Ayra Starr Unveils 'Starrgirl' Tracklist Featuring ZAYN, Rema
The Royalty Mirage: Why Local Collection Systems Are Failing Their Artists

The Royalty Mirage: Why Local Collection Systems Are Failing Their Artists

Across the world, domestic royalty systems are paying out pennies while artists build real incomes through foreign distribution, YouTube, and licensing deals. This week’s stories expose the widening gap between local music funds and the global revenue escape hatch.
A vinyl record on a turntable with a few small coins scattered beside it, symbolizing tiny royalty payments. A vinyl record on a turntable with a few small coins scattered beside it, symbolizing tiny royalty payments.
Photo: RobertSchwandI / BY-SA via Openverse

If you are a hit songwriter in Sri Lanka, a single radio spin earns you 20 rupees. That is about six US cents. If you are the biggest pop star in Uganda, your entire year of domestic royalties might not cover a decent dinner in Kampala. Yet in the same week, an Icelandic artist quietly banks millions of streams through a Sony-distributed label, and a Nigerian superstar teases a new single to a global audience that will generate more in a day than some national collection societies pay out in a year. The thread connecting these stories is not just about money: it is about a structural divorce between where music is made and where it is monetised. Local royalty systems have become ornamental, while the real earnings flow through borderless digital pipelines.

The Micro-Royalty Reality

Look at the numbers. Sri Lanka’s radio royalty rate is 20 rupees a spin, roughly six US cents. The country’s biggest Sinhala hit earned its money not from local airplay but from YouTube views in India. The domestic collection system is so negligible that it barely registers as a revenue stream. Uganda’s situation is even starker. Total music royalties for 2025 across the entire membership came to UGX 216 million, about $58,000. One of its most prominent artists, Weasel, received just Shs285,498. Meanwhile, Joshua Baraka, a Ugandan act with global traction, passed Diamond Platnumz on Spotify. The money that changed his life did not come from the Uganda Performing Rights Society; it came from streaming platforms and international distribution.

Iceland, a market often romanticised for its artistic purity, tells a similar story of scale. The Iceland Music Fund awarded nearly ISK 92 million to 80 projects in its first 2026 round. That is meaningful seed funding, but the country’s biggest music export, Laufey, is licensed to AWAL, a Sony company. Her royalty checks are not cut in Reykjavík. The local fund is a launchpad, not a livelihood.

The Export Escape Hatch

For artists in markets with tiny domestic royalty pools, survival depends on finding an export valve. Mongolia is a textbook case. The country has 83% internet penetration and even launched its own streaming service, Sonsy, in September 2025. Yet its biggest music export, The HU, banks 961 million streams not through a local DSP but via a label deal in Los Angeles. The band’s income is decoupled from Mongolia’s copyright infrastructure. The same pattern holds in Cuba, where reparto music is charting in Spain and Panama while Spotify still does not load in Havana. Cuban artists route their releases through Miami, turning a geoblocked island into a cultural exporter whose revenues never touch the domestic banking system.

Morocco’s recent copyright overhaul underscores how legislation often chases a reality that has already moved on. Draft law 13.26 cleared parliament on July 13, widening BMDAV powers over digital exploitation. But as the story notes, most of a Moroccan rapper’s money never passed through the old law. It flowed through YouTube, international distribution deals, and live performances abroad. The new law is a necessary fix, but it arrives in a world where the most valuable transactions already bypass local collection entirely.

When the Law Cannot Keep Up

Even well-intentioned policy interventions are struggling to redirect revenue back to domestic rights holders. Uruguay nearly lost Spotify over a 2023 law that gave performers a digital remuneration right. The decree that kept the platform in the country, Decreto 404/023, sent the bill to the producer, not the platform. The result is a right that exists on paper but whose economic impact is blunted by the very structure designed to preserve market access. Canada’s 5% streaming levy met a similar fate. Ottawa confirmed in July 2026 that the levy is dead, replaced by federal cultural funding before it ever paid out a cent. Songwriters had a record year anyway, not because of the levy, but because the global streaming economy continued to grow around them.

Romania’s market grew faster than almost any in Europe, yet more than half its recorded music money still comes from radio. Performance rights account for 54.3% of revenue, while streaming sits at just 40.5%. This is a market where the legacy collection infrastructure remains the dominant channel, even as the rest of the world pivots to on-demand. It is a reminder that the royalty disconnect is not only about small sums; it is about a mismatch between how money is collected and how music is actually consumed.

The African Vantage Point

Nigeria sits at the intersection of all these tensions. Our own collective management organisations have been plagued by opacity, infighting, and distribution rounds that make Uganda’s $58,000 look generous in per-capita terms. Yet Nigerian artists are not waiting for local royalty reform to build global careers. Ayra Starr’s upcoming album ‘Starrgirl’ features ZAYN and Rema, a tracklist calibrated for cross-continental playlisting. Rema has just announced his first single of 2026, and the anticipation is driven by a fanbase that spans Lagos, London, and Mumbai. These artists earn because they are plugged into the same borderless pipelines that serve Laufey, The HU, and Joshua Baraka.

The lesson for African governments and collection societies is uncomfortable: if you do not build a system that captures value where it is created, the value will simply leave. The global digital economy does not wait for parliament to update a 26-year-old copyright law. It routes around dysfunction, and the artists who succeed are those who find a distribution partner, a foreign label, or a direct fan relationship that sits outside the domestic royalty mirage.

What This Means for Artists

For independent artists and music professionals, the week’s stories carry clear, actionable signals. First, treat your local performing rights organisation as a supplementary income source, not a primary one. Register your works, but do not budget around the payout. Second, prioritise a global distribution partner that can place your music in high-ARPU territories and on platforms that actually pay. The difference between a stream monetised in Kampala and one monetised in Berlin is not just cents; it is the difference between a hobby and a career.

Third, understand that your biggest royalty cheque may come from a neighbouring rights claim in a country you have never visited. If your music is played on radio in Romania, where performance rights still dominate, you want a partner that can collect those royalties. Fourth, watch the legislative experiments in Uruguay, Canada, and Morocco. They are early drafts of a future where platforms may be forced to pay more, but the money will only reach you if your metadata is immaculate and your chain of title is clean. Finally, build for the export escape hatch from day one. The most resilient music career in 2026 is one that is rooted in a local scene but structured for global collection.

Previous Post
Promotional image for Ayra Starr's third studio album 'Starrgirl'.

Ayra Starr Unveils 'Starrgirl' Tracklist Featuring ZAYN, Rema