AudioMicro presently pays 50% of all cash received back to it’s artists on a monthly basis. For comparison purposes, we will list the royalty percentages and payout patterns for various other types of music licensing:
- For iTunes like downloads from digital music stores – including iTunes, Amazon, eMusic, Walmart, etc. the artist typically receives a 10% royalty. But wait a minute, this 10% comes from the net amount received by the record label. Record labels typically receive around 70 to 60 cents from each 99 cent download, thereby leaving the artists with only 7 to 6 cents per iTunes sales.
- For ring tones, artists typically receives 10% of the amount received by the record label. For instance, if a ring tone costs $1, the record label will received around 50 cents and the artist will receive around 5 cents. For a standard recording contract, the artist typically nets 10% of what the record label receives.
- For Audio streaming services like Pandora, and Project Playlist, as well as video streaming services where advertisements are displayed along with the music streaming, the amount that gets paid to the artist is still in negotiation, and not yet set. In short, the artist can expect to also receive 10% of the net revenues received by their record label, for their pro-rated portion of the streams. The interesting thing to note in regards to music streaming services and satellite radio (Sirius and XM being the largest) is that the record label and the artist are paid by a government sponsored entity known as Sound Exchange. In contrast to traditional radio, the royalties are paid not to composers and publishers but to the performers (artsts) and the copyright holders (typically the record label).