These industries pay to use music and their fees pay your royalties. There is
no exact dollar figure on what you will make per play, as there are many varying
calculations to be made for each performance situation. I'm going to use Radio
Play as an overview to help simplify it for you. All industries which license
music for use, pay varying licensing fees, some a flat rate, and some by survey.
As most of you know, radio has major market stations and smaller market
stations. Within all radio formats there are BDS stations. These are the reporting
stations whose airplay is what our "charts" are based on. SOCAN does not base
its royalty structure on charts. For tracking airplay on radio, SOCAN surveys
a number of stations across the country within all genres. These stations are
required to record each and every song they play for one full week. They also
track the artists' name, songwriting and publishing information as well as song
duration. So, in essence, if your song was getting airplay from any of the surveyed
stations you are in luck, if you are registered. Each song receives credits per
usage. A single credit is measured against the total number of credits in that
pool (Country/AC/POP etc) and divides it into the total dollar amount they have
received in licensing for that market, and the total, is the dollar amount per
credit. Often times it takes 7 - 10 months to process the data, so if you expect
to see a large royalty cheque within the first quarter your song is receiving
airplay, you will be disappointed. Calculations are made on a quarterly basis
(January - March, April - June, July -Sept and Oct -Dec). If you are in Canada
and don't register with SOCAN, you might as well donate all your songs to charity.
SOCAN also collects royalties for any performances outside of Canada as well,
through their affiliations with other royalty collection agencies.
The
whole royalty pie is comprised of 2 halves. One is the writers royalties, the
other publishing. If you are self published, you own the whole pie. If you co-
wrote the song, you have a 50/50 split. If three folks worked on the creation
of the song, its 33.3 % and 4 writers is 25% - with their publishing companies
getting half of those figures. I know it's starting to sound complicated but it's
not really. Now lets go back to those radio credits. If you wrote the whole song
and are self published, you get the full credit. If you co wrote the song you
get half the credit.
We
often get asked how to break down the co-creation of a song. How much are lyrics
worth versus the music? Generally speaking music composition is half the song
and lyrics the other half. Most of the credible songwriters we have worked with
will never nickle and dime over who contributed more or less to a song. If you
are in a room creating a song with someone, then it's a 50 50 split. Even if they
only added 1 word. That's how most folks do it. But its not always the case. The
least value you can attribute for ownership is 10%. Artists who record your songs,
on the other hand do not make any royalties from airplay unless they are powerful
enough to be able to negotiate some of your pie.
So,
to sum it all up, to broadcast a song on radio, TV or other public performance,
the broadcaster pays a fee to SOCAN. SOCAN in turn, monitors and records this
airplay and pays you, the copyright owner, royalties for your songs' use. If you
don't register your works, you will not receive royalties. Simple as that.
Now…
record sales…hmmm that might have to be another article.
For more information
on how your songs make money, visit the SOCAN
website.