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News - July 2008

Last.fm Launches Royalty Program                                        12th July 2008

Music Web site Last.fm this week launched a royalty program that will pay artists a percentage of the company's advertising revenue for streaming their music on the site.

"This is a big day for independent artists as it marks the first time that musicians not affiliated with a label or royalty collection agency can collect revenue direct from a free streaming music platform," Last.fm's Jeff Marois wrote in a blog post.

CBS-owned Last.fm announced plans for the Artist Royalty Program earlier this year in conjunction with the launch of its on-demand music service.

"We're not printing money to pay for this--but the business model is simple enough: we are paying artists and labels a share of advertising revenue from the Web site," Last.fm's Richard Jones said at the time.

Musicians or songwriters can collect royalty rates from Last.fm only if they own all the rights to their music or videos. Songs that have been assigned or licensed to a collection society like SoundExchange or a record label that already collects royalties, as well as cover songs and songs recorded with a composer, are not eligible.

If you're in a band, you have to get permission from all members and anyone else who contributed to the production of the track or video, including directors and actors. The band will then have to select one member who will collect and distribute payment.

Compensation for the royalty program varies depending upon which Last.fm service a track is played. Songs played on its free radio service will get 10 percent of the share of Last.fm's net revenue. Songs played on Last.fm's personalized, premium radio station with get either 10 percent of net revenue or $0.0005 for each complete stream - whichever is greater.

For tracks on Last.fm's on-demand service, copyright owners will get 30 percent of Last.fm's net revenue from the on-demand service. Songs played on the premium, on-demand service will the great of either 30 percent of revenue or $0.0005 per complete stream.

Participants must earn at least $10 before they can withdraw funds.


Visit: Last.fm



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