Royalty Escrow
Royalty escrow is the practice of holding earned royalties in a dedicated account until the rightful recipient can receive them — for example, a collaborator who has not yet registered for payouts. The money stays attributed to the recording and the person, and is released as soon as they can be paid.
How royalty escrow works
Escrow separates earning from paying. Royalties are calculated and attributed as usual (per recording, per period, per recipient), but a share that can't be paid out yet moves into a held balance tied to that specific person and catalogue, instead of sitting in a general pot. The moment the recipient becomes payable, the balance releases. Nothing about the calculation changes; only the timing of the transfer does. That separation keeps statements accurate: every euro is attributed correctly from day one, even when the payout itself has to wait.
Why labels use royalty escrow
The typical case is a collaborator who isn't set up for payouts yet. A feature artist hasn't created an account, a producer's payment details are pending, or a split was agreed mid-cycle. Without escrow, labels improvise: they park the money in their own accounts, track it in spreadsheets, and reconstruct balances months later. With escrow, the split is set once and the system does the holding — the label's statements show the share as allocated, and the collaborator's balance grows quietly until they're ready. It turns 'we'll sort it out later' from an open item in the bookkeeping into a non-event.
Royalty escrow on bbn.music
On bbn.music, escrow is automatic. When a label sets a per-song split for an artist who hasn't joined the platform yet, that artist's share accrues in escrow from the first earning onward. As soon as the artist creates their account, the held balance releases to them — without a claim form or a manual transfer. The escrow follows the release and the artist, independent of any later changes to the split document, so the label can adjust future splits without touching money already earned. For questions about a specific held balance, support@bbn.music is the place to ask.
Frequently asked questions
What happens to royalties for a collaborator who hasn't joined bbn.music?
Their share accrues in escrow automatically from the first earning. Once they create their account, the balance releases to them with their payouts — the label doesn't track or transfer anything manually.
Does escrow change the agreed split?
No. The percentages stay exactly as set. Escrow changes when the money moves, not how much — it holds the agreed share until the recipient can receive it.
Why not just pay everything to the label and settle later?
Because attribution gets lost. Escrow keeps every euro tied to the right person and release from day one, so statements stay accurate and the eventual payout is a release, not a reconstruction.