In the United States, singers and other recorded-music copyright owners typically do not receive direct payment or performance royalties when their songs are played on terrestrial AM/FM radio stations. This unique situation makes the U.S. an outlier globally.
For decades, the United States has stood alone among major countries in not requiring terrestrial radio stations to pay performers or the owners of sound recordings for public performances of their music. This means that while the song is being broadcast to millions, the artist whose voice and performance are on the track, and the record label that invested in its production, generally receive no compensation for that specific airplay.
The US Terrestrial Radio Exception
This lack of performance royalties for performers and sound recording owners on U.S. terrestrial radio stems from historical legal frameworks. Unlike most other nations, where such payments are standard, the U.S. system has been a notable exception. This means that for a singer, a play on a local AM/FM station in the U.S. does not directly translate into income for their performance.
Who Gets Paid for Radio Plays in the US?
While singers and record labels don't get paid for terrestrial radio spins in the U.S., other parties involved in the music creation process do:
- Songwriters and Music Publishers: These individuals and entities own the copyright to the musical composition (the melody, lyrics, and underlying structure of the song). They receive performance royalties through performing rights organizations (PROs) like ASCAP and BMI. These PROs collect fees from radio stations and other public performance venues, then distribute royalties to their affiliated songwriters and publishers.
- The Difference: It's crucial to distinguish between the copyright for the sound recording (owned by the singer/label) and the copyright for the musical composition (owned by the songwriter/publisher). U.S. terrestrial radio pays for the latter but not the former.
How Other Forms of Radio and Countries Differ
The situation changes significantly when considering other forms of radio or international markets:
- Digital and Satellite Radio (US): Services like SiriusXM and online webcasters (e.g., Pandora, iHeartRadio's digital streams) do pay performance royalties for sound recordings. These royalties are collected and distributed by SoundExchange to artists, session musicians, and record labels.
- International Terrestrial Radio: In nearly every other major country worldwide, terrestrial radio stations are required to pay performance royalties to both songwriters/publishers and performers/recorded-music copyright owners. These royalties are typically collected by collective management organizations (CMOs) in each respective country and then distributed to the rights holders.
Understanding Music Royalties
To clarify the various income streams, here's a simplified breakdown:
| Royalty Type | Recipient(s) | Source | U.S. Terrestrial Radio | Digital/Satellite Radio (U.S.) | International Terrestrial Radio |
|---|---|---|---|---|---|
| Performance Royalties | Songwriters, Music Publishers | Public performance of the composition | Yes | Yes | Yes |
| Performance Royalties | Singers, Record Labels | Public performance of the sound recording | No | Yes | Yes |
| Mechanical Royalties | Songwriters, Music Publishers | Reproduction of the composition | (N/A for airplay) | (N/A for airplay) | (N/A for airplay) |
| Synchronization Royalties | Songwriters, Publishers, Labels | Use of music in visual media | (N/A for airplay) | (N/A for airplay) | (N/A for airplay) |
In summary, for a singer, a play on traditional AM/FM radio in the United States yields no direct payment for their performance. However, plays on digital radio platforms or terrestrial radio stations outside the U.S. generally do generate performance royalties for them and their record label.
