Money

How music royalties work: a clear guide

Every stream, radio play and sync placement can pay several people through several channels. Once you see the map, it becomes much easier to spot the money you’re missing.

Royalties feel complicated because the same song earns in different ways, through different organizations, on different schedules. This guide explains the general model. Rates, societies and rules change by country, so check the specifics where you live.

One song, two copyrights

CopyrightWhat it coversUsually owned by
Master (sound recording)The specific recording you hearThe artist or the label, depending on the deal
Composition (publishing)The melody and lyrics, however they are recordedThe songwriters and their publishers

Most income streams pay one side, the other, or both. That is why an artist who also writes their songs can be paid from several places for the same stream. How to register each one is in how to copyright a song.

The main types of royalties

  • Master royalties from streaming and downloads: paid by services to the distributor or label, then to the artist according to their deal.
  • Performance royalties: for the composition when it is played in public — radio, TV, venues, shops and, in many countries, streaming. Collected by performing rights societies for songwriters and publishers.
  • Mechanical royalties: for the composition when it is reproduced — streams and downloads in many systems, and physical copies. Collected by mechanical rights organizations or publishers, depending on the country.
  • Neighbouring rights: for the recording when it is played in public, in countries that recognize them; paid to performers and master owners through their own societies.
  • Sync fees and royalties: when a song is used in a film, series, ad or game. A fee for the master and another for the composition, negotiated per use, plus performance royalties when it airs.
  • YouTube and social platforms: income from videos that use your music, through content identification systems, split between master and publishing sides.

Who collects what

WhoCollectsPays
Distributor or labelMaster income from stores and streaming servicesThe artist, under the distribution or record deal
Performing rights societyPerformance royalties for compositionsSongwriters and publishers who registered the work
Mechanical rights organizationMechanical royalties for compositionsPublishers and self-published songwriters
Publisher or administratorRegisters works and collects the publishing side worldwideSongwriters, after its share
Neighbouring rights societyPublic performance of recordingsPerformers and master owners

How streaming money flows

  1. A listener plays the song.
  2. The service pays the master side to the distributor or label, which pays the artist under their deal.
  3. The service also pays the publishing side — performance and mechanical — to societies, organizations or publishers, depending on the country.
  4. Those bodies match the recording to the registered work, using codes such as the ISRC (recording) and the ISWC (work), and pay the writers and publishers.

If the work was never registered, or the metadata doesn’t match, step 4 fails and that money sits unmatched.

Streaming services don’t pay a fixed amount per stream. Payouts depend on the service, the country, the listener’s plan and each deal, so be careful with any single “per-stream rate”. See how much Spotify pays per stream, with a calculator for your own rate.

Reading a royalty statement

A good statement lets you answer four questions: what earned, where, when and how much is yours after costs. Look for income by release and track, by platform and territory, the period it covers, the deductions or recouped costs, and the balance carried forward. If your label or distributor can’t show this, ask. Labels can produce these statements with tools like TONTRIA for Labels, and publishers with TONTRIA for Publishers.

Where money gets lost

  • Songs not registered with a performing rights society or publisher.
  • Split sheets missing or adding up to more or less than 100% — see our split sheet template.
  • Different spellings of names, or missing ISRC codes in the credits.
  • No neighbouring rights registration as a performer.
  • YouTube uses of your music that were never claimed.
  • Royalty statements nobody checks.

Checklist to get paid

  1. Join a performing rights society as a songwriter (and as a publisher, if you self-publish).
  2. Sign a split sheet for every song and register every work with the same shares.
  3. Keep ISRC codes, writers and credits identical everywhere.
  4. Check whether you can register for neighbouring rights as a performer in your country.
  5. Decide who collects your publishing worldwide: you, a publisher or an administrator.
  6. Read every statement, and keep a simple record of what each release earns.

This guide is general information, not legal or tax advice. For contracts and registrations, talk to a professional in your country.

Frequently asked questions

How do music royalties work?

Each song has two copyrights: the master (the recording) and the composition (melody and lyrics). Streams, plays and syncs pay one side, the other or both, through different organizations: distributors and labels for the master, and societies and publishers for the composition.

What are the main types of music royalties?

Master royalties from streaming and downloads, performance royalties, mechanical royalties, neighbouring rights, sync fees and royalties, and income from YouTube and social platforms.

Who pays performance royalties?

Performing rights societies collect them when a composition is played in public — radio, TV, venues, shops and, in many countries, streaming — and pay the songwriters and publishers who registered the work.

How much does streaming pay per stream?

There is no fixed amount per stream: payouts depend on the service, the country, the listener’s plan and each deal, so be careful with any single per-stream rate.

Why am I not getting my royalties?

Common reasons: songs not registered with a society or publisher, split sheets missing or not adding up to 100%, names spelled differently or missing ISRC codes, no neighbouring rights registration, unclaimed YouTube uses and statements nobody checks.

Which app helps me keep track of my royalties?

It depends on who you are. A label can import statements from several distributors into TONTRIA for Labels and see them by artist, release, period and territory; a publisher or a songwriter who self-publishes can follow works, splits and registrations with collecting societies in TONTRIA for Publishers. Both are ours and in early access, and the amounts come from your own statements, not from the AI. For the most common cause of lost royalties, missing split sheets, TONTRIA Law makes them on its free plan.

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