4 Types of Music Royalties explained: A simple cover

Key Takeaway

Summary:
This article provides a simple explanation of the four main types of music royalties: performance, mechanical, synchronization, and print. It also covers how to properly manage and collect these royalties to ensure you’re receiving full compensation for your work.

Links:

• Live Performance Royalties – PRS for Music
• Performance Royalties Overview in 2024 – Royalty Exchange
• Performance Royalties Overview – Royalty Exchange
• How Much Royalties Do You Get? – Melody Rights
• Understanding Music Royalty Rate Structures – Royalty Exchange
• Understanding Print Music Royalties – Trolley
• Melody Rights – Contact

Musicians can earn money long after they stop performing. The secret behind this lasting income stream is music royalties. Throughout this article we will address and clarify what are the 4 types of music royalties and how you can cover them.

What are music royalties? 

Royalties are essential for artists, creators, and innovators. Creators earn payment for their work through these methods.

Some say there are four types of royalties, others six or even more. Each type offers creators a different way to earn.

This post will focus on the 4 main types: mechanical, performance, synchronisation, and print.

Creativity doesn’t always fit neat categories, and royalties are no exception. In addition to the core four types, we’ll dis

cuss a few other royalty streams that expand on or intersect with these categories. 

Whether you’re a creator, a rights holder, or simply curious, exploring these foundational royalties and their nuances will illuminate this fascinating and evolving system.

Types of royalties in music 

1. Performance Royalties

Performance royalties reward artists, songwriters, and publishers each time someone publicly performs their music.

What Are Performance Royalties

You receive performance royalties when your music plays in public. Your song gets these royalties in these situations:

• Radio and television broadcasts
• Live concerts and music festivals
• Streaming services (like Spotify and Apple Music)
• Background music in shops, restaurants, and public spaces
• Digital and satellite radio

How Performance Royalties Work

Businesses and platforms must get a licence to play your music in public. These licences create money pools that go to rights holders. Performance royalties split into two main shares:

Small licenced venues pay you a set royalty for each reported event. The UK pays about £10 per event. Larger venues work differently – they pay between 4.8% to 8% of their box office receipts.

Performance Royalties in the United States

In the United States, public performance license fees for music vary based on factors such as venue size, location, and the type of establishment. For example, ASCAP’s annual fees for small venues can start around $380 for hospitality businesses and $246 for retail establishments.

It’s important to note that these fees are typically paid directly to the respective Performing Rights Organisations (PROs) and are separate from any additional costs associated with music services or equipment.

Performance Royalty Collection Process

Performing Rights Organisations (PROs) handle your performance royalties. These organisations:

• Issue licences to businesses playing music
• Monitor your song’s playtime and location
• Calculate and distribute your royalties

PROs track your music through various methods:

• Radio and TV playlists
• Digital fingerprinting for streaming services
• Live performance setlists
• Venue reports

Members usually get payments from PROs two to four times per year. Your payment amount depends on:

• Your music’s play frequency
• Play locations (prime-time TV vs. late-night radio)
• Licence fee types collected

Spotify, Apple Music, and other digital platforms send detailed play counts straight to PROs. This digital system helps calculate your streaming royalties accurately.

Your music can earn royalties worldwide. PROs team up with organisations in other countries to collect your payments. 

This global network guarantees you receive payment whenever your music reaches audiences.

You must register with a PRO and report your live shows to earn maximum royalties. Without registration, you might miss payments even if your music plays often in public spaces.

1. Mechanical Royalties

Mechanical royalties are a significant part of your music income puzzle. You get these payments when someone reproduces your songs physically or digitally.

Understanding Mechanical Royalties

Each song you create has two distinct copyrights – one for the composition and one for the recording. Your mechanical royalties flow from the composition copyright that covers your song’s melody and lyrics.

You earn these royalties when:

• Someone makes physical copies of your music (CDs, vinyl)
• People download your songs from digital stores
• Listeners stream your music on interactive platforms
• Other artists record cover versions

Find out here how to collect mechanical royalties: https://melodyrights.com/how-much-royalties 

2. Synchronisation Royalties

Sync royalties create an exciting revenue stream that pairs your music with visual content. This growing market generated USD 632 million in 2024 and represents 2.2% of the global recorded music market.

Sync Royalties Sync royalties are earned when your music is used in visual media, like films, TV, video games, or ads.

How It Works: Producers need two licenses: one for the composition and another for the recording. Fees vary based on the media:

• TV Shows: USD 0-5,000
• Video Games: USD 5,000-10,000
• Films: USD 10,000+
• Ads: Up to USD 300,000+

Maximizing Sync Royalties: The market is growing, driven by TV, social media, and gaming. To boost your chances:

• Get your music “sync-ready” (instrumentals, clean versions).
• Work with sync agents or music libraries.

4. Print Music Royalties

Print music royalties might look like a throwback, but they remain crucial in the music industry’s complex royalty system.

Several formats can bring you print royalties:

• Sheet music for individual songs
• Music folios (collections of songs)
• Songbooks and educational materials
• Lyric books and arrangements

Print licences usually run for three to five years and stay non-exclusive. Multiple publishers can print your music simultaneously, which helps boost your earning potential.

How long do music royalties last? 

• A print license grants publishers the right to print and distribute sheet music.
• Licenses usually last 3 to 5 years.
• Print licenses are often non-exclusive, allowing multiple publishers to print your music.
• More publishers mean more sales opportunities and higher earning potential.

Digital Print Rights

Digital technology has opened up new opportunities for print royalties. While physical sheet music sales have declined, digital platforms continue to grow.

Digital print rights cover:

• Online sheet music downloads
• Digital songbooks
• E-book lyric displays
• Interactive music apps

Benefits of digital print rights:

• Instant Distribution: Digital platforms deliver music worldwide instantly.
• Flexible Pricing: Prices can adjust based on demand.
• Direct Sales: Composers can sell music directly to customers.
• Educational Market: Digital formats are useful for music students and teachers.

To make the most of print royalties, ensure proper licensing for any online use, including:

• Digital sheet music stores
• Educational websites
• Lyric display services

Although print royalties don’t match the income from streaming or performance royalties, they are still valuable for:

• Classical composers
• Educational writers
• Film score composers

Maximise your print royalties by:

• Registering your works with music publishers
• Tracking digital and physical uses
• Exploring publishing agreements for educational and classical markets

While print royalties may not be the biggest source of income, they remain a valuable revenue stream, especially with digital tools at your disposal.

What are royalties in music? 

How are music royalties collected: Music Royalties Chart

Conclusion

Musicians can maximise their earnings by understanding four types of music royalties. Each type has its own purpose and collection process.

Playing your music in public spaces earns you performance royalties. Mechanical royalties pay for reproductions of your work. Visual media creates sync royalty opportunities. Despite being traditional, print royalties provide valuable income through physical and digital formats.

Proper registration and active management of your rights determine your success. Your work needs registration with organisations like PROs and the MLC. Platform usage records need careful tracking. Collection methods and current rates require constant attention.

Musicians now earn differently due to new digital platforms and technologies, making understanding and adapting to these revenue streams vital.

Want to start earning from your music? Contact Melodyrights to manage your music’s income and royalty rights.

Note that millions in unclaimed royalties await their rightful owners. Managing your royalty rights effectively puts you in control of your music career.

FAQs

Do artists get paid every time their song is played?

Artists earn royalties from their songs being played, but not directly for each play. They receive payments through performance rights organisations (PROs) for radio and live performances, while streaming earnings come from play counts on platforms like Spotify and Apple Music. Earnings vary based on contracts, platforms, and play frequency.

Signing up with companies such as Melody Rights, can ensure artists get the right income from their music. 

How are music royalties divided?

Music royalties are typically split 50/50 between the songwriter and the publisher. If there are multiple songwriters, each is entitled to a different percentage based on their contributions, and each songwriter may work with different publishers to collect royalties. In addition, performance artists, record labels, and producers can receive a portion of royalties depending on their contracts.

What are the four main types of music royalties? 

The four main types of music royalties are performance, mechanical, synchronisation, and print music. Each type is generated from different music uses and collected through various methods.

Q3. What are mechanical royalties and how are they collected?

Mechanical royalties are payments for the reproduction of songs, either physically or digitally. They are collected through organisations like the Mechanical Licencing Collective (MLC), Harry Fox Agency, or Melody Rights, with payments based on usage reports from digital platforms and physical sales.

Q4. How can musicians earn synchronisation royalties? 

Musicians can earn synchronisation royalties when their music is used alongside visual media, such as in films, TV shows, advertisements, or video games. These royalties often involve upfront payments through direct licencing deals, plus ongoing performance royalties when the content is broadcast.