“The U.S. is one of only four countries (China, Iran, North Korea, and the U.S.) that does not pay broadcast performance royalties to musicians.” (Newsy) Still referring to the royalties generated by Sound Recordings, in the United States, Neighbouring Rights are not collected because of the strong lobbying of broadcasters, as they argue that it is “free” advertising for artists.*
In 2003, SoundExchange was created and it is the sole organization that collects digital performance royalties, which are royalties paid to sound recording owners, performing artists, and featured musicians when their songs are played over digital and satellite radio in the U.S., such as Pandora, Sirius, and iHeartRadio.
“SoundExchange collects the royalties and then passes them on to artists and rights owners. Under the law, 45% of performance royalties are paid directly to the featured artists on a recording, and 5% are paid to a fund for non-featured artists. The other 50% of the performance royalties are paid to the rights owner of the sound recording.” (SoundExchange)
* As of December 7th, 2022, the “House Judiciary Committee Approved Bill Requiring Radio Stations to Pay Royalties to Performers”. (Variety)