Image from Music Royalties 101 – Intro to Music Royalties
Performance
This is when the listener has no choice, no active role, in what they hear. Examples are broadcast radio, tv and movies. in a restaurant or bar, in an elevator, listening to streaming "radio" service such as Pandora.
Performance royalties are collected by performing rights organizations (PROs) such as ASCAP, BMI and SESAC in the US. There are different PROs in every country. Streaming mechanicals are not collected by PROs but physical and digital sales are [Ref.].
Mechanical
This is when the listener chooses to listen to music. Examples are physical media (CD / record / tape), streaming a specific album or artist or playlist on services such as Apple and Spotify.
PROs & MLC collect US royalties only, collecting international royalties is a problem.[Ref.]
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SoundExchange
Sign up and register songs
- collects non-interactive streaming revenue related to the master recording: pandora, syrius XM, etc. [Ref.]
- collects non-interactive streaming royalties, this fee is generated any time a song is played on internet radio platforms like Pandora, satellite radio, and cable TV Channels. This is the fee collected by SoundExchange, and SoundExchange alone. [Ref.]
BUT don't do right away -- It’s free to join but they charge a 4.6 percent administrative fee. Plus joining is a bit invasive. You are asked to provide basic contact information, as well as bank info (routing and account numbers, plus an image of a voided check), an image of your driver’s license, and your social security number. Even if it's been a while if you're owed back royalties you will get them. READ FIRST
SoundExchange membership is free to all master rights holders, whether it is a label or an indie artist. ...if you are receiving royalties now for the use of your songs on radio or TV from ASCAP or BMI, if you also control your masters, Sound Exchange will pay you digital performance royalties for spins of your masters on satellite radio (Sirius/XM), Internet radio (Pandora, Spotify, LastFM, Rdio, etc.), webcasts, cable music channels, and other digital streams. [Ref.]
In the U.S., recording artists only collect performance royalties from digital and satellite radio. These digital royalties are collected in two different ways. One is through SoundExchange, a PRO-like organization charged with issuing blanket licenses to digital music services and collecting the sound recording performance royalty in return. SoundExchange then pays artists directly rather than through their record label. But some digital music services choose to negotiate performance licenses with record labels directly rather than using the SoundExchange license. In these cases, the music service pays the record label and the record label then pays the artist per their contract. [Ref.]
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YT and foreign royalties by
- songtrust (pub admin)
- tunecore
- CDbaby pro (operates thru songtrust)
https://youtu.be/m0w9VjDgsQ0?t=403
Content id is youtube's system. There's a content id for every song. fb, instagram and tiktok don't track music. [Ref.]
YouTube generally pays mechanical royalties to songwriters and publishers. However, YouTube and its Content ID system do not pay mechanical royalties directly; YouTube typically pays those to mechanical rights organizations, which then distribute the royalties to the appropriate parties. Moreover, monetized YouTube content can also trigger micro-sync royalties—an unconventional combination of performance and mechanical royalties—when music is synchronized with visual media. But generally, micro-sync royalties are a subset of synchronization royalties, a distinct type of royalty of their own. [Ref.].
I own the sound recording of my song… how do I make money?
Software
DMP (Django-Music-Publisher) is open-source music catalogue management software for
management of music metadata,
registration of musical works,
royalty statement processing, and
basic data distribution.
DMP will work for most small publishers
DMP github
Infinite Catalog
- manages royalties
- monthly fee based on income
How To Get A Facebook, Instagram and Oculus Direct License For DIY Musicians & Indie Publishers
How To Apply For A Harry Fox Agency Online Account As A DIY Musician – A Step By Step Guide
10 Income Streams For A Music Producer
Important Reading
Music Royalties 101 – Intro to Music Royalties
Music Royalties Explained: How Music Royalties Work In 2025
Royalty Distribution: Who Collects What For Who?
How Money Flows Through The Music Industry: Royalties 101 ***
How to Pay People in the Music Industry: A Definitive Guide
References:
Music Publishing- Interview with 3Tone Publishing
Managing Royalties - How to Start a Record Label - Tip #12
Your copyright and royalty questions answered ** good info here on many topics but with a focus on using CBbaby.
Copyright Royalty Board
Producer's Ownership in the Master Recording
Music Royalties Explained: The Ultimate Guide for 2025
How To Collect All Your Digital Music Royalties
What are Royalties in Music?