How is SoundExchange different from other performance royalties organizations?

SoundExchange provides a service similar to what BMI, ASCAP and SESAC do, but they license a different type of work. According to Bill Holland, Outreach Consultant for SoundExchange, “While BMI, ASCAP and SESAC pay songwriters and their music publishers,” he says, “SoundExchange pays out to performers (recording artists) and copyright owners of the actual material, usually a record company, big or small. € He adds.

€œFor the first time ever, artists get paid directly. It used to be that artists’ royalites would go back to the record company. If the artist happened to still owe money for recording, publicity or other services, the actual artist would not see any of the earnings,” he emphasizes.

Here’s an example: If you hear Patsy Cline singing “Crazy,” which was written by Willie Nelson, on terrestrial radio, Willie will get a check from BMI because he’s the songwriter, but Patsy gets nothing. But if you hear Patsy Cline’s “Crazy” on XM Radio, Patsy’s estate is paid by SoundExchange ... more.

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