Understanding how digital service providers pay royalties
Being a musician requires a lot of patience. From a project’s conception to the promotion, a musician has to be patient. This even goes for getting paid. We understand that you’re eager to earn a living.
How do digital service providers pay?
Unlike a normal nine to five job, digital service providers pay on the terms that best fit their business. Some pay bi-monthly, and some pay quarterly. It all depends on what method fits them best.
Apple, for example, is very automated and has their stuff figured out. So much so that we’re notified when we’re going to be paid and how much. They’re the only distributor that is this organized. Amazon, on the other hand, pays on time but they just provide an estimated date when they’re going to pay.
Again, every digital service provider pays royalties differently. The aforementioned ones are larger; therefore, they’re slightly more organized, but that doesn’t mean they have flaws. Spotify, Deezer, and Tidal need to be invoiced in order to send payment. So, Jamvana will send them an invoice towards the end of their pay period. If Jamvana doesn’t invoice Spotify, Deezer, and Tidal, then they won’t pay out the royalties. They will catalog them, but we won’t receive them until they receive an invoice.
Why haven’t I been paid yet?
Remember, every digital service provider pays on different terms. Patience is key when it comes to making money as a musician. There are a multitude of reasons why you may have not been paid yet. One of the first reasons is that you released your track or album at the end of the service provider’s pay period; therefore, you don’t have any streams, which means you have no royalties to be paid out.
Another one (and the one that’s more likely than the former) is that the person in charge of the digital service provider’s accounting got fired, promoted, or quit. Royalties, unfortunately, get pushed to second priority, and the company has to find someone to pick up the accounting. When they do, everything is backlogged, so it takes much longer for them to get caught up and reorganized.
Lastly, companies are often times updating or changing their accounting software. This also causes a massive disruption and delay in the royalty payouts. Changing and updating software often times causes more issues in the beginning, so ensuring that we remain patient while they go through will only help the process go more smoothly.
We do everything we can to get you paid on time, but sometimes we’re held up by the digital service providers.
How Jamvana’s technology can help you maximize your royalties–and get paid on time
Jamvana’s technology is continually getting better and better. We’re always working on our technology to make it better and more efficient for our users. When you login to the Music Distribution System (MDS), you’ll have the option to click on Reports. We provide as many reports as possible for you so you can make more informed decisions as a musician. This is also why we pay quarterly.
Jamvana is always working tirelessly to provide state-of-the-art features for our Music Distribution System and various technologies so we’re able to provide an exact date as to when we’re going to payout your royalties. Unfortunately, having to wait on the other digital service providers puts a slight damper on that swift advancement.