How Music Royalties Really Work
How Music Royalties Really Work Transcript
00:00:03 – 00:16:18
What up Smart Rapper gang? Let’s talk about how royalties work in music. There’s money to be made from morphing a Spotify that you’re not actually collecting. That’s a whole different conversation. But I’ll mention in this, you have money just sitting on a table right now that you could be in your pocket. All right. I’m Rob. It is Smart Rapper.
00:16:18 – 00:39:11
Lets talk about it. Each month. The streaming services keep track of how many streams that they have had. Now, let’s do an easy example. So easy I could text while I’m doing it on the phone. An easy example is that all the music on Spotify, let’s say it was all played a total of just 1 million times last month. Okay? Obviously they have billions and billions of dollars in numbers, but was keeping it simple right then they look at how many of those streams were your record companies?
00:39:11 – 00:59:19
Masters? Masters. The ones that were uploaded, who owned those? If your company had 300,000 streams of those total 1 million streams, you would get 30% because you had 30% of the total streams, right? Next, Spotify looks at how much money they made that month from subscription money advertising revenue. Let’s say that the amount of money they made was $1 million that month.
01:00:05 – 01:16:21
Now they’re actually they’re going to pay that record company based on how many times the Masters were played. So if it was 30% of all the streams that happened on Spotify were theirs, then they would get $300,000, 30% of a million. Okay, That’s how it’s calculated, right? The record company then looks at how many times each artist’s music is streamed.
01:16:22 – 01:38:08
Then they break it down. And now we’re at a record company. Now. Now they have this money. And now what they’re going to do is they’re going to look at how much each one of the artists that assigns to that label’s music was streamed. Okay. So if there was 300,000 streams total for that, for that record label, if you as artists under the label only had 60,000 those streams, you get 20% of those.
01:38:08 – 01:58:14
So you would get $60,000, which is 20% of the $300,000, right? That’s how it works. And then that goes towards whatever your contract is and stuff like that. That’s how that works. All right. That hurt me. Then the record company then adds your royalty rate to the $60,000 that is credited to your masters. Okay. So if your royalty rate was 10%, you would get like I said, it comes down to the other stuff in the contract.
01:58:14 – 02:14:15
You’re going to get 10% of $60,000. So then you’re going to make $6,000. No! Again, these are not real numbers. These are simple numbers to help you understand it easier. Okay. But even if you take out the record company Peace major streaming artist can still make a lot of money from streaming. But let’s talk about the problem with this.
02:14:15 – 02:30:05
It comes down to when labels are faking their numbers. Extremely. Faking the numbers is because they know that. They know if I can get we get more streams, we get a bigger cut in percentage of the money that Spotify pays out. And that’s why them cheating is like completely unfair to every single independent artist that exist. And they just got caught doing this.
02:30:05 – 02:44:19
So I’ve been telling you this stuff for years. But anyway, he’s kind of a smarter, smart rapper. Oh God, did you know that I have over 100 masterclasses held music artists just like you and me get from wherever you are to where you want to be. And this stuff covers every single possible area you can think of, and it’s free to check out.
02:44:19 – 02:59:00
If you click this video, it’s going to show you all the different masterclasses that I have. And I know at least one of them is going to be right for you. Right click this video. I’m Rob Level from Smart rapper 450,000 subscribers, almost 50 million views can’t be wrong. Click this video, check it out and keep hustling. I’ll see you at the top.
Keep hustling, and I’ll see you at the top!
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