Unclaimed and Misdirected Performance Royalties Due to Registration and Affiliation Gaps
Definition
Large amounts of performance royalties never reach songwriters because works and rightsholders are not properly registered with ASCAP/BMI/SESAC or are affiliated in ways that block collection. PROs state they simply cannot identify or pay composers if works are not correctly registered, so these royalties remain uncollected or sit in 'black box' pools instead of reaching musicians.
Key Findings
- Financial Impact: Tens of millions of dollars per year industry‑wide; individual songwriters commonly forfeit hundreds to tens of thousands of dollars annually in unclaimed PRO royalties
- Frequency: Ongoing and quarterly (every distribution cycle)
- Root Cause: Songwriters failing to register each composition and correct splits with their PRO; misunderstanding that joining a PRO alone is sufficient; ASCAP/BMI rule that a composer can only belong to one PRO while publishers can belong to many, which causes mismatches; lack of international collection arrangements without a publishing administrator, so foreign performance/mechanical income goes unclaimed for years and then reverts to local societies.
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Musicians.
Affected Stakeholders
Independent songwriters, Composers, Artist‑owned indie labels, Music publishers and admin publishers, Managers
Deep Analysis (Premium)
Financial Impact
$1,500-$40,000 annually per artist (misdirected mechanical and performance streaming royalties) • $10,000-$200,000+ annually per manager (cumulative unclaimed royalties across managed roster) • $2,000-$50,000 annually per artist (unclaimed mechanical royalties from streaming)
Current Workarounds
Accountant sends audit requests to ASCAP/BMI/SESAC to reconstruct registration history, manually compiles list of missing registrations, contacts PRO to add works retroactively, attempts to claim black box royalties from prior years, documents discrepancies in spreadsheet • Artist maintains separate login credentials for each streaming platform, manually checks royalty reports quarterly to spot missing payments, sends emails to support asking why payment is delayed, creates comparison spreadsheet of expected vs actual royalties • Artist manually tracks streaming platform uploads, maintains separate spreadsheets of releases, contacts MLC and distributors via email to verify registration status, guesses at affiliate status
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Slow, Multi‑Month Lag Between Performance and Royalty Payment
Manual Setlist and Performance Reporting Causing Lost Royalties and Admin Overhead
Suboptimal PRO and Publishing Choices Reducing Net Royalty Income
Unpaid Sync Licensing Fees and Delayed Royalties
Slow Royalty Collection and Verification in Sync Deals
Manual Delays and Inefficiencies in Sync Licensing Clearance
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