What comes to mind when you think of the term "Black Box"?
For artists, managers, and producers alike, this term is used when millions upon millions of dollars remain unclaimed by artists and their label owners. Many don't realize how often this occurs and more importantly, what can be done to solve it.
What is the cause of this " Black Box" issue in the industry?
International royalties slipping through the cracks of labels and their artist roster. What may seem like a simple calculation can actually be quite tricky, and the difficulty of collecting international royalties has left artists' payments unclaimed time after time again.
Typically, this is how the royalties of a single musical work would be calculated (as determined by the
"Follow the Dollar"
Time of Day
Audio Feature Premium Credits
(for audio feature performances only where applicable)
TV Premium Credits
(for performances in highly rated series, where applicable)
So, what happens when the rates change because of the currency differnece in each country? How does this get accounted for, and who is in charge of overseeing international royalty collection?
While there are many factors contributing to this "black box" that artist's international royalties fall into, one of the biggest reasons for this relates to the method and means of this data entry. Much of the data submitted to royalty societies and corresponding label databases around the world are manually entered through via spreadsheets, leaving much room for human error and failure to do the proper conversions, misspell names, and not translate between languages correctly.
It is because of this that artist royalties slip through the cracks and the rights holder does not receive what they should.
Luckily, Korrect Software has the ability to take into consideration international rates and conversions so that these earnings do not fall through the cracks. Korrect redefines what it means to be in the "music digital age" and offers a solution for international labels that allows those in the industry to bridge the gap between the artist, the rights holder, and the song/album.
For more information on Korrect's specific services, click here.
For additional resources on international royalty rates and conversions, check out HFA's downloadable rate cards.