Music Streaming and Content Licensing Music streaming makes songs accessible worldwide in seconds. For services, this power comes with licensing duties. The way a track is licensed shapes what listeners hear, where ads run, and how creators are paid. This guide explains the core ideas behind music streaming and content licensing, with practical tips for artists, publishers, and platforms.
Key licenses you should know
Mechanical license: permission to reproduce a musical composition in a digital format for streaming. Fees are typically shared with songwriters and publishers. Public performance rights: permission for the service to play the music to the public. These rights are usually managed by PROs like ASCAP, BMI, or their equivalents in other countries. Synchronization license: needed when music is paired with video, such as a music video or commercial. Master use license: permission to use the actual recording. This is held by the record label or owner and is separate from the composition. How platforms manage rights and payments Streaming platforms obtain licenses through agreements with labels, publishers, and PROs. They rely on data about each track—title, composer, publisher, ISRC, and rights holders—to calculate royalties. Good metadata, clean credits, and timely reporting help ensure creators are paid fairly and promptly.
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