Reference Guide

Music Industry Glossary

Essential terms and definitions for musicians, producers, and music industry professionals. From streaming royalties to production terminology, understand the language of the music business.

134 terms found

A

A&R

Business

A&R (Artists and Repertoire) is the department within a record label or music publisher responsible for discovering, signing, and developing new talent, as well as guiding the creative direction of recordings.

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Advance

Business

An upfront payment made by a record label or publisher to an artist. This money is recoupable, meaning the artist doesn't earn further royalties until the advance is paid back through earnings.

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AI Music Generation

Technology

The use of artificial intelligence algorithms to compose, produce, or master music. Increasingly used for royalty-free background music or production assistance.

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Algorithmic Playlist

Marketing

Personalized playlists generated automatically for each user by a streaming platform's recommendation system based on their listening habits.

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Artist Manager

Business

The professional who guides the professional career of artists in the entertainment industry. The responsibility of the talent manager is to oversee the day-to-day business affairs of an artist.

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ASCAP

Organizations

The American Society of Composers, Authors and Publishers. A non-profit, member-owned performance rights organization in the United States that collects performance royalties on behalf of songwriters, composers, and music publishers when their music is publicly performed.

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Attack Time / Release Time

Production

Two compressor parameters that control how quickly gain reduction engages and disengages. Attack time is how fast the compressor responds when the signal exceeds the threshold. Release time is how fast the compressor stops reducing gain after the signal drops below the threshold. Both are measured in milliseconds.

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B

Beat Lease

Business

A beat lease is a licensing agreement where a producer allows an artist to use a beat for a limited time, limited distribution quantity, or limited platforms in exchange for a fee. The producer retains ownership of the beat and can lease it to multiple artists simultaneously unless an exclusive license is purchased.

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Big Three

Business

The three major music corporations that dominate the global recorded music and publishing industries: Universal Music Group, Sony Music Entertainment, and Warner Music Group.

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Bit Depth

Production

The number of bits of information in each audio sample. Higher bit depths provide greater dynamic range (the difference between the quietest and loudest possible sounds).

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Bitrate

Production

The amount of audio data processed per second, measured in kilobits per second (kbps) or megabits per second (Mbps). Higher bitrates generally mean better audio quality but larger file sizes.

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Blanket License

Copyright

A type of license allowing a user (like a radio station or venue) to use any song from a PRO's entire catalog for a flat annual fee, rather than licensing each song individually.

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BMI

Organizations

Broadcast Music, Inc. A US performance rights organization that collects performance royalties on behalf of songwriters, composers, and music publishers. Originally a non-profit, BMI became a for-profit company in 2022 and was acquired by private equity firm New Mountain Capital in 2024.

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Booking Agent

Live

A booking agent is the professional who secures live performance engagements for an artist, negotiating fees, routing tours, and managing relationships with venues and promoters. They earn commission on booked shows, typically 10% to 15% of the performance fee.

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BPM (Beats Per Minute)

Production

The measurement of tempo in music. Indicates how many beats occur in one minute. A higher BPM means a faster tempo.

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Buy-On

Live

When an opening act pays to be added to a headliner's tour. A controversial practice where emerging artists pay for exposure rather than being paid to perform.

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C

C Line (©)

Copyright

The copyright symbol in music metadata that identifies the owner of the underlying musical composition and any visual artwork accompanying a release.

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Chain of Title

Legal

The documented sequence of ownership transfers for a copyrighted work, proving who holds the rights from the original creator to the current owner through written agreements for every transfer, assignment, or contribution.

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Co-Publishing Agreement

Business

A music publishing deal where the songwriter retains partial ownership (usually 50%) of their copyright, while the publisher takes the other half in exchange for their services.

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Codec

Production

Software or hardware that encodes audio into a compressed format for storage or transmission and decodes it back for playback. Common audio codecs include AAC, MP3, FLAC, and Opus.

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Cold Start Problem

Analytics

The challenge streaming platforms face when recommending new music with zero listening history. Without data on how users respond to a track, algorithms cannot predict who will enjoy it, creating a barrier for new and independent artists.

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Collective Management Organization (CMO)

Organizations

An organization that manages copyright licenses, collects royalties, and distributes them to rightsholders on their behalf. Includes PROs, mechanical societies, and neighboring rights societies.

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Composition

Copyright

The underlying musical work consisting of the lyrics, the melody, and the musical arrangement. It is the intellectual property created by the songwriter.

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Compression

Production

An audio effect that reduces the dynamic range of a signal by making the loudest parts quieter, allowing the overall volume to be increased.

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Content ID

Streaming

YouTube's automated system that scans uploaded videos against a database of copyrighted content, allowing rights holders to claim revenue, block, or track videos using their music.

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Controlled Composition Clause

Legal

A provision in a recording contract that reduces the mechanical royalty rate a label pays when the recording artist also wrote the song being recorded, historically paying 75% of the statutory rate instead of the full amount.

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Copyright

Legal

The legal protection granted to original creative works, including songs and recordings, giving rightsholders exclusive control over use, licensing, and royalty collection.

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Cover Song

Business

A new recording of a previously released musical composition performed by someone other than the original recording artist. Under U.S. law, anyone can record and distribute a cover without permission by obtaining a compulsory mechanical license and paying the statutory royalty rate.

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Cross-Collateralization

Business

A contract clause that allows a label or publisher to use income from one release or revenue stream to recoup advances and costs from another, meaning a successful album pays off the debt of a failing one before the artist earns royalties.

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Curator

Marketing

A person or team responsible for selecting and organizing music for playlists, radio, sync placements, or other programming. Curators control access to audiences and their selections directly influence streaming performance and discovery.

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D

DAW (Digital Audio Workstation)

Production

Software used for recording, editing, and producing audio files. Popular examples include Ableton Live, Logic Pro, FL Studio, and Pro Tools.

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DDEX

Distribution

Digital Data Exchange - a set of standards for exchanging music metadata between distributors, platforms, and rights organizations. Ensures consistent data across the music supply chain.

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Delay Time

Production

The time interval between the original sound and its delayed repetition, typically measured in milliseconds. Tempo-synced delays are calculated based on BPM.

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Derivative Work

Copyright

A new creation based on or derived from one or more preexisting copyrighted works, such as a sample, remix, interpolation, or translation. Requires direct permission from the original copyright holder.

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Digital Distributor

Distribution

A service that delivers independent music to streaming platforms like Spotify, Apple Music, and Amazon Music, and collects the resulting royalties. Examples include DistroKid, TuneCore, and CD Baby.

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Digital Service Provider (DSP)

Streaming

Any platform that delivers digital music to consumers over the internet, including on-demand streaming services (Spotify, Apple Music), non-interactive internet radio (Pandora), and digital download stores (iTunes, Bandcamp).

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Discover Weekly and Spotify Radio

Distribution

Two of Spotify's core algorithmic features. Discover Weekly is a personalized 30-track playlist refreshed every Monday based on what similar listeners enjoy. Spotify Radio generates an endless stream of songs based on a seed track, artist, or playlist.

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Distributor

Distribution

A company that delivers music from artists and labels to retail platforms where consumers can stream, download, or purchase it. In modern music, this almost always refers to digital distributors like DistroKid, TuneCore, or CD Baby.

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Dither

Production

Low-level noise added to an audio signal before reducing its bit depth. Dither randomizes quantization error, replacing harsh distortion with a smooth, analog-sounding noise floor that is far less noticeable to human hearing.

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Dolby Atmos

Technology

An object-based spatial audio format developed by Dolby Laboratories that allows mixing sound in three-dimensional space, including overhead channels. Supported by Apple Music, Amazon Music, and Tidal, with Apple paying up to 10% higher royalties for Atmos-delivered tracks.

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Door Split

Live

A payment arrangement where the artist receives a percentage of the ticket sales after the venue has covered its basic expenses.

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Drop

Production

The climax or most energetic point of an electronic, dance, or pop song, occurring immediately after a build-up section. It is characterized by a sudden shift in rhythm, heavy bass, and maximal instrumentation.

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M

Master Recording

Business

The final, official audio recording of a song. The owner of the master controls how the specific recording is used and earns master royalties.

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Mastering

Production

The final step of audio production. It involves optimizing the final mix for distribution across all playback systems and matching industry-standard loudness levels.

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Mechanical License

Business

A legal agreement granting permission to reproduce and distribute a copyrighted musical composition in audio-only formats, including physical media, permanent downloads, and interactive streams.

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Mechanical Royalties

Royalties

Payments to songwriters and publishers when a song is reproduced physically, downloaded, or streamed. In 2026, the U.S. statutory rate is 13.1 cents per copy for physical and downloads.

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Metadata

Distribution

The descriptive and identifying information attached to an audio file, including track title, artist name, ISRC, ISWC, and songwriter splits. Required for proper royalty distribution and discovery.

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MFN Clause

Business

Most Favored Nations. A contractual clause ensuring no other party in a deal receives more favorable terms than the party holding the MFN. Common in sync licensing for film and TV.

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MIDI

Production

Musical Instrument Digital Interface. A protocol that allows digital instruments, computers, and other devices to communicate musical performance data. MIDI 2.0 adds high-resolution control and negotiated profiles.

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Monthly Listeners

Analytics

The number of unique accounts that have played an artist's music at least once within a rolling 28-day period on a streaming platform, most commonly Spotify.

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Music Supervisor

Business

A professional responsible for selecting, licensing, and clearing all music used in visual media projects including films, television shows, commercials, and video games.

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P

P Line (℗)

Copyright

The symbol (℗) indicating the copyright owner of the sound recording (the phonogram or master). Used in metadata and physical packaging to identify who controls the master rights.

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Per-Stream Rate

Royalties

The average amount a streaming platform pays rightsholders each time a song is played. Not a fixed price, but a calculated average that varies by country, subscription tier, and platform.

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Performance Royalties

Royalties

Payments to songwriters and publishers when their composition is publicly performed, broadcast, or streamed. Collected by PROs like ASCAP, BMI, and SESAC and distributed to the writers and publishers who own the underlying composition.

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Playlist Pitching

Marketing

The process of submitting an unreleased song to streaming platform editorial teams or independent curators for playlist consideration.

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Playlist Reach

Analytics

The total number of followers across all playlists that currently feature your music. It represents the maximum potential audience your song could reach through playlist placements.

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Pre-Save Campaign

Marketing

A marketing strategy that allows fans to save an upcoming release to their library before it goes live, generating day-one save signals that boost algorithmic performance on streaming platforms.

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PRO

Organizations

A Performance Rights Organization. An agency that collects performance royalties when music is broadcast, streamed, or played in public venues on behalf of songwriters and music publishers.

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Pro-Rata Model

Streaming

The dominant payment system used by most streaming platforms where all subscription revenue goes into one pool and is divided proportionally based on each rights holder's share of total streams.

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Promoter

Live

A promoter is the individual or company that takes financial risk on a live event by paying the artist, renting the venue, and handling local marketing. The promoter profits when ticket sales exceed the artist's fee and event costs, and loses money when they do not.

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Public Domain

Copyright

Creative works that are not protected by intellectual property laws, either because the copyright has expired, been forfeited, or was never applicable.

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Publisher

Business

A company or individual that manages the commercial exploitation of a musical composition, ensuring the songwriters get paid for the use of their music.

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Publishing Administration

Business

A service that handles the registration, licensing, and collection of publishing royalties globally on behalf of a songwriter, without taking ownership of the copyright.

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Publishing Rights

Business

Ownership of the underlying musical composition (the lyrics and melody), separate from the sound recording. Co-owned by songwriters and their publishers.

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R

Record Label

Business

A company that coordinates the production, manufacture, distribution, marketing, and promotion of sound recordings and music videos.

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Recoupment

Business

The process where a record label or publisher retains an artist's royalties until they have recovered the money spent on advances, recording costs, and marketing.

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Release Radar

Distribution

Spotify's algorithmic playlist that delivers new releases from artists a user follows, updated every Friday. Getting on Release Radar depends on pre-saves and follower engagement.

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Reverb Decay (RT60)

Production

The time it takes for a reverb tail to decay by 60 decibels. Longer decay times create larger, more ambient spaces while shorter times suit tighter, punchier mixes.

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RIAA

Organizations

Recording Industry Association of America. A trade organization representing the recording industry in the US, known for certifying Gold, Platinum, and Diamond albums.

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Rider

Live

A document attached to a performance contract detailing the artist's specific technical (equipment) and hospitality (food, dressing room) requirements.

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Rightsholder

Business

Any person or entity that legally owns or controls a portion of a music copyright and is therefore entitled to receive royalties when that music is used.

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Royalties

Royalties

Financial payments made to rightsholders (songwriters, performers, labels, publishers) for the use or exploitation of their copyrighted music.

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S

Sample Clearance

Copyright

The legal process of obtaining permission from both the master recording owner and the composition copyright holder to use a portion of their work in a new recording, required before distributing any track that contains sampled audio.

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Sample Rate

Production

The number of times per second that an analog audio signal is measured to create a digital file. CD quality is 44.1 kHz (44,100 samples per second).

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Save Rate

Analytics

The percentage of listeners who save a song to their personal library after hearing it. A primary metric for algorithmic recommendation on platforms like Spotify.

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SESAC

Organizations

The Society of European Stage Authors and Composers. A for-profit, invite-only performance rights organization in the United States that collects performance royalties for a select roster of songwriters and publishers. Owned by private equity giant Blackstone since 2017.

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Session Musician

Business

A session musician is a professional instrumentalist or vocalist hired to perform on recordings or live shows on a per-song or per-project basis. They are paid an upfront fee and typically do not receive ongoing royalties unless a specific contract grants them points or residuals.

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Set List

Live

The planned sequence of songs for a live performance. Often curated strategically based on audience energy, venue type, and show length.

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Shazam

Analytics

An audio recognition app and service (owned by Apple) that identifies songs by listening to a short audio sample and matching it against a database of audio fingerprints, providing early signal for music discovery and chart prediction.

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Sidechain Compression

Production

A production technique where a compressor on one track is triggered by the audio signal of a different track, automatically ducking the volume of the first track whenever the second track plays. Commonly used to make bass and kick drums coexist in a mix.

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Skip Rate

Analytics

The percentage of listeners who skip your track before it finishes playing. Spotify measures skips at the 30-second mark, where a skip means the stream does not count toward royalties and signals poor quality to the recommendation algorithm.

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Smart Link

Marketing

A single landing page URL that routes listeners to their preferred streaming platform (Spotify, Apple Music, YouTube, etc.) to listen to your release. Also called a Fanlink or Pivot Link.

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Song Identifiers

Distribution

The collection of unique standardized codes (ISRC, ISWC, and UPC) used by the global music industry to track ownership, streams, and royalties for a specific piece of music. Without these codes, streaming platforms and collection societies cannot route payments to the correct rights holders.

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Sound Check

Live

The technical rehearsal before a live performance where artists and audio engineers test and adjust sound levels, EQ, and monitor mixes to ensure proper audio quality in the venue. A proper sound check is the difference between a professional-sounding concert and a feedback-filled disaster.

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SoundExchange

Organizations

A non-profit collective management organization in the U.S. that collects and distributes digital performance royalties for recording artists and master recording owners from satellite radio, internet radio, and non-interactive streaming services.

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Spatial Audio

Technology

An audio technology that creates a three-dimensional soundscape by placing individual sounds anywhere in a 360-degree sphere around the listener, including above and behind them, rather than limiting placement to left and right channels.

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Split Sheet

Business

A written agreement signed by all co-writers and producers of a song that documents each person's ownership percentage of the composition's publishing rights.

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Spotify Discovery Mode

Royalties

An opt-in promotional program on Spotify where artists and labels accept a 30% reduction in royalty rates on specific streams in exchange for boosted placement in algorithmic recommendations like Radio and Autoplay.

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Statutory Rate

Royalties

The government-mandated royalty rate for mechanical licenses in the United States, set by the Copyright Royalty Board. As of 2026, the rate is 13.1 cents per reproduction for physical formats and permanent downloads.

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Stems

Production

Stereo audio files containing sub-mixes of related instrument groups exported from a DAW session. When all stems play together at unity gain, they reconstruct the final mix. Used for mastering, remixing, live performance, and sync licensing.

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Streams

Analytics

The total number of times a song has been played on a digital streaming platform. A stream is typically counted after a user listens for 30 seconds.

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Sync License

Business

A synchronization license grants permission to pair a musical composition with visual media like films, TV shows, commercials, or video games. Requires a separate master use license for the sound recording.

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