US performing rights organization SoundExchange distributed $269 million in digital royalties to creators in the second quarter of 2023.
The distribution marked a 17% over one year increase compared to the same period last year, SoundExchange said in a press release.
This helped H1 2023 distributions reach $498 million, up 7.1% from H1 2022’s $464.9 million.
SoundExchange, the only entity authorized by the U.S. government to oversee sound recording licensing under Section 114, is responsible for the collection and equitable distribution of non-interactive digital performance royalties to musicians and licensees. rights.
Since its founding in 2003, SoundExchange claims to have paid more than $10 billion directly to a global community of more than 650,000 music creators.
In addition to monetary distributions, SoundExchange also offers a suite of services aimed at streamlining the music industry.
These services include regular monthly distributions, flexible mobile payment options and administrative fees that it describes as “the lowest” in the industry.
As of 2022, the organization has collected $1.017 billion in digital royalties from more than 3,600 streaming platforms on behalf of approximately 600,000 artists like Ludacris and Billie Eilish.
“In doing so, the company crossed the $9 billion threshold for royalty distribution since its inception in 2003,” Chairman and CEO Michael Huppe said in July.
At the time, Huppe attributed the increase to last year’s resurgence of live music and the organization’s efforts to promote fairness for creators in the U.S. Congress.
Elsewhere, last month, SoundExchange filed a lawsuit against US satellite radio service SiriusXM over $150 million in unpaid royalties to artists and rights holders.
The focus of the lawsuit revolves around SiriusXM’s online streaming service. SoundExchange contends that SiriusXM disproportionately allocated a substantial portion of its revenue to its streaming service, rather than its satellite radio service.
SiriusXM has since responded to the allegations, saying it was “surprised” and “disappointed” by the lawsuit, arguing that its method of calculating the royalties it owes is “rigorous, tested and fair.”
Last year, SoundExchange emerged victorious in its legal battle against Slacker, Inc. and its parent company, LiveOne, in the U.S. District Court for the Central District of California. The lawsuit was filed by SoundExchange seeking relief for unpaid royalties owed to creators and rights holders.
As a result of the October 2022 court ruling, Slacker and LiveOne were ordered to pay $9.7 million in previously unpaid royalties to performers and rights holders.
RIAA data released Monday (Sept. 18) showed that U.S. digital and custom music revenues, including SoundExchange distributions, increased 16% to $657 million in the first half. This category also includes revenue from services like SiriusXM and Internet radio stations.
Music Business Worldwide