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Guide

Music Royalties Explained

Every stream, every play, every placement earns money for someone. Royalties are how that money finds you. Here is every kind that matters and how to collect each one.

The short version

  • Streaming royalties come from Spotify, Apple Music, and the other platforms. Your distributor collects them.
  • Performance royalties come from radio, TV, venues, and public plays. Your PRO collects them.
  • Mechanical royalties come from reproductions of your songs. Your publisher or mechanical society collects them.
  • Sync fees come from placements in TV, film, and ads. They are negotiated per placement.
  • You need to be registered everywhere your money is. Unregistered songs do not get paid.

The four kinds of royalties

  • Streaming royalties. Every stream pays a fraction of a cent. Your distributor collects it from the platforms and pays you on a schedule. Nice Set collects your royalties and pays them on the applicable payout schedule.
  • Performance royalties. Every public performance pays: radio, TV, a venue, a store. Your PRO collects it. In the US that means ASCAP, BMI, or SESAC. Register every song.
  • Mechanical royalties. Every reproduction pays: a stream, a download, a physical copy. Your publisher or a mechanical society collects it. If you have no publisher, a service like the MLC collects it for you in the US.
  • Sync fees. Every placement pays a fee, negotiated per placement, plus performance royalties after it airs.

How to collect everything you are owed

  • Register with a PRO. ASCAP, BMI, or SESAC. Pick one and register every song.
  • Register your songs with the MLC for mechanicals in the US.
  • Keep your splits in writing. Every writer and producer, every share, agreed before the release.
  • Use a distributor that collects and pays on a clear schedule. Nice Set collects your royalties and pays them after revenue is received from the platforms and distribution network.

Questions artists ask

How do music royalties work?

Every use of your music earns money. Streaming platforms pay your distributor. Radio and TV pay your PRO. Reproductions pay mechanicals. Placements pay sync fees.

How much does Spotify pay per stream?

It varies by country, plan, and deal. A stream pays a fraction of a cent. Royalties add up across a catalog, not a single song.

Do I need a PRO?

Yes. Without a PRO, performance royalties from radio, TV, and venues have nowhere to go.

When do I get paid?

Royalties are paid after revenue is received from the platforms and distribution network, according to the applicable payout schedule. Streaming royalties typically take two to three months to arrive.

Apply for distribution

Your royalties should find you.