From 2021, streaming services in the US will have to pay authors for mechanical rights. This means new revenue for TONO members who are listened to in the US.
/ 07/01/2021 / Kristian DugstadThe US was TONO's third largest foreign market in 2019. And if you are one of the many TONO members streaming in the US, you now have reason to be optimistic. As of the new year, a new revenue stream is emerging in the American music economy.
– Another gap in legislation and the music economy is about to be closed.
Inger Elise Mey, Department Director for Online Media at TONO
From January 1, 2021, the non-profit organization The Mechanical Licensing Collective (The MLC) is starting to collect royalties from streaming and download services. This will allow creators around the world to receive revenue for their mechanical rights, in addition to their performance rights, when their music is streamed in the United States.
– It's a whole area of rights that hasn't been part of the American streaming economy until now, says Inger Elise Mey, Department Director for Online Media at TONO.
On October 11, 2018, the United States government adopted Music Modernization Act (MMA). This new legislation aims to adapt existing copyright law to a new digital context – including streaming services.
In 2019, the US Copyright Office designated the new company The MLC as responsible for licensing mechanical rights for Digital Service Providers (DSP) – that is, streaming and download services.
– In Norway, Europe and several other music markets in other parts of the world, mechanical rights have been part of the online economy since the beginning. It is good to see that the American music market is finally catching up in this area. Another gap in the legislation and the music economy is being closed, says Mey.
Read more about The MLC on their website. here..
So what does this mean for you as a TONO member? Fortunately, you don't need to do anything.
– TONO will be affiliated with The MLC through our membership in NCB. All works registered in TONO will continuously become part of The MLC's database. In other words, if your music is streamed and downloaded in the US, you will be able to receive this as part of your settlement, says Mey.
The MLC expects to start its payments as early as spring 2021. Therefore, always remember to register your works at mitt.tono.no before they are made publicly available.
Read more: Don't lose money: TONO-register your music as soon as it's written
With the introduction of MMA and creation of The MLC copyright in music in the United States is being strengthened. This sets the stage for the world's largest music economy to become even bigger.
CISAC, the global umbrella organization for collective management societies, annually prepares a report presenting the revenues of its 232 member organizations from 121 countries.
The Global Collections Report 2020 shows that music copyright revenues in the United States account for more than 20 percent of the global total. In 2019, US music copyright revenues were equivalent to almost €2,2 billion.
Read TONO's review of the report: World's creators could lose 35 billion on Covid-19
Download the CISAC Global Collections Report 2020 here..