In this segment of his lecture at a music educators conference at Loyola University New Orleans, entertainment attorney and educator Mark Davis explains how artists and their labels profit from sales of sound recordings and the licensing of those recordings. He also makes some predictions as to how the shift from terrestrial to digital radio will enable record companies to collect additional royalties.
For Physical Recordings & Permanent Digital Downloads:
The current statutory mechanical royalty rate for physical recordings (such as CDs) and permanent digital downloads is 9.1¢ for recordings of a song 5 minutes or less, and 1.75¢ per minute or fraction thereof for those over 5 minutes. This is then multiplied by the number of recordings you wish to make. For more information about the statutory mechanical royalty rate, click here.
You can use the calculator below to determine the mechanical royalties due per song for physical recordings and permanent digital downloads for a certain number of recordings. Please note that there is a minimum number of licenses that must be obtained through HFA’s Songfile, and there is also an additional processing fee that is dependent upon the number of songs you are licensing in a single transaction. For more information on Songfile licensing, click here.
You can calculate your royalties here.