Understanding Music Royalties

Behind every stream, spin, or sync lies a complex system of payments. Here’s how music royalties really work — and who gets paid.

🎼 What Are Music Royalties?

Music royalties are payments made to rights holders (like songwriters, artists, and publishers) for the use of their music. Anytime a song is played, downloaded, streamed, broadcast, or used in a film, someone gets paid — or at least they should.

🎧 Types of Music Royalties

1. Mechanical Royalties

• What it covers: Reproduction of music (CDs, digital downloads, streaming platforms)

• Who gets paid: Songwriters and publishers

• Example: Every time a song is sold on iTunes or streamed on Spotify, mechanical royalties are generated.

2. Performance Royalties

• What it covers: Public performance of music (radio, live concerts, TV, bars, restaurants, etc.)

• Who gets paid: Songwriters, composers, and publishers

• Collected by: Performing Rights Organizations (PROs) like ASCAP, BMI, SESAC (US) or PRS (UK)

3. Synchronization (Sync) Royalties

• What it covers: Music used in visual media (movies, TV shows, ads, video games)

• Who gets paid: Songwriters, publishers, and sometimes the artist (if master rights are used)

• Example: A Drake song in a Nike commercial = big sync money.

4. Master Royalties (a.k.a. Artist Royalties)

• What it covers: Royalties paid for the use of a specific sound recording

• Who gets paid: The recording artist or label that owns the “master”

• Often earned through: Streaming, sales, and licensing

5. Print Royalties

• What it covers: Sheet music sales

• Who gets paid: Composers and publishers

🏛️ Key Players in Royalty Distribution

💡 Common Royalty Myths

• Myth: Artists make a lot from streaming
  Fact: Spotify pays around $0.003–$0.005 per stream — not much unless you’re getting millions.

• Myth: The performer always owns the song
  Fact: Songwriters often earn more than performers unless artists own their masters.

• Myth: Once a song is released, royalties are automatic
  Fact: You must register your music with PROs and distributors to get paid.

🎵 How to Ensure You Get Paid

1. Register with a PRO (e.g. ASCAP, BMI, SESAC)

2. Use a distribution service like TuneCore, DistroKid, or CD Baby

3. Consider publishing administration (e.g. Songtrust, Sentric)

4. License your music for sync opportunities

5. Keep metadata accurate — incorrect song info = missed payments

🧾 How Much Can You Earn?

Earnings vary widely. Here’s a very rough example for a hit song:

Final Thoughts

Music royalties are the backbone of the music business — but they’re not as simple as getting a check every time your song plays. Whether you’re an artist, songwriter, or producer, understanding your rights and registering your work is essential to turning talent into income.