<ul><li>What are Royalties?</li><li>Types of Royalties</li></ul><ol><li>Mechanical Royalties</li><li>Synchronization Royalties</li><li>Performance Royalties&nbsp;</li><li>Royalties from Sound Recording</li><li>Royalties from Composition Right</li></ol><ul><li>How are Royalties Obtained?</li><li>Obtaining Royalties from different Social Media Platforms</li></ul><ol><li>YouTube</li><li>TikTok</li><li>Facebook &amp; Instagram</li></ol><ul><li>Conclusion</li></ul>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an artist/songwriter, have you ever wondered how other artists get paid their revenues when songs are uploaded on different social media platforms? To understand how royalties are obtained from different social media platforms, you need to have a basic knowledge of what royalties entail.&nbsp; This article gives insight into artists/songwriters gaining revenues from user-generated content on different social media platforms.WHAT ARE ROYALTIES?Royalties are payments made for obtaining the right to use, possess, or modify someone else's property, whether it is intellectual property or other creative works such as musical, artistic, or literary works. Investopedia defines Royalty as a payment made to an individual or company for the ongoing use of their assets, including copyrighted works, franchises and natural resources<a href="#_ftn1">[1]</a>. For the authorized use of their work, record labels, publishers, and producers pay songwriters, recording artists, and other right-holders music royalties. Royalties are usually used to generate revenues.&nbsp;DIFFERENT TYPES OF ROYALTIES<ul><li>Royalties from Sound Recording</li><li>Royalties from Composition Rights</li><li>Mechanical Royalties</li><li>&nbsp;Performance Royalties</li><li>Synchronization Royalties</li></ul>&nbsp;ROYALTIES FROM SOUND RECORDINGSound recording otherwise known as ‘Master Recordings’ are compositions created as a result of the fixation of a&nbsp;series of musical, spoken, or other sounds, but do not include the sounds that accompany a motion picture or other audiovisual work.<a href="#_ftn2">[2]</a> It is also the transcription of audible vibrations in the air onto a storage media, such as a phonograph disc, audiotape, optical (digital compact) system. &nbsp;The artist and the record label are entitled to the royalties and also distributed into two: Digital Performance Royalties and Master Recording Royalties. When a sound recording is streamed, downloaded, or physically purchased, recording artists and labels get payments known as master recording royalties. &nbsp;The royalties are collected by distributors from record stores and streaming platforms and dispersed back to the label, which collects the proportion owed to them and send the balance to the recording artist. If the artist is not associated with a label, then the artist collects the money directly from the distributor.Digital Performance Royalties will be discussed in the later part of this article.&nbsp;ROYALTIES FROM COMPOSITION RIGHTSComposition rights protect the underlying musical composition, which includes the lyrics, melodies, and chords in a particular order. It may or may not include accompanying lyrics. It is owned by songwriters, lyricists, and composers and is administered by music publishers (who also hold a portion of the copyright). The music publisher and the songwriter are entitled to the royalties and the two types of royalties obtained herewith are; Public Performance and Mechanical Royalties. The money collected from the publishing portion of a song is split between the songwriters and the publisher equally, that is 50-50% and in situations where the songwriter is also the publisher then he gets to receive the total sum. Although the general rule states the split should be shared equally, we have certain instances where the Songwriter gets as high as 90% depending on the publishing deal agreement.&nbsp;&nbsp;MECHANICAL ROYALTIESMechanical royalties are usually earned when your copyrighted songs are physically or digitally reproduced and distributed. The fee is payable for the use of the underlying composition as we mentioned earlier. This applies to all music forms, ranging from old and new, including vinyl, CD, cassette, digital downloads, and streaming via Digital Service Providers (DSPs) (such as Spotify and Apple Music). Mechanical royalties are typically paid out by your record label if you are signed to one, or by your music distribution service provider if you are independent. Simply put, there are royalties derivable from the sale of a song. The payments are collected by the collection Agencies or Mechanical Rights organizations and then they pay a lump sum of the royalties after a certain amount of time. Royalties will normally go to the songwriter however the songwriter may have to share the royalties with other members of the band or a producer that may have been involved in the writing process. When there is a publishing agreement in place, the publisher receives a percentage before paying out the songwriter's share.PERFORMANCE ROYALTIES&nbsp;Performance royalties are generated when copyrighted songs are publicly performed, recorded, played, or streamed. In this case, the owner of the copyrighted music receives an amount whenever the music or song is played on radio, Tv, restaurants, bars, gyms, nightclubs, concert venues or otherwise used by a third party. When a 3rd Party performs someone’s song in public, with few exceptions, you have to pay for it. Music publishers will generally authorize an organization specializing in performing rights to license public performance of their works. When music with copyrights is played, streamed, recorded, or otherwise publicly exhibited, performance royalties are earned.&nbsp;<a href="#_ftn3">[3]</a>&nbsp;Digital performance royalties are fees given to the recording artist each time one of their sound recordings is played on a non-interactive digital streaming service. The Performing rights organization will issue what we call a blanket license so the song can be performed publicly. Performing Rights Organization can be said to include;ASCAP- American Society of Composers, Authors &amp; PublishersBMI- Broadcast Music, IncorporatedGMR- Global Music RightsSESAC- Originally called Society of European Stage Authors and Composers but now stands for SESAC.&nbsp;SYNCHRONIZATION ROYALTIESBefore royalties can be gotten in this situation, a license called a synchronization license must be obtained. An authorization to utilize music in "Timed Synchronization" or "Linear Relation" with visual pictures is known as a synchronization license., <a href="#_ftn4">[4]</a>it simply denotes a song used in another creative work. It is often called a sync license,&nbsp;in essence, if someone wants to utilize the composition as part of another sort of work, such as a TV show, a movie, an advertisement, or a radio broadcast, they must first obtain permission from the copyright holders.&nbsp;Pre-existing music is usually licensed, but music composed particularly for production is usually done on a flat price basis (Work for hire).&nbsp;&nbsp;Synchronization royalties are also referred to as Sync royalties, this is the money earned by musicians when a song is played in a certain circumstance<a href="#_ftn5">[5]</a>.&nbsp; The songwriter and recording artist are both paid for the use of their work in an audio-visual creation, such as a film, television programme, advertisement, or video game. Sync Royalties are paid as a one-time, upfront fee known as Sync license fees.HOW ARE ROYALTIES OBTAINED? STEPS TO OBTAINING ROYALTIESRoyalties are obtained by artists through the following means:<ol><li>The Artist creates: The artist will record a song, and the songwriter, who may also be the artist, will compose it. The artist must first compose the music before entering into a partnership with a record label or publisher to help promote and monetise their work.</li><li>Artists &amp; their representatives contact their intermediaries: The work then has to be distributed for you to be able to get your royalties. Recording artist and record label will be entitled to the master recording royalties and works with distributors to license their music to streaming platforms as we earlier mentioned while songwriters and publishers register their works with the performing rights organization so that they in turn track and collect the royalties on their behalf.</li><li>The music is played: The music is then played across platforms as consumption can take different shape and form. Played across local radio stations, streaming platforms, public performance and across different social media platforms (TikTok, Instagram, YouTube etc.) which we will look into shortly.</li><li>Intermediaries then collects and distributes royalties: The intermediaries (Distribution companies and the PROs) collects payments from music users alongside the data on how, when and what music was played. The data will subsequently be used to distribute the money collected to the proper right owner. A good example is Spotify, Spotify will track the music played on the platform and assign it to the rights holders themselves.</li><li>The Right Holders get paid: This is the final stage where the artist and the songwriters get paid, with record labels and publishers getting a particular percentage as agreed in their agreement. The PROs and distributors also take their share.</li></ol>OBTAINING ROYALTIES FROM SOCIAL MEDIA PLATFORMSNow that we have established what royalties are, the types of royalties, and the steps in obtaining these royalties, we will be moving on to how royalties are obtained from various social media platforms. When songs are played in the background of video content, those content are referred to as User Generated Content because there are created by a user of a video rather than the company/record label. User-generated content refers to any form of content that is created and shared by individuals, rather than being professionally produced or created by a brand or organization. It encompasses a wide range of content types, including text, images, videos, reviews, social media posts, blogs, and more. It has also gained significant prominence with the rise of social media and online platforms that enable easy sharing and collaboration. We will be using the popular platforms; TikTok, YouTube and Instagram as a case study because at the period of writing this article, not all media platforms are paying royalties to artist.TIKTOKIt is worth noting that TikTok has had a significant impact on the music industry as it has been very instrumental in music discovery and pushing songs up the charts. It is widely known for its dance challenges where users create and share their own unique dance routines to hit songs or specific choreography. Much of the content involves fun challenges, dances, or lip-syncing to the tune of a catchy song- otherwise known as musical memes.<a href="#_ftn6">[6]</a> Nigerian music artists have used this platform to get hit songs, songs like Buga by Kizz Daniel, who is your guy? By Spyro amongst other prominent artists. The recent trend will be that the marketing department of a label may quickly run a TikTok campaign of the latest song to ensure the song ‘blows.Record Labels and distributors consented to license agreements with the app and for the artist to receive royalties, the snippets of your song to be used as a sound on the app, it must be sent to the app by distribution companies to receive the royalties. If the song is not sent to the distributors, then the artist will not be entitled to any royalties. Unlike streaming platforms where you get paid per stream, royalties on TikTok are paid based on how many videos are created with that song and how many times the video is viewed. Basically, the number of streams is largely irrelevant. Therefore, according to the most recent data available, TikTok pays three cents for each new video in which your song is played<a href="#_ftn7">[7]</a> and the revenues to distributors are usually on a quarterly basis. By uploading content, users give permission for other users to re-use their content.&nbsp;In July 2020, Tiktok signed a licensing deal with independent distributor ‘Believe’ and its subsidiary Tunecore. Tiktok also agreed to a licensing deal with US National Music Publishers Association (NMPA) the ability to opt into a licensing framework that allows them to benefit from their works included on Tiktok<a href="#_ftn8">[8]</a>&nbsp;&nbsp;YOUTUBEOne of the most significant platforms to have your music on is YouTube. For years, it has been the most popular music streaming platform. You receive royalties from any YouTube videos that feature your music. Monetized YouTube videos provide mechanical and performance royalties for songwriters, and your publisher has the right to claim every video that uses your music on any channel, regardless of whether you personally posted it or not. No matter if it's a live performance, cover, or authorized recording, this still holds true.Once your publisher has claimed it, they will be able to monetize it (if it is eligible), and you will be able to collect royalties from it. To be eligible, your channel needs to have at least 1,000 subscribers and must also have 4,000 hours of watch. If you fit these credentials all you need to do is turn on ads because you need ads on your videos to generate royalties. However, any videos viewed through the platform's paid services, such as YouTube Premium and YouTube Music Premium, DO receive royalties.There is no universal royalty rate. It's especially tough to predict how much a video will generate in royalties in advance. It is determined by a variety of circumstances. The type of ad on the video, the location where the view occurred, the time of year, whether or not it was viewed on a paid platform, and other factors all play an impact. Generally, the more popular the video is the higher the ad rate paid by the advertiser.<a href="#_ftn9">[9]</a>YouTube also uses a technology called Content ID, whereby right holders upload their material and the software scans the videos on YouTube for a match. Youtube's Content ID technology compares a song's "audio fingerprint" to its video database. Those who used your song in their videos will then receive a "Content ID" claim if a match is identified.<a href="#_ftn10">[10]</a>Like any other streaming service, all of these royalties are automatically paid to the various collection societies across the world. In most circumstances, you won't be able to get this money without a publishing administrator.INSTAGRAM &amp; FACEBOOK&nbsp;A few music distribution systems now allow musicians to upload their music to Instagram and Facebook directly. Meta, the parent company of Instagram and Facebook, allows users to include music in their content. You can only submit and monetize tracks that you have the exclusive right to publish on both apps. Symphonic partnered with Meta (Facebook and Instagram) whereby the content is uploaded to Facebook’s rights manager to scan anyone using the content. Your content will be monetized once it is matched by the system. The content is protected, tracked and set up for monetization opportunities as it is part of the music library<a href="#_ftn11">[11]</a>.&nbsp;CONCLUSIONYou can earn royalties regardless of where your music is featured on any media platform. You're making money even if it's just playing in the background. With the advent of optimized video content across all platforms, it's critical that you collect everything you're owed as soon as possible.&nbsp;&nbsp; &nbsp;<a href="#_ftnref1">[1]</a> Caroline Banto, 2022, ‘What is a Royalty? How payment works and types of Royalties’ &nbsp;(online) Investopedia, Available from, <a href="https://www.investopedia.com/terms/r/royalty.asp">https://www.investopedia.com/terms/r/royalty.asp</a> [Accessed 7 July 2023].<a href="#_ftnref2">[2]</a> Randall D. Wixen, The Plain &amp; Simple Guide to Music Publishing, 4th Edition, pg.4<a href="#_ftnref3">[3]</a> Donald S. Passman, ‘’All you need to know about the music business’’, 10th Edition<a href="#_ftnref4">[4]</a>Donald S. Passman, ‘All you need to know about the music business’, 10th Edition, Pg.242.&nbsp;<a href="#_ftnref5">[5]</a> Andrea, sync royalties 101: Sync licensing, sync royalties and micro-sync&nbsp;(Online) Available from; https://indiy.com/sync-royalties-101-sync-licensing-sync-royalties-and-micro-sync [Accessed 30th May 2023]<a href="#_ftnref6">[6]</a> Hayleigh Bosher, ‘Copyright in the music industry, a practical guide to exploiting and enforcing rights’, pg.116<a href="#_ftnref7">[7]</a> TikTok Royalties Calculators, Sound Campaign<a href="https://soundcamps.com/tiktok-royalties-calculator/">https://soundcamps.com/tiktok-royalties-calculator/</a> [accessed 7 June 2023].<a href="#_ftnref8">[8]</a>Claudia Rosenbaum, 2020, ‘TikTok and NMPA Reach a Gobal Partnership Agreement: Exclusive’ (online)&nbsp; Biillboard Pro, Available from &nbsp;<a href="http://www.billboard.com/articles/business/9422985/tiktok-nmpa-global-partnership-agreement-music-publishers">www.billboard.com/articles/business/9422985/tiktok-nmpa-global-partnership-agreement-music-publishers</a> [accessed 6 June 2023].<a href="#_ftnref9">[9]</a>Randi Zimmerman, YouTube Monetization, ‘5 things you shoud know about YouTube Royalties’ 2022 (online) Available from &nbsp;<a href="https://blog.symphonic.com/2022/07/15/things-you-should-know-about-youtube-royalties">https://blog.symphonic.com/2022/07/15/things-you-should-know-about-youtube-royalties</a> [accessed 7 June 2023]<a href="#_ftnref10">[10]</a> <a href="https://acfreedmanlaw.medium.com/how-do-musicians-make-money-from-youtube-aaa20da607f4">https://acfreedmanlaw.medium.com/how-do-musicians-make-money-from-youtube-aaa20da607f4</a> accessed 7 June 2023<a href="#_ftnref11">[11]</a> <a href="https://support.symdistro.com/hc/en-us/articles/360018416212-Facebook-and-Instagram-Stories-Monetization-Info-">https://support.symdistro.com/hc/en-us/articles/360018416212-Facebook-and-Instagram-Stories-Monetization-Info-</a> accessed on 7 June 2023

ARTIST ROYALTIES; OBTAINING ROYALTIES FROM DIFFERENT SOCIAL MEDIA PLATFORMS

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