Royalties Made Simple for Artists
Learn what you get paid for, who pays you, and how each royalty type works in Canada and the United States
From Song Idea to Money in Your Account
1. Idea
Someone writes a song. Sometimes it is one writer. Sometimes it is more than one.
2. Songwriters & Publishing
The people who write the lyrics and melody are the songwriters and they own the song composition. This side of the rights is called the publishing side.
3. Recording the Song
A producer records the song and that finished recording is called the master. The master can be a professional studio recording, a high quality home recording, or even a phone recording. As soon as it is fixed in a recording it is protected under copyright for the recording rights.
4. Performers
Singers, band members, session players, and featured artists are all performers on the master.
5. Where It's Used
- • Streaming services
- • Radio and satellite radio
- • Live shows
- • TV, film, ads, games
- • Social media platforms
6. Money Flow
When the song plays or is sold, different organizations collect money and pay different people. PROs collect performance royalties for songwriters and publishers. Mechanical agencies collect mechanical royalties for songwriters and publishers. Neighboring rights and artist societies pay performers and owners of the master.
1. Idea
Someone writes a song. Sometimes it is one writer. Sometimes it is more than one.
2. Songwriters & Publishing
The people who write the lyrics and melody are the songwriters and they own the song composition. This side of the rights is called the publishing side.
3. Recording the Song
A producer records the song and that finished recording is called the master. The master can be a professional studio recording, a high quality home recording, or even a phone recording. As soon as it is fixed in a recording it is protected under copyright for the recording rights.
4. Performers
Singers, band members, session players, and featured artists are all performers on the master.
5. Where It's Used
- • Streaming services
- • Radio and satellite radio
- • Live shows
- • TV, film, ads, games
- • Social media platforms
6. Money Flow
When the song plays or is sold, different organizations collect money and pay different people. PROs collect performance royalties for songwriters and publishers. Mechanical agencies collect mechanical royalties for songwriters and publishers. Neighboring rights and artist societies pay performers and owners of the master.
Understanding Each Royalty Type
Paid when your song is performed in public - radio, streaming, live venues, TV, background music, and some online uses.
Collected by PROs (Performance Rights Organizations).
Who Gets Paid
- • Songwriters
- • Composers
- • Publishers
Who Pays
- • Radio and TV broadcasters
- • Venues and festivals
- • Streaming platforms
- • Businesses who use music in public
North America PROs
SongBiz does not replace PRO registration. You still need to sign up with your local PRO.
Paid when your song is reproduced or sold - streams, downloads, physical sales, and some user generated content platforms.
Connected to the song composition side.
Who Gets Paid
- • Songwriters
- • Publishers
Who Pays or Administers
- • Digital service providers (streaming platforms)
- • USA: Harry Fox Agency, Music Reports Inc, The MLC
- • Canada: SOCAN and reproduction collectives
These are royalties paid for the actual recorded performance - the master.
Often paid to labels or whoever owns the master, sometimes directly to independent artists.
Who Gets Paid
- • Master owner (label, distributor, or independent artist)
- • Sometimes featured performers through neighboring rights societies
Who Pays
- • Streaming platforms
- • Download stores
- • Licensing partners
Distributors like DistroKid, TuneCore, CD Baby and others usually collect and pass through these royalties as part of their services.
Paid when the recording itself is broadcast or played in public on radio, TV, and certain digital uses.
These royalties recognize the performers and the owners of the master recording.
Who Gets Paid
- • Performers on the recording
- • Owners of the master
Key Organizations
- • Canada: Re:Sound, ACTRA RACS, MROC
- • USA: SoundExchange
Paid when music is licensed to picture - TV, film, ads, games, YouTube brand content, and more.
Usually involves two fees: a fee for the master owner and a fee for the songwriters or publishers.
Who Gets Paid
- • Master owner
- • Songwriters and publishers
Sync deals are usually negotiated case by case, and rates can vary significantly based on usage, budget, and exposure.
Simple Money Flow Guide
| Where It Plays | Type of Royalty | Who Gets Paid | Who Pays or Collects |
|---|---|---|---|
| Spotify or Apple Music stream | Performance & Mechanical | Songwriters and publishers | PROs and mechanical agencies |
| Spotify or Apple Music stream | Master Income | Master owner | Distributor and label |
| FM radio spin | Performance | Songwriters and publishers | SOCAN, ASCAP, BMI, SESAC |
| Satellite radio spin | Performance & Neighboring Rights | Songwriters, publishers, performers, master owners | PROs and SoundExchange or Re:Sound |
| Live show set list | Performance | Songwriters and publishers | SOCAN, ASCAP, BMI, SESAC |
| TV show placement | Sync + Performance | Songwriters, publishers, master owners | PROs and direct sync licenses |
Official Resources by Country
Frequently Asked Questions
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