Business Music: All About Royalties

Royalties are payments that songwriters and recording artists receive when their music is played. Performance Royalties and Mechanical Royalties are two ways that musicians can get paid for their work.


What are Performance Royalties?

Performance royalties are due when a song is performed live or broadcasted. Musicians can get paid when their music is streamed, broadcast and performed live.

What are Mechanical Royalties?

Mechanical royalties are due when a song is physically distributed. Musicians can get paid when their music is sold in a fixed form such as digital downloads (like MP3s), CDs, and records or when streamed on demand.

What is a P.R.O.?

P.R.O. stands for Performance Rights Organization. A P.R.O. tracks when your music is used, collects performance royalties, and pays you.

What do P.R.O.s protect?

P.R.O.s protect performance rights so that royalties are paid to a songwriter for a live performance of their song.

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