Every time the end of the year approaches, a song will once again fill the radio and shopping mall loudspeakers around the world titled “All I Want for Christmas Is You”. This song is not just a festive song, but has become an annual money machine for its singer, Mariah Carey.
It is estimated that Mariah Carey earns around USD2 to 3 million a year (around RM9 to RM14 million) from this one song alone. The question is, how does this money come about and who actually pays the royalties for the song?
Royalties are recurring payments received every time a song is used or played commercially. In the music industry, royalties are divided into two main parts.
The first is composition royalties, which are payments to the songwriter and composer. These royalties are paid as long as the song is played, even after decades. This is the most valuable part in the long run.
The second is recording royalties, which are payments to the owner of the song’s recording, usually the record label, or the artist themselves if they own the recording rights.
Mariah Carey is not just the singer of the song, but also wrote the song itself. This means that she receives royalties as a singer, songwriter and owner of certain rights to the recording. In simple terms, Mariah Carey is on both sides of the money flow. Every time the song is played, money flows into her from more than one channel.
Who Pays These Royalties?
Many think that the listeners pay the royalties, but in fact this is not directly the case. Royalties are paid by parties who use the song for commercial purposes such as radio and TV stations, streaming applications on Spotify, Apple Music or YouTube, use in shopping malls, hotels, cafes and restaurants and also use for advertisements, films and TV shows.
In Malaysia, Music Authors’ Copyright Protection (MACP) is the body responsible for managing royalties for compositions by songwriters, composers and lyricists. Therefore, songs cannot be played in public at business premises without a license from them!
Why Does This Song Keep Making Money Every Year?
Although this song was created in 1994, this song is evergreen, a seasonal song that is always relevant every year. Just like the Malaysian Hari Raya song, but this song is played all over the world without the need for massive promotion.
Mariah Carey's story is not just a story of a famous artist, but an example of how copyright can be a source of long-term passive income. In a world where copyright, data and technology are the main sources of wealth, the real question is no longer who is the most popular, but who has long-term value.
Once successful, it can generate income for a lifetime. And that's why, every time the Christmas song is played, not only the atmosphere becomes festive but Mariah Carey's bank account also grows empty digits behind it.
