Since April, we have been distributing matched historical royalties in sets. For each set of royalties from a given DSP (or DSPs), we first distribute matched historical royalties for previously unpaid uses reported by the DSP (or DSPs) concerned, and we then we aim to distribute matched historical royalties for previously partially paid uses from that same DSP (or DSPs) in the following month.
This month, we distributed $24.2 million in new matched historical royalties. The majority of this amount ($23.7 million) related to the first set of matched historical royalties from the Phono 3 period for uses on Spotify that took place in 2018 and 2019. The remaining amount consists of matched historical royalties from the Phono 3 period for uses that took place primarily on four other digital services: Apple Music, Pandora, Soundcloud and YouTube.
Historical Unmatched Royalties
This month, we continued to distribute matched historical royalties for uses that took place between 2007 and 2017 (during the Phono 1 and 2 rate periods). Although we completed our initial efforts to match and distribute all of the previously unmatched royalties from these two rate periods in 2022, we continue to reprocess the remaining unmatched historical royalties from these rate periods. As a result of this reprocessing, we were able to distribute an additional $527k this month in matched historical royalties from the Phono 1 and 2 rate periods, plus interest, for uses that took place on a number of different digital services.
Overall, we have distributed more than 88 percent of the previously unmatched royalties for uses that took place during the Phono 1 rate period, more than 50 percent of the previously unmatched royalties for uses that took place during the Phono 2 rate period, and now more than 31 percent of the previously unmatched royalties for uses that took place during the Phono 3 rate period. Overall, we have distributed more than 34.4% of the previously unmatched royalties transferred to us by DSPs, bringing our total distributed to more than $136 million dollars in matched historical royalties.
Consistent with the way we’ve handled matched historical royalties in the past, the matched historical royalties we distributed this month are clearly identified on your royalty statements, and we specify the usage month for these historical royalties just like we do for blanket royalties. As we have always done, we’ve distributed matched historical royalties using the same payee data that we used to distribute blanket royalties (i.e. we’ve distributed royalties to the “current payee” registered in The MLC database, as reflected in the snapshot of ownership data we used for this month’s blanket royalty distribution).
What’s Next?
Next month, we will process the set of previously partially paid matched historical royalties from Spotify, for uses that took place in 2018 and 2019. After that, we plan to continue distributing a second set of matched historical royalties from Spotify for uses that took place in 2020, followed by additional sets from other DSPs. Just as we did with the first set of matched historical royalties, we will first distribute matched historical royalties for previously unpaid uses reported by the DSP (or DSPs) concerned, followed by royalties for previously partially paid uses from that same DSP (or DSPs). We expect to continue this process for the rest of this calendar year and into the spring of 2025, until we have distributed all of the previously unmatched historical royalties for uses from the Phono 3 period that we have been able to match. The following table highlights our tentative plan for processing Phono 3 usage. If for any reason this plan changes, we will share those updates in future Member newsletters.
Where can I learn more?
We will continue to provide monthly recaps and previews about the matched historical royalties we distribute for uses from the Phono 3 period in our monthly Member newsletters.
To catch up on the progress we’ve shared about historical unmatched royalties so far, you can find all the updates here. You can also read an overview on our historical unmatched royalties page (which reflects the most current Phono 3 adjustments) here.
As always, if you have any questions about any of these updates, or anything else related to The MLC, please don’t hesitate to contact our Support Team.