Record Labels, Artists Reach Services Accord
Major record labels and artists have agreed on a standard for paying royalties earned from cable and satellite music services.
Under the pact, an artist’s share of money collected from such outlets will be paid directly to the artist, instead of being paid to the record label for later distribution. That means performers would receive these royalties even if they have not paid back advances from their record companies.
The artists’ payments will be based on the number of times an artist’s song is played on the services, according to a spokesman for the Recording Industry Assn. of America.
SoundExchange, formed by the record industry last year to collect the online royalties, made its first payment of $5.2 million to acts and labels on Oct. 15.