4 Types of Music Royalties Explained

(And How to Stop Losing Yours)

TL;DR (Key Summary)

Most of the money you can earn from music comes from four royalty types.

  • Performance royalties are what you get when your music is played in public — on radio, at gigs, in venues or on streaming platforms.
  • Mechanical royalties come in two forms. Physical copies like vinyl and CDs pay you per sale, while digital plays and downloads pay smaller amounts that build up over time.
  • Sync royalties are paid when your music is used in visual content, like films, TV shows, adverts or games.
  • Print royalties are earned from sheet music, songbooks or lyric sales.

Plenty of artists never see this money simply because they miss registrations or have bad metadata. Over US $2.5 billion in royalties sits unclaimed in so-called “black box” accounts every year.

4 Types of Music Royalties Explained for Independent Artists

Over US $2.5 billion in royalties sits unclaimed every year. A lot of that money belongs to independent artists who never registered properly or didn’t understand how royalties work.

These four royalty types are where most of your income comes from. They cover how you get paid when your music is played, copied, licensed or printed. Master them, and you’re far less likely to leave money in the industry’s pockets instead of yours.

Performance Royalties

Every time your music is played in public, you earn performance royalties. That could be a gig, a radio spin, a café playlist or even background music in a gym. 

In the UK, PRS for Music handles these payments, while in other countries it’s different organisations.  In the US, it’s organisations like ASCAP and BMI that collect them for songwriters and publishers.

Small licensed venues in the UK typically pay around £10 per event, while larger venues contribute between 4.8 and 8% of their box office income (Musicians’ Union).

Royalties are split evenly, with 50% going to the songwriter and 50% to the publisher. If you’re not registered with a PRO or you forget to submit your setlists, your share can stay unclaimed. PRS lets artists claim for gigs going back up to 12 months, but only if the setlists are filed in time (PRS for Music).

Pie chart showing performance royalties split between songwriter and publisher
Performance royalties are split evenly – 50% to the songwriter and 50% to the publisher.

If you’re curious about how much this can add up to, here’s a breakdown of how much songwriters get paid.

Artist Insider Tip

You can claim performance royalties for live shows going back up to 12 months with PRS, but only if you submit your setlists in time. Miss the deadline and the money stays unclaimed 

Mechanical Royalties

Mechanical royalties are the payments you earn whenever your music is reproduced. That includes physical copies like vinyl or CDs, and digital uses such as streams and downloads.

Many artists treat mechanical royalties as one income stream, but physical and digital mechanicals are tracked and paid very differently. Understanding both is key if you want to collect everything you’re owed. If you’re not sure how mechanical royalties compare to performance royalties, check out our full guide on What Are Royalties in Music?

Here’s a full comparison of mechanical vs performance royalties.

Graphic comparing physical and digital mechanical royalties for artists
Physical copies pay per sale, while digital royalties are based on streams and downloads.

Physical Mechanical Royalties

Physical mechanical royalties are paid whenever your music is reproduced on a physical format such as vinyl, CDs or cassettes.

In the U.S., the rate is 12.4¢ per song per copy or 2.38¢ per minute, whichever is higher (Trolley).

In the UK and much of Europe, physical mechanical royalties are calculated as a percentage of the published dealer price. The typical rate is 8.5% (Musicians’ Union UK).

If you are pressing physical copies through a distributor or label, they usually handle the licensing and reporting. Independent artists who sell vinyl or CDs themselves need to get the correct mechanical licence or risk leaving royalties uncollected.

Artist Insider Tip

Selling vinyl or CDs at gigs still requires a mechanical licence. Many DIY artists skip this step and lose money. In the UK, you can apply for licences through MCPS, while in the U.S., the Harry Fox Agency provides a straightforward option for independent artists.

Digital Mechanical Royalties

Digital mechanical royalties are earned each time your music is reproduced digitally. This includes streams on Spotify, Apple Music or Amazon Music, as well as paid downloads from stores like iTunes or Bandcamp.

Unlike physical mechanicals, digital rates are calculated from platform revenue pools and usage reports. 

The payout for each stream is small. We are talking fractions of a cent, but if your track gets played a lot, it builds up over time. In the U.S., the Mechanical Licensing Collective (MLC) collects this money for artists, and in the UK, it is handled by MCPS.

The Black Box Problem

A huge amount of digital mechanical royalties go unclaimed. If your tracks are not registered with correct metadata, including ISRCs, songwriter splits and publisher information, the royalties will never reach you. Instead, they sit in “black box” accounts and are eventually handed to major publishers. Before the MLC launched, over $426.9 million in unmatched royalties sat in these accounts.

Artist Insider Tip

Check your metadata carefully before uploading music. Make sure ISRC codes, song splits and publisher details are accurate. If you are not yet registered with the MLC or MCPS, sign up as soon as you can. Past-due royalties can be claimed, but only for a limited time.

Synchronisation Royalties

Synchronisation royalties, or “sync” royalties, are earned when your music is licensed to accompany visual media. This includes TV shows, films, adverts, social media content and video games.

How Sync Royalties Work

When a track is licensed for sync, two separate licences are agreed:

  • The composition licence (paid to the songwriter and publisher)
  • The master recording licence (paid to whoever owns the recording, often the artist or label)

You are usually paid an upfront sync fee for the placement and you also earn performance royalties when the media is broadcast or streamed publicly.

What Are Typical Sync Rates?

Sync fees vary depending on the project. According to recent industry reports:

  • TV shows: $500 to $5,000
  • Video games: $5,000 to $10,000
  • Independent films: $2,000 to $15,000
  • Major films: $10,000 to $100,000+
  • Ad campaigns: $20,000 to $300,000+

Independent artists often land smaller placements, but even modest sync deals can bring valuable exposure and ongoing performance royalties.

Why Sync Matters for Indie Artists

Sync licensing is one of the fastest-growing royalty streams. Social media, streaming services and gaming platforms need constant new music, and independent artists are often chosen because licensing is cheaper and faster than working with major labels.

Artist Insider Tip

If you want to land sync placements, make your tracks “sync-ready”. Provide instrumental versions, clean edits and clearly labelled metadata (ISRCs, contact details, publishing info). Many music supervisors skip tracks that are difficult to license, no matter how good they sound.

Table showing typical sync licensing fees for TV, films, ads and games
Sync licensing fees vary, but even smaller placements can bring valuable income.

If you’re serious about landing placements, check out this guide on how to pitch your music for sync.

Print Royalties

Print royalties are earned whenever your music is reproduced in written form. This includes sheet music, songbooks, lyric books and educational materials. While not as big as performance or sync royalties, print royalties remain important for composers, classical musicians and educational markets.

How Print Royalties Work

Publishers pay you a percentage of the retail price for every copy sold. Rates vary but are typically:

  • Single sheet music: around 20% of retail price
  • Music folios or songbooks: 10–12% of retail price

Licences are often non-exclusive and run for three to five years, meaning multiple publishers can print your work at the same time.

Digital Print Rights

Digital platforms have revived print royalties. Sheet music downloads, interactive apps and lyric displays now make up a growing share of this market. Educational apps and digital sheet music stores are particularly strong for independent composers.

Artist Insider Tip

Register your works with a music publisher or rights organisation that handles print licensing. If you write for educational markets or classical music, this can be a steady extra income stream. Digital print sales can be licensed through platforms like Sheet Music Plus or MusicNotes.

Conclusion: Understanding the 4 Types of Music Royalties

Knowing how the 4 types of music royalties work is the first step to getting paid for your music. Performance royalties come from gigs, streams and public plays. Mechanical royalties are earned when your music is copied, whether as physical products or digital streams. Sync royalties pay you when your music is licensed for visual media. Print royalties reward composers and arrangers for sheet music and lyric sales.

Many artists miss out because they don’t register correctly or leave bad metadata on their tracks. Those mistakes push royalties into “black box” accounts, where millions of dollars end up with major publishers instead of independent artists.

You made the music, and you should collect every cent you are owed.

Taking Control of Your Royalties

If you are managing everything yourself, start with the basics. Register your songs with the right organisations. PRS or ASCAP handle performance royalties, and the MLC looks after digital mechanicals. Check your ISRCs, keep your splits clear and remember to report every live setlist. It is dull admin work, but missing those steps means leaving money behind.

If paperwork is not your thing, Melody Rights can do the heavy lifting for you. They register your tracks properly, track royalties across all four main income streams and help place your music in TV, films and digital content. You still keep control of your rights, which is how it should be.

No matter how you handle it, the aim is simple. Every royalty your music earns should end up in your pocket, not sitting unclaimed in a black box account.

Start with this simple guide on how to register your music.

FAQs About Music Royalties

Do artists get paid every time their song is played?

Not for every single play. You get performance royalties when your music is played in public.  Radio, gigs, cafés, that kind of thing. Streaming is different. It pays based on play counts, and the rates are tiny, but they can stack up if your track takes off. The main thing is being registered with a PRO like PRS, ASCAP or BMI. If you are not, you simply do not get paid. Plenty of indie artists use Melody Rights to keep an eye on this because it is easy to miss money otherwise.

How are music royalties divided?

Most of the time, it is split about half and half. The songwriter gets one share, the publisher gets the other. If you wrote the song with other people, it depends on whatever you agreed in your split sheet. Producers, performers and labels might get a cut too, but that is all down to the contract. 
Want to see what that looks like in real numbers? Here is a breakdown of how much songwriters get paid.

What are the four main types of music royalties?

here are four main royalty types you should know:

Performance: money from public plays, like radio or gigs.

Mechanical (physical): paid for physical copies such as CDs or vinyl.

Mechanical (digital): streams and paid downloads.

Sync: fees when your music is licensed for TV, films or ads.

Print: sheet music, songbooks or lyric sales.

If you understand these, you know where most of your income should come from.

What are mechanical royalties and how are they collected?

Mechanical royalties are what you get when your song is copied.
Physical copies (vinyl, CDs, even cassettes) pay you for every unit sold.
In the U.S., there is a set rate per copy. In the UK, it is normally a percentage of the wholesale price.

Digital mechanical royalties come from streams and downloads. One stream barely pays anything, but if your song keeps getting played, it builds up over time.

In the U.S., the Mechanical Licensing Collective (MLC) and Harry Fox Agency collect them.
In the UK, it is MCPS. A lot of artists miss out on this because they never register properly. Melody Rights helps pick up unclaimed royalties if you have missed them.

How can musicians earn synchronisation royalties?

You get sync royalties when your music is used alongside video.  TV, films, ads, games, even TikTok campaigns. Usually, you are paid a sync fee upfront. If the show or ad is broadcast publicly, you will collect performance royalties too.

How long do music royalties last?

Royalties keep paying as long as the songwriter is alive, plus another 70 years after they pass. After that, the music becomes public domain. Anyone can use it, and no more royalties are collected.

How are music royalties collected?

It depends on the type. PROs like PRS, ASCAP and BMI handle performance royalties. The MLC and MCPS look after mechanical royalties. Sync and print royalties are usually paid directly through licensing deals or through your publisher.

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