Business Affairs

Music Publishing Administration

Performance Royalties for Commercials

Collecting performance royalties for music in commercials is a specialized process that has rapidly evolved in the last few years due to digital monitoring services, fingerprinting and watermarking, eligibility for payment requirements, and the explosion of new streaming devices.

Advertisers who commission original music frequently don’t realize that royalties can be collected from commercial music or the best way to go about retrieving that money. Missed revenue on heavily played commercials can be very significant – even to the tune of paying back the full cost of music production.

Successful commercial royalty collection takes a lot of experience, thorough analysis of distribution statements, regular contact with the U.S. Performing Rights Organizations (PROs), and staying up-to-date with new technologies and game changers in pursuit of every available avenue to get our clients the maximum return on their music assets.

The TEAM Companies music experts harvest the maximum performance income by:

  • Timely and accurate song registrations along with submission of complete performance data
  • Sending ASCAP, BMI, and SESAC any newly listed critical Competitrack information
  • Detailed auditing of royalty distribution statements
  • Prompt and thorough follow-up to address discrepancies or missing payments
  • Turnaround of your royalty income within 21 days of distribution!
  • Keeping informed with technology and business practices through active memberships with the California Copyright Association, the Association of Music Producers and the Production Music Association.

It’s What You Know

Royalties are a bit like snowflakes. There are several types and each is unique in its own way. Similar to licensing, primary royalty categories are Master and Publishing. Within each category, there are several royalty types. The primary Publishing royalties include:

Performance Royalties — Performance royalties are collected when songs are broadcast (i.e. Radio & TV) or performed publically (i.e. live event or tour).

Mechanical Royalties — This is money earned when a song is sold on a physical “mechanically produced” medium (such as a CD). However, this definition has been broadened to include downloads and songs streamed on the internet.

Print Royalties — This money is earned when a composition is printed on paper for purchase (i.e. Sheet music or a famous lyric is printed on a shirt and sold).