SAMPRA, SoundExchange forge landmark deal to unlock revenue for SA and US artists

The agreement, announced on 18 November 2024, applies retroactively to the 2022 distribution period. It ensures that performers from both nations are fairly compensated when their music is played in either country.

“This agreement reflects SAMPRA’s dedication to properly administering neighbouring rights in South Africa,” SAMPRA CEO Pfanani Lishivha said. “With this, we now have reciprocal agreements with all major neighbouring rights CMOs across the globe.”

SoundExchange president and CEO Michael Huppe said: “This milestone reflects SoundExchange’s relentless advocacy for creators worldwide. I am pleased that our commitment to fair compensation resonated so strongly with SAMPRA, resulting in a significant step forward for US performers.”

Much like SoundExchange’s existing US royalty model, the agreement splits revenues into three parts: 45% for featured artists, 50% for rights holders, and 5% for non-featured artists through the Fund.

SAMPRA represents more than 75 000 recording artists and 11 000 record companies in South Africa. Its Development Fund also supports live events, music production, touring, and education, further demonstrating its commitment to nurturing the local music industry.

SoundExchange, which oversees royalty collections for over 470 000 creators through more than 65 international agreements, now covers 88% of the global neighbouring rights market.

The scope of this historic deal extends beyond featured artists, including studio musicians and backup singers, through the involvement of the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund.

AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund CEO Stefanie Taub lauded the agreement, stating: “We’re thrilled to welcome SAMPRA as a partner. This collaboration ensures that non-featured artists are fairly compensated for their invaluable contributions to the music industry.”

The development underscores SoundExchange’s proactive approach to supporting artists globally. It comes just two months after the organisation announced plans to launch a registry enabling rights holders to declare whether their recordings can be used to train AI models. The registry is set to launch in the first quarter of 2025. It not only strengthens ties between South Africa and the US but also sets a new benchmark for the global music industry, ensuring fair compensation for creators across borders.