Understanding Music Royalties

Understanding Music Royalties - compiled by Planet Carnot

 

 

 

 

 

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Music royalties* refer to the payments made to rights holders, including songwriters, recording artists, and intermediaries like labels, publishers, or producers for the use of their music. These payments are generated through various means, including streaming, digital downloads, and public performances.

Types of Music Royalties*

1. Mechanical Royalties*: These are generated every time a copy of a musical work is made, such as through digital downloads or physical sales [𝟏].

2. Streaming Mechanical Royalties*: These are collected via blanket licenses with Digital Service Providers like Apple Music, Spotify, or Deezer [𝟐].

4. Performance Royalties*: These are earned when a song is performed or played publicly, for example, on the radio, in a bar, or at a concert.

4. Synchronization Royalties*: These are earned when a song is used in TV shows, movies, commercials, or other visual media.

Distribution of Royalties*

- Typically, royalties generated are split 50/50 between the songwriter and the publisher [𝟑].
- For any music work created, two equal shares of copyright are assigned: the writer's share and the publisher's share, each worth 50% [𝟒].

Additional Insights*

- Original artists do not receive royalties when a song with which they had a hit is used on a show. The new performer doesn't use the original [𝟓].
- Royalties are dependent on the country and PRO (Performance Rights Organization), and the distribution of royalties can vary based on the specific terms of contracts and agreements.

Overall, music royalties play a crucial role in compensating the various contributors to a musical work for the use and distribution of their creations.

Sources
1. How Do Music Royalties Work in 2024? • .

https://dittomusic.com/en/blog/how-do-music-royalties-work

2. Music Publishing Tips | What Are Music Royalties? • https://blog.songtrust.com/what-are-music-royalties

3. Music Royalties 101  Intro to Music Royalties  Royalty Exchange • https://www.royaltyexchange.com/blog/music-royalties-101-intro-to-royalties

4. Music Royalties 101: How Do Music Royalties Work? [+ 6 Types] • https://soundcharts.com/blog/music-royalties

5. Do musicians get royalties for songs played on TV and movies, or ... • https://www.quora.com/Do-musicians-get-royalties-for-songs-played-on-TV-and-movies-or-are-they-paid-a-flat-fee