Music Royalties: What You Need to Know

By Nicola Evans 2 March 2025 3 min read

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Music royalties are payments made to songwriters, composers, artists and rights holders whenever their work is used commercially — played on radio, streamed online, licensed for a film or reproduced on a physical format. They are the main source of income for many professional musicians, and understanding how they work is essential for anyone creating or releasing music.

The Main Types

There are four principal categories. Performance royalties are generated when a song is played publicly — on radio, television, in a shop or venue, or streamed through a service such as Spotify. Mechanical royalties arise from the reproduction of a song, whether on a CD, vinyl record, digital download or interactive stream. Synchronisation royalties are paid when a composition is licensed to accompany moving image — a film, television programme, advert or online video. Print royalties apply to sheet music and are a small but continuing category.

Who Collects and Distributes Them

In the United Kingdom, collection societies handle the administration of these payments. PRS for Music collects performance and synchronisation royalties on behalf of songwriters and publishers. PPL collects on behalf of recording artists and record labels for broadcast and public performance. MCPS, which operates within PRS for Music, handles mechanical royalties for physical and digital reproduction. Registering with the relevant body is a necessary step for any professional musician who expects income from their work.

How Music Royalties Are Calculated

The calculation method for music royalties varies by category. Performance royalties are typically distributed based on data from broadcasters and streaming platforms — charts, play data and, in some cases, statistical sampling. Mechanical royalties for streaming are often calculated as a percentage of a platform's revenue allocated to music, then divided according to each track's share of total streams. Synchronisation fees are usually negotiated directly as a one-time payment, though some contracts include a performance royalty component when the licensed content is broadcast. The rates involved can be complex, and many artists use a music lawyer or publisher to ensure correct registration and collection.

Frequently Asked Questions

What are music royalties and who receives them?

They are payments made to rights holders when their work is used commercially. Songwriters, composers, recording artists, publishers and record labels can all receive payments depending on the type of use. Each party holds different rights and is entitled to different streams of income.

Do I need to register to receive royalties?

Yes. In the UK, you must register with the relevant collection society — PRS for Music for performance and synchronisation income, PPL for broadcast and public performance income as a recording artist. Without registration, payments accumulate in a general pool and are distributed to other registered members.

What is the difference between a songwriter's royalty and a recording royalty?

A songwriter's royalty is paid on the underlying composition — the melody and lyrics. A recording royalty relates to the specific recorded version of that composition. The two are entirely separate rights held by different parties. A session musician who records a song does not automatically hold any composition rights.

How long does it take to receive payments?

Collection societies typically distribute payments quarterly, and there is often a delay of six to twelve months between the date of use and the arrival of payment, particularly for broadcast performance royalties. Streaming mechanical royalties can take longer to filter through the chain of DSP, distributor and collection society.

What is a synchronisation licence?

A sync licence grants a third party the right to use a piece of music in combination with moving image — a film, advertisement, television series or online video. It is typically negotiated directly with the rights holder or their publisher. The licence fee is usually paid upfront, though additional performance income may follow when the content is broadcast.