The distribution and publishing revenue ratio is not 1:1. When interactive streaming services pay for each stream, the sound recording and musical composition don't get an equal share. Music rights receive approximately 70% of their total US revenue. The sound recording receives most of this amount, while the musical composition generates about 10.5% of the revenue. The composition rate is split between mechanical and performance royalties. Half the performance royalties are paid to the songwriter by their local PRO (like ASCAP or BMI). UniteSync Publishing collects the publisher's share of performance revenue and all mechanical revenue. This is an example of US revenue, while foreign revenue will vary in some ways.
For example, if there is $100 of revenue on an interactive streaming service, the breakdown is approximately as follows:
- $30.00 stays with the digital service provider
- $59.50 was paid to the sound recording
- $10.50 paid to the composition
- $2.625 performance royalty (writer's share)
- $2.625 performance royalty (publisher's share)
- $5.25 mechanical royalty
The total royalty pool available each month varies based on the service and several factors specific to that service (like the number of total streams, subscribers, and advertising revenue).
For distribution revenue, a digital service provider reports an entire month's sales to UniteSync on a two-month delay. So, if a stream happens in January, the money and sales report will arrive in March.
UniteSync receives publishing royalties for publishing revenue according to hundreds of societies' individual distribution schedules. These schedules can differ from society to society, but the standard society schedule usually works every quarter. So, UniteSync receives, processes, and pays out royalties 45 days after each quarter on the following basis:
- Q1 = January - March (paid in mid-June)
- Q2 = April - June (paid in mid-September)
- Q3 = July - September (paid in mid-December)
- Q4 = October - December (paid in mid-March of the following year)
It usually takes 6-9 months to receive the first royalty payment. For foreign societies, it can take up to 12-18 months. This is a standard timeline for publishing. The timeline allows registering songs at global societies, processing writer and song information, and processing payments. Finally, our royalties department processes payment.
