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The 4 Main Types of Music Royalties
If you're a musician, songwriter, or producer, understanding how to earn money from your music is crucial. One of the most important ways to do this is through music royalties. There are four main types of music royalties: mechanical royalties, performance royalties, synchronization (synch) royalties, and print music royalties. Each of these royalties pays you for different uses of your music, and knowing how they work can help you get the most out of your creations.
- Mechanical Royalties
Mechanical royalties are paid to songwriters and copyright holders whenever their music is reproduced. This includes when a song is sold in physical formats like CDs or vinyl records, or when it's streamed or downloaded on digital platforms like Spotify, Apple Music, and Amazon.
Whenever someone buys or streams your song, a mechanical royalty is generated. These royalties are also paid when someone uses your music for cover versions. For example, if a band records a cover of your song and distributes it, you would be entitled to mechanical royalties for every sale or stream.
To collect mechanical royalties, you'll need to sign up with a music publisher or a service like Songtrust. Some distribution platforms like DistroKid and CD Baby also offer ways to collect mechanical royalties. These companies make it easier to collect money you may not even know you were owed.
- Performance Royalties
Performance royalties are earned whenever your music is performed publicly. This includes radio play, live performances, TV broadcasts, and even when your song is played in a public place like a restaurant or store. Two types of royalties are paid here: one to the songwriter and another to the performer.
To collect performance royalties, you need to register with a Performing Rights Organization (PRO) like ASCAP, BMI, or SESAC. These organizations monitor where and how often your music is performed and ensure that you get paid. If you're a songwriter or composer, you should register with one of these organizations to start receiving royalties.
It's important to note that digital performances, like streams on internet radio stations (Pandora, for example), also generate performance royalties. However, in this case, a different organization—SoundExchange—collects these royalties on behalf of the artist and the label.
- Synchronization (Synch) Royalties
Synch royalties are paid when your music is synchronized with visual media. This includes TV shows, movies, commercials, video games, and online content like YouTube videos. Every time your music is paired with video, you're entitled to a synchronization fee, as well as royalties if the music is reproduced or performed later.
Synch royalties can be highly lucrative. Landing a placement in a popular TV show or movie can lead to big payouts and even increased exposure for your music. Unlike mechanical or performance royalties, however, these deals are typically made on a case-by-case basis, meaning you may need a publisher or licensing company to negotiate synch deals on your behalf.
Some companies, like CD Baby, also offer synch licensing services to help musicians get their music into TV shows, films, or ads. Having your music available through a service like this can increase your chances of getting a synch deal.
- Print Music Royalties
Print music royalties come from the sale of sheet music or any other physical copies of your written compositions. These royalties are paid to songwriters, composers, and arrangers when their compositions are printed and sold. Though less common than other types of royalties in today’s digital age, print royalties are still important for classical composers or musicians whose works are frequently performed in concerts or educational settings.
To collect print royalties, you’ll usually need to work with a print publisher. They help distribute sheet music and ensure you get paid for any printed versions of your compositions.
- How to Collect Your Royalties
Now that you understand the different types of royalties, the next step is learning how to collect them. Here's a breakdown of the key organizations and companies that help musicians collect royalties:
- PROs (ASCAP, BMI, SESAC): These organizations track performances of your music and collect performance royalties on your behalf. They do this by monitoring radio, TV, live venues, and streaming platforms to determine how often your music is played.
- SoundExchange: This organization focuses specifically on digital performance royalties from non-interactive streaming services like Pandora, SiriusXM, and webcasters. If your music is streamed through these platforms, SoundExchange ensures you receive the appropriate royalties.
- CD Baby, DistroKid, TuneCore: These companies are music distributors that help get your music onto platforms like Spotify, Apple Music, and YouTube. They also offer services to help you collect mechanical royalties, performance royalties, and even synch royalties. Some also help with licensing and distributing your music in physical formats, like CDs and vinyl records.
- Songtrust: This company is a music publishing administrator. Songtrust can help you collect both mechanical and performance royalties from around the world. It's a great option if you don't have a traditional publishing deal but still want to ensure you get paid for every use of your music.
- Key Takeaways
Understanding music royalties is essential for anyone looking to make a living from their music. Here’s a quick summary of the four main types:
1. Mechanical Royalties – Earned when your music is reproduced (sales, streams, downloads).
2. Performance Royalties – Earned when your music is publicly performed (radio, live shows, streams).
3. Synchronization Royalties – Earned when your music is used in visual media (TV, movies, commercials).
4. Print Music Royalties – Earned from the sale of printed sheet music.
To collect these royalties, you’ll need to register with organizations like ASCAP, BMI, SESAC, SoundExchange, or use services like CD Baby, Songtrust, or DistroKid to make sure you're getting paid for every use of your music. If you’re serious about making a career in music, managing your royalties is a critical step in ensuring your work is profitable.