The Hidden Royalty Crisis: Why Billions Go Unpaid to Artists
Introduction
Behind the music industry’s billion-dollar headlines lies a quieter story: royalties that never reach the people who earned them. Known as “black box royalties,” these funds are a systemic issue affecting artists worldwide.
THE SCALE OF THE PROBLEM
IFPI reports global collections in the billions, but estimates suggest a significant portion goes unallocated.
Music Business Worldwide has reported on hundreds of millions redistributed annually.
WHY ROYALTIES GO MISSING
Bad metadata.
Unregistered works.
Cross-border mismatches.
Lack of transparency in collection systems.
WHO LOSES OUT
Indie artists without admin support.
Emerging markets with weak PRO infrastructure.
Underrepresented communities historically excluded from the system.
Why It Matters for the Industry
For DSPs: missing royalties erode trust with artists.
For publishers: unclaimed money represents lost opportunities.
For PROs: transparency is key to legitimacy.