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These services help creators collect payment for their music whenever it is broadcast or licensed for use in other media. In the complex world of music rights, these services play a critical role in tracking usage and distributing royalties.

There are several key types of royalties that music royalty services handle: performance, mechanical, and synchronization royalties. When music is played on the radio, in a cafe, or streamed online, performance royalties are due. Mechanical royalties are collected from the sale or reproduction of music in a format like CDs or digital downloads. Sync royalties, on the other hand, are collected when songs are placed in visual media like films, TV shows, or commercials.

Notable music royalty services include ASCAP, BMI, SESAC, and SoundExchange. ASCAP and BMI are non-profit organizations specializing in performance royalties while SESAC works exclusively with invited artists. SoundExchange, meanwhile, specializes in collecting royalties from digital platforms making it essential in todays streaming-centric commercial music solutions industry.

By charging businesses and streaming services fees, these companies make sure artists are compensated when their work is used.

In short, music royalty services support creators by tracking music use and distributing earnings, allowing artists to focus on their craft.

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