Of course you would like to earn money with your songs, especially when they get airplay, for example because they are on Spotify’s playlists.
What are performance royalties?
The two main types of royalties in the music industry are performance royalties and mechanical royalties. Both are ways that artists, songwriters, and rights holders earn money when their music is used or reproduced. Here’s a breakdown of each:
1. Performance Royalties
- What it is: Performance royalties are earned when a song is publicly performed or broadcasted. This includes live performances, radio airplay, TV broadcasts, streaming services, and public spaces like bars or restaurants.
- How it’s generated: Whenever a song is played in a public setting (e.g., on the radio, in a movie, or at a concert), performance royalties are generated. These royalties are usually collected by Performance Rights Organizations(PROs) like ASCAP, BMI, or SESAC in the U.S., or their counterparts in other countries (e.g., PRS for Music in the UK).
- Who gets paid: Songwriters, composers, and publishers receive performance royalties. The PROs track the usage of the songs and distribute the collected royalties to the rights holders.
- Examples:
- A song played on a radio station.
- A song performed live at a concert or event.
- A song played in a restaurant or retail store.
