Music Royalties: What Every Independent Artist Should Know
By Sarah Jamieson
Whether it’s income from streams, radio play, live performances, or sync placements, understanding royalties can mean the difference between barely scraping by and building a sustainable life.
This guide is here to walk you through it all: what music royalties are, the types you can earn, real-world examples, common mistakes to avoid, and, most importantly, how to make sure you’re collecting 100% of what you’re owed.
Ready? Let’s get you paid.
Table of Contents
Understanding Music Royalties
At their core, song royalties are payments made to creators, performers, and copyright holders when their music is used, performed, or monetized. If someone’s making money off your music, you’re entitled to a slice of the pie.
The trick is knowing where all the slices are hiding.
Music royalties are broken into two primary rights: Master and Composition. Both types matter because they allow you to get paid for your hard work. Without them, streaming platforms, radio stations, and live venues would profit off your music without putting even a penny in your pocket.
There’s definitely some overlap when it comes to different types of royalties, but songwriters and performers earn their royalties from completely different parts of the music-making process. Songwriters are paid for the composition, while performers or recording artists earn royalties from the actual sound recording. It’s two sides of the same coin, and understanding the distinction is key to making sure you’re getting paid for your work.
Master Rights vs. Composition Rights
Master rights apply to the actual sound recording of your song, also known as the “master” file. Whoever owns the master, whether it’s the artist, a label, or a combination of both, controls these rights. Artist royalties fall under this category.
This table shows the royalties that usually fall under master rights:
- Royalty Type: Streaming Royalties
- Trigger: On-demand streaming: Spotify, Apple Music
- Collected By: Distributors: DistroKid, TuneCore, CD Baby, etc.
- Paid To: Artist or Label (Master Owner)
- Royalty Type: Digital Performance Royalties
- Trigger: Non-interactive digital radio (SiriusXM, Pandora)
- Collected By: SoundExchange (US), Re:Sound (Canada)
- Paid To: Artist, Master Owner, Background Musicians
- Royalty Type: Sync License Fees
- Trigger: Use in film, TV, ads, games
- Collected By: Negotiated directly or via sync agents
- Paid To: Artist or Label (Master Owner)
- Royalty Type: Neighbouring Rights Royalties
- Trigger: Public performance/broadcasts of sound recording
- Collected By: Re:Sound (Canada), PPL (UK), GVL (Germany), etc.
- Paid To: Artist & Master Owner
- Royalty Type: YouTube Content ID Royalties
- Trigger: UGC or video uses of recording
- Collected By: YouTube via Content ID partners (Audiam, AdRev)
- Paid To: Artist or Label (Master Owner)
- Royalty Type: TikTok/Social Media Usage
- Trigger: Song clips used in user videos
- Collected By: Distributor (or direct deal with platform)
- Paid To: Artist or Label (Master Owner)
Composition rights cover the core elements of the song itself: the melody, lyrics, beat, and overall structure. These rights are typically divided between the songwriter(s) and the music publisher, and they generate songwriter royalties whenever the song is performed, streamed, or reproduced.
This is just a quick overview of copyright. If you’re ready to dive deeper, we’ve got a full guide where we break down the details of master and composition rights.
This table shows the royalties that often fall under master rights:
- Royalty Type: Performance Royalties
- Trigger: Public performances: radio, TV, streaming, live venues
- Collected By: SOCAN (Canada), ASCAP, BMI, PRS, etc.
- Paid To: Songwriter & Publisher
- Royalty Type: Mechanical Royalties
- Trigger: Reproduction: CDs, downloads, on-demand streaming
- Collected By: SOCAN & CMRRA (Canada), MLC (US), Harry Fox, etc.
- Paid To: Songwriter & Publisher
- Royalty Type: Sync License Fees
- Trigger: Use in film, TV, ads, video games
- Collected By: Negotiated directly or via sync agents
- Paid To: Songwriter & Publisher
- Royalty Type: Print Royalties
- Trigger: Sheet music or lyric publication
- Collected By: Publishers or print licensing firms
- Paid To: Songwriter & Publisher
- Royalty Type: Lyric Display Royalties
- Trigger: Lyrics shown on Genius, Musixmatch, etc.
- Collected By: LyricFind, Musixmatch
- Paid To: Songwriter & Publisher
Let’s dive into the details about the main royalties you can earn, depending on what rights you own.
Performance Royalties
You earn performance royalties when your song is played publicly (radio, streaming, live). That means every time your music is broadcast, whether that’s on TV, radio, or a streaming platform, your performing rights organizations (PROs) such as ASCAP, BMI, or SESAC step in to track those plays and collect performance royalties on your behalf. These can add up fast, especially for shows or placements with high airtime.
In the U.S., you've got ASCAP, BMI, and SESAC looking out for you. Over in the UK, PRS for Music serves this purpose. In Canada, SOCAN is your go-to, and if you're in Australia, APRA AMCOS has your back. It’s essential to sign up with the right PRO for your region to ensure you’re getting what you deserve from your creations.
Mechanical Royalties
Mechanical royalties get paid out whenever your composition is reproduced. This happens in two main ways: when another artist covers your song and when your song is streamed, purchased, or downloaded.
If you’re an indie artist, the money you earn from mechanical royalties is often collected on your behalf by organizations like The Harry Fox Agency (in the U.S.) or an equivalent agency in your country. These folks act like middlemen to ensure you’re compensated. Every single play or purchase of the reproduction generates mechanical royalties, and they add up over time.
If you’re self-releasing your music, don’t forget to set up a publishing administrator to collect your mechanical royalties worldwide. This is especially important for independent artists working across streaming platforms in different countries.
Here are some picks for international royalty collection:
- Songtrust is the most popular among DIY and indie musicians because of its wide reach, ease of use, and independence from distribution platforms.
- CD Baby Pro Publishing is great if you're already distributing through CD Baby and want an all-in-one solution.
- TuneCore Publishing works well if you want to stay within the TuneCore ecosystem and monetize your catalogue globally.
A publishing administrator is different from a traditional music publisher. While the first doesn’t own your copyright, a traditional music publisher may try to take ownership or a cut of the rights. Make sure you read the fine print!
Sync License Fees
Here’s where music meets the big bucks: sync licenses. When your music pairs with visuals like movies, TV shows, commercials, or video games, sync royalties come into play.
There are two types of royalties, which are paid at different times:
Up Front Royalties. Sync fees are the upfront payments you receive when a client licenses your music for sync use. This one-time lump sum compensates you for granting the rights to match your song with visual content. If you’re an independent artist, it’s worth knowing how this split works, so you can approach these deals effectively and fairly.
Typically, sync fees are divided 50/50 between two parties: the master owner, who owns the recording, and the publisher, who owns the composition. If you control both (for example, as an independent artist who writes and records their own material), the full fee is yours to keep. Otherwise, it’s important to understand the roles of each party involved so you’re clear on what portion of the fee you’ll actually receive in the end.
While sync usage can lead to performance royalties when broadcast, sync fees themselves are not performance royalties. Sync fees come from licensing your song, while performance royalties are earned through public performances. One happens upfront, and the other depends on where and how your music gets played after the fact. For example, if a syndicated show features your song, you could collect royalties for years. But if your song is licensed directly in media where it is not publicly broadcast, you would only receive a sync fee for the initial licensing.
Backend Royalties. These are performance royalties that PROs collect after the synced content airs publicly. Residuals ...
