"Payment and music credits are the two parts of the industry that are suffering with streaming."
UTRECHT, Netherlands — A small performance-rights organization from Finland is at the forefront of a European push to pay rights-holders faster by processing performance royalties in near real-time.
Currently, most collecting societies, including BMI and ASCAP, distribute royalties to members quarterly, often up to six-months from the end of a three-month collection period. This is based on a widely used existing model of music licensing for performance royalties done through deals based on the annual revenue of companies using music. That means that the writer of, say, an unexpected hit in the first three months of 2020 might only receive her performance royalties in October, putting a substantial drag on her income.
But this spring, Helsinki-based Teosto, which represents more than 33,000 Finnish composers and almost 3 million international lyricists, arrangers, composers and music publishers, is planning to launch the second phase of a pilot to speed up payments, with Spanish music monitoring platform BMAT (Barcelona Music and Audio Technologies) and Israeli music tech firm Revelator, which has developed a platform for managing digital assets in music.