or physical copies. This system is unlike that for U.S. mechanical royalties for streaming, which are paid to publishers and songwriters by streaming platforms like Spotify, Apple Music and Amazon Music.
Consistent Cost of Living Adjustments (COLA) have been an important (but controversial) part of the conversation around U.S. mechanical royalty rates in recent years. Prior to January 2023, the minimum statutory mechanical rate in the United States had been stuck at 9.1 cents since 2006, losing value each year as inflation climbed. January 2023’s raise represented a 32% rate increase.
In May 2022, when the 2023 adjustment was announced, BMG made a statement criticizing the majors, saying in part, “The entire songwriter community owes a huge debt of thanks to those who fought for this increase in the face of the opposition of major record companies and indifference of music publishers. … Without their belief and commitment, the [Recording Industry Association of America] RIAA (representing record companies) and the [National Music Publishers’ Association] NMPA (representing music publishers) would not have been forced back to the negotiating table.” This is a sentiment also held by independent songwriter George Johnson, who has consistently led the fight for a COLA adjustment through his participation in the Copyright Royalty Board proceedings.
For years, the NMPA didn’t push for the rate to be raised beyond 9.1 cents, while all sides weighed how to first establish streaming models and what rates should be paid for the fast-growing income stream of the music publishing business. While dealing with those larger issues, the NMPA and the labels continued the cycle of a 9.1 cent settlement for every five-year term from 2008 through 2022, and they were ready to do so again for the 2023-2027 term, as indicated in their initial settlement.
When Johnson, followed by other songwriter advocates like the Songwriters Guild of America and Music Creators of North America, pushed against the initial settlement rate of 9.1 cents for that term, the NMPA noted that litigation is costly, running into the tens of millions of dollars — which is why the organization initially focused on adjudicating streaming rates rather than the penny rate for physical and downloads. To litigate for both streaming and the penny rate would be even more costly than the millions the NMPA was already spending.
Moreover, it was argued that spending money fighting for the rate change for digital downloads and physical sales could be a wash for publishers when weighing the legal costs against how much additional revenue a possible rate increase could achieve. While physical and downloads back in 2021 accounted for 15% of market share for labels, for publishers it was a 5% market share. Some in the publishing business were also afraid that if they pushed for a higher penny rate, they would lose the support of the major labels in their quest for better streaming rates.
The CRB judges ultimately tossed out the 9.1 cent settlement for 2023-2027, and then the publishers and major labels came together to put together a second settlement for that term featuring a 12 cent penny rate and a COLA adjustment.
In a Dec. 7 statement about the upcoming adjustment from 12 cents to 12.4 cents for 2024, NMPA president/CEO David Israelite, said: “We are pleased that the Copyright Office has approved a Consumer Price Index (CPI) increase for physical products like vinyl records and digital downloads. Last year NMPA, the Nashville Songwriters Association International (NSAI) and others worked to raise these mechanical royalties from 9.1 cents to 12 cents — a 32% increase with the added insurance of including a mandated Cost of Living Adjustment (COLA) lift each year. While these forms of consumption are not top revenue streams in the current market they still represent a meaningful piece of the music industry and it is important that they continue to grow.”
True to its title, Brenda Lee‘s “Rockin’ Around the Christmas Tree” — which just notched its second straight week at No. 1 on the Billboard Hot 100 — brings in some serious green over the holiday season.
Billboard estimates that in 2022, the enduring holiday hit racked up $2.7 million in master recording revenue for Lee and her label, Universal Music Group, and $1.274 million in publishing revenue, totaling nearly $4 million, on the strength of 464 million on-demand streams and 25,000 track downloads.
So far this year, Billboard estimates the master recording has garnered $1.6 million in revenue and about $700,000 in publishing revenue, or $2.3 million total, on the strength of 301 million on-demand global streams and 16,000 track downloads.
In the United States last year, “Rockin’ Around The Christmas Tree” generated nearly 1.75 million song consumption units (track downloads and on-demand streaming), while it has so far accumulated 967,000 song consumption units (and, within that, 301 million on-demand streams) in 2023.
But there’s still plenty of holiday season left — and when you compare the 49-week period that has elapsed so far this year with the same period in 2022, it’s clear that “Rockin’” is on track to surpass last year’s total. The song’s 967,000 song consumption units to date in 2023 is far ahead of last year’s 807,000 song consumption units (and 195 million streams) at the same point. (Luminate doesn’t compile global song consumption units).
“Rockin’ Around the Christmas Tree” was solely written by the late Johnny Marks, whose publishing company, St. Nicholas Music, would get the publishing revenue. Marks wrote a number of other holiday favorites including “Rudolph the Red-Nosed Reindeer,” “A Holly Jolly Christmas,” “Silver and Gold” and “I Heard the Bells on Christmas Day.”
The above estimates don’t include whatever royalties come in from licensing the song to Christmas compilation albums; while the publishing total doesn’t include whatever revenue is generated from cover versions.