What do I Need to Know About Performance Royalties?

Performance royalties are a key revenue stream for musicians, especially indie artists. Whenever your song is played in public—whether at a live concert, on the radio, in a restaurant, or streamed online—performance royalties are generated. Understanding how to track, collect, and maximize these royalties can make a big difference to your income as a musician. In this guide, we’ll break down what performance royalties are, how they work, and how you can make sure you’re getting paid for your hard work.

We’ll be taking a look at the following:

1. What Are Performance Royalties?
   
   
2. Who Earns Performance Royalties?
   
   
3. How Do Performance Royalties Work?
   
   
4. What’s the Difference Between Performance and Mechanical Royalties?
   
   
5. How Are Performance Royalties Calculated?
   
   
6. How Do You Collect Performance Royalties as an Indie Musician?
   
   
7. FAQs
   
   
8. Our Final Thoughts
   

What Are Performance Royalties?

Performance royalties are payments to songwriters, composers, and publishers whenever a song is played publicly. This includes performances in live settings like concerts and festivals, as well as broadcasts on the radio, television, and even streaming platforms like Spotify and Apple Music.

Who Earns Performance Royalties?

•   Songwriters and composers (not necessarily the performers) earn performance royalties.

•   Publishers (if you have a publishing deal) also receive a portion of the performance royalties.

Performance royalties are tracked and distributed by Performing Rights Organizations (PROs) like ASCAP, BMI, and SESAC in the U.S. and PRS in the U.K. To earn performance royalties, you need to be registered with one of these organizations.

Pro Tip: Ensure you’re signed up with a PRO so that your performances and broadcasts are properly tracked and you can collect royalties. This is a crucial step in earning from your music.

How Do Performance Royalties Work?

Performance royalties are collected and paid out by PROs whenever your music is played in public. Here’s how it typically works:

• Tracking Public Performances: When your song is played on the radio, at a live venue, or on TV, the performance is logged. PROs monitor various platforms to track these plays.
  

• Payment Distribution: Based on how often your song is played and the type of performance, the royalties are split between the songwriter, composer, and publisher.

• Live Performances: If you’re performing live, you can submit setlists to your PRO so they know when your song was performed, ensuring you get paid.

Example: If your song is played on the radio, a percentage of the advertising revenue from the station goes toward performance royalties. PROs calculate your share based on how often your song is played and the size of the audience.

Pro Tip: Always submit your live setlists to PROs after shows—each performance generates royalties that you might miss if you don’t keep track.

What’s the Difference Between Performance and Mechanical Royalties?

It’s easy to confuse performance royalties with mechanical royalties, but they’re quite different:

•   Performance Royalties: Generated when your music is performed publicly (e.g., concerts, radio, TV, streaming).
  
  
•   Mechanical Royalties: Earned when your music is reproduced or distributed physically (e.g., CDs, vinyl) or digitally (e.g., downloads, streams).

Key Difference: Performance royalties are about public play, while mechanical royalties are about reproduction and distribution. If your song is streamed online, you earn both performance and mechanical royalties, but through different channels.

Pro Tip: To maximize your earnings, make sure you’re collecting both types of royalties through PROs and mechanical licensing agencies like Harry Fox Agency or Music Reports.

How Are Performance Royalties Calculated?

Performance royalties are calculated based on several factors:

• Frequency of Play: The more often your song is played on the radio or performed live, the more royalties you earn.

• Type of Performance: Songs played on large national radio stations generate more royalties than those played in smaller venues or local stations.

• Platform: Streaming platforms like Spotify and Apple Music calculate royalties based on the number of streams and listener demographics.

PROs use a combination of performance logs, audience reach, and advertising revenue to calculate royalty payments. Larger performances, like those on national TV, result in higher payouts compared to local radio plays.

Pro Tip: Registering your songs with your PRO and providing accurate metadata ensures that all performances are tracked correctly and royalties are paid out accurately.

How Do You Collect Performance Royalties as an Indie Musician?

As an indie musician, collecting your performance royalties involves a few key steps:

• Register with a PRO: Sign up with a performing rights organization like ASCAP, BMI, or PRS. This will allow you to track and collect royalties from your songs.

• Submit Your Setlists: After every live performance, you should submit a list of the songs you performed, called a setlist, to your Performing Rights Organization (PRO) like ASCAP, BMI, or PRS. This step ensures that your live performances are tracked, and royalties can be calculated for each song. For example, if you perform 10 original songs at a gig, you’ll need to log in to your PRO’s website, input details like the venue and date, and submit the titles of the songs you played. By doing this, your PRO will be able to calculate royalties based on the venue size, audience, and more. This often-overlooked process ensures you get paid for every live performance.

• Digital Platforms: Register with SoundExchange to collect digital performance royalties from non-interactive streaming platforms like Pandora and SiriusXM.

Pro Tip: Stay on top of your royalty collection by regularly checking in with your PRO’s portal. Some platforms like BMI even allow you to check the status of your setlist submissions and royalty payments.

FAQs

How do performance royalties differ for songwriters and performers?

Songwriters and composers (not performers) earn performance royalties. However, performers can earn royalties if they’re the songwriter or if they have a share in the composition.

Do I earn performance royalties from streaming services?

Yes, you earn performance royalties from streaming platforms, but the amount varies depending on the service and how many streams your song gets.

What happens if I don’t register with a PRO?

If you’re reading this, register with a PRO now! Without registering, you won’t be able to collect performance royalties, which means you could miss out on significant income from public performances, radio play, and streaming. Every time your song is played live, on TV, or the radio, royalties are generated—but you won’t see a penny if you’re not registered. Don’t leave money on the table—make sure you’re set up with a PRO today!

How long does it take to get paid performance royalties?

PROs typically pay out royalties quarterly, but this can vary depending on the organization and the platform where your song was played.

Our Final Thoughts

Performance royalties are a crucial revenue stream for musicians, especially indie artists. By understanding how they work and ensuring you’re properly registered with a PRO, you can start collecting the royalties you’re owed every time your music is played publicly. From radio plays to live performances, performance royalties are an important part of sustaining your music career. Don’t miss out on the opportunity—make sure you’re tracking every performance.

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