Maximize Your Music Income: How Sync Royalties Work for You
Find out how to earn more with your music through synchronization and micro-sync opportunities.
According to a 2022 report by the National Music Publishers Association (NMPA), synchronization generated $5.6 billion in the United States, making up 26% of all publishing royalties. Here’s a breakdown of synchronization revenues and how they work so you can make more money with your songs.
What is a synchronization?
A synchronization (“sync”) happens when a song is combined or synchronized with any visual content, including commercials, TV shows, movies, video games, and more. These deals are direct negotiations between the party wanting to use the music and the rights holder.
The permit granted by the publishing owner is known as a synchronization license, while the license from the sound recording owner is known as a master license.
An interesting note is that synchronization royalties are the only type of payment made to both the master owner and the publishing owner in the United States. Everything you learn here applies to both sides.
Pre-existing Music vs. Commissioned Music
There are two types of synchronization: pre-existing music and commissioned music.
Pre-existing music refers to the use of an already existing song in an audiovisual production. For this, special permission called a synchronization license is required from the music publisher. Generally, the publisher receives a one-time payment, a “flat fee,” instead of recurring royalties, unlike mechanical and performance royalties.
Usually, both the master and publishing owners receive equal amounts. For example, if the publisher charges $1,000 for a sync license, the master owner will charge the same amount, $1,000. Thus, it would cost the audiovisual production $2,000 to use a song.
In contrast, music specifically composed for an audiovisual production, like in many TV shows and movies, requires a work-for-hire contract. Here, the composer is paid a flat fee in exchange for giving up their rights to the company that hired them. For example, when Disney produces movies like Encanto or Frozen, they hire composers to write the songs for the films, but Disney owns the rights to those songs.
Micro-synchronization vs. Synchronization
In the synchronization world, it's essential to distinguish between two main categories: synchronization and micro-synchronization. The primary difference lies in the scale of the audiovisual material using the music.
Unlike traditional synchronizations, micro-synchronization refers to the use of music in user-generated content (UGC). This includes, for example, using a song in Instagram stories, Twitch live streams, TikTok challenges, or on a YouTube channel.
When users and creators incorporate music into their content, the rights holders receive a payment. Similar to conventional synchronizations, the platform using the music must compensate two main parties: the composition copyright holder and the sound recording copyright holder.
TikTok vs. Meta vs. YouTube
The three main UGC platforms are TikTok, Meta (Instagram and Facebook), and YouTube. Each platform handles royalty systems differently.
TikTok calculates royalties based on the number of videos created with a specific song.
Meta (Instagram & Facebook) determine royalties based on the number of views a video with music gets.
YouTube also determines royalties based on the number of views a video with music gets using their proprietary system called Content ID.
YouTube Content ID
YouTube Content ID is a digital fingerprint that identifies when uploaded content by third parties includes, in whole or in part, copyrighted material, giving owners the option to claim and monetize the video.
Not all YouTube videos generate royalties. To earn royalties, a video must be part of the "YouTube Partner Program" and contain ads. However, videos watched through YouTube Premium, a subscription platform without ads, also generate royalties.
It's crucial to understand that YouTube does not offer a fixed rate for royalties. Payment rates vary based on factors such as the type of ad, the viewing territory, and the country of origin of the channel.
How to collect YouTube royalties?
Usually, artists or labels upload the sound recording to the distributor, who then uploads it to the YouTube Content ID system. Music publishers with agreements in place with YouTube will be able to track the song as well.
Any material uploaded by another person on YouTube is compared to the audio and video files of the content uploaded by the artist or label.
If the system identifies any content that incorporates all or part of the uploaded material, it notifies the artist or label (via their distributor) and publisher, who can then claim and monetize the other person's video.
How can I start making money with my songs?
On the micro-synchronization side, music owners can join platforms like Epidemic Sound, Musicbed, Songtradr, and Artlist so that other people, like content creators, can use their music for a fee. Also, distribute your music to all social media platforms and enable UGC.
On the synchronization side, it can be a very lucrative source of income in the United States.
According to author Benjamin Groff, if your music appears on a reality TV show, you could receive $500; between $1,500 - $15,000 for an average TV show; $15,000 - $30,000 for a movie trailer, and $5,000 - $75,000 or more for a movie.
The amount depends on various factors such as the brand, its budget, how they want to use your song, the territories involved, the license duration, and the types of media involved. The bigger or more important the brand, TV show, or movie wanting to use your song, the more they should pay
Conclusion
Synchronization royalties can be a significant source of income for both songwriters and their music publishers, as well as artists and their labels. By understanding how sync and micro-sync royalties work, you can better navigate these opportunities and maximize your earnings. Keep an eye on these opportunities to ensure you get paid for your work.
References:
Julia Pernicone, Things You Had Wrong About YouTube Royalties, Songtrust (2022).
Andrew Parks, How do Music Creators Get Paid by TikTok, Songtrust (2022).
Randall D. Wixen, The Plain & Simple Guide to Music Publishing (4th Edition) (2020).
Eric Beall, Making Music Make Money: An Insider's Guide to Becoming Your Own Music Publisher (2nd Edition) (2022).