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
"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
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.