What Are Performance Royalties In Music?

Understanding Performance Royalties in Music

In the dynamic world of music, creators deserve rightful compensation for their work. Performance royalties play a crucial role in ensuring just that, rewarding songwriters and publishers whenever their music is publicly performed.

How Performance Royalties Work:

• Imagine your song played on the radio, streamed on Spotify, or performed live at a concert. Each of these instances qualifies as a public performance.
• Performing Rights Organizations (PROs) like ASCAP and BMI act as middlemen, licensing businesses (radio stations, streaming platforms, concert venues) to play music in their repertoire.
• When music is played under a PRO license, the PRO collects a performance royalty from the business.
• These royalties are then distributed to the songwriters and publishers whose music was performed, based on complex calculations involving factors like airplay or audience size.

Who Gets Paid Performance Royalties:

• Performance royalties are typically split between:
  • Songwriters: Creators of the melody, harmony, and lyrics.
  • Publishers: Represent songwriters, negotiate licenses, and handle administrative tasks.
  • Split sheets: These documents outline the exact percentage share each party receives.

Important Points about Performance Royalties:

• Performance royalties are distinct from mechanical royalties, which compensate for reproducing music (CDs, streams).
• PROs like ASCAP and BMI operate in different territories, so songwriters should register with the relevant organization based on their audience.
• Public performance royalties also apply to live performances, with venues typically paying blanket licenses to PROs.
• Royalties can vary depending on the type of performance (radio, streaming, live), location, and PRO's distribution methods.

Conclusion

Understanding performance royalties empowers you, the music creator, to navigate the industry with knowledge and ensure fair compensation for your musical expressions. 

Additional Resources:

• US Copyright Office: https://www.copyright.gov/
• American Society of Composers, Authors and Publishers (ASCAP): https://www.ascap.com/
• Broadcast Music, Inc. (BMI): https://www.bmi.com/