News
Our 2023 Label Odyssey
The music industry is a labyrinth of creativity and complexity, especially when it comes to the rights and royalties that fuel the livelihoods of artists and labels alike. Today, I’m not here to offer generic advice – instead, I want to take you through our label’s transformative journey through 2023 as we navigated the ever-evolving royalty landscape. Our insights might serve as a beacon for some, or at the very least, document our launchpad into 2024.
Written by Sydney Allen, Sr. Royalty Analyst at Spyll Records.
Introduction
The music industry is a labyrinth of creativity and complexity, especially when it comes to the rights and royalties that fuel the livelihoods of artists and labels alike. Today, I’m not here to offer generic advice – instead, I want to take you through our label’s transformative journey through 2023 as we navigated the ever-evolving royalty landscape. Our insights might serve as a beacon for some, or at the very least, document our launchpad into 2024.
Our Initial Struggles with Royalties:
Before the inception of our record label, our founder, an independent artist, embraced the digital realm with TuneCore to distribute music to Digital Service Providers (DSPs). This platform came with its caveats—exclusive rights to collect royalties without a traditional contract and high commission fees that ate into our earnings. The distributed releases had an expiration date, yet the royalty agreements persisted in perpetuity.
A Shift to Clarity and Fairness:
Transitioning to Symphonic Distribution was a game-changer. We bade farewell to exorbitant fees and welcomed a surge in our royalties. Symphonic’s platform is not only user-friendly but also imbued with the transparency we longed for. Direct membership with SoundExchange and the Mechanical Licensing Collective (MLC) proved to be a windfall, unearthing hundreds of dollars in uncollected past royalties – a feat TuneCore had missed.
The Verdict on Royalty Collection Methods:
Drawing from our encounters with third-party administrators and direct collection, the latter has triumphantly emerged as the superior path. We’re now reveling in the fruits of minimal fees, enhanced efficiency, and profound independence. It’s a powerful trifecta that every artist and label should aspire to.
Looking Forward:
The industry’s scaffolding is far from perfect, which is something we certainly felt after establishing our own publishing entity. We are, however, keen observers of SoundExchange’s progression with the advent of SX Works. Our anticipation is brimming for the MLC to unveil global collection mechanisms akin to those in some countries where advanced bodies exist.
Data-Driven Insights:
We’ve learned that dissecting your DSP and UGC analytics can reveal discrepancies between expected and actual royalties. It’s a practice we plan to delve deeper into this year, determined to uncover and rectify any disparities.
Our Successful Licensing Partnership:
Aligning with Musicbed has been a strategic and lucrative move. Not only has this partnership yielded a steady royalty stream, but it has also fortified the recognition and rights of our artists, ensuring they’re compensated and acknowledged when their music is used both commercially and privately.
Conclusion:
As we look to the horizon of 2024, our label’s journey underscores the importance of due diligence and the power of informed decision-making in the music industry. With an unwavering commitment to exploring and amending the fissures in royalty collection, we extend an invitation to join us in this perpetual odyssey.
