Audio Royalty Payment

An audio royalty payment can be broken down into four general categories. First are the mechanical licenses and royalties. This category covers the right to digital produce the music onto some form of media such as a CD for distribution. This royalty is paid to the musician, the songwriter, and the publisher and is based on the number of audio recordings sold. The second category is performance rights and royalties. This covers music that is performed live or broadcast over a speaker system. A performance royalty usually covers a whole collection of an artist's work and is considered a 'blanket license'. This type of royalty is paid to the publisher and the songwriter. Synchronization rights and royalties refer to music that is used in television programming. This license also includes radio, commercials, 800 numbers, and voice -covers. The royalty is paid to the songwriter and the publisher. A fourth kind of royalty is the print rights which cover sales of the printed sheet music.

Fast Facts

    • In many cases the publisher splits the mechanical royalties 50/50 with the songwriter.
    • Collective Soul earned little to no money on one of the biggest albums of the '90s – Shine. Atlantic Records paid the majority of the royalties to another production entity

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