Digital Radio Report

Q3 2016

Electing to Stream

Fans prefer to consume music on digital platforms, and streaming accounts for the recording industry’s single-largest source of revenue.

When fans elect to listen to music via streaming, recording artists and rights owners are in the running for more royalties. That’s something we all support at SoundExchange.

SoundExchange’s distribution of performance royalties to recording artists and rights owners increased by 29.2 percent in Q3 2016 compared to Q3 2015. SoundExchange paid $263.5 million in royalties in the third quarter, up from $214.1 million in the second quarter of 2016. SoundExchange has paid $666.9 million in royalties through the first nine months of the year (see below for more details).

SoundExchange also is putting royalties in the hands of more recording artists and rights owners. In Q3, 37,681 distinct payees received royalties from SoundExchange, up 45.2 percent from Q2 2016.

SoundExchange 2016 Year-to-Date Payments
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SoundExchange Q3 2016 Payments
$263,500,000

$204 MILLION
Q3 2015
payout
$263.5 MILLION
Q3 2016
payout
29.2%
increase in SoundExchange payments from Q3 2015 to Q3 2016 (YOY)

Q3 2015 payees:
34,095
= 5,000 payees
Q3 2016 payees:
37,681
= 5,000 payees
10.5%
increase in SoundExchange payees from Q3 2015 to Q3 2016 (YOY)

Q3 2015 new registrations received:
5,411
= 1,000 payees
Q3 2016 new registrations received:
6,550
= 1,000 payees
21%
increase in new registrations received from Q3 2015 to Q3 2016 (YOY)

The SoundExchange Effect

Streaming continued to fuel the music industry’s resurgence through the first half of the year. The music industry’s streaming revenue reached $1.6 billion,
a year-over-year increase of 57 percent.

SoundExchange distributed $403.4 million in digital performance royalties to recording artists and rights owners in the first half of 2016, representing 16.8 percent of the industry’s wholesale revenue over the first six months of the year.

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SoundExchange Honors Pitbull
with Digital Radio Award
President & CEO Michael Huppe presents Pitbull with the SoundExchange Digital Radio Award
just before he hits the stage for his headlining performance on The Bad Man Tour stop in Washington, DC.

In August, we awarded Pitbull our prestigious SoundExchange Digital Radio Award, which recognizes artists who have amassed more than one billion performances on the more than 2,800 digital radio services with which we partner.

Pitbull has amassed more than four billion performances on those services.

Known as Mr. Worldwide – he has performed in more than 50 countries – and Mr. 305 – he is from Miami – Pitbull won a GRAMMY® in February 2016 at the 58th Annual Awards show for Best Latin Rock, Urban or Alternative Album, for his ninth album, Dale. In addition to his popularity on digital music services, Pitbull has sold more than 70 million songs, according to a profile published in Vanity Fair. Pitbull also received a star on the Hollywood Walk of Fame on July 15, 2016.

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It’s a Family Affair at the
SoundExchange Influencers Series

SoundExchange returned to Nashville’s Bluebird Café for the fifth installment of our ongoing Influencers Series, which included inspiring performances by two generations of country music families.

Our Influencers Series brings together music legends and rising stars to discuss their art and the issues they face in today's music industry. The August 31 event featured Marcus Hummon and Paul Overstreet, GRAMMY® Award winners and two of Nashville's most celebrated songwriters. Marcus's son, Levi, was recently named one of Rolling Stone's "10 New Country Artists You Need to Know." Paul's daughter, Summer, is an up-and-coming singer-songwriter in the Nashville scene.

The Hummons and the Overstreets performed numerous songs and discussed growing up in musical households. Marcus Hummon is known for songs including "Bless the Broken Road," performed by Rascal Flatts, and "Cowboy Take Me Away," performed by The Dixie Chicks. Paul Overstreet's songs include "On the Other Hand," "Diggin' Up Bones," and "Forever and Ever, Amen,"
all performed by Randy Travis.

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A Great Big World is Committed to Empowering and Uplifting

We caught up with GRAMMY®-winning pop duo, A Great Big World, before sound check on their Washington, DC tour stop to talk about creating positive music and the impact their inspirational single, "Won't Stop Running," has had on their fans.

Christine D’Clario Listens to Digital Radio Just Like You

Christine D’Clario's Eterno Live won "Spanish Language Album of the Year" at the 47th Annual GMA Dove Awards and has been nominated for "Best Christian Album" at the 17th Latin GRAMMY Awards®. We caught up with Christine before she headed to the National Mall for her Together 2016 performance; she talked to us about the convenience of digital radio and the need for artists to evolve with the industry as the way music is consumed changes.

Watch "Artists Listen to Digital Radio Just Like You" Playlist