{"id":20731,"date":"2026-09-29T00:09:26","date_gmt":"2026-09-29T00:09:26","guid":{"rendered":"https:\/\/interspacemusic.com\/blog\/the-royalty-ledger-is-global-but-the-payout-is-local\/"},"modified":"2026-09-29T00:09:26","modified_gmt":"2026-09-29T00:09:26","slug":"the-royalty-ledger-is-global-but-the-payout-is-local","status":"publish","type":"post","link":"https:\/\/interspacemusic.com\/blog\/the-royalty-ledger-is-global-but-the-payout-is-local\/","title":{"rendered":"The Royalty Ledger Is Global, but the Payout Is Local"},"content":{"rendered":"

The most revealing music stories this week are not about streams, hits, or viral moments. They are about ledgers: who collects money, who keeps it, and who waits. From Tallinn to Dar es Salaam to Zagreb, the industry has become fluent in counting royalties, but it is still struggling to move them into the right hands.<\/p>\n

The one-way royalty street<\/h2>\n

Estonia’s songwriters’ society EA\u00dc offers a stark example. In 2025, EA\u00dc paid 5.3 million euros to foreign societies<\/a> and received about 437,665 euros back. That is a twelve-to-one outflow for a small market, and it raises a blunt question: is this reciprocity or dependency? For a country of 1.3 million people, the imbalance is structural, not seasonal.<\/p>\n

Croatia shows the same ledger from a different angle. HDS ZAMP collected EUR 5.9 million in concert royalties in 2025<\/a>, more than all streaming, video and social platforms combined. Yet EUR 400,189 is sitting unclaimed because setlists have not been matched to works. The money exists; the paperwork does not. In a live music economy, the setlist is the invoice, and too many invoices are blank.<\/p>\n

Policy decides who gets paid<\/h2>\n

The gap between collection and payout is not always an accident. In Gabon, the 2024 copyright ordinance sets neighbouring rights at just 20 years. After that, royalties go to a BUGADA fund, not the master owner<\/a>, even though bars continue to pay. The recording keeps earning; the owner stops receiving. That is a deliberate policy choice about who deserves to benefit from a catalogue’s long tail.<\/p>\n

Tanzania’s system is more transparent but still leaky. The country’s biggest music royalty payouts come from a 1.5 percent COSOTA copyright levy on recording devices and blank media. About 60 percent reaches artists<\/a>, which means four of every ten shillings disappear before distribution. That is not a technical failure; it is an administrative and political one. When the levy is the biggest pool, the efficiency of that pool becomes the ceiling for the entire domestic industry.<\/p>\n

Vietnam is adjusting its policy layer too. The royalty tax allowance doubled to VND20 million per contract on 1 July 2026, taxed at 5 percent. Decree 253 closes the instalment and contract loopholes<\/a>, but the story notes that for most artists the bigger number is 500 million, a threshold that still shapes how much of a deal is actually worth taking. Tax relief helps, but only if the underlying contract structure lets artists reach the relief in the first place.<\/p>\n

The African export moment collides with category politics<\/h2>\n

While some territories are tightening rules, African artists are pushing outward. Jon Muq has launched Shake It Africa, a record label and live entertainment company<\/a> focused on connecting African artists with global audiences. That is a direct response to the export gap visible in Estonia’s numbers: if royalties do not return, artists must build their own routes. The label is not just a commercial venture; it is a hedge against a global royalty system that often flows one way.<\/p>\n

But the global gatekeepers are shifting too. The 2026 MTV VMAs air tonight without a Best Afrobeats category for the first time in three years. Burna Boy and Tems compete in mainstream lanes instead<\/a>. That may look like progress, but it also removes a dedicated discovery slot for African music at a moment when the continent’s export infrastructure is still fragile. Being folded into the mainstream can mean being absorbed, not elevated.<\/p>\n

The machinery is speeding up, selectively<\/h2>\n

Some parts of the industry are moving faster. Minds on Fire cut its royalty payment processing time from two weeks to a few hours after adopting Tipalti Mass Payments<\/a>. That is the kind of operational fix that makes a real difference for independent artists waiting on cash flow. Speed is not glamorous, but it is solvency.<\/p>\n

Meanwhile, the largest players are investing in intelligence rather than distribution. Universal Music Group<\/a> has appointed former Spotify<\/a> engineering director \u00d2scar Celma as senior vice president of applied AI and machine learning<\/a>. Qobuz<\/a> has added release-level AI tags to its streaming interface<\/a>, backed by internal detection software and new fraud figures. The pattern is clear: money is being spent on knowing more about the music, not necessarily on paying the people who made it faster. AI tagging and fraud detection matter, but they do not move a single euro from Tallinn to a songwriter in Lagos.<\/p>\n

There is also a quieter institutional response. Kentucky has established a Governor’s Office of Music<\/a> to support the state’s music industry, and companies like Dolby Theatre<\/a> and Blue Raincoat Music are listing new openings in facilities, digital marketing, operations, and talent buying<\/a>. These moves suggest that the industry is professionalising its middle layer, but the question remains whether that layer connects to the artists at the bottom of the ledger.<\/p>\n

What this means for artists<\/h2>\n

The week’s stories point to a practical checklist. First, treat setlists as financial documents, not souvenirs. Croatia’s unclaimed EUR 400,189 is a warning that unregistered performances are unclaimed money. Submit your setlist every night, even when the promoter says it does not matter.<\/p>\n

Second, know your territory’s policy layer before you sign. Gabon’s 20-year neighbouring rights term, Tanzania’s 60 percent pass-through, and Vietnam’s VND20 million allowance all change the real value of a deal. A contract that looks identical in two countries may pay very differently after local rules apply.<\/p>\n

Third, do not wait for reciprocity. Estonia’s twelve-to-one outflow shows that small markets cannot assume foreign societies will return what they collect. Building direct relationships, as Jon Muq is doing with Shake It Africa, may be the only reliable hedge.<\/p>\n

Finally, demand speed where you can. Minds on Fire proved that payment cycles can shrink from weeks to hours with the right infrastructure. If a distributor or label tells you a two-week payout is normal, the ledger says otherwise. The money is being collected; the question is whether you are on the list to receive it.<\/p>\n","protected":false},"excerpt":{"rendered":"The industry can count royalties fluently, but moving them to the right hands remains a policy and infrastructure 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