Skip to main content


Showing posts from October 4, 2015

Who Really Owns Music - Part 3.5-4 The Conversation Now Transparency, Fairness, and The Future

Payments, Complicated - A Thought Experiment (Part 3.5 - 4 by Glen Sears) Remember you Elvis-only streaming service? Now that you know about payments, what would it be like for you to pay royalties on a single stream of "Heartbreak Hotel?" Let's make up one possible scenario. (Disclaimer: this is not an actual breakdown of the "Heartbreak Hotel" ownership stack, and is only for the purpose of example.) Your company makes $1 per play of "Heartbreak Hotel.' In reality the number is many times smaller than that, but for this example we'll embellish (we wish music plays made that much). Your sound recording license deal stipulates a 60% payment to RCA Victor, so $0.60 goes to them. In addition, you owe royalties to the songwriters: Presley, Axton, and Durden. Let's say Presley and Axton are with Warner/Chappell, and Durden is with Sony/ATV. Each songwriter hold an equal share of the composition rights. The mechanical royalty rate (set by