Music royalties are payments that artists, songwriters, labels, publishers and whoever owns music rights receive in exchange for the right of use of their music and intellectual property.
Basically, royalties are what is being paid out to rights owners whenever their music is sold, distributed, inserted in other media, monetized or consumed in any other way. The music industry depends on distributors and collecting companies to gather the royalties generated when copyrighted songs and recordings are licensed out for another party’s use. On Tuniver, we call these entities “underlying royalty distributors”.
By purchasing shares in catalogues, you are purchasing a royalty interest in the catalogue, entitling you to receive a corresponding percentage of the listed royalties streams.
When a catalogue is listed on Tuniver, the music owner determines what specific royalties will be listed (master royalties, publishing royalties, sync, streaming etc.) – he might be transferring all his royalty streams, or just specific ones. This means that, as an investor, you will have access only to the specific royalty streams that are listed.
If an artist lists on Tuniver royalties from streaming, as an investor you will receive a share of all the royalties generated when the songs are streamed – while, for example, you will not get a share when the songs are performed in public or synchronized with movies as soundtracks.