SAMRO is firmly committed to the distribution of royalties and ensuring that its members are duly and accurately compensated for the public performance of their musical works at licensed establishments.
The Performing Rights Royalty distribution objectives in the different distribution categories are aimed at fairly distributing royalties to the correct Rights Holders, who are:
This is achieved by licensing businesses that use music in their business for public broadcast.
The license fees are then distributed as royalties in accordance with the received playlist per licensed entity.
This is done by way of calculated royalty allocations, calculated per second to represent a fair value of those rights administered by SAMRO relative to actual performances or usage of musical works and licence fees received.
For more on SAMRO Performing Rights Royalty Distribution Rules, please download the rule book here:
SAMRO endeavors to compensate its members based on their musical works' performances by licensed music users who pay SAMRO a license fee. Adjustments to Royalty Distributions may be necessary after initial payments have been made during the Primary Distribution.
Such adjustments will be processed and paid during the Secondary Distribution. The following factors necessitate royalty adjustments after the Primary Distribution:
- Incorrect or incomplete data notified by members within a Royalty Distribution period
- Late submission of playlists from licensees, which cannot be included in the Primary Distribution.
Distribution Categories and Sub-Categories:
- Public Service
- Private Services
- Community Services
- Recorded Music
- Diffusion Services
- Live Music
- Public Services
- Private Service
- Re-Broadcast Transmissions
- Diffusion Services
- All categories
Mobile & Internet Transmission (MIT)
- Ringtone Preview
- Ring back tones
- Download Preview
- Internet radio
- Internet television
- Video sharing
- Streaming services
How SAMRO calculates royalties
The Net Distributable Revenue (License Fee) for each Distribution channel is divided by the accumulated music seconds per Distribution channel to obtain a Revenue Unit Factor (Rand per music second factor) per Distribution channel and music second.
The accumulated seconds for each participating Work of Music in the Distribution channel is then multiplied by the relevant Revenue Unit Factor (Royalty Unit factor) to calculate the Royalty Distribution amount per Work for the appropriate Distribution channel.
The Revenue Unit Factor (Rand per music-second factor) is determined as follows:
Duration song play on broadcast - The value is provided by broadcasters to SAMRO, this is the duration of the song broadcast.
Share split - A share split is the composition ownership split that was agreed upon with other musicians before registration.
This is an essential step in ensuring that SAMRO members are compensated accurately for the music used in film and television by filing a cue sheet. If cue sheets are submitted not via the broadcaster, then an indemnity form needs to be signed and submitted with the cue sheet.
Undocumented works include music used in the broadcast of radio or television programs, adverts or motion pictures where relevant details according to the required cue sheet or sound clip and metadata templates have not been supplied.
This means that, works classified as undocumented cannot be processed during the scheduled royalty distribution payouts due to incomplete information that links them to their rightful owners. However, once these works have been identified, validated and claimed by the rightful owners, the accrued royalties for that particular work will be released during the next distribution cycle.
No distributions – SAMRO not being able to process distributions due to insufficient information.
Delayed distributions – SAMRO not being unable to process distributions related to the works during the primary distribution cycle.
Undocumented works – Members works being in the undocumented pool until such a time that they are successfully identified and processed.
Members not notifying their new musical works, indicating share splits and all correct rights-holders of the works.
Music Users such as broadcasters, audio recording and post-production studios, production music suppliers which provide insufficient information (playlist) to SAMRO.
Incomplete cue sheets detailing the music played during TV and radio programs as well as advertisements.
In addition to paying a music user license, it is an equally important requirement to submit cue sheets, sound clips, and their associated metadata (where available) for the identification of all music used.
Music Users must pay attention to the following:
Additionally, SAMRO will soon reactivate the undoc portal and members will be notified once it is reactivated.