The digitization of music consumption has brought about a radical transformation in the music industry. Music has transitioned from predominantly physical formats to digital ones, and the ripple effects of this shift are still being felt today. The music industry has had to grapple with the evolution of its commercial arrangements from the era of car tape players in the 1960s, through the introduction of the Sony Walkman, to the Walmart-CD era, the Radio-TV distribution model, the iTunes revolution, and now the reign of digital streaming platforms.
This digital evolution has upended the traditional royalty earning systems in the music business. The concepts of public performance and mechanical royalties, once straightforward under the old order, now face complexities in adapting to the digital age. Stakeholders are still working to develop viable systems that accommodate the realities of digital music streams.
This article unpacks the concept of music royalties. It breaks down the rights associated with music and explains how royalties are earned in the digital era. This study examines the contemporary reality of music royalties in the digital era, juxtaposed with traditional royalty systems of the “old order” within the context of the Nigerian legal framework. The study, appraises the complexities arising from digital streaming platforms and further distinguishes between composition and master rights, and their respective legal bases under the Nigerian Copyright Act 2022. It further examines the core types of royalties, specifically public performance and mechanical royalties, and the role of Collective Management Organizations (CMOs) in facilitating royalty collection.
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