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Royalties and Radio: Public performances generate performance royalties for songwriters, which are collected by the PROs (ASCAP, BMI, or SESAC). In the US, terrestrial broadcasters (AM or FM stations) do not pay performers or sound recording copyright owners; they only pay the songwriters.

In the US, those are split 50/50, which means that a songwriter that doesn't have a publisher will only earn 50% of potential royalties. When the songwriter signs with a publisher, they are able to unlock the other 50%, but they generally have to transfer a part of their publisher's share to their publisher.

Radio Royalties: How Do Radio Stations Pay Artists? How do radio royalties work? Radio acquires a blanket license(s) from its local PRO(s) A song is played on a radio, and the airplay is reported to a PRO. The PRO distributes royalties and songwriter gets paid. The songwriter is paid the royalties due.

The streaming music royalty for the music composition is split between PROs as a Performance Royalty and publishers as a Mechanical Royalty after the publisher takes their cut for collecting the money in the first place. PROs then subsequently pay the appropriate splits to the songwriter and publisher of the song.

?In Hot AC and Top 40, could be anywhere from $1,000 to $2,000 depending on the competition.? Two other radio veterans estimated that the total cost of promoting a song to ?urban? radio and transforming it into a hit was between $100,000 and $125,000.

Radio advertising costs average from $200 to $5,000 per week depending on location, ad length, and the size of the listening audience. Producing radio commercials costs from $1,000 to $2,500 depending on inclusions like music, voice actors, and editing, but some stations have in-house resources to cut your costs.

The simple answer to the question: ?Do radio stations have to pay royalties?? is yes. These stations, often funded by charities or commercial advertisements, need to pay to purchase a blanket license from a group called the Performance Rights Organization.

Usually, the cost is around 1.7% for each license, though rates may be subject to negotiation. After purchasing the blanket license, the radio plays its songs, and reports the songs aired back to the RPO.

Performance Royalty ? A songwriter receives a performance royalty when their song is performed on terrestrial broadcast radio, in a live performance venue, or via online streaming services.

But the company estimates that the average song generates between $0.006 and $0.0084 per stream in royalties. Spotify says a band with a ?niche indie album? generated $3,300 in royalty payments in July, while a classic rock album earned $17,000.