Imagine a vast landscape of revenue streams, each contributing to the symphony of musical compensation. Radio airplay, streaming platforms, live performances, and even merchandise sales all play a role in generating the funds that fuel the music industry. Navigating this terrain can be as perplexing as a musical enigma, but fear not, for we’re about to embark on a journey to unravel the mysteries of where music royalties come from.
Table of Contents
Performance Royalties
Performance royalties are generated whenever a copyrighted song is publicly performed or broadcast.
Revenue Origin: Radio airplay, streaming services, live performances, digital jukeboxes
Mechanical Royalties
Mechanical royalties are generated when physical copies (CDs, vinyl) or digital copies (downloads) of songs are manufactured or distributed.
Revenue Origin: Physical or digital reproduction of songs
Synchronization Royalties
Synchronization royalties are generated when copyrighted music is synchronized with visual media.
Revenue Origin: Use of music in films, television shows, commercials, video games
Print Royalties
Print royalties are generated when sheet music of copyrighted songs is sold.
Revenue Origin: Sales of sheet music
Neighboring Rights
Neighboring rights royalties are generated when recorded music is played publicly, such as in restaurants, bars, or on radio stations.
Revenue Origin: Public performance of recorded music
Public Lending Rights (PLR)
Public lending rights royalties are generated when physical copies of recorded music are lent out by public libraries.
Revenue Origin: Lending of physical copies of recorded music in libraries
Merchandising Royalties
Merchandising royalties are generated when merchandise, such as t-shirts, hats, or posters, is sold by the artist or record label.
Revenue Origin: Sales of merchandise related to the music or artist
Digital Sales and Streaming Royalties
Digital sales and streaming royalties are generated from sales of digital copies of songs or albums on platforms like iTunes, Amazon Music, or Bandcamp.
Revenue Origin: Sales of digital copies of songs or albums on online platforms
Composition Royalties
Composition royalties are generated when an artist composes original music for film scores, television cues, or commercials.
Revenue Origin: Use of music in film scores, television cues, or commercials
Arranging Royalties
Arranging royalties are generated when an arranger creates new arrangements or orchestrations of existing compositions.
Revenue Origin: Creation of new arrangements or orchestrations of existing compositions
Sample Clearance Fee
Sample clearance fees are generated when an artist pays a fee to use another artist’s copyrighted material, such as a sample or interpolation.
Revenue Origin: Permission to use another artist’s copyrighted material
