There are organizations that track it (BMI, ASCAP in the USA). Artists registers their songs and then BMI/ASCAP collect the royalties and distribute them. The collect playlists from stations, list to stations and track what is being played, visit bars / theatres to see what is being played. Calculate stats on what songs are played the most and then distribute royalties. It is not exact, they can’t track every radio station, station, theatre, bar, etc that has music playing.
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