Royalties collected by SoundExchange grew by 40% in 2011 to more than $377 million, up from $270 million in 2010. According to their annual report, SoundExchange distributed $292 million in the form of payments to artists, in 2011. The revenue represents royalties from streaming, cable and satellite services.
According to a report by the New York Times yesterday, SoundExchange has paid $1 billion to artists and record companies since its founding in 2000. Quarterly payments this year top $100 million. This significant revenue figure was a long time coming and the recording industry has suffered huge losses due to the shift from listening to cds to streaming. Now, some artists are starting to recognize the online opportunity.
According to the Times, Jagjaguwar Records, whose acts include Bon Iver and Dinosaur Jr., has received $95,000 in payments from SoundExchange since 2007, according to founder, Darius Van Arman, who called the service “an increasingly vital source of revenue.”
This news comes at a time when Pandora Founder Tim Westergren and others are lobbying Congress for more equitable performance royalty rates among broadcast, satellite and streaming services.