Last updated : 23/02/2023
This Royalties Policy explains how Lissen Ltd ("we", "us", or "our") pays royalties to artists, songwriters, and record labels for the use of their music on our music streaming platform (the "Service"), using a user-centric model.
What is a user-centric model?
A user-centric model is a way of calculating and distributing royalties that is based on the actual usage of the music by the Service's users. Under this model, the royalties paid to rights-holders (artists, songwriters, publishers, record labels) are based on the amount of time that users spend listening to their music on the Service, rather than the total revenue generated by the Service.
What are the differences with the pro-rata model?
In a pro-rata model, an artist's share of the total revenue is based on the proportion of streams their music received across the entire platform, while in a user-centric model, an artist's share of the royalties is based on the proportion of stream time their music received from each individual user's listening activity on the platform. The stream unit (1 stream = more than 30 seconds of streaming time) is not used with Lissen user-centric approach.
User-centric royalties calculator*
We calculate royalties with the amount of time our users spend streaming music. Regulations, pricing and fees might differ worldwide but to have an idea of what it means, the calculator below illustrates how much money your music would generate with Premium fans spending $10 a month. Fan engagement represents how often your fans stream your music so for example if 1 fan streamed your song 50% of their time during the last month, then you will get 50% of their subscription money aka ~5$ (minus fees)
How do we calculate royalties?
We calculate royalties based the amount of time a user spends listening to a particular artist's or songwriter's music. This means that the royalties distributed are based on the proportion of streams an artist's music received from an individual user's listening activity on the platform.
Lissen's current base fee can be reduced through temporary incentives that will be communicated via our channels and display on our website. This base fee may be adapted according to market conditions.
As of 01/03/2023, Lissen fee is 5% so rights-holders will get 95% of all revenue generated by the platform users.
We determine the amount of revenue earned by a certain song during a given period (e.g., a month), and then split that revenue between its rights-holders. The portion each rights-holder will receive is based on the actual ownership of the song. As a point of reference for split between royalty types: composition rights represent 15% and sound recording rights represent 85%.
Lissen user-centric approach