Most major digital distributors now distribute to digital streaming platforms that have obtained blanket licenses with the Mechanical Licensing Collective (The MLC). You will not need to obtain a mechanical license for your Interactive Audio Streams because these streaming platforms (Spotify, Apple Music, etc...) will track and pay royalties directly with the MLC. If you are distributing to a direct-upload platform like Bandcamp or Soundcloud, they may still require you to obtain mechanical licensing for your streams. They have indicated to some customers that they are not blanket licensees and therefore do not track and pay royalties for all customers.
It is important to note that for Digital Downloads, which are a differently licensed media format than Interactive Audio Streams, online stores like iTunes still require all artists to obtain mechanical licenses for cover songs. Because of this, your distributor will likely still require you to obtain licensing for Digital Downloads before you can distribute your songs.
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