SoundExchange, the D.C.based national group that collects and distributes digital performance royalties to recording artists and labels, has contacted 2,000 more recording artists since last winter. The non-profit group now has 31,000 payees. The new figure includes many local recording artists, from Bill Kirchen and Ruthie and the Wranglers to Big Joe and The Dynaflows and Jon Carroll.
The mushrooming growth of satellite and digital radio services have boosted royalty revenue from $3 million back in 2000 to $63 million in 2006 and an astounding $130 million last year. Artists and record companies split the royalty income 50-50. Most of the record companies are small indie labels, SoundExchange's administrative expenses are the lowest of any collection group in the world, about 6% this year.
Executive Director John Simson, a WAMA founding member, suggests that any local recording artist who's heard that they're getting played on XM or Sirius satellite radio and webcast radio should check the group's website (www.soundexchange.com). There they can log into its "Plays" function to see if they have royalties. If so, they should sign up. They can also call SoundExchange (in D.C.) at 202 640 5858.
The Copyright Royalty Board (CRB) recently handed down a decision about the rate satellite radio must pay to play their recordings. After listening to testimony for months from both sides, the CRB tripled the rate for the music-heavy service from 2% of gross income to 6%. Artists get paid directly.