{"id":339,"date":"2022-08-30T18:54:11","date_gmt":"2022-08-30T18:54:11","guid":{"rendered":"https:\/\/hypush.co\/feeds\/?p=339"},"modified":"2022-08-30T19:48:58","modified_gmt":"2022-08-30T19:48:58","slug":"music-royalties-explained-and-how-musicians-get-paid","status":"publish","type":"post","link":"https:\/\/hypush.co\/feeds\/music-royalties-explained-and-how-musicians-get-paid\/","title":{"rendered":"Music royalties explained and how musicians get paid."},"content":{"rendered":"<p>As artists, we invest so much energy and cash on music creation and production that occasionally we fail to remember that there are many types of revenue out there that you probably won&#8217;t be aware of as musicians. From streaming to radio, TV to download, and synchronization to neighbouring rights, there is a great deal more you really want to be aware of so you can see all potential open doors accessible to you and get compensated.<\/p>\n<div class=\"container-sm mb-4\">\n<h2 id=\"what-are-music-royalties\" class=\"font-bold text-3xl leading-tight \">What are music royalties?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Music royalties are the payments that should be received by the rights holders of a piece of music when their musical work is used. The rights holders can be composers, lyricists, songwriters, recording artists, etc. You should receive royalties when your music is played on streaming platforms like Spotify, Deezer, or Apple Music, or broadcasted on a radio station or TV channel.<\/p>\n<\/div>\n<\/div>\n<div id=\"how-do-royalties-work\" class=\"js-section-heading\"><span style=\"color: #111111; font-family: Roboto, sans-serif; font-size: 27px;\">How do royalties work?<\/span><\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>In simple terms, artists compose and record music. These recordings are played and streamed, or the compositions are performed or covered. The rights holders get paid. You probably already noticed: There are different rights that can be monetized and you can wear multiple hats as an artist.<\/p>\n<p>Let\u2019s dive into the different types of music rights.<\/p>\n<\/div>\n<\/div>\n<div id=\"types-of-music-rights\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-6\">\n<h2 id=\"types-of-music-rights\" class=\"font-bold text-2xl leading-snug \">Types of music rights<\/h2>\n<table>\n<tbody>\n<tr>\n<td width=\"301\"><strong>Master Rights<\/strong><\/td>\n<td width=\"301\"><strong>Publishing Rights<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"301\">Recording Artist<\/td>\n<td width=\"301\">Song Writers<\/td>\n<\/tr>\n<tr>\n<td width=\"301\">Record Label<\/td>\n<td width=\"301\">Publishers<\/td>\n<\/tr>\n<tr>\n<td width=\"301\">Third Party<\/td>\n<td width=\"301\">Lyricist<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<\/div>\n<p>What are master rights? Or a master? Or even a master recording? So many deviations of the term itself. And what about publishing rights?<\/p>\n<div class=\"container-sm mb-4\">\n<h2 id=\"master-rights\" class=\"font-bold text-xl leading-normal \">Master rights<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>The Master Recording (or master) is the original sound of the recording of a song. The recording of composition is owned by the recording artists, record labels, producers or the person who financed the recording. The master rights can be licensed to a record label or third party for a period of time defined clearly in a contract.<\/p>\n<p>Master rights are automatically created when a song gets recorded, for example in a studio or during a concert. In a lot of cases, the master rights are owned by the recording artists themselves but they can also be licensed to a record label or third party for a period of time defined clearly in a contract.<\/p>\n<p>One thing to understand: a master right belongs to a recording meaning that if you record another version of the song, it is not the same master right.<\/p>\n<\/div>\n<\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"publishing-rights\" class=\"font-bold text-xl leading-normal \">Publishing rights<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>On the other hand, publishing rights (or songwriting copyrights) are the rights of the composition of the music and its lyrics (if there are lyrics). Songwriters, composers and lyricists own them. And in Europe they can\u2019t be sold. When you create music or lyrics, you\u2019re the owner of the publishing rights no matter what (well, until 70 years after the death of the individual creator or author if no publisher is involved). However, you can license your publishing rights to a music publisher who will monetize them for you.<\/p>\n<\/div>\n<\/div>\n<div id=\"type-of-music-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"type-of-music-royalties\" class=\"font-bold text-2xl leading-snug \">Type of music royalties<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<ul>\n<li>Digital Sales (Streaming Royalties &amp; Download Royalties)<\/li>\n<li>Physical Sales<\/li>\n<li>Mechanical Royalties<\/li>\n<li>(Public) Performance Royalties<\/li>\n<li>Neighboring Rights Royalties<\/li>\n<li>Digital Performance Royalties<\/li>\n<li>Sync Licensing Fees<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div id=\"digital-sales-streaming-royalties-download-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-6\">\n<h2 id=\"digital-sales-streaming-royalties-download-royalties\" class=\"font-bold text-xl leading-normal \">Digital Sales (Streaming Royalties &amp; Download Royalties)<\/h2>\n<div class=\"container-sm mb-8\">\n<div class=\"copy text-lg \">\n<p>Digital music consumption has continued to increase in the last couple of years \u2014 and there is no end in sight. While the share of revenue from digitally downloaded music is decreasing, revenue from streaming made up 62.1% of the global recorded music industry revenue in 2020 according to the\u00a0<a href=\"https:\/\/www.ifpi.org\/wp-content\/uploads\/2020\/03\/GMR2021_STATE_OF_THE_INDUSTRY.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">IFPI Global Music Report<\/a>.<\/p>\n<p>Digital Service Providers (DSPs) are required to pay royalties to songwriters and publishers; you\u2019ll read more about that later in the \u2018Mechanical Royalties\u2019 section. The greater share of digital revenue is generated through streaming royalties and download royalties.<\/p>\n<\/div>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p><strong>Streaming Royalties<\/strong><\/p>\n<p>Every time a track is streamed on a streaming platform (e.g. Spotify, Apple Music, Deezer, Tidal, Amazon Music, etc.), artists, record labels, and any other third party involved earn money through streaming royalties. You\u2019ll read more about how streaming royalties are calculated below.<\/p>\n<p><strong>Download Royalties<\/strong><\/p>\n<p>Even though digital music consumption continues to move from download to streaming, download royalties can still constitute a considerable share of your income from digital sales. For every track downloaded from digital download platforms (e.g. iTunes, Beatport, Traxsource, etc.), musicians get a share of the amount that the user paid for the download.<\/p>\n<\/div>\n<\/div>\n<div id=\"physical-sales\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"physical-sales\" class=\"font-bold text-xl leading-normal \">Physical Sales<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>While physical revenue continues to decrease, the rate of decline has slowed down considerably in the last couple of years. Within this category, there\u2019s also a shift from CDs to vinyl or tapes \u2014 and with that a shift in the meaning and purpose of physical music to become collector\u2019s items that you\u2019re proud to show to your friends.<\/p>\n<\/div>\n<\/div>\n<div id=\"mechanical-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"mechanical-royalties\" class=\"font-bold text-xl leading-normal \">Mechanical Royalties<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Whenever a CD, vinyl record, or tape is manufactured, compositions are reproduced. The same goes for digital downloads and streams: Every download or stream is considered a reproduction of a song. For the reproduction of music compositions, mechanical royalties are due for the songwriters and publishers; this money is collected by collecting societies (e.g. GEMA, SUISA) or other rights management agencies (e.g. the Harry Fox Agency) on behalf of the rights holders.<\/p>\n<\/div>\n<\/div>\n<div id=\"public-performance-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"public-performance-royalties\" class=\"font-bold text-xl leading-normal \">(Public) Performance Royalties<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>A public performance is when you play music in public, or when your music is played in public. You get royalties for the composition (e.g. for live shows) or the master AND the composition (e.g. on TV, Radio; at DJ events). Obvious examples are live shows at concert events or festivals. At these events, you might have to fill out a tracklist for the event promoter or producer because money gets paid to the songwriters of each song that you\u2019ve performed. But there\u2019s more: TV, radio broadcasts, or background music in restaurants, shops, bars, nightclubs, etc. are considered public performances. For all of this, you might be eligible to receive performance royalties through your Performance Rights Organization (PRO).<\/p>\n<\/div>\n<\/div>\n<div id=\"neighboring-rights-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"neighboring-rights-royalties\" class=\"font-bold text-xl leading-normal \">Neighboring Rights Royalties<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Neighboring rights (or related rights) are public performance royalties due to the sound recording (master) copyright holder. So when a sound recording is publicly broadcasted or performed, the master rights holders need to be compensated and this goes by neighboring rights. For example, it can be clubs, restaurants, TV, radio stations, streaming radios, or any public space where the music work is broadcasted.<\/p>\n<\/div>\n<\/div>\n<div id=\"digital-performance-royalties\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"digital-performance-royalties\" class=\"font-bold text-xl leading-normal \">Digital performance royalties<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Digital royalties are payments to the recording owners for radio airplay on platforms such as Pandora, SiriusXM, and internet radio stations. There are royalties for the featured artists (45%), the rights owners (50%), and the non-featured artists (5%). Digital performance royalties are specific to the US as they don\u2019t use neighboring rights. The official collection society for this is SoundExchange. Digital or internet radio stations must get a license from SoundExchange to use licensed music, and on the other side, the artist(s) must be registered with SoundExchange to collect those royalties.<\/p>\n<h2 id=\"sync-licensing-fees\" class=\"font-bold text-xl leading-normal \">Sync Licensing Fees<\/h2>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Sync is short for synchronization. Synchronization of what? This is the operation of two things at the same time and here, it can be for motion pictures and other audiovisual products such as TV, movies, Netflix Series, advertisements, video games, TV Shows, DVDs, Blu-Ray, etc. The producer of this audiovisual product synchronizes your music with this other product (video, moving images\u2026) and will get a license to be allowed to do so. It\u2019s often an upfront fee and in certain cases, you get a % of the sales &#8211; it really depends on the deal. This payment is called sync licensing and you need to register your music in order to be in a position to collect the fees paid for the use of your copyrighted music.<\/p>\n<\/div>\n<\/div>\n<div id=\"how-are-music-royalties-calculated\" class=\"js-section-heading\"><span style=\"color: #111111; font-family: Roboto, sans-serif; font-size: 27px;\">How are music royalties calculated?<\/span><\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Now that we know what kind of music royalties exist, we have to understand who the stakeholders are, who gets paid, at what percentage, when, and how?<\/p>\n<\/div>\n<\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"who-gets-paid-for-music-royalties\" class=\"font-bold text-2xl leading-snug \">Who gets paid for music royalties?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Depending on how many people are involved, from your label manager to the one who wrote your lyrics, several parties need to be paid. Apart from songwriters and artists, there might be many more entities operating as intermediaries on your behalf, assisting you to collect all the royalties you\u2019re eligible to claim.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"js-section-heading\"><\/div>\n<div>\n<h2 id=\"main-actors\" class=\"font-bold text-xl leading-normal \">Main actors<\/h2>\n<\/div>\n<div class=\"container-sm mb-6\">\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<div class=\"container-sm mb-6\"><span class=\"font-medium text-lg\"><strong>Recording Artist\/Band<\/strong>; <\/span><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">They are the ones who record the song in the studio (or live). It can be the songwriters themselves, it could be a third party, there could be featured artists involved and other non-featured members.<\/span><\/div>\n<div class=\"container-sm mb-6\">\n<div id=\"accordion-recording-artists-band-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"recording-artists-band\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Master rights<\/li>\n<\/ul>\n<p>They will receive money from:<\/p>\n<ul>\n<li>Digital sales (Streaming royalties &amp; download royalties)<\/li>\n<li>Physical sales<\/li>\n<li>Neighbouring rights royalties (or Digital performance royalties)<\/li>\n<li>Sync licensing fees<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div>\n<p><span class=\"font-medium text-lg\"><strong>Songwriters;<\/strong> <\/span><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">The songwriters are the one who wrote the song: they own the music composition. They created the melody, arrangement, and lyrics.<\/span><\/p>\n<div id=\"accordion-songwriters-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"songwriters\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Music composition rights<\/li>\n<\/ul>\n<p>They will receive money from:<\/p>\n<ul>\n<li>Mechanical royalties<\/li>\n<li>(Public) Performance royalties<\/li>\n<li>Sync licensing fees<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div>\n<h2 id=\"intermediate-entities\" class=\"font-bold text-xl leading-normal \">Intermediate entities<\/h2>\n<\/div>\n<div class=\"relative\">\n<p><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"><strong>Record Labels;<\/strong> There are different types of record labels and some will provide more resources or budget than others. There are record labels that will pay for the recording studio and the whole production, and they will acquire some rights. They can also make a deal with the artist to acquire the master rights even if they haven\u2019t financed it as they will provide a budget for the marketing and the promotion of the recorded product.<\/span><\/p>\n<div id=\"accordion-record-labels-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"record-labels\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Master rights<\/li>\n<\/ul>\n<p>They administer the following royalties, and forward a share to their (performing) artists\/bands:<\/p>\n<ul>\n<li>Digital sales (Streaming royalties &amp; download royalties)<\/li>\n<li>Physical sales<\/li>\n<li>Neighbouring rights royalties (or Digital performance royalties)<\/li>\n<li>Sync licensing fees<\/li>\n<\/ul>\n<p>In some cases, artists are not signed to any label. These artists get all the above-mentioned royalties without any label share deducted.<\/p>\n<\/div>\n<\/div>\n<p><span class=\"font-medium text-lg\"><strong>Publishers;<\/strong> <\/span><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Publishers take care of the administration and the collection of mechanical royalties and public performance royalties. They make sure your songs (music works) are properly registered, that you, as a songwriter, are properly registered to a collection society, and that you receive the money you deserve.<\/span><\/p>\n<div id=\"accordion-publishers-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"publishers\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Publishing rights<\/li>\n<\/ul>\n<p>They administer the following royalties, and forward a share to their songwriters:<\/p>\n<ul>\n<li>Mechanical royalties<\/li>\n<li>Neighbouring royalties<\/li>\n<li>(Public) Performance royalties<\/li>\n<li>Sync licensing fees<\/li>\n<\/ul>\n<p>The same goes for sub-publishers who might have a deal for certain territories. In some cases, songwriters have not transferred any publishing rights to a publisher. These songwriters get all the above-mentioned royalties without any publisher share deducted.<\/p>\n<div id=\"accordion-songwriters-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"songwriters\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"><strong>Digital Distributor;<\/strong> Digital distributors are in charge of <\/span>delivering your music on streaming and download platform<span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">s such as Spotify, Apple Music, iTunes, Beatport, Amazon Music, etc. They are the relation in-between the owner of the master rights and the streaming shops.<\/span><\/p>\n<div id=\"accordion-digital-distributors-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"digital-distributors\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Not Applicable<\/li>\n<\/ul>\n<p>They will collect and reverse the full or partial amount of money from:<\/p>\n<ul>\n<li>Digital sales (Streaming royalties &amp; download royalties)<\/li>\n<\/ul>\n<p><span class=\"font-medium text-lg\"><strong>Physical Distributors<\/strong>; <\/span><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Physical distributors are in charge of distributing your CD, Vinyls and tapes to retailers in a certain region or worldwide. The deal is often a % on top of the broker deal. There are also fees for storage for unsold products.<\/span><\/p>\n<div id=\"accordion-physical-distributors-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"physical-distributors\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Not Applicable<\/li>\n<\/ul>\n<p>They will receive and reverse a part of the money from:<\/p>\n<ul>\n<li>Physical sales<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Sync Agencies;<\/strong><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"> If you own the master and publishing rights, it&#8217;ll be easier to work with a sync agency as they need to have 100% of the rights to work with your songs. They are the one in-between those two parties and the music users such as the music supervisor looking for a new song for a Netflix series or a movie, or to have your song on the new Grand Theft Auto.<\/span><\/p>\n<div id=\"accordion-sync-agencies-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"sync-agencies\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>They own:<\/p>\n<ul>\n<li>Not Applicable<\/li>\n<\/ul>\n<p>They will receive money from:<\/p>\n<ul>\n<li>Sync licensing fees<\/li>\n<\/ul>\n<p><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"><strong>Collection Societies;<\/strong> They collect performance royalties and mechanical royalties on behalf of songwriters and publishers, and neighboring rights royalties on behalf of recording artists and labels. These organizations can be separate entities like Performance Rights Organizations (PROs) that only take care of performance royalties, or Mechanical Rights Organizations (MROs); but in some countries, PROs and MROs are combined to form a CMO, or Collective Management Organization (e.g. GEMA, SUISA).<\/span><\/p>\n<div id=\"accordion-collection-societies-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"collection-societies\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>Depending on the country you\u2019re from or where you want to be registered, it can be one or several agencies you need to be signed up to. For example, in the UK, you need to register at PPL &amp; PRS. If you don\u2019t have a publisher, you might do this work yourself by registering your music works and registering yourself as a songwriter.<\/p>\n<p>You\u2019ll need to give some information such as:<\/p>\n<ul>\n<li>ISRCs<\/li>\n<li>% of each composer\/author and the % of the publisher if there is one with the IPI numbers<\/li>\n<li>Name of the work (song)<\/li>\n<\/ul>\n<p>They own:<\/p>\n<ul>\n<li>Not Applicable<\/li>\n<\/ul>\n<p>They will collect money from:<\/p>\n<ul>\n<li>Mechanical royalties<\/li>\n<li>(Public) Performance royalties<\/li>\n<li>Neighboring rights royalties (or Digital performance royalties)<\/li>\n<\/ul>\n<p><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"><strong>Booking Agencies;<\/strong> Perhaps you have some favorite venues or festivals you\u2019ve always dreamt about playing at. So, once you\u2019ve got your songs ready, you reach out to them, asking if they\u2019re willing to book you for a show. Or venues and event promoters might even reach out to you themselves and offer you a concert slot.<\/span><\/p>\n<div id=\"accordion-booking-agencies-content\" class=\"js-accordion overflow-hidden transition-all duration-300 ease-in-out\" data-key=\"booking-agencies\">\n<div class=\"copy text-lg pb-4 pl-4 pr-4 text-gray-500\">\n<p>Depending on your ambitions, it makes sense to collaborate with a booking agency. Usually, they know where you\u2019ve got a chance to get booked, they can negotiate to get better deals, and they can organize live tours \u2014 this leaves you with more time to rehearse your live show.<\/p>\n<p>They own:<\/p>\n<ul>\n<li>Not Applicable<\/li>\n<\/ul>\n<p>They will collect money from:<\/p>\n<ul>\n<li>Show fees<\/li>\n<\/ul>\n<\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"when-do-you-get-paid-for-your-royalties\" class=\"font-bold text-2xl leading-snug \">When do you get paid for your royalties?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>We know what you can get paid for, but when are you actually paid?<\/p>\n<\/div>\n<\/div>\n<div id=\"streaming-downloads\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-6\">\n<h2 id=\"streaming-downloads\" class=\"font-bold text-xl leading-normal \">Streaming &amp; Downloads<\/h2>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>You get paid when someone plays or downloads your music on streaming services such as Spotify, Deezer, Traxsource, or other download or streaming platforms. When the user plays more than 30 seconds or pays to download your track, the money is due and the shop will collect this money, take their share, and reverse a large amount to the distributor and to the collection society as streaming also generates mechanical and performance royalties. There might be a record label in between the distributor and you, an artist\/songwriter, so they will collect this money, take their share, and give your part as agreed upon in the artist\/label contract you\u2019ve signed.<\/p>\n<p>Types of royalties involved:<\/p>\n<ul>\n<li>Digital sales (Streaming royalties &amp; download royalties)<\/li>\n<li>Mechanical royalties<\/li>\n<li>(Public) Performance royalties<\/li>\n<\/ul>\n<p>When do you get paid?<\/p>\n<p>About 3-4 months after the stream or the download is confirmed by the shop.<\/p>\n<p>Important note: some shops might delay some payments and that\u2019s why it\u2019s quite hard to reconcile what you could see on your\u00a0Spotify for Artists\u00a0account or our\u00a0Music Analytics\u00a0tool.<\/p>\n<\/div>\n<\/div>\n<div id=\"physical-sales-vinyl-cd-tape-and-other-products\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"physical-sales-vinyl-cd-tape-and-other-products\" class=\"font-bold text-xl leading-normal \">Physical Sales (Vinyl, CD, Tape and other products)<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>The consumer will pay a price to buy your vinyl, CD, or tape and it can be different depending on which shop, which country, and which currency. A part of this money will be transferred to the physical distributor which will take its share and deliver the rest to either you as the artist or to your record label if they&#8217;re the one dealing with it. A physical sale generates mechanical royalties.<\/p>\n<p>Types of royalties involved:<\/p>\n<ul>\n<li>Mechanical royalties<\/li>\n<\/ul>\n<p>Other payment:<\/p>\n<ul>\n<li>% agreed with the record label or distributor from sales<\/li>\n<\/ul>\n<p>When do you get paid?<\/p>\n<p>It depends on the contract, some physical distributors wait for your royalties to accumulate to a specific amount before sending your money but otherwise, it is about a couple of months.<\/p>\n<\/div>\n<\/div>\n<div id=\"netflix-series-video-game-or-other-sync-placements\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"netflix-series-video-game-or-other-sync-placements\" class=\"font-bold text-xl leading-normal \">Netflix Series, Video Game or other Sync Placements<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Your sync agency will promote your music to music users so it can be placed in a product. When it happens, the sync agency deals with this user to get you the best deal possible as they will also receive a cut (%) from it. You will receive an upfront fee (sync licensing fee) and neighboring royalties.<\/p>\n<p>Types of royalties involved:<\/p>\n<ul>\n<li>Sync licensing fees<\/li>\n<li>(Public) Performance royalties (once the audio\/visual product is broadcasted)<\/li>\n<li>Neighboring rights royalties (or Digital performance royalties)<\/li>\n<\/ul>\n<p>Other possible payments:<\/p>\n<ul>\n<li>% from sales or views from this final product<\/li>\n<\/ul>\n<p>When do you get paid?<\/p>\n<p>The fee will be almost instant once the sync agency and you have signed the contract with the user. Neighboring rights can take up to 2 years depending on the country in which you are registered and the country in which the music is used.<\/p>\n<\/div>\n<\/div>\n<div id=\"live-show-concert-festival-other-outdoor-music-events\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"live-show-concert-festival-other-outdoor-music-events\" class=\"font-bold text-xl leading-normal \">Live Show, Concert, Festival &amp; Other Outdoor Music Events<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>You will play your songs live in front of a public audience. This generates royalties on top of the fee you will receive from the promoter of this event.<\/p>\n<p>Types of royalties involved:<\/p>\n<ul>\n<li>Public Performance royalties<\/li>\n<\/ul>\n<p>Other payment:<\/p>\n<ul>\n<li>Fees paid by the promoter organizing the event<\/li>\n<\/ul>\n<p>When do you get paid?<\/p>\n<p>It can take up to 2 years for the performance royalties to arrive, depending on the country you are registered in and the country in which the event is taking place.<\/p>\n<p>On the other hand, the fee you receive from the promoter is usually paid right after the event.<\/p>\n<\/div>\n<\/div>\n<div id=\"radio-plays\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"radio-plays\" class=\"font-bold text-xl leading-normal \">Radio Plays<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Your song will be broadcast on the radio and in many cases, this will generate great exposure for you depending on the reach of the radio station. Even better, it generates money for you. Depending on if you\u2019re from the US or not, there can be different types of royalties when it comes to different types of radio (i.e Pandora or internet radio stations).<\/p>\n<p>Types of royalties involved:<\/p>\n<ul>\n<li>Public Performance royalties<\/li>\n<li>Neighboring rights royalties (or Digital performance royalties)<\/li>\n<\/ul>\n<p>When do you get paid?<\/p>\n<p>It can take up to 2 years depending on the country in which you are registered and the country in which the radio station is based.<\/p>\n<\/div>\n<\/div>\n<div id=\"how-are-each-type-of-royalties-calculated\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-6\">\n<h2 id=\"how-are-each-type-of-royalties-calculated\" class=\"font-bold text-2xl leading-snug \">How are each type of royalties calculated?<\/h2>\n<\/div>\n<div id=\"how-much-do-you-get-paid-for-one-stream\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-6\">\n<h2 id=\"how-much-do-you-get-paid-for-one-stream\" class=\"font-bold text-xl leading-normal \">How much do you get paid for one stream?<\/h2>\n<\/div>\n<div class=\"container-sm mb-8\">\n<div class=\"relative\"><img loading=\"lazy\" decoding=\"async\" class=\"w-full h-auto js-dynamic-img\" title=\"Graph IIB Music Streaming Services Money\" src=\"https:\/\/imusician.imgix.net\/images\/information-is-beautiful-money-shops-streaming-graph.png?auto=compress,format&amp;fit=crop&amp;crop=focalpoint&amp;fp-x=0.5&amp;fp-y=0.5&amp;q=5&amp;w=125\" srcset=\"https:\/\/imusician.imgix.net\/images\/information-is-beautiful-money-shops-streaming-graph.png?auto=compress,format&amp;fit=crop&amp;crop=focalpoint&amp;fp-x=0.5&amp;fp-y=0.5&amp;w=720 1x, https:\/\/imusician.imgix.net\/images\/information-is-beautiful-money-shops-streaming-graph.png?auto=compress,format&amp;fit=crop&amp;crop=focalpoint&amp;fp-x=0.5&amp;fp-y=0.5&amp;w=1440 2x\" alt=\"Colorful Graphs Streaming Shops Black Background\" width=\"2552\" height=\"1380\" data-base-url=\"https:\/\/imusician.imgix.net\/images\/information-is-beautiful-money-shops-streaming-graph.png?auto=compress,format&amp;fit=crop&amp;crop=focalpoint&amp;fp-x=0.5&amp;fp-y=0.5\" data-ratio-multiplier=\"\" \/><\/div>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p dir=\"ltr\">In our guide\u00a0How To Make Money on Spotify,\u00a0we mentioned that the average revenue per stream on Spotify is $0.00437. This is an average only taking into account Spotify and it changes every month depending on how much music is streamed, where your music is streamed, and from which user\u2019s subscription (freemium, premium). This might give you some headaches.<\/p>\n<p dir=\"ltr\">On\u00a0Information is Beautiful, you can have a look at the average artist revenue per stream from the main shops such as Napster, Tidal, Spotify, Deezer, etc.<\/p>\n<\/div>\n<\/div>\n<div id=\"how-is-a-music-download-calculated\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"how-is-a-music-download-calculated\" class=\"font-bold text-xl leading-normal \">How is a music download calculated?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>Music download shops like iTunes,\u00a0Beatport, or Amazon have their own price-tiers, and usually set the price for tracks or whole releases themselves, based on their own price policy. The shop takes its cut and sends the rest to the aggregator (or music distributor), and a small part to the collection society (e.g. for mechanical rights). You will get about 50 to 70% of the price that\u2019s displayed in the shop.<\/p>\n<\/div>\n<\/div>\n<div id=\"how-much-do-you-earn-from-cd-or-vinyl-sales\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"how-much-do-you-earn-from-cd-or-vinyl-sales\" class=\"font-bold text-xl leading-normal \">How much do you earn from CD or vinyl sales?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>This one is tricky. If you sell your CD and vinyl alone without a\u00a0record label\u00a0or distributor, you get the price that you sell it for. If you deal with a record label, you will get a smaller cut, and the record label might have a deal with a distributor which lowers the share.<\/p>\n<p>An artist usually gets about $ 1.50 to $ 2.00 for a CD sold. If you\u2019re dealing with an independent label, you might get a bigger part of the pie (i.e $ 5.00 to $ 7.00).<\/p>\n<\/div>\n<\/div>\n<div id=\"how-much-do-you-earn-from-a-sync-placement\" class=\"js-section-heading\"><\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"how-much-do-you-earn-from-a-sync-placement\" class=\"font-bold text-xl leading-normal \">How much do you earn from a sync placement?<\/h2>\n<\/div>\n<div class=\"container-sm mb-12\">\n<div class=\"copy text-lg \">\n<p>So many possibilities that we can\u2019t really put a figure on this but you could easily earn around $50,000 to license your music for a Netflix series.<\/p>\n<\/div>\n<\/div>\n<div class=\"container-sm mb-4\">\n<h2 id=\"conclusion\" class=\"font-bold text-3xl leading-tight \">Conclusion<\/h2>\n<\/div>\n<div class=\"container-sm mb-16 md:mb-30\">\n<div class=\"copy text-lg \">\n<p>There\u2019s a lot to understand and a lot to do but as a songwriter, artist or band, be sure to sign good deals with your partners like a record label or a publisher or even a sync agency, and be sure to be registered to a collection society to get the money you\u2019ve earned.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As artists, we invest so much energy and cash on music creation and production that occasionally we fail to remember that there are many types of revenue out there that you probably won&#8217;t be aware of as musicians. From streaming to radio, TV to download, and synchronization to neighbouring rights, there is a great deal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[27],"tags":[37,36],"class_list":["post-339","post","type-post","status-publish","format-standard","has-post-thumbnail","category-distribution-licensing","tag-music-rights","tag-music-royalties"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Music royalties explained and how musicians get paid. - HYPush<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hypush.co\/feeds\/music-royalties-explained-and-how-musicians-get-paid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Music royalties explained and how musicians get paid. - HYPush\" \/>\n<meta property=\"og:description\" content=\"As artists, we invest so much energy and cash on music creation and production that occasionally we fail to remember that there are many types of revenue out there that you probably won&#8217;t be aware of as musicians. 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