music royalties
Music Royalties: What Every Artist Should Know
As an independent artist, navigating the world of music royalties can feel like wandering through a maze. There are so many different types of royalties, rules, and services to keep track of that it can easily get overwhelming. But if you’re serious about turning your music into a source of income, understanding how royalties work is a game-changer.
In this post, we’ll break down the different types of music royalties, how they’re collected, and what you need to do to make sure you’re getting paid what you’re owed.
What Are Music Royalties?
Simply put, music royalties are the payments that artists, songwriters, producers, and others receive when their music is used in a variety of ways. Whether your song is played on the radio, streamed on Spotify, or performed live in a venue, you’re entitled to royalties.
Here’s the tricky part: there are multiple types of royalties, and they’re collected from different sources. Let’s break them down one by one.
1. Mechanical Royalties
Mechanical royalties are earned whenever your music is reproduced or distributed—in physical form (like vinyl or CDs), digital downloads, and streams. Essentially, if someone plays your music on a streaming platform or downloads it online, you’re owed mechanical royalties.
How Are Mechanical Royalties Collected?
In the U.S., mechanical royalties from streaming platforms (like Spotify, Apple Music, etc.) are usually collected by organizations like the Harry Fox Agency or Music Reports. But here’s the kicker: indie artists need to work with services like Songtrust or CD Baby’s Publishing Administration to make sure these royalties get into your hands.
Pro Tip: If you’re not registered with a publisher or royalty collection service, you could be leaving money on the table!
2. Performance Royalties
Whenever your song is played publicly—whether on the radio, in a bar, or at a concert—you’re owed performance royalties. This includes not just the artist but also the songwriter and publisher.
How Are Performance Royalties Collected?
In most countries, Performance Rights Organizations (PROs) collect performance royalties. In the U.S., you can register with ASCAP, BMI, or SESAC to make sure you’re getting paid for radio plays, live performances, and other public uses of your music.
For international artists, organizations like PRS (UK), SOCAN (Canada), or APRA (Australia) do the same thing. And yes, even if you're an indie artist playing small shows, you should still report your performances to your PRO!
3. Streaming Royalties
Here’s where things get interesting—and maybe a bit frustrating. Streaming royalties come from platforms like Spotify, Apple Music, and YouTube. There are actually two types of royalties generated from streams:
- Mechanical Royalties: We’ve already covered these. They’re collected for the songwriter whenever a song is streamed or downloaded.
- Performance Royalties: Every time your song is streamed, it’s technically a “public performance,” so you’re owed performance royalties, too. Both the songwriter and publisher receive a cut.
How Are Streaming Royalties Collected?
Streaming services typically pay the royalties directly to the rights holders, but PROs will collect performance royalties from these platforms. As an artist, you’ll need to make sure you’re registered with both a PRO for performance royalties and a publishing administrator for mechanical royalties.
Pro Tip: Services like SoundExchange specifically handle digital performance royalties from non-interactive streaming (like Pandora or SiriusXM). Be sure to register with them to collect what’s yours.
4. Sync Licensing Royalties
Ever dreamed of your song being featured in a TV show, movie, or commercial? That’s where sync licensing royalties come in. When your music is “synced” with visual media, you’re entitled to royalties, and these can be quite lucrative.
How Are Sync Licensing Royalties Collected?
Sync deals usually come with a licensing fee, which you can negotiate directly with the production company or through a sync licensing agent. Once the sync deal is in place, you’ll earn upfront payment for the use of your song. After that, you’ll continue to collect performance royalties when the show, movie, or ad airs on TV or other platforms.
Pro Tip: Consider using services like Songtradr or CD Baby Sync Licensing to get your music in front of people looking for tracks to license.
5. Print Music Royalties
Okay, so this one may not apply to every indie artist, but if you’re a songwriter and people are buying sheet music or lyrics of your songs, you’re owed print music royalties.
How to Make Sure You’re Getting All Your Royalties
Now that you know the different types of royalties, how do you ensure you’re collecting all that sweet, sweet cash? It’s all about registering and keeping track.
1. Sign Up With a PRO
First and foremost, make sure you’re registered with a Performance Rights Organization (PRO). In the U.S., that means ASCAP, BMI, or SESAC. This will ensure you get paid for public performances and streams.
2. Use a Publishing Administrator
Even if you’re an indie artist, signing up with a publishing administrator like Songtrust, CD Baby Publishing, or TuneCore Publishing can help you collect mechanical royalties from streams and downloads.
3. Register With SoundExchange
SoundExchange is your go-to for collecting royalties from non-interactive streaming services (like Pandora or internet radio). It’s an easy step that could result in more income for you.
4. Submit Setlists for Live Performances
Don’t forget—you can also earn performance royalties from playing live shows. Make sure you submit your setlists to your PRO, and you could get paid for those gigs.
5. Consider Sync Licensing Services
For those looking to get their music into TV, film, or commercials, explore sync licensing platforms like Songtradr or CD Baby Sync Licensing.
Final Thoughts: Don’t Miss Out on Your Royalties
Music royalties can be confusing, but they’re one of the most important aspects of your career as an indie artist. Without properly collecting these royalties, you’re leaving money on the table that could help fund your next project, tour, or studio time.
Make sure you’re registered with the right organizations, using the right services, and staying on top of all the revenue streams your music is generating. You’ve put in the hard work to create your music—now make sure you’re getting paid for it!
