MUSICIANS ROYALTIES A-Z

ROYALTIES... Musicians get paid a percentage of each album sold. This percentage is known as a royalty.

There are other methods for musicians to make money.
How do royalties work? — Music royalties are compensatory payments received by rights holders (songwriters, composers, recording artists, and their partners.

But royalties on the sales of albums is the main stream of money coming from a standard, recording contract.

Mechanical royalties are paid to songwriters or publishers. Songs can be licensed for audio products, including (CDs, digital recordings, vinyl or even cassettes).

These products generate royalties when they are sold.

A distributor collects royalties directly from stores/streaming platforms on behalf of labels.

An artist's label will then collect the recording royalties and distribute them to the appropriate artist.

If an artist is not with a label, the artist will collect the recording royalties directly from the distributor.

Unlike most countries, which base mechanical royalties on percentages, US mechanical royalties are calculated on a penny (¢) basis per song. ... This negotiated or “reduced” mechanical royalty rate is generally a percentage of the minimum compulsory license rate, up to a maximum number of songs.

In most markets, both songwriters and recording artists are typically paid royalties any time their music is played on the radio. ... So, for the American-based music industry, only songwriters and their publishers (owners of the composition copyright) are paid performance royalties for airplay.

Publishing Rights organization SoundExc... American Society of Composers and Publishers... Songtrust PRS for Music Harry Fox Agency Broadcast Music SESAC SOCAN (CANADIAN) SESAC, originally the Society of European Stage Authors and Composers, is a for-profit performance-rights organization in the United States. SESAC was founded in 1930, making it the second-oldest performance-rights organization in the United States.

The original performing rights society, was established in France in 1851.

In the United Kingdom, the Copyright Act 1842 was the first to protect musical compositions with the Performing Right Society, founded in 1914 encompassing live performances.