Photo credit: SoundExchange
SoundExchange announced that it raised $1.017 billion in 2022 — a 4.1% decrease from 2021.
The annual report also shows that distributions in 2022 fell 3.4% to $959 million, compared to $993 million in 2021. The main reason for the decline appears to be a decline in foreign collecting societies and direct licensing deals with labels.
$813 million of the $1.017 billion in revenue came from statutory royalties; $204 million was paid from direct licensing deals between labels and services, and foreign collecting societies. These royalties have been collected from more than 3,600 digital streaming platforms and distributed to more than 600,000 creators and rights holders.
Michael Huppe, CEO of SoundExchange, announces that the company has surpassed $9 billion in royalties distribution since its inception in 2003.
“SoundExchange is driving political efforts to ensure artists are treated with respect, both domestically and internationally,” says Huppe continues. “In the United States, the company is the leader of the musicFIRST coalition working to get the American Music Fairness Act passed so that all creators get paid to have their songs played on AM/FM radio.”
“In Europe, SoundExchange is focused on supporting ‘national treatment’ and ending discrimination against artists who are not paid for their work simply because of their nationality. Through these efforts, creators in America and around the world will finally receive the respect of being paid fairly for their work.”
“Looking ahead, we’re excited to see where the music industry is headed. Creators use tools that diversify their revenue streams, grow their following, and encourage collaboration. By leveraging data, SoundExchange makes it easier for digital service providers to meet their obligations to pay creators fully and fairly for their work.”
SoundExchange reports an operational management rate of 6.6% and a consolidated management rate of 7.2%. The company claims to have maintained one of the lowest management rates in the music industry. The company’s expenses increased 17.5% to $74 million compared to $63 million a year earlier.