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Legal Aspects Of Music Business (MB) Practice Test

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Per $1 streaming revenue, how much does the song owner receive?
Correct Answer:
About 15 cents.
Explanation:
Streaming revenue isn’t paid out to a song all at once or in a single pot to the songwriter. It’s split between the master rights holder (the recording owner, usually the label or artist) and the composition rights holder (the songwriter/publisher). The portion that goes to the song’s owner—the composition side—is typically around 10–15% of the revenue, which for a dollar of streaming revenue is about 15 cents. This reflects the fact that the licensing for the underlying song (the composition) is just one part of what a streaming service pays, with the rest going to the master rights holder and various distributors, licenses, and costs. So the best fit is roughly 15 cents per dollar. The other options overstate the songwriter’s share based on common streaming economics.

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