When we think of royalties, we think of Beyoncé and piles of cash accumulating in bank accounts as the latest hot single racks up airplay and downloads. But the reality is different. If music is an ancient pursuit, the pursuit of royalty checks follows close behind. And the latter pursuit is, indeed, marked by archaic paper-chasing.
Late last year, Hyperwallet announced a partnership with USA Media Rights, a music and media rights company, with the hope of improving the process of delivering royalty payouts. And while royalty payouts may seem like bean-counting — the number of times a hit single’s been played or a movie’s been shown — it’s often more like cat-herding.
In an interview with PYMNTS, Hyperwallet VP of Strategy and Business Development Tomas Likar explained how royalty payouts are marked by the vagaries of various legal provisions, scheduling and infinitesimal payouts. “People still have to hunt for their royalties, and they still have to wait — three to six months is often the best case,” said Likar. “Sometimes, they may have to wait a couple of years.” As such, royalty distribution is another industry that appears poised for FinTech disruption. Likar described royalties as a payment segment that is “five to 10 years behind” the kind of digital payment methods that have been introduced in other arenas.
