Understanding Music Royalties and Payments

Music Royalties Explained

Understanding how royalties work is crucial for any artist or songwriter. This guide breaks down the different types of royalties and how you get paid.

Types of Royalties

1. Mechanical Royalties

Generated when your music is reproduced, whether physically (CDs, vinyl) or digitally (streaming, downloads).

• Streaming: ~$0.003-0.005 per stream (varies by platform)
• Downloads: ~$0.07-0.10 per download
• Physical: ~$0.09 per unit (CD) or $0.12 (vinyl)

2. Performance Royalties

Generated when your music is performed publicly, including radio, TV, live venues, and digital radio.

• Collected by Performance Rights Organizations (PROs)
• ASCAP, BMI, SESAC (USA) / PRS (UK) / SOCAN (Canada)
• Rates vary by territory and usage

3. Synchronization Royalties

Generated when your music is used with visual media (films, TV shows, commercials, video games).

• Typically one-time license fees
• Can range from $500 to $50,000+ depending on usage

4. Print Royalties

Generated when your sheet music is sold or distributed.

How We Collect and Pay Royalties

• Direct collection: From streaming platforms and digital stores
• PRO collection: Via our publishing administration service
• Payment frequency: Monthly for streaming, quarterly for other royalties
• Payment threshold: $20 minimum payout

Royalty Splits

Understanding your splits:

• Artist Share: 80% of net royalties (after distribution fees)
• Publisher Share: 20% (if we're your publisher)
• Co-writer splits: Can be allocated through our dashboard