Director of Marketing


Last year, the US Copyright Royalty Board ([CRB](https://www.crb.gov/)) set a new mechanical royalty rate for streaming services to pay songwriters and music publishers. [The new rate of 15.1 percent](https://variety.com/2022/digital/news/copyright-royalty-board-streaming-royalty-publishers-songwriters-1235308088/) was set for 2022 and had increased steadily from 11.4% in 2018. Streaming services paying the old rate before the decision was required to backpay the difference.

Although Spotify, Google, Amazon, and Pandora [kicked](https://variety.com/2020/music/news/spotify-amazon-songwriter-royalties-court-appeals-1203528044/) against the increase, the National Music Publishers Association (NMPA) even hopes the rate increases to 20 percent for 2023–2027.

This news may cause anyone outside music circles to wonder and ask specific questions. Questions like: What are mechanical royalties? Why are they important? Why was an increment so necessary? Why did giant streaming services fight the increment? If you have these questions and more, read this comprehensive article to learn all about mechanical royalties.

## Mechanical royalties: What are they?

[Decades ago](https://thejacobsonfirmpc.com/the-brief-history-of-mechanical-royalties-and-music-in-the-u-s/), when a label wanted to sell a piece of music, they would need to reproduce the record on a blank vinyl disc mechanically. In other words, the label would have to compensate the songwriter for their composition whenever they had to print new discs. This gave rise to what is known as mechanical royalties.

Years later, compact discs (CDs) would replace vinyl records, and it wouldn't be long before CDs would be phased out by digital formats such as downloads and music streams—especially the latter. This is why the news about the increase in mechanical royalties strongly concerned streaming services. These royalties represent a payment to songwriters and music publishers to reproduce their compositions. This means that when a recorded song is produced in physical formats (e.g., CDs and vinyl records) or digital formats (e.g., downloads and streams), it is expected that the songwriter and publisher would earn mechanical royalties.

Mechanical royalties are a significant source of income for musicians, songwriters, and composers. They play a crucial role in compensating artists for the reproduction and distribution of their musical works.

![CD](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/mechanical/Cover.webp)

## How do mechanical royalties work?

The calculation of mechanical royalties varies from region to region and is subject to specific legal and industry regulations. In the United States, for instance, the Copyright Royalty Board often determines the rate. Other countries may have different rates or adopt a negotiated approach between the rights holders and the users.

Mechanical royalties are often considered the cousin of [performance royalties](https://talentir.com/blog/performance-royalties), but performance royalties are owed to musicians only when they perform their work publicly—however, both royalties sync in cases like music streaming. For instance, if a Spotify user selects a song to listen to, that selection would trigger performance and mechanical royalties. Performance royalties because since the listener doesn't own the music, the song at that point qualifies as a public performance. On the other hand, mechanical royalties are also triggered because for the listener to play the track, Spotify must reproduce the underlying composition.

But one significant distinction for mechanical royalties is the listener's choice. This means that if the listener doesn't have the option to select what they listen to, no mechanical royalties would be owed. This is why non-interactive streaming services do not pay mechanical royalties since they broadcast, not reproduce, compositions.

So if all platforms are not required to pay mechanical royalties, what factors determine who pays?

## The channel of mechanical royalties: Who pays? Who collects?

Although mechanical royalties are due to composition owners, they do not collect them directly from the entities that reproduce and distribute the music. This implies that mechanical royalties go through certain channels before getting to the songwriter. One entity pays, and another collects and distributes.

### Who pays mechanical royalties?

Paying mechanical royalties depends on the context of use and is primarily the responsibility of the party reproducing and distributing the music. This includes record labels, streaming services, online stores, and physical distributors. For physical and digital sales, the record label pays the royalties. But in today's world, only a small proportion of mechanical royalties are paid this way. A significant chunk is allocated to streaming services. So, when Spotify or Amazon adds a song to its library and allows users to access it, it becomes responsible for paying mechanical royalties to the appropriate rights holders. In other words, every time the user hits play, Spotify or Amazon would have to compensate the rights holders in mechanical royalties.

### Who collects mechanical royalties?

Like who pays mechanical royalties depends on the context of use, and who collects the royalties is also determined by the same. For physical and digital sales, mechanical royalties are collected by the same Performance Rights Organizations (PROs) that collect performance royalties. Notable PROs include Broadcast Music Inc. ([BMI](https://www.bmi.com/)), the American Society of Composers, Authors, and Publishers ([ASCAP](https://www.ascap.com/)), and the Society of European Stage Authors and Composers ([SESAC](https://www.sesac.com/)).

However, it is different for streaming services since the collectors of mechanical royalties can vary depending on the region. For example, in the United States, mechanical royalties are collected by mechanical royalty collection agencies such as the [Harry Fox Agency](https://en.wikipedia.org/wiki/Harry_Fox_Agency), which represents all the major music publishers. But in European countries like France or Germany, a single body like [SACEM](https://www.sacem.fr/) or [GEMA](https://www.gema.de/) collects mechanical and performance royalties.

It is important to note that whether the song is reproduced physically or digitally, the collecting entity is responsible for distributing the royalties to the rights holders.

## Mechanical royalty rates

In the US, from 2023 to 2027, [the statutory mechanical royalty rate](https://www.billboard.com/pro/songwriter-royalties-raised-cds-vinyl-mechanical-rate-12-cents/) set by the Copyright Royalty Board is 12.0 cents per track or 2.31 cents (whichever is greater) for each minute of playing time for physical recordings. For 2018 to 2022, it was 9.1 cents or 1.75 cents per minute for songs over 5 minutes. This rate applies only to physical recordings (vinyl, CDs, DVDs, etc.), downloads, and ringtones. For ringtones, the statutory royalty is 24 cents.

However, [for interactive streaming](https://www.law.com/2023/03/13/music-rates-and-royalties-2023-past-present-and-future/), the royalty rate is set differently and depends on several factors. These factors include the revenue of the digital music service, the fee a streaming platform pays to license and use the master recordings of compositions, the type of streaming offered, the number of subscribers, and so on.

A complex calculation determines the mechanical rate for interactive streaming services. For ad-based streaming services, the rate would be determined by selecting the higher value between a specific percentage of the digital music service's revenue and a specific percentage of the licensing costs related to the master recordings of the compositions. This entails expenses directed mainly toward record companies that possess and/or manage these masters, recognized as Total-Content Costs or "TCC."

The calculated rate would be adjusted by deducting the funds allocated for acquiring public performance rights, encompassing payments made to performing rights organizations like ASCAP, BMI, and SESAC. This is how the CRB arrived at 11.4% for 2018, that increased annually till it reached 15.1% in 2022, which is also the rate for 2023. This rate will increase annually till it gets to 15.35% in 2027.

For subscription-based services, the mechanical royalty rate is calculated as per-subscriber penny rate royalty multiplied by the number of subscribers.

### Mechanical royalty rates in different regions

[In the UK](https://www.curveroyaltysystems.com/royalties-101-recorded-music/lesson-8-mechanical-royalties-for-master-rights-holders#:~:text=For%20example%2C%20in%20the%20UK,6.5%25%20of%20the%20Retail%20Price.), the mechanical royalty rate for physical reproductions has historically been approximately 8.5% of the dealer price or 6.5% of the retail price. However, due to the shift in digital music and streaming, mechanical royalty rates can be more complex, considering factors like advertising revenue and subscription fees. For digital reproductions, streaming platforms such as Apple and Spotify are responsible for ensuring a general license agreement with the local mechanical society within the region.

[The EU](https://www.royaltyexchange.com/blog/mechanical-royalties#:~:text=In%20Europe%2C%20the%20mechanical%20royalty,currently%20is%208.712%25%20of%20PPD.) has a similar rate for physical reproductions as the UK. The rate sits at 8.712% of the dealer price. However, EU countries are at liberty to vary their rates. For example, some countries might set their mechanical royalty rates at around 6-12% of the suggested retail price. In contrast, others might calculate royalties based on the wholesale price or the price that music distributors pay to the record label. Some countries also have different rates for physical sales (like CDs and vinyl) versus digital sales. The rates depend on the streaming platforms for digital reproductions, just like in the UK.

### Does YouTube pay mechanical royalties?

YouTube generally pays mechanical royalties to songwriters and publishers. However, YouTube and its [Content ID](https://talentir.com/blog/content-id) system do not pay mechanical royalties directly; YouTube typically pays those to mechanical rights organizations, which then distribute the royalties to the appropriate parties.

Moreover, [monetized YouTube content](https://talentir.com/blog/youtube-royalties) can also trigger micro-sync royalties—an unconventional combination of performance and mechanical royalties—when music is synchronized with visual media. But generally, micro-sync royalties are a subset of [synchronization royalties](https://talentir.com/blog/synchronisation-royalties), a distinct type of royalty of their own.

## Understanding royalties through the eyes of Talentir

Talentir is the pioneering platform that transforms YouTube videos into tradable assets because it recognizes the significance of empowering artists and creators to optimize their royalties. Through Talentir, creators and artists can share and trade ownership fractions of their videos with their community, fostering an intimate and genuine bond with them. This innovative approach allows for scalable royalties, reaching a broader audience of fans. As more individuals own and engage with a video, its popularity and profitability naturally soar. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## Final words

Mechanical royalties serve as a crucial lifeline for artists and songwriters, providing compensation for the use of their creative works. Understanding how these royalties work, who pays and collects them, and their significance in the digital era can empower creators to protect their rights and seek fair compensation. As the music industry continues to evolve, artists and stakeholders must collaborate and find innovative solutions that ensure a sustainable and equitable future for the creators of the melodies that enrich our lives.

## FAQs

### What is the difference between mechanical royalties and masters?

Mechanical royalties are payments to songwriters and publishers for the right to reproduce their compositions. This typically happens when a song is recorded and distributed in physical or digital formats such as CDs, vinyl records, and streaming platforms. Masters, on the other hand, refer to the actual recorded performances by artists and are licensed separately for use in various formats.

### How much are mechanical royalties?

The mechanical royalties can vary based on factors like the country, sales or streaming volume, and the contract terms between the songwriter and the publisher. It's important to note that different music rights organizations collect and distribute many mechanical royalties, which may have additional fees and impact the final amount received.

### How to collect international mechanical royalties?

International mechanical royalties can be collected through performance rights organizations (PROs) or mechanical rights organizations (MROs) in each country. Some companies also specialize in helping artists collect royalties globally. Collecting international mechanical royalties can be complex, as it involves navigating various international copyright laws, licensing agreements, and collecting societies.



In the current digital era, the need to monetize your works of art while protecting your copyright must be balanced. YouTube achieves these two goals with content ID. So, naturally, before you upload your content on YouTube and start using content ID, it's essential to understand how it works, what it can and can't do, and, most importantly, how you can use it to your advantage. We'll explore everything you need to know about YouTube content ID and how you can use it to protect your copyright.

## What is YouTube content ID?

YouTube content ID, also called content ID, is a “fingerprinting” technology used by YouTube to identify and manage all copyrighted content on the platform. The “fingerprint” is a complex code derived from the video's audio and visual characteristics. It’s a way of comparing uploaded content to a database of audio and video files registered by rights holders.

Ideally, YouTube content ID is used by copyright holders like music labels, songwriters and performers, and content creators to protect and manage their intellectual property and [royalty payments on YouTube](https://talentir.com/blog/youtube-royalties). It’s a way to balance copyright protection and allowing user-generated content on the platform.

## How does YouTube content ID work?

Content ID helps content owners manage their content and prevent unauthorized use of their work. The simplest way to think of YouTube content ID is as a copyright protection system specifically meant to ensure that copyright holders get to monetize their work, regardless of who uses it. How YouTube content ID works can be broken down into five simple operations:

### Digital fingerprinting

Essentially, YouTube content ID works by scanning every video uploaded to YouTube and comparing it to a database of audio and video files belonging to content owners. So, as a copyright owner, you must submit your audio and/or visual content to YouTube, which “fingerprints” them as reference files. And this brings us to the second step.

![Video](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/content-ID/ID.webp)

### The matching process

Whenever users upload their content on YouTube, they’re automatically scanned against the database of content IDs containing the copyrighted material. If there’s no match, and you are part of the YouTube Partner Program, you can proceed to monetize your content with YouTube ads.

However, if a match is detected, the uploaded content is flagged and a content ID claim is placed. We’ll discuss content ID claim in detail later on and what to do when your YouTube upload is slapped with a content ID claim.

### Rights holder actions

When you upload content that contains a song or a clip from copyrighted content, YouTube Content ID will detect it and notify the rightsholder. They can then decide what to do with your video – let it stay on YouTube, take it down, or monetize it and receive its revenues.

### YouTube content ID monetization

One of the notable features of content ID is the ability for copyright holders to monetize matched videos. Like any other interactive streaming platform, YouTube pays artists [royalties](https://talentir.com/blog/youtube-royalties), including [sync](https://talentir.com/blog/synchronisation-royalties) and [performance](https://talentir.com/blog/performance-royalties) royalties. Ads can be displayed on the video, and the revenue generated is shared between the copyright holder and the uploader. Note that revenue sharing isn’t always guaranteed.

### Blocking and takedown

Copyright holders can also decide to block the video from being viewed in specific geographical locations or block them entirely. They can petition YouTube to take it down from the platform.

## How to get a content ID on YouTube

YouTube only grants content IDs to copyright owners who meet specific criteria. It doesn’t just give anyone a content ID; for individual artists, obtaining access to YouTube content ID may not be a straightforward process. However, getting YouTube content ID is seamless for established entities such as record labels, film studios, and aggregators. If you want to get a content ID on YouTube, here’s a general overview:

### Partner with a third-party service

Smaller, individual content creators who wish to benefit from YouTube content ID can partner with third-party services, usually ones that provide music distribution and rights management. Most of these services offer access to content ID as part of their package.

### Meeting eligibility requirements

So, if you don’t want to partner with a third-party service to access YouTube’s content ID, then you must meet YouTube’s eligibility criteria to qualify directly [for content ID](https://support.google.com/youtube/answer/1311402?hl=en&sjid=6430731086540310801-EU). This usually involves demonstrating a substantial audience and a track record of original content creation. Remember, YouTube doesn’t just give everyone a content ID.

You can apply for content ID access directly from your YouTube account if you meet the eligibility requirements. The application undergoes a review process by YouTube to ensure compliance with their policies.

If approved, you’re assigned a YouTube partner manager who creates your content owner, giving you access to the content Manager tools in Creator Studio. This is where you upload your copyrighted content to YouTube. It also allows you to monitor and manage your copyrighted material in one place. Note that YouTube also sets explicit guidelines on [how to use content ID](https://support.google.com/youtube/answer/3244015?hl=en).

## What is YouTube content ID claim?

So far, you already understand that one of the primary functions of YouTube content ID is to protect the creators’ intellectual property. What happens when another user uploads content that breaches this IP? They’re slapped with content ID claims. A content ID claim is an automated notification sent by the YouTube content ID system to YouTube users when they upload content that matches copyrighted music or video. And as mentioned above, the exclusive copyright owners can monetize, block, or track the statistics of the video once the content ID claim is attached to it. Note that content ID claims can be geo-specific. That means if a content ID claim is placed on a YouTube music or video, the rights holder can monetize it in one region and entirely block it in another

## What to do if you receive a YouTube content ID claim

Firstly, if your YouTube content is slapped with a content ID claim, it doesn’t necessarily mean that it’ll be pulled down. As we’ve discussed, the copyright holder has a few options.

So, what should you do? Before taking any step, consider asking yourself these questions: did you use someone else’s copyrighted material? Are you okay with YouTube putting ads on your content? And, do you mind giving up the potential revenue stream from the uploaded content?

Once you have the answers to these questions, here’s what you can do.

### Accept the content ID claim

You can accept the content ID claim if you have used someone’s copyrighted material. Note that if you are a member of the YouTube Partner Programme, having a content ID claim means you won’t be able to monetize that particular content on YouTube.

But the good news is YouTube gives you three options to remove the copyrighted material from your upload without necessarily having to re-upload it. And that means your original URL remains intact. So, you can trim out the contentious segment, entirely replace the copyrighted material, or mute the copyrighted material.

### Dispute the content ID claim

You can [dispute the claim](https://support.google.com/youtube/answer/2797454) if the YouTube content ID claim has been tagged to your video erroneously. This may also occur if you didn’t use copyright-protected content or if you have the rights to use the material.

When you dispute a content ID claim in YouTube Studio, the claimant is given up to 30 days to uphold the claim, release it, or let it lapse. And during this period, all revenue generated will be withheld by YouTube until the claim is resolved.

### Share the revenue

If you are a member of the YouTube partner program, there are some instances where you can opt for [revenue sharing](https://support.google.com/youtube/answer/3301938) with the copyright holder. This usually applies to cover songs – audio and videos.

### Do nothing

If you agree with the content ID claim and don’t want to edit your YouTube content, then you can leave the claim and do nothing. In this case, your content may be blocked in some countries, and you may not monetize it.

## YouTube content ID music distribution

YouTube content ID music distribution is a part of the broader content ID system, tailored specifically to musicians, music labels, and content creators in the music industry. It allows these artists to protect the copyright of their musical compositions and recordings.

YouTube content ID music distribution operates within the content ID framework and focuses primarily on the musical aspects of content.

And that brings us to the question, how does YouTube content ID support the work of music rights holders?

YouTube's content ID system plays a significant role in music rights management on the platform. It’s vital in music license management to allow rights holders to manage the usage of their music on the platform.

A key aspect of YouTube content ID music distribution is music license management. A few rights are required for a single song to be played on YouTube, including master rights holders who receive mechanical royalties, public performance rights, and other rights. And since most of these rights may be controlled by different parties, YouTube ensures that the rights holders receive their fair share.

YouTube pays [royalties](https://talentir.com/blog/youtube-royalties) to artists and musicians from a portion of its advertising revenue or subscription fees. Copyright holders of music and musical compositions on YouTube can also earn royalties from both the master recordings and the composition of their songs.

### Free music distribution with content ID

As we’ve discussed, YouTube content ID is typically available to established entities such as music labels, film studios, aggregators, and other organizations that own significant copyrighted content. Smaller creators or independent musicians who do not meet specific eligibility criteria might need to work with third-party service providers that offer access to content ID as part of their services. And these third-party providers may be costly.

So, if you want free music distribution with content ID, upload your original music to a third-party platform or service offering free music distribution. These platforms may have partnerships with YouTube or other content-sharing platforms.

Free music distribution with content ID allows you to benefit from exposure and potential monetization opportunities without paying for the distribution process.

## How to elevate your YouTube royalties with Talentir?

We understand the importance of empowering artists and creators to maximize their royalties. Talentir is the first platform to turn YouTube videos into an asset you can buy and sell. It lets creators and artists share parts of their videos with their fans, which helps to build a close and authentic community. With Talentir, [royalties](https://talentir.com/blog/youtube-royalties) become scalable, enabling distribution to many  fans. We focus on artists and creators, ensuring a seamless and user-friendly process. Talentir is the backbone, facilitating an effortless experience to make shared ownership and payouts a reality. The more people own and interact with a video, the more popular and profitable it becomes. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## The bottom line

For songwriters and performers, using YouTube content ID for music distribution can be a great way to get your music in front of a wider audience and earn money from your content. We’ve covered everything you’ll need to know about YouTube content ID and how it works.

However, be sure you read [YouTube’s guidelines for using content ID](https://support.google.com/youtube/answer/3244015?hl=en) and familiarize yourself with uploading reference files and managing claims.

## FAQs

### What is a "match" in content ID?

A "match" in content ID refers to the system identifying copyrighted material within a video. This match is based on the digital fingerprint generated by the system, which is compared to the fingerprints of copyrighted content in the content ID database. A match is triggered when a significant portion of a video's audio or visual content matches a fingerprint in the database.

### Is content ID on YouTube free?

Yes, if your entity is big enough to qualify for it. But in most cases no, as individual creators or independent musicians usually don’t meet eligibility criteria. Suppose content creators are interested in protecting their works with YouTube content ID. In that case, they have to cooperate with third-party service providers that offer access to content ID as part of their service package. And these third-party tools may be quite costly.

### What’s the difference between content ID and copyright?

Copyright is a legal framework that grants creators exclusive rights to their original works. It automatically applies to any creative work, giving the creator control over its usage and distribution. Content ID, on the other hand, is a technology implemented by YouTube to manage copyrighted content on its platform. It helps copyright holders identify and manage their content by scanning uploaded videos and comparing them to a database of copyrighted material.



The shelf life of a brilliant piece of music may be a maximum of one year. [Only 44 songs](https://www.insider.com/number-1-songs-chart-longest-leaders-billboard-hot-100) have stayed at No. 1 on the Billboard chart for ten weeks or more. Now, some artists release a song and earn good money within the shelf life of their work. And there is Kate Bush - who not only made a profit within the period her song was a hit but earned even more 37 years later.

[Kate Bush](https://www.wipo.int/wipo_magazine/en/ip-at-work/2022/kate-bush.html) was a household name during the 70s and 80s. The "Wuthering Heights" crooner topped charts globally at 19. "Running Up That Hill," the lead single from her fifth studio album, Hounds of Love, was a hit in 1985. And a hit in 2022 — because of the Netflix show, Stranger Things.

![Stranger](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/synchronisation/stranger.avif)

"Running Up That Hill" featured in the fourth episode of the show's fourth season. As a result, Bush earned up to $2.3 million in royalties. And this was only possible because of synchronization royalties.

## Understanding synchronization royalties

Music has always been woven into visuals. Some of our favorite movies, TV shows, and games have been flavored with our favorite songs. Pairing music with these forms of content injects an emotional quality into the work and helps creators evoke responses from the audience. Therefore, it is only appropriate that [artists or rights holders earn from their work](https://www.musicradar.com/news/sync-licensing-guide) if such work is used or paired with visual content.

Synchronization royalties or sync royalties refer to the fees paid to artists and rightsholders when their music is featured with visual content such as movies, TV shows, video games, and commercials. They differ from mechanical royalties (royalties earned from the reproduction and distribution of recorded music) and [performance royalties](https://talentir.com/blog/performance-royalties) (royalties from public performances or music broadcasts). Sync royalties represent a harmony between artists or rightsholders and the stakeholders of the visual content, as each creative piece of work complements the other. [What Is Sync Licensing?](https://youtu.be/o5kUS8ZwR8g)

## Factors influencing synchronization royalties

If Kate Bush earned around $2.3 million in sync royalties, would any artist whose music is paired with visual content earn the same? Not really. Some [factors influence](https://www.synchtank.com/blog/the-reality-of-syncs-the-ease-or-difficulty-in-getting-placements/) the amount of sync royalties. Factors such as the song's popularity and artist's usage duration, among others, play a role in determining sync royalties.

### The popularity of the song and artist

The popularity of a song and artist can significantly influence the sync royalties they earn. Popular songs and well-known artists are more in demand for synchronization in various media projects. For instance, Bob Dylan has made [123 appearances](https://www.cbr.com/bob-dylan-songs-123-movies/) through his music. While there's no record of his earnings in sync royalties, selling [his entire songwriting catalog](https://www.npr.org/transcripts/943818966) for a whopping $300 million gives an idea of how much he can earn from sync royalties.

Advertisers, filmmakers, and content creators believe that artists like Dylan or their songs can enhance their visual productions and connect with audiences better.

### How a song is used

The way a song is used can also impact sync royalties. In some cases, the sync royalties may be calculated proportionally based on the percentage of the song used in the visual content. If a small portion of the song is used, the royalties paid would be lower than the entire track. Conversely, if a substantial portion or the whole song is used, the royalties reflect the extended exposure.

Furthermore, suppose the song is prominently featured and significantly impacts the scene or the overall narrative. In that case, it may be subject to higher licensing fees, regardless of duration. In cases where the song might be used repeatedly or in endless loops within a specific scene or game level, the sync royalties may consider the number of repetitions or the continuous play, which may lead to increased royalty fees.

### Duration of song

Often, sync licensing fees are structured into different tiers based on the length of the song's use. For example, there might be separate rates for songs used in short clips (e.g., 30 seconds or less), medium-length segments (e.g., 1-2 minutes), and full-song uses. Longer uses generally command higher fees since the song's presence in the visual media becomes more significant and influential. As an influencing factor, duration ties nicely to a form of sync royalties known as micro-sync royalties.

## Micro-sync royalties

Micro-sync royalties, also known as micro-sync licensing or micro-licensing, refer to music licensing for very short and low-budget media uses. It involves the use of a small portion of a song or a brief musical snippet, usually lasting only a few seconds, in various types of user-generated content, social media posts, short videos, mobile apps, and other digital platforms. Examples of micro-sync uses include incorporating a short segment of a song as background music in a TikTok video, an Instagram Reel, a YouTube vlog, or a mobile app.

The term "micro" in micro-sync royalties also indicates that the licensing fees for these short music uses are relatively small and more affordable than traditional sync licensing deals for major film, TV, or commercial placements. While the fees for micro-sync licenses are smaller compared to traditional sync placements, the cumulative impact of multiple micro-sync uses can still contribute to the overall revenue for music rights holders, especially if the song gains popularity and becomes widely used in various user-generated content across the internet.

It is important to note that an artist can earn micro-sync royalties from a YouTube content. Check out our dedicated guide on [YouTube royalties](https://talentir.com/blog/youtube-royalties) where we discuss how artists can earn royalties from their work published and used on YouTube. This includes monetization through ads, views, plays, etc.

![Movie](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/synchronisation/movie.avif)

## The process of synchronization licensing

Music publishers act as intermediaries between artists and licensees, facilitate negotiations, and ensure a fair deal for all parties involved. Licensing agreements dictate the terms of usage, including the duration, exclusivity, and geographical territory of the synchronization. Here are the key steps in the [synchronization licensing process](https://www.wikihow.com/Get-Sync-Rights):

### Exploring licensing opportunities

The first step is to identify and locate the music rights holders, which typically include the songwriter(s), the music publisher(s), and the recording artist(s) or their respective record label(s). This information can usually be found through performing rights organizations (PROs), music publishers, record labels, or online databases.

On the other hand, artists or music rights holders can also reach out to music supervisors, production companies, and other online platforms to explore potential licensing opportunities. Artists must focus on networking and building strong relationships in the industry, as this improves their chances of bagging licensing opportunities. But before setting out to seek licensing opportunities, it is also crucial for the artist to register their songs with the appropriate copyright agency.

### Negotiating the license terms

[The negotiation process](https://en.wikipedia.org/wiki/Synchronization_rights#Sync_negotiations_and_fees) involves discussing the terms and conditions of the synchronization license. This includes the scope of the usage (e.g., duration, territory, media, exclusivity), the licensing fee, and any other specific rights or restrictions applicable to using the song in the visual media.

### Securing the license agreement and paying the licensing fee

After agreeing on the terms, the licensee and the music rights holders formalize the arrangement by signing a synchronization license agreement. This contract outlines the agreed-upon terms and grants the licensee the right to use the song in the specified visual media.

Once the license agreement is in place, the licensee pays the agreed-upon licensing fee to the music rights holders. The fee can vary widely based on factors such as the song's popularity, the prominence of its use in the visual media, and the reach of the media project.

### Fulfill reporting and other royalty obligations

Depending on the terms of the license agreement, the licensee may be required to provide periodic reports on the song's usage and pay any additional royalties or fees contingent on the success of the media project.

Note: The synchronization licensing process can be complex, and the specific terms and requirements may vary depending on the region, the type of media project, and the negotiating parties involved. To avoid legal issues and ensure proper compensation for the use of copyrighted music, it's advisable to work with experienced music licensing professionals or legal counsel during the process.

## Trends and challenges

The rise of streaming services in recent years has transformed the music industry, bringing new opportunities for synchronization licensing. With platforms like Netflix, Hulu, and Amazon Prime producing abundant original content, the demand for music synchronization has [skyrocketed](https://www.synchtank.com/blog/syncing-or-rising-how-synchronization-licensing-fees-are-evolving/).

However, this trend also presents challenges in tracking and monitoring music usage, as decentralized distribution platforms make it difficult to account for each synchronization instance accurately.

### What lies ahead?

[Looking ahead](https://www.grammy.com/news/music-sync-explainer-how-it-works-opportunities-getting-paid-future-of-sync), changing consumer behaviors alongside emerging technologies such as the metaverse, Web3, and NFTs will undoubtedly influence the future of synchronization royalties. Thus, we are set to see a reorganization in how music matches with visual content, allowing for more precise and personalized synchronization choices.

## How to elevate your royalties with Talentir?

We understand the importance of empowering artists and creators to maximize their royalties. Talentir is the first platform to turn YouTube videos into an asset you can buy and sell. It lets creators and artists share parts of their videos with their fans, which helps to build a close and authentic community. With Talentir, royalties become scalable, enabling distribution to many  fans. We focus on artists and creators, ensuring a seamless and user-friendly process. Talentir is the backbone, facilitating an effortless experience to make shared ownership and payouts a reality. The more people own and interact with a video, the more popular and profitable it becomes. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## Wrapping up

Synchronization royalties represent a harmonious partnership between music and media. As the music industry continues to evolve, so will the significance of synchronization licensing. By embracing emerging technologies and addressing existing challenges, the future of synchronization royalties holds great promise, providing a resonating melody for artists, visual content creators, and consumers.

## FAQs

### Who collects sync royalties?

Sync royalties are typically collected by music publishers or performance rights organizations (PROs) on behalf of artists and rights holders. They handle the licensing, administration, and collection of sync royalties for music usage in synchronization with visual content.

### Who pays sync royalties?

Sync royalties are paid by the entities that license and use the music in synchronization with visual content. These include film studios, production companies, advertising agencies, video game developers, and other users of music who seek permission to incorporate it into their projects.

### How much are sync royalties?

Sync royalties can vary widely depending on various factors, including the song’s popularity, the prominence of its usage, the budget of the project, and the negotiated terms. Sync royalties can range from a few hundred dollars to several thousand dollars or more for high-profile placements.



For songwriters and publishers, performance royalties are one of the critical components of their revenues. And in the digital era, especially with the growth of streaming platforms, performance royalties have become an essential source of income for many artists. But the digital age has its challenges regarding collecting and distributing performance royalties. It’s become more complicated for songwriters and publishers to collect 100% of their revenue streams.

At the bare minimum, it’s a right for artists to demand fair compensation for their creativity! And the first step towards ensuring that artists and publishers are fully compensated for their work is to know who pays performance royalties and collects them. These will be the main focus of this guide.

## What are performance royalties?

Performance royalties are the fees music users pay when music is performed publicly. Ideally, music users need to obtain a license from the songwriters and publishers of [the musical compositions](https://en.wikipedia.org/wiki/Musical_composition) they want to use. This license gives them the right to publicly broadcast or perform the music in exchange for a fee. This fee is the performance royalty.

Performance royalties are revenues paid to songwriters and publishers for any public broadcast or performance of their musical compositions. These royalties are the license fees generated from businesses and streaming platforms that play the music, like live venues, TV and radio stations, and online streaming platforms. Note that public performance royalties are applied to music and sound recordings and any public performance of a musical composition, such as at concert venues.

![Radio](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/performance/radio.webp)

## When are performance royalties paid?

Any public performance of a musical composition incurs performance royalties. Public performance royalties are paid to songwriters and publishers for the public broadcast or performance of their musical compositions. These royalties come from license fees paid by businesses or platforms that use music, such as radio, TV, live venues, or streaming services. Performance royalties are generated when a song is publicly performed. Performance royalties are also generated when a song is performed live (whether by the original artist or another performer).

But, when you are outside and hear music, whoever wrote that song is owed performance royalties. Any business that wants to play music within its premises must obtain a license. When your song is played on the radio, streamed online, or performed live, you are entitled to receive a payment using your music.

When someone privately streams music from a streaming platform like Apple Music or Spotify, the platform pays royalties to the rightsholders of the musical composition and sound recording. These royalties are typically divided into two parts: one for the composition (paid to the songwriter and publisher) and one for the sound recording (paid to the recording artist and record label). The composition royalties are further divided into mechanical royalties and public performance royalties. We’ll discuss the difference between performance royalties and mechanical royalties later in this article.

## How do performance royalties work?

The entire process of how performance royalties work can be summarized in three steps:

-   The songwriter or publisher registers their songs with a Performing Rights Organization (PRO).
-   The PRO tracks the use of music in public.
-   The PRO distributes the royalties to the songwriters and publishers entitled to them.

You can imagine how tedious and time-consuming it could be for artists to track the use of their songs and get paid. Typically, songwriters and publishers must register their music compositions with a PRO and Collective Management Organizations (CMOs) for them to be eligible to collect their performance royalties. They must submit their compositions and setlist to ensure their performances are accurately tracked.

The primary function of PROs and CMOs is to collect the license fees from these music users, which it then distributes to the songwriters and publishers as performance royalties. If songwriters and their publishers are not registered with a PRO or CMO, they will not receive the performance royalties they are owed. To fully understand how performance royalties work, we'll discuss who pays and collects them.

## Who collects performance royalties?

Performance royalties are collected by Performance Rights Organizations (PROs) and Collective Management Organizations (CMOs). PROs act as intermediaries between artists and the entities using their music for public performances. They monitor and track performances, collect licensing fees from venues, broadcasters, and streaming platforms, and ensure that the appropriate royalties are distributed to the rightsholders.

CMOs operate globally and collaborate with PROs. They ensure that artists receive compensation for their performances, regardless of the country.

While many countries have their own Performing Rights Organizations (PROs), not all do. However, songwriters and publishers in countries without a PRO can still receive performance royalties through agreements with PROs in other countries. These agreements allow the foreign PROs to collect and distribute royalties to the appropriate parties on behalf of the songwriters and publishers from the country without a PRO.

### Performance royalty rates

Firstly, there’s no set rate for performance royalties. The rates vary depending on each public performance's specific circumstances and agreements. And that means not all musical compositions attract similar performance royalties. Therefore, songwriters and publishers must understand [how performance royalties are calculated and split](https://www.billboard.com/pro/music-streaming-royalty-payments-explained-song-profits/).

Note that the calculation of performance royalties can vary depending on the country and the PRO that collects and distributes them. So, read the fine print when you sign-up with PROs globally. But universally, the rate of performance royalties is based on the terms of the distribution and recording agreements.

After calculating the royalties, PROs distribute the payments to the songwriters and publishers based on predetermined splits. Again, the specific details and calculations can vary between PROs, CMOs, and countries.

### How to collect performance royalties

Songwriters must join a PRO or CMO to collect their performance royalties. These organizations establish licensing agreements with establishments and platforms that publicly use music, ensuring proper payment terms. Venues, broadcasters, and streaming platforms pay licensing fees to these organizations, distributing them to the respective rightsholders.

PROs also form direct agreements with international CMOs to facilitate the global licensing of artists' music compositions. Global licensing enables songwriters and publishers to earn performance royalties worldwide.

PROs employ [digital fingerprinting](https://www.pathpartnertech.com/audio-fingerprinting-understanding-the-concept-process-application/) and manual matching to identify performed songs by comparing data from music users with their registered song databases.

If an artist is not registered with a PRO, they will not receive performance royalties for their music being played on streaming platforms like Spotify. Note that artists who are not registered with a PRO can still receive other types of royalties, such as mechanical royalties. However, artists need to register with a PRO to ensure that they receive all of the royalties they are owed using their music. Here’s a list of [PROs globally](https://en.wikipedia.org/wiki/Performance_rights_organisation#Organisations).

## Who pays performance royalties?

Music users primarily pay performance royalties. PROs issue licenses to music users, such as radio and TV stations, streaming services, and public event organizers, which allows them to play the music in the PROs catalog. In turn, PROs track the music usage and then distribute the collected royalties to the songwriters and publishers. The split of the performance royalties depends on the agreement between the songwriters and publishers.

![Streaming](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/performance/Streaming.webp)

Interactive streaming services, such as Spotify, Apple Music, and Amazon Music, allow users to choose the specific songs or content they want to listen to or watch. These services pay recording artists through record companies, labels, copyright management companies, or distributors. They make three different payments to rightsholders – mechanical royalties, public performance royalties, and payout to recording owners.

On the other hand, [non-interactive digital streaming services](https://help.songtrust.com/knowledge/what-is-interactive-streaming-vs.-non-interactive-streaming) pay digital performance royalties for streaming musical content. These royalties are paid to performing artists each time a sound recording is streamed on non-interactive digital streaming services. Note that interactive digital streaming services do not pay digital performance royalties to recording artists, just songwriters (or composition owners).

## What’s the difference between performance and mechanical royalties?

As mentioned, performance royalties are paid to songwriters and their publishers in exchange for the right to broadcast or perform a copyrighted musical composition in any public setting. Mechanical royalties, on the other hand, are paid to songwriters and publishers for the reproduction and distribution of a musical composition, such as when a song is streamed or downloaded.

While performance royalties are prominent in the digital era, in most cases, both performance and mechanical royalties are intertwined.

For example, streaming services like Spotify pay both mechanical and performance royalties. When a song is streamed, the songwriter and publisher are owed both mechanical and performance royalties. Mechanical royalties are paid for the reproduction and distribution of the musical composition, while performance royalties are paid for the public performance of the composition through the interactive digital stream. Traditionally, mechanical royalties got paid out of sales generated by the distributors.

Here’s a quick snapshot of performance royalties vs. mechanical royalties:

### Performance Royalties

-   Paid for the public performance or broadcast of a musical composition
-   Collected by PROs on behalf of songwriters and publishers
-   Includes radio airplay, TV broadcasts, live performance in venues like bars and clubs, and interactive digital streams
-   Calculated based on various factors, including the type of performance, the license fee paid by a station or group of stations, the number of hours included in the appropriate survey, etc.
-   Distributed to songwriters and publishers based on their share of the composition
-   Paid by the business or organization that is playing the song

### Mechanical Royalties

-   Paid for the reproduction and distribution of a musical composition
-   Collected by publishers, collecting societies, and mechanical agencies
-   Includes physical sales, downloads, and streaming
-   Calculated based on the number of copies sold, downloaded, or streamed
-   Distributed to songwriters and publishers based on their share of the composition
-   Paid by the record label or distributor

## How to elevate your royalties with Talentir?

We understand the importance of empowering artists and creators to maximize their royalties, [especially from YouTube](https://talentir.com/blog/youtube-royalties). Talentir is the first platform to turn YouTube videos into an asset you can buy and sell. It lets creators and artists share parts of their videos with their fans, which helps to build a close and authentic community. With Talentir, royalties become scalable, enabling distribution to many fans. We focus on artists and creators, ensuring a seamless and user-friendly process. Talentir is the backbone, facilitating an effortless experience to make shared ownership and payouts a reality. The more people own and interact with a video, the more popular and profitable it becomes. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## The bottom line

Performance royalties are a vital component of the music industry, compensating songwriters, composers, and music publishers for the public performance of their works. And for songwriters to receive what they are duly owed for their compositions, they must understand who pays and collects their performance royalties. This has been the central theme of this guide. We've discussed performance royalties, how they work, who produces and collects them, and how they differ from mechanical royalties.

## FAQs

### How are performance royalties calculated?

Performance royalties are calculated based on various factors, including the type of performance, audience size, duration of the performance, and licensing agreements in place. Rates may differ depending on the platform or region, and they are often determined through negotiations or industry standards.

### How do performance royalties work?

When a song is performed publicly, performance rights organizations (PROs) or collective management organizations (CMOs) collect fees from the venues, broadcasters, or streaming platforms. These organizations then distribute the collected royalties to the appropriate artists and rights holders.

### What’s the difference between mechanical royalties and performance royalties?

Mechanical and performance royalties are two different types of royalties paid to songwriters and publishers. Performance royalties are paid for the right to play a composition in public. Mechanical royalties are paid for the right to reproduce a composition through recording, manufacturing, and distributing the work.



Whether you’re an up-and-coming music artist or simply a fan of good music, you’ve probably wondered how YouTube royalties work and how YouTube Music pays its artists. If so, you’re in the right place.

With many artists across the globe earning royalties from YouTube, the site has proven to be a highly lucrative platform for content creators and musicians alike. Videos that contain music have the potential to generate [royalties](https://en.wikipedia.org/wiki/Royalty_payment) for the artist whose music is being used, but the royalty process can be confusing at times.

Don’t worry. We’re here to break it down for you. In this article, we’ll be breaking down the ins and outs of YouTube royalties, how to collect them, and how much you can make when your music is used on YouTube.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT1.jpg)

## How royalties work on YouTube

As an artist, it’s crucial to understand how streaming royalties work and how they are paid. Knowing about these topics will help you maximize your revenue and set realistic long-term goals for your music career. YouTube’s royalty system can be confusing because the platform pays different rates under the categories it uses: YouTube Music, your official channel as a musician, and [Content ID](https://talentir.com/blog/content-id). So what are these three groups?

[YouTube Music](https://music.youtube.com) is a premium service separate from standard, free YouTube. Your official channel is where you’ll post your music in YouTube video format. And finally, Content ID is YouTube’s automated system for allowing copyright owners to identify YouTube videos that include content they own. For instance, you could claim videos that use your music through Content ID in the music industry.

### Does YouTube pay royalties?

The short answer: Yes. YouTube does pay royalties for musicians and content creators of all types. But when it comes to music, things can get complicated quickly due to the three categories that we just covered. Depending on how your music is used and who listens to it, you can make vastly different amounts of royalties on YouTube.

### YouTube’s royalties per view structure

YouTube pays out royalties depending on how many views your videos get. You will get [performance royalties](https://talentir.com/blog/performance-royalties) for any broadcast of your music. You will also get mechanical royalties for the interactive streaming of your song. The revenue you receive as the owner of your music will come from monetizing the content on YouTube.

In order to monetize your content, you’ll need to sign up for Content ID. If you’re approved, YouTube will place ads (or banner ads) on your content – it all depends on the viewers. If a viewer watches more than 30 seconds of the ad or clicks on the banner ad, you will generate revenue, [split between YouTube (45%) and you (55%)](https://support.google.com/youtube/answer/72902).

### Does YouTube pay royalties for music?

Yes, YouTube pays royalties for music directly through YouTube Music. On regular YouTube, you will get royalties after content monetization, which involves placing ads on your videos. The amount of royalties you will make changes due to a few different factors.

### What are YouTube music royalties?

YouTube Music is a premium subscription service different from free, open YouTube that anyone can access. It’s YouTube’s move to compete with platforms like Spotify and Apple Music. When users stream your songs on YouTube music, you will get a payout that has nothing to do with content monetization. You will get paid per stream.

## Making money with royalties from YouTube

To make money from YouTube, you need to place ads on your videos – that is unless your videos are viewed through the platform’s paid services, such as [YouTube Premium](https://support.google.com/youtube/answer/6306276) and [YouTube Music](https://support.google.com/youtubemusic/answer/6312991). Let’s break down how much you can make from YouTube royalties on each of these subcategories of YouTube.

### How much are YouTube royalties?

The amount you’ll make in YouTube royalties depends on how exactly people consume your music. You’ll make different amounts if users listen to your music on YouTube music, directly from your channel, or through videos monetized within [Content ID](https://support.google.com/youtube/answer/2797370). These second two categories can fluctuate significantly, but here are some average numbers.

On average, 1,000 views of your video on your official channel will make you around $1.64. That amounts to $0.00164 per stream. 1,000 views of a video monetized within the Content ID system will make you an average of $0.087 – or $0.00087 per view.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT2.jpg)

### How much does YouTube pay per music stream?

On YouTube Music, you’ll get paid per stream. The average payout right now is $0.004 per stream, which means that you’ll make $4 for every 1,000 streams. On regular YouTube, you’ll get paid according to ad clicks and other content monetization processes.

### How often does YouTube pay royalties?

YouTube pays out royalties on a monthly basis. You’ll need to ensure that your payment information is up-to-date both on your YouTube account and your AdSense account in order to ensure you receive all the money that is due to you.

## How to collect royalties from YouTube

[As of 2022](https://blog.youtube/creator-and-artist-stories/6-billion-paid-to-the-music-industry-in-12-months/), YouTube has paid artists, songwriters, and other rights-holders over $6 billion within a year. With over 2 million users logging on each month and over 1 billion hours of content being watched every day, YouTube is a definitive entertainment giant in our society. For up-and-coming artists, it can be a great way to get the word out about our music.

You can make money from putting your music on YouTube, especially if you own the rights to your music. You’ll be able to make money through Content ID, which basically scours the platform for videos with your music – then, you’ll be able to profit from content monetization on those videos.

The other way to make money on YouTube is through video streams on your own channel. There is a catch, though – in order for YouTube to place ads on your videos and in order for you to make a profit, you’ll need [at least 1,000 subscribers and over 4,000 watching hours](https://support.google.com/youtube/answer/72851) in the past 12 months. Once you’ve met this threshold, you’ll be able to monetize your videos through the YouTube Partner Program.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT%20Partner%20Program.png)

### How does YouTube Music pay its artists?

It’s important to remember that YouTube Music pays artists differently than plain old YouTube. YouTube Music is a premium service, like paid versions of Spotify and Apple Music, and it pays relatively well compared with other platforms.

YouTube Music pays an average of $0.008 per stream – a number that sounds small until you compare it to how much Spotify pays (from $0.003 to $0.005) and how much Amazon pays ($0.004). Even Apple Music pays slightly less than YouTube Music ($0.0078 per stream). Of course, that rate can change based on a few different factors, including:

-   Your agreement with your distributor or label – depending on your split with your label, you’ll receive more or less of the streaming revenue.
-   The subscription tiers of your listeners – if you have a lot of free listeners, you’ll make less than you would from paid or premium tier listeners.
-   Where your listeners are located – YouTube Music monthly subscription prices are different depending on the country, so if many of your listeners are located somewhere with a lower subscription price, you’ll make less too.

Understanding how YouTube royalties work can be extremely helpful in maximizing your profits and earning a sustainable living from your music, especially at the beginning of your career.

### How to elevate your YouTube royalties with Talentir?

With our co-ownership model, fans can directly participate in the success of their favorite artist by owning a fraction of a YouTube video. The core feature that sets Talentir apart is its ability to transfer your video rights into something that can be shared. As a creator, you can define the parameters, such as the percentage of royalties you want to convey through our rights-management software within your internal crew, band, label, etc. Once set, your video is published on Talentir, also ready to boost its engagement by sharing it with your fans. All these new people holding positions of the rights in their hands will now be the ones to push your content as they are currently growing with you.

The most obvious benefit of this model is that it opens up a new revenue stream. Besides the regular income from YouTube's ad revenue and sponsorships, this empowers creators to leverage their content in a new way, effectively monetizing their creativity and hard work.

Beyond monetization, our platform offers a unique way to connect with your audience. Fans can now play a vital role in every artist's success. By owning a part of their content's royalties, they're becoming an active participant in the creative journey.

Talentir provides financial flexibility. Need funds for a new project or upgrade your equipment? Instead of relying on sporadic brand deals or dipping into personal savings, you can finance your endeavors by releasing some of your video royalties to your fans.

Talentir's user-friendly dashboard provides creators with insightful analytics, helping to track the performance of your assets. Keep an eye on views, earnings, shares sold, and other important metrics, allowing you to make informed decisions and tailor your content strategy accordingly.

Talentir is more than a tool — it represents a shift in the content creation industry. It embraces the growing trend of participatory culture, allowing fans to be more than just passive consumers. It provides an innovative and exciting way to elevate your YouTube royalties, empowering you to take control of your creative career like never before. Whether you're a seasoned YouTube creator or just starting, we provide an exciting new way to elevate your earnings and deepen your connection with your audience.

## FAQs

### How do royalties work on YouTube?

The amount of royalties you make on YouTube will depend on how people access your videos. You’ll make the most when paid users listen through YouTube music and the least when people hear your music through Content ID.

### How do YouTube Music royalties work?

YouTube Music is a paid platform associated with YouTube that’s a competitor of Spotify, Apple Music, and the like. The average royalties you’ll receive from YouTube Music are $0.008 per stream, but that number can change due to various factors.

### How much royalties do you get from YouTube?

On average, you will receive $0.008 per stream with users listening through YouTube Music. You’ll receive an average of $0.00164 per stream when viewers listen through your direct channel, and you’ll receive just $0.00087 per stream through Content ID.



Gone are the days when fan participation was limited to buying an artist's music or cheering them on at concerts. Today, a shift is happening, fundamentally transforming how you engage with and contribute to your favorite artists' success. This unique digital experience adds a whole new dimension to the music you love. The era of passive consumption is making way for active participation, and we're excited to introduce our platform, which offers you a chance to become co-owner of your beloved music creations.

As a music enthusiast, have you ever wished to become more than just a consumer and be a vital part of an artist's journey? Well, here we are to make that wish come true.

## Own a fraction of a YouTube video

Today we are live with our rights management software and a clear mission to add new revenue streams to the portfolio of millions of creators, musicians, artists, and fans. You can now acquire and co-own a piece of a YouTube video. Your stake in the video brings you a portion of its ad revenue for every view. Artists and fans deserve a platform where they can grow and succeed together. We're committed to providing you with the most transparent, reliable, and rewarding experience. Get ready for what's to come.

## Rusanda Panfili offering shares of her music video

With anticipation running high, we present [Rusanda Panfili](https://www.rusandapanfili.com), the renowned solo violinist of [Hans Zimmer](https://www.rusandapanfili.com/events/the-world-of-hans-zimmer-tour-63fzy-7zcdb-bemxm-9wbxb-wzcw3), as our very first release. Rusanda has captured the hearts of audiences worldwide. She has truly made her mark in the classical, cross-over, and pop music scenes.

<iframe
    width="100%"
    style={{ aspectRatio: 16 / 9, marginTop: 64, marginBottom: 64 }}
    src="https://www.youtube.com/embed/7QtGOWemQhY"
    title="YouTube video player"
    frameborder="0"
    allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share"
    allowfullscreen
/>

Known for her versatility, virtuosity, and creativity, Rusanda has been touring the world's largest arenas. She explores new sonic worlds using her multi-instrumental skills as a composer and arranger. Our first collaboration in this ambitious venture has shown that Rusanda Panfili has proven to be a versatile and innovative force in the music world as she was willing to iterate [Talentir](https://talentir.com) to fully operational.

Now, fans of Rusanda Panfili can co-own a piece of her YouTube video, specifically, her breathtaking interpretation of [Jules Massenet's Meditation from Thais](https://www.youtube.com/watch?v=7QtGOWemQhY). By doing so, they participate in the success of every view for this timeless masterpiece. During her musical journey, she worked alongside superstars like Hans Zimmer, Brian May, Gavin Greenaway, Gabriel Yared, Steve Vai, Guthrie Govan, Carlos Rafael Rivera, Valentina Nafornita, Tina Guo, Worakls or Igudesman & Joo. We're thrilled to have you onboard, Rusanda.

![Live](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/first-video-out-now/Live.jpeg)

## Create an account and share your experience with us

Talentir aims to build a community where artists and fans can grow and succeed. Artists gain a new way to monetize their work and deepen their relationship with their fans. In contrast, fans can participate in the journey and growth of their favorite artists directly and meaningfully.

Securing a stake in a YouTube video is more than just an act of fan affection. It's a novel way to participate in an artist's journey, and it's about making a tangible contribution to the music you love and sharing in the success that follows.

To get a share of Rusanda's interpretation of Jules Massenet's Meditation from Thais all you have to do is go to [Talentir](https://talentir.com). All you first-time investors out there, let us know your experience with us. Whenever you have direct feedback, send it right away to office@talentir.com.

Welcome to Talentir, welcome to the world of content trading.

## Follow Rusanda Panfili

-   [Website](https://www.rusandapanfili.com/)
-   [Patreon](https://www.patreon.com/rusandapanfili)
-   [Instagram](https://www.instagram.com/rusandapanfili/)
-   [Youtube](https://www.youtube.com/@RusandaPanfili)
-   [Facebook](https://www.facebook.com/rusandapanfiliofficial)
-   [Spotify](https://open.spotify.com/artist/7i3Xc8Q0FEGHlsERoPgejc?si=Y6STTr-4TWim7pBhey1Ddw&nd=1)


Johannes Kares, CTO


We want to thank Quantstamp for conducting a thorough audit of our codebase. Regardless of how much expertise, dedication, and effort you devote to your programming work, a second pair of professional eyes is always advantageous.

This audit constituted one of the final necessary steps before we launched our Beta version. We have received our final audit report from [Quantstamp](https://quantstamp.com) (one of the leading security companies in the blockchain industry).

![Quantstamp](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/we-have-been-hacked-it-was-painful-but-at-least-we-paid-for-it/Quantstamp.png)

This milestone brings us closer to realizing our vision of enabling artists to transform their YouTube videos into tradable and sharable assets and letting them share ownership with their fans. In this blog post, we will show you the inner workings of Talentir and explain why smart contract audits are essential for maintaining the security and integrity of our platform.

At Talentir, we offer two types of smart contracts. The first one enables fractional ownership of YouTube videos, implementing the ERC1155 standard. This means fans can own small parts of the video's rights.

![Buy](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/we-have-been-hacked-it-was-painful-but-at-least-we-paid-for-it/Buy.png)

Additionally, we have developed a decentralized marketplace where these fractions can be bought and sold, providing a transparent and efficient platform for creators and fans to engage in an entirely novel way.

To safeguard our platform and protect the interests of our future users (You), we enlisted the services of Quantstamp, one of the best companies specializing in securing blockchain ecosystems. Together with their expertise in automated and manual auditing techniques, the amazing Quantstamp team thoroughly examined our smart contract code. Their auditors meticulously tested the code against various known vulnerabilities, documenting its behavior and identifying potential issues.

> Following the audit, we can confidently state that our platform's foundation – the smart contracts – have undergone a rigorous audit to ensure maximum security for all users.
>
> <cite>[Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), CTO Talentir</cite>

One significant advantage of an in-depth contract audit is the level of transparency it provides. Even if you don't fully understand all the underlying technology, it's vital to know that we're making every effort to guarantee the safety of your assets. Having our code audited by an independent entity like Quantstamp offers our users an impartial view of the security precautions we've implemented on our platform. Of course, full transparency might come with difficulties, but it fosters trust and confidence in everything we do.

During the four-week audit period, the auditors identified several issues within our smart contract code. As it is a new way to use these special contracts, looking for vulnerabilities was even more critical. This process allowed us to strengthen our platform's security, ensuring that everybody can safely engage with Talentir.

Completing our smart contract audit is a significant milestone for us and our vision.

While experiencing this test was undoubtedly a painful experience, we recognize the value of undergoing smart contract audits. We will soon start to open our platform to more fantastic artists and creators to join us on the way to unchaining the full potential of digital content.



# This is the story of how a Swiss-Austrian startup unleashes the power of co-ownership.

Content creation is booming, and fans have become the lifeblood of the entertainment industry - This is the perfect birth environment for our venture, Talentir. Talentir is the first platform to turn YouTube videos into a shared success story.

> We strive to make it as easy as possible for musicians and creators to turn their content into tradable and sharable assets.
>
> <cite>[Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), CTO Talentir</cite>

By investing more than time in digital content, fans become more than mere spectators – they become stakeholders with a direct financial interest in the artist's achievements. This concept of co-ownership strengthens the bond between artists and their fans and empowers fans to contribute to the artist's economic growth.

> We spent a lot of effort to make the Talentir user experience as smooth as possible.
>
> <cite>Patrick Wibmer, Talentir's UX-Designer</cite>

Creators paste the YouTube URL into the Talentir platform, define the percentage of shares they are willing to offer, and share the news with their fans. Talentir does the heavy lifting in the background to let fans receive a portion of the ad revenue generated by their videos. This unique setup establishes a direct support line between fans and artists, forging a symbiotic relationship that benefits both parties.

[This](https://talentir.com/create) is the entry point to turn your YouTube Video into a sharable and tradable asset.

## But why would talents choose to sell parts of their revenue streams?

The relationship between artists and fans is rapidly transforming in today's interconnected digital world. With the rise of platforms like Talentir, established artists are discovering innovative ways to deepen fan engagement and, in the process, unlock a new promotional powerhouse.

Artists convert their followers into influential promoters by allowing fans to invest in their success. These fan investors are now vested in the artist's success and are naturally incentivized to share, stream, and promote their music. This type of organic promotion, rooted in genuine fandom and financial interest, has the potential to reach far beyond traditional advertising campaigns.

![Loudspeaker](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/how-a-swiss-austrian-startup-unleashes-the-power-of-co-ownership/Loudspeaker.png)

Beyond promotion, this revenue-sharing model helps build a closely-knit community of dedicated fans. These aren't just passive listeners but active participants in the artist's journey. This tight-knit community can generate a level of loyalty and advocacy that no amount of marketing spend can buy.

Revenue sharing also creates a ripple effect that can significantly expand an artist's reach. As fan investors share and promote the artist's work within their networks, the artist gains access to a much broader audience. This can help established artists break into new demographics and geographies.

![Stats](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/how-a-swiss-austrian-startup-unleashes-the-power-of-co-ownership/Stats.jpg)

Finally, this innovative approach can positively impact the artist's brand image. It demonstrates a commitment to fan engagement and a willingness to share success. This strengthens the relationship with existing fans and makes the artist more appealing to potential new fans.

As the industry continues to evolve, Talentir stands at the forefront, defining how we value and engage with the artists we admire.



> What if you could be part of a movement that revolutionizes the music industry, democratizes content, and creates authentic connections between artists and fans?

This question came to my mind as I wanted to take a new step in my professional career, transitioning from the Head of Artist Marketing for Universal Music Austria to becoming the Marketing Director for Talentir.

After spending more than 11 years for the ORF Radio FM4 and 4 ½ years for Universal Music, I had established a fruitful career in the music industry. My last role involved shaping artists' careers and navigating the entertainment business's complex landscape. However, despite the fulfillment and accomplishments I experienced, I couldn't shake the feeling that something was missing — a desire to challenge the status quo, disrupt traditional models, and significantly impact the industry I loved.

![FM4](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/fm4.png)

That's when I met the guys from Talentir. This young Austrian startup shares my vision of transforming people's thoughts about content, democratizing the music industry, and focusing on the artist-fan relationship. The more I learned about Talentir's mission, the more convinced I became that this had to be the next step in my career journey. I wanted to be part of an organization that had the potential to revolutionize an entire industry and create sustainable change.

Talentir is creating a new era of creative ownership and community-building. It empowers artists to take ownership of their work and share it with their fans as tradable assets. This innovative approach allows greater participation and democratization in an industry dominated by big players. By allowing fans to invest, collect, and trade digital content, Talentir is redefining how people engage with music and enabling artists to build loyal and supportive fan communities.

Throughout my career in the music industry, I witnessed the immense impact that a strong connection between artists and fans can have. However, traditional models often limit the potential for this connection to thrive. Talentir's platform offers a unique opportunity to bridge that gap, enabling artists to share their work directly with their fans and giving fans a chance to participate in an artist's success actively.

![Dashboard](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/dashboard-david.png)

As a marketing executive, I am deeply passionate about entrepreneurial thinking and constantly seek challenges that align with my values and goals. Therefore, Talentir's mission resonated with me on a profound level. I want to change how people think about content, challenge established norms, and create a more inclusive and sustainable music industry. By joining Talentir, I am in a position to make a tangible impact and drive positive change.

> I am confident that Talentir will revolutionize how we monetize moving images, democratize access to music, and create a sustainable ecosystem that benefits artists and fans alike.

Moreover, Talentir's focus on creative ownership and community building aligns perfectly with my belief in the power of strong connections. As a natural connector and communicator, I firmly believe that fostering authentic and sustainable relationships is the foundation for success. Talentir's platform provides the tools and opportunities to build and nurture these connections, creating a vibrant ecosystem where artists and fans can thrive.

In addition to my alignment with Talentir's mission, I am equipped with the necessary skills and experience to contribute to its success. With 19 years of work experience, including ten years in leadership and management roles, I bring a wealth of marketing, project management, information technology, and web3 knowledge. Besides, my preference to drive innovation, embrace change, and navigate complex challenges will be helpful as we shape the future of the music industry together.

We can change how people think about content and forge a brighter future for the creative industry, where artists and fans are united in their passion for music, empowered by creative ownership, and connected in a community built on trust, authenticity, and mutual support.
The journey ahead is exciting, challenging, and full of opportunities, and I am more than ready to start this adventure.



In an era where content creation and consumption are experiencing exponential growth, our vision to redefine the landscape of content monetization has steadily grown from an idea to a venture, bringing a new set of opportunities for creators, fans, and believers alike.

Coming from the music industry, our deepest wish to add new revenue streams to the artist's portfolio has also led to ready and easy-to-use software solutions to help reduce complexity in every conceivable way. We streamline the often-convoluted rights management process for labels, Artists, and Creators and distribute generated royalties to all parties involved automatically and at scale. This innovative approach allows creators to focus on their craft while their fans and investors actively participate in the success of their favorite content.

> Our technology is designed to work seamlessly with YouTube's Content ID system, ensuring that creators' intellectual property remains protected.

We take care of the complex rights management process, enabling creators to easily share, transfer, and trade their content while ensuring transparent and fair revenue distribution to all rights holders at any time.

In addition to the benefits for creators and fans, Talentir has the potential to add a whole new way for investors to approach digital content. We are proud to be the first to offer YouTube videos not only as a source of entertainment but an exciting opportunity for everybody to invest. **From now on, YouTube will be a new asset class, enabling our generation to capitalize on the success of famous videos creators and channels.**

As the lines between creators, fans, and investors continue to blur, we offer a glimpse into a future where content consumers are not just passive viewers but active participants in the success of their favorite creators – Time to change how digital content is seen, used, and traded.



> It is the end of a day, and just falling asleep and being fit the next day is an option. You decide to open YouTube, and the next time you check your watch, three hours have passed…

We've all been there, falling down the rabbit hole of captivating videos and losing track of space-time. From unboxing lightsabers to exploring quantum physics in giant black holes in the vast emptiness of space, YouTube offers an endless array of content to entertain, educate, inspire, and extract our time. But what if we told you there's a way to go beyond passive consumption on this incredible platform…

In the past, our engagement with YouTube creators was limited to watching, liking, and subscribing. We admired their talent and creativity, but we were more or less spectators in thceir journey.

![Youtube Image](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube.jpg)

However (and thx to a dedicated team of engineers and lawyers at Talentir), times have changed: From now on, everybody can become active stakeholders in the success of their favorite creators - On YouTube.

YouTube videos generate tens of billions of dollars every year in ad revenue, and our technology and legal setup offer all the amazing creators, channels, and artists out there a solution that improves payouts and engagement on the one hand and reduces complexity in the rights management process.

The next time you find yourself immersed in the fascinating world of YouTube, remember that you have the choice to invest your time in the creators you admire, find content that has the power to generate momentum, and then go to bed or make the best out of your time spent in the rabbit hole and turn it into a path of shared growth and opportunity.



In today's digital age, content creation has become a powerful tool for artists, musicians, and creators to express their talent and engage with audiences worldwide. However, monetizing this content and generating sustainable revenue streams can be a significant challenge. This is where we, Talentir, a startup based in Vienna and Zurich, aim to make a difference. Our vision is to transform YouTube videos into manageable assets, allowing creators to share the financial benefits of their content with fans and investors alike.

The concept behind Talentir is simple yet innovative. Once a video reaches a certain number of streams, it generates revenue. Through our platform, creators can trade the rights to their videos with a mouse click. This means that content creators can sell a portion or all of their future earnings to fans or investors. This groundbreaking approach opens up new possibilities for artists to capitalize on their work while allowing fans to actively participate in their favorite creators' success.

Recently, we secured a multimillion-dollar investment. [Bitpanda](https://www.bitpanda.com/de)-CEO [Eric Demuth](https://www.linkedin.com/in/eric-demuth-9ba02943/) led the funding round, with notable participation from [Johannes Braith](https://www.linkedin.com/in/johannesbraith/), [Ferdinand Dietrich](https://www.linkedin.com/in/ferdinand-dietrich-284baaa1/), and [Christoph Sandraschitz](https://www.linkedin.com/in/christoph-sandraschitz-5b737510a/), the founders of [Storebox](https://www.yourstorebox.com). Other participants included venture capital firms [Hardlymountain Capital](https://www.hardlymountain.com) and Eru Ventures ([All About Apps](https://allaboutapps.at/en/) & [Dots and Lines](https://www.dotsandlines.io)), and [Masters of Dirt's](https://www.mastersofdirt.com) CEO [Georg Fechter](https://www.linkedin.com/in/georg-fechter-4592b8112/) also joined as a contributor.

> There are still so many areas out there that need disruption. The content monetization industry is one of them.
>
> <cite>Eric Demuth, Bitpanda-CEO</cite>

Our founders, [Lukas Sticksel-Steiner](https://www.linkedin.com/in/lukas-sticksel-steiner-a250a7139/) and [Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), have developed a co-ownership model for YouTube videos. The idea originated during the COVID-19 pandemic when the team sought to create a new revenue stream for artists and musicians. [Sticksel-Steiner](https://www.linkedin.com/in/lukas-sticksel-steiner-a250a7139/) explained, "Digital content is the gold of our generation, and we make it accessible to everyone." On talentir.com, content creators can offer a certain percentage of their content for financial participation by interested parties. We act as the facilitator, turning fans into co-owners and automatically distributing the ad revenue generated by the underlying videos to the shareholders.
This approach provides various opportunities for content creators. Established artists can cash out while emerging artists can utilize the received funds to finance new productions. On the other hand, fans have the chance to grow alongside their favorite creators, fostering a deeper connection and sense of shared success.

As Talentir approaches its product launch in the coming weeks, excitement is building. Content creators who have already produced and released their content can now sign up on talentir.com. The website launch will follow a top-down approach, allowing the company to identify and address issues in real-time, iterate quickly, and foster a content-like growth trajectory.
As Talentir continues to evolve and expand its services, the future looks promising for content creators seeking innovative ways to monetize their work and fans eager to support and grow with their favorite artists. Stay tuned for exciting developments as Talentir reshapes the content ownership and monetization landscape.


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