Music Royalties Explained

Royalties are the money a release earns when it is played. They are generated by the platforms, reported by the distribution partner, and paid according to each service's royalty structure.

The most common royalty types are mechanical royalties, which cover the right to reproduce and distribute the musical work, and performance royalties, which cover the public performance of the work. Both are generated by streams and public performances.

Royalties are reported monthly. A distribution partner or a service will send a statement showing how many streams the release received, on which platforms, and what the revenue was. The statement is the primary way an artist checks whether the release is being paid correctly.

Royalty rates vary by platform, territory, and the terms of the contract. The important thing is that the artist can see the streams and the money in the same statement. If the statement is unclear, the release needs a metadata review.

The most useful part of royalty monitoring is not the total revenue. It is whether every stream is being correctly attributed to the right release, the right artist, and the right credits. A stream that is attributed to the wrong release is a stream that disappears.