Distributing your music on over 100 streaming platforms and getting in-depth promotional support is possible thanks to DISTRID. But how does the artist payment system work? Making money with your original music is absolutely possible, as long as you know how to collect all your royalties.
For many artists, their main sources of income come from streaming, royalties, and music publishing. However, understanding exactly how the royalty system works can be complicated, with multiple organizations involved and various types of rights to manage.
In this article, I'll explain how music royalties work and how to ensure you get every penny you're entitled to.
What is a Music Royalty?
Music royalties are payments made to the rights holders of a particular musical work. These rights holders can be composers, publishers, or performers of a song. Royalties are paid by Performing Rights Organizations (PROs), such as SIAE in Italy, ASCAP in the United States, or SOCAN in Canada.
There are two main categories of royalties:
- Performance royalties. Every time your music is played on the radio, on television, streamed on an online platform, in a store, or at a venue, you are entitled to a performance royalty. PROs monitor these performances and collect royalties on behalf of the artists. Keeping track of every performance is not easy, which is why using a PRO is essential. This way, you can ensure that every time your music is played, you are paid what you are owed.
- Mechanical royalties. Every time your music is played, downloaded, or physically produced (for example, on CD or vinyl), you are entitled to a mechanical royalty. This type of royalty is paid not only to the musician, but also to the composer, regardless of who performs the song. Even if another band covers your song, you'll still be entitled to the mechanical royalty. PROs don't collect mechanical royalties. It's up to the composer or publisher to ensure they're paid.
Licensing and Royalties: What Happens with Film and Advertising?
In addition to standard royalties, there are agreements called synchronization licenses that allow your music to be used in films, TV shows, or commercials. These agreements allow for significant payments to artists and their publishers, but performance royalties are still collected every time your song is played in these contexts.
Working with a publishing agent can help you find these licensing deals, but it's also possible to obtain synchronization opportunities independently.
How to Ensure You Collect All Your Royalties
If your music is gaining traction, it's important to ensure you collect all your royalties, both mechanical and performance. Here are some basic steps:
- Register with a PRO To start collecting performance royalties, you must register with the PRO in your country. For example, in Italy the reference PRO is SIAE, while in the United States ASCAP and BMI are active. Once registered, you can also collect royalties owed retroactively, so you don't lose any past earnings.
- Make sure your metadata is recorded correctly. For mechanical royalties, the easiest way to collect them is through a digital distribution service like DISTRID. DISTRID will collect your royalties every time your music is streamed or downloaded. It is crucial that the metadata for your tracks is correct. When you release your music, make sure to list yourself as the publisher, as you own the rights to your music, not your PRO.
Why rely on professionals?
The world of music royalties can seem complicated, but with services like DISTRID, it's easier than ever to collect everything you're owed. Distributing your music to over 100 platforms and collecting your earnings becomes a manageable process, allowing you to focus on creating art without worrying about administrative complexities.
Need to protect your rights?
If you need more information or advice regarding the royalty system, schedule a meeting with me! I have over 20 years of experience managing copyright in the music industry and can help you maximize your revenue and protect your rights.
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