Digital Performance Royalties: How They’re Distributed and Who Earns Them

Digital Performance Royalties How Theyre Distributed and Who Earns Them

Musicians and songwriters rely heavily on music royalties. It varies on where the music comes from how royalty rates are calculated. The only way to profit from a successful song is to belong to a royalty collection society when you are learning about Digital Performance Royalties.  

The rights to perform and stream music can be collected, as well as mechanical and mechanical royalties. You, as a songwriter and composer, are entitled to these royalties. Those who are recording artists or musicians receive different types of royalties.  

Here’s everything you need to know about Digital Performance Royalties as a singer if you’re looking to take your music seriously and earn digital royalties. 

What are music royalties, and how do digital performance royalties work? 

Artists and songwriters are paid for the use of intellectual property through royalties. The music industry pays royalties on synchronization and print as well as mechanical and public performance royalties. These royalties are the sole source of income for performing musicians. 

Music copyright consists of two sides, a master right and a publishing right. Their owners own original sound recordings. Depending on who funded the recordings, artists, record labels, and recording studios can all hold the recording.  

Music composition owners have publishing rights. Song lyrics, notes, and melodies also fall into this category. Unless you have entrusted your publishing rights to a publisher, you will own the publishing rights.  

Writers are often artists who own songs and will earn royalties for both the composing and performing side. Having your recordings played or broadcast means you can make twice as much money. 

Royalties are owned and managed by publishers and record labels. They are paid before artists or songwriters. Then the songwriters or artists receive their share, which depends on the deal. 

Types of digital performance music royalties 

Each royalty model has a different payout potential and set up for artists. Royalties include the following: 

  • Public performance royalties 
  • Mechanical royalties 
  • Synchronization royalties 
  • Digital royalties 
  • Print royalties   
  • Neighboring rights 
  • Sampling royalties 

What are digital performance royalties? 

Understanding the different methods of generating royalties from music is crucial. It is possible to earn a great deal of money from music royalties. There are various types of digital performance royalties approved by Soundexchange royalty for songs and recordings a musician should consider –  

What are SoundExchange royalties? 

SoundExchange collects royalties for ALL sound recordings played on non-interactive digital radio. This includes recordings and soundtracks made by actors, comedians, and spoken word artists in addition to musicians. For clarification, SoundExchange does not collect royalties for videos or other visual media (including YouTube and VEVO). To know more about what royalties does Soundexchange collect, one must refer the terms and conditions available on the website and act accordingly.  

1. Public performance royalties 

When songs are performed in public, songwriters, publishers, or both interactive streaming services receive royalties. In restaurants, shops, cafes, supermarkets, shopping centers, radio stations, everywhere! Even in pubs and stadiums. Where ever your music is being played and streamed  

2. Mechanical royalties 

Publishers or songwriters receive mechanical royalties. It is possible to license music for audio products such as CDs, digital recordings, vinyl records, and cassette recordings. Revenue from this sale is generated. These royalties from interactive streaming are often tied to the ability to sell goods rather than the production of them. You wouldn’t receive royalties, for instance, if the CD is never sold.  

3. Synchronisation royalties 

You receive synchronization royalty payments if other forms of media accompany the audio. Royalties will be paid out when your music tracks are used in audiovisual media, like TV, films, or video games. The media manufacturer will require a license. 

4. Digital royalties 

In addition to analog royalties, digital royalties rates varies and are also available for music that is used in videos. YouTube has grown to be a vast and popular platform, and videos are often accompanied by music. When your music is used in their video and gets many views, you can earn a lot of money.  

How digital royalties are Divided? 

Under the law, 45 percent of performance royalties are paid directly to the featured artists on a recording, and 5 percent are paid to a fund for non-featured artists. The other 50 percent of the performance royalties are paid to the rights owner of the sound recording. 

5. Print royalties   

Music and lyrics can be printed and sold by composers and songwriters. It can be sheet music or merchandise that contains specific songs. Your piece may be redeemed for royalties if it is published in a music book or downloaded digitally. 

Now the question that arises here is Who has to pay digital performance royalties? And Who earns digital performance royalties?  


To earn digital performance royalties when your music is played on digital streaming services, all you have to do is register with SoundExchange and start earning to the ration mentioned by SoundExchange. Basis their performances performance royalties earned by songwriters and share decided by SoundExchange and that’s how digital performance royalties are divided among them.   

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