All About Music Royalties: What Every Artist Should Know

What Are Music Royalties?
Music royalties are payments generated from the use of your music. These royalties are paid to rights
holders-which could be you as the artist, your producer, a songwriter, or a publisher-depending on the usage.
Whenever your music is streamed, sold, broadcasted, performed live, or licensed, it earns royalties.
Who Owns What in a Song?
To understand royalties, first understand the two main copyrights in any song:

1. Master Rights – This is the actual sound recording. Usually owned by the recording artist or label.
2. Composition (Publishing) Rights – This is the underlying song: lyrics and melody. Owned by the
   songwriter(s) and their publisher.
   The 6 Major Types of Music Royalties
3. Mechanical Royalties – Earned when your music is reproduced. Collected by The MLC (U.S.) or local
   agencies.
4. Performance Royalties – Earned when your music is performed or broadcast publicly. Collected by PROs.
5. Synchronization (Sync) Royalties – Earned when music is synced to visual media. Paid to both publishers
   and master rights owners.
6. Digital Performance Royalties – Earned from non-interactive streaming like Pandora. Collected by
   SoundExchange.
7. Print Royalties – Earned from the sale of sheet music. Collected by publishers.
8. Neighboring Rights – Paid to performers and master owners when music is played publicly outside the U.S.
   How to Collect Music Royalties
   To get paid, register with the right organizations depending on your role:
   All About Music Royalties: What Every Artist Should Know
   Songwriter – PRO (ASCAP, BMI), MLC
   Publisher – PRO + publishing admin (e.g., Songtrust)
   Recording Artist – SoundExchange, Distributor
   Master Owner – Distributor, Label
   Common Royalty Collecting Organizations
   ASCAP / BMI / SESAC – U.S. PROs
   The MLC – Mechanical royalties in the U.S.
   SoundExchange – Digital performance royalties
   PRS / PPL – UK collection societies
   Songtrust – Global publishing administration
   How Royalties Are Split (Example)
   For 1 million Spotify streams:
   Spotify keeps ~30%.
   70% is split between:

• Master owners: ~80% of revenue
• Publishers/songwriters: ~20%
  If you are both artist and songwriter, you can earn from both sides.
  Tips to Maximize Your Royalties

1. Register music properly (ISRC, metadata, PROs, etc.)
2. Use a publishing admin like Songtrust.
3. Pitch for sync licensing.
4. Monitor performance using analytics.
5. Don’t leave royalties unclaimed.
   Common Mistakes Artists Make
   All About Music Royalties: What Every Artist Should Know
6. Releasing without registering rights or splits.
7. Forgetting MLC or SoundExchange.
8. Assuming distributor collects all royalties.
9. Ignoring international performance income.
10. Not understanding master vs. publishing income.
    Final Thoughts
    Music royalties are complex but vital. Know your rights, register everywhere, and collect all you’re owed.
    Being informed is a key part of succeeding in the modern music industry