Word Collections is enhancing its capabilities by offering a new service that will provide global royalty music publishing collections from digital service providers (DSPs) via direct deals.
As part of this new service, called Songwriter Collections, Word Collections is expanding its potential client roster by offering collection capabilities to DIY indie songwriters. It’s an apparent attempt by the firm’s founder/CEO, Jeff Price, to duplicate his earlier successes with TuneCore and Audiam, two digital platforms he co-founded and subsequently sold.
Word Collections currently administers the publishing catalogs for Metallica, Eight Mile style (Eminem), Greta Van Fleet, Jason Mraz, Grace Potter, Silversun Pickups, John Oates, Songwriters Guild Of America, The Offspring’s Bryan “Dexter” Holland, Shriekback, George Carlin, Margaret Cho and Jerry Seinfeld, among others.
Word Collections says it has direct licensing, data exchange, auditing and royalty collections from digital platforms like Spotify, YouTube, Apple Music, Amazon Music, Tidal, Deezer and Qobuz, which generate over 90% of digital royalties.
The DSP licensing deals facilitate the payment of digital mechanical and performance royalties directly to Word Collections, thus bypassing all the intermediary administration fees deducted by collection societies around the world as the royalties flow through the system back to songwriters and publishers, according to Price.
While Word Collections will charge an administrative fee for this service, Price claims it will provide “faster and higher payouts” than if the songwriters’ digital royalty payout had remained in the traditional global collection system of waiting for payouts from local societies. That’s because freeing digital royalties from the traditional system “untangles it from what’s cumbersome and inefficient” and the retained administration fees that system has. “Besides, the traditional societies are very good at non-digital collections,” Price says.
What’s more, Price says that Songwriter Collections’ proprietary systems reduce “inefficiencies, fraud, inaccurate data, and the possibility of losing royalties” through the black box mechanisms employed by some societies of making distribution payouts by market share when a recording is not matched to the song’s publishers.
Price says that songwriter collections from around the globe go through a number of intermediaries, each taking a fee, before the royalties reach the songwriters and publishers. “In the end, those fees could collectively amount to songwriters losing out on about 30% in Europe; and as much as 50% from royalties flowing from territories outside Europe,” he says. While Word Collections will charge a 20% administration fee, he points out that’s lower than what normally happens when collections are made by other entities, pointing to the cited percentages for Europe and territories outside Europe.
“The existing system is so incredibly complicated and complex and it just doesn’t have to be that way, and that’s what Songwriter Collections does, it eliminates those issues,” Price says. “You get paid all the money; and you can see everything,” due to the removal of all the middlemen in collecting performance and mechanical royalties for digital plays.
While Price says his new service bypasses collection societies around the globe, for the U.S., Word Collections will still need to collect royalties from the Mechanical Licensing Collective (MLC) due to the blanket compulsory license. And while the MLC doesn’t charge a fee for its administration in collecting royalties from U.S. digital services, Songwriter Collections will charge a fee on royalties from the MLC.
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But he says songwriters and publishers who sign up with Word Collections will benefit from its “bespoke technology stem called Concello, which is a real-time tracking and audit system built specifically for the MLC.” He adds that this system recovers and extracts all the money the MLC collects for songwriter’s songs.
Other differences that Songwriter Collections offers:
- A six-month term, with a 30-day notice after the six months that allows the songwriter to terminate if they are unhappy with the service;
- Songwriters/publishers can pick and close the countries they would like to use the service for.
- Songwriters/publishers can also choose what songs they want the service to cover. In other words, they don’t have to assign their entire song catalog to the service.
“This project began at TuneCore as I figured out how things worked and how to get this done,” Price says. “This has been my Moby Dick. It took me 14 years to get this done.”