CONTENIDO

PHYSICAL/ANALOG SONGWRITER ROYALTIES & REVENUE ......................................................................................... 3

Performance Royalties ....................................................................................................................................................... 3
Public Performance Royalties ......................................................................................................................................... 3
’Analog’ Public Performance Royalties ................................................................................................................... 3
Mechanical Royalties ......................................................................................................................................................... 4
Mechanical Royalties ...................................................................................................................................................... 4
Mechanical Royalties ................................................................................................................................................ 4
Sync Licensing Fees .......................................................................................................................................................... 5
Synchronization Royalties ............................................................................................................................................... 5
Synchronization License Royalties (from the “Distribution” Copyright).............................................................. 5
Mechanical Synchronization Royalties from the “Reproduction” copyright ....................................................... 6
Print Royalties .................................................................................................................................................................... 6
Print Rights ..................................................................................................................................................................... 6
Print Royalties............................................................................................................................................................ 6
DIGITAL SONGWRITER ROYALTIES & REVENUE ............................................................................................................ 7
Digital Royalties.................................................................................................................................................................. 7
DART Royalties .............................................................................................................................................................. 7
Digital Print................................................................................................................................................................. 7
Mechanical Royalty for a Ringtone/Ringback Tone ................................................................................................ 8
Public Performance Royalty for a Ringtone/Ringback Tone ................................................................................. 8
Digital Download Mechanical Royalties................................................................................................................... 9
Streaming Mechanical Royalties .............................................................................................................................. 9
Digital Performance Royalties ....................................................................................................................................... 10
Digital Non-Interactive “Streaming” Public Performance Royalties ................................................................... 10
Interactive “Streaming” Public Performance Royalties ....................................................................................... 11
Digital Synchronization Royalties .................................................................................................................................. 11
Digital Synchronization License ............................................................................................................................. 11
Foreign Monies ............................................................................................................................................................. 12

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 MUSIC PUBLISHING
SONGWRITER INCOME STREAMS

In today’s world songs can generate money and royalties via the traditional “Physical/Analog” music industry or the new
“Digital” music industry. There are in fact a minimum of 13 different and specific ways that you as a songwriter can make
money off of your songs.

Note – each income stream and type of royalty is generated from both the original recording of a song (i.e. the Beatles’
version of Paul McCartney’s song “Yesterday”) or off of a cover of the song (i.e. if multiple artists cover the song, the song
becomes an “x” factor multiplier for revenue and royalties). In the case of “Yesterday”, there are over 25,000 covers, and
each version of the song can generate money for the songwriter in many different ways. Below, these royalty and income
types are broken out into two categories:

 Digital Songwriter Royalties and Revenue

 Physical/Analog Songwriter Royalties and Revenue

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 PHYSICAL/ANALOG SONGWRITER ROYALTIES & REVENUE
Performance Royalties
Public Performance Royalties
Public Performance royalties get paid to songwriters and publishers (via their PRO) whenever their songs are performed in
public. This applies to plays on AM and FM radio stations, in restaurants, sports arenas, shopping malls, or any other
public place. These are also paid to the rights holders when a third party performs a cover version of the song.

1. TV (royalties are paid by the TV station for the broadcast of a show, film or commercial with your music on it. This is
not to be confused with the actual placement of your songs in TV, film or commercials which is a sync royalty
2. Radio
3. Live venues
4. Restaurants
5. Bars
6. International uses
7. Elevator music services
8. Supermarkets
9. Clothing stores
10. Gyms
11. When your music is sampled
12. Jukebox

’Analog’ Public Performance Royalties

Every time there’s a “Public Performance” of your composition, you make money. Public Performances happen all the
time—you play a set at the local pub, your song gets radio play, you hear your track as background music in a restaurant
or hair salon—and each time, the songwriter earns money. So who pays up? AM/FM radio, network TV, bars, restaurants,
airplanes, offices, movie theaters…you get the point. Both in the U.S. and outside the U.S., the royalty rate is determined
by a one-to-one negotiation between the Performing Rights Organization (PRO) and the entity where the performance
occurred.
Description: A royalty generated from the “Public Performance” of the copyright. This royalty is owed to the songwriter for
each individual “Public Performance” of a song. Side note: Under U.S. law, a public performance occurs when music is
played in:

1. A place open to the public where there is a substantial number of persons, outside of a gathering of family and
friends (like a live gig); or

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 2. the performance is transmitted to such a place (like being in a bar watching the live gig happening somewhere
else); or
3. the performance is transmitted so that members of the public can receive the performance at the same or different
places, at the same or different times (like being at home and watching the gig on the internet).

Who/What generates and pays this royalty: AM/FM radio, network television, cable television, live gigs (i.e. when you
play live, the venue must pay for the public performance of the song regardless of if it’s an original version or a cover of a
song), airplanes, retail stores, bars, restaurants, salons, offices, elevators, telephone hold music, movie theaters outside of
the U.S. (for example, each time the movie Titanic played, Celine Dion was paid by the movie theaters for the public
performance of her song), grocery stores, shopping malls, etc.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
Instead, there is a one-to-one negotiation between the Performing Rights Organization (PRO) and the other entity.
However, governments tend to have “Rate” judges oversee these rates to assure they do not get unreasonable. These
government entities can adjust rates.

Mechanical Royalties
Mechanical Royalties
Mechanical royalties are paid to songwriters or rights holders (usually via the publisher) for inclusions on hard musical
goods, like CDs, vinyl records, or cassette tapes. These royalties are paid based on sales of the goods. Royalties are paid
upon sales (when a vinyl record is purchased in a store, for example) rather than when it is manufactured (pressed in a
plant.)

13. Ringtones / ringbacks

14. Recorded cover songs
15. Record sales
16. Film soundtracks
17. Karaoke recordings
18. Greeting cards

Mechanical Royalties
If you’re serious about getting your music out there, you’re probably selling physical products like CDs, LPs or cassettes
(someone must still listen to cassettes…right?). Every time a unit is sold or manufactured, you earn a mechanical royalty,
generated from the reproduction of your song. Record companies or other entities manufacturing products with your
song—like The Gap, W Hotel, Putumayo—pay this royalty. If the reproduction is in the U.S., the royalty rate is $0.091 per
reproduction for songs under five minutes. A formula rate kicks in set by the U.S. Government for songs over five
minutes. Outside of the U.S., the royalty rate is typically 8%-10% of the list price.

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Description: A royalty generated from the “Reproduction” copyright. This royalty is owed to the songwriter for each and
every unit sold and/or manufactured for physical product – i.e.: LP, CD, cassette, USB stick, etc.

Who/What generates and pays this royalty: Record companies or any other entity manufacturing a physical product (i.e.
Victoria’s Secret, The Gap, W Hotel, Putamayo, etc.) that contains a songwriter’s song on it (either his/her own recording
of the song or someone else’s cover of that song).

Amount owed to the songwriter:

 In the United States: $0.091 per reproduction of a song. If it’s over five minutes, a formula rate kicks in. The U.S.
Government sets the rate.
 Outside of the United States: There is no government-mandated rate, however, the royalty rate is typically 8% –
10% of the list price (varies by country).

Sync Licensing Fees

Synchronization Royalties
Synchronization royalties are earned when a track is placed as a score or soundtrack to a moving work like a film, TV
show, video game, or movie. The producer of this work must acquire a license to use the song as a “synchronization” to
the pictures displayed on screen. Typically, these are paid to the PRO and distributed with performance rights royalties.

19. TV shows
20. TV commercials
21. Film commercials
22. Video games
23. Smartphone apps
24. DVDs / Blu-Rays

Synchronization License Royalties (from the “Distribution” Copyright)

If a film or TV studio, production company or someone else wants to use your composition in a TV show, movie or
commercial (hooray!), they need to pay for the synchronization license. The license fee (both in and outside of the U.S.) is
a one-to-one negotiation usually based on several things like the length of the use, how it’s being used (background or up
front), the format and the popularity of the production. Because of all these factors, the fee can range from a few hundred
dollars to hundreds of thousands of dollars. One-time payment
Description: A royalty generated from the “Distribution” copyright. A one-time license payment is made to the songwriter,
allowing the synchronization and distribution of a song (either the original recording or a cover version) with a moving
image (i.e. a song in a movie, TV show, commercial, DVD, video game, etc.).

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Who/What generates and pays this royalty: Film studios, TV studios, production companies, ad agencies, video game
companies, etc.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
The license fee is a one-to-one negotiated amount usually based on length of use, if it’s in the background or up front, the
territory, the format, and the popularity of the TV show. The range can be from a few hundred dollars to hundreds of
thousands of dollars.

Mechanical Synchronization Royalties from the “Reproduction” copyright

Let’s stay on the topic of Sync for a moment, as there’s also a mechanical royalty generated from the “Reproduction”
copyright. All that publishing lingo means that there’s a per unit royalty payment owed to the songwriter based on the
number of units manufactured that include the song (like a greeting card, toy, video game, etc.). Depending on the type of
unit manufactured, entities like Hallmark, toy companies, or video game companies generate and pay this royalty, and the
value worldwide is usually based on initial manufactured units.
Description: A royalty generated from the “Reproduction” copyright. A per unit royalty payment based on number of units
manufactured that includes the song (either the original recording or a cover) in a greeting card, toy, video game, etc.

Who/What generates and pays this royalty: Hallmark, various toy companies, video distributors, video game
companies, record companies, etc.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate per
unit based on the product. The royalty is usually paid based on initial manufactured units.

Print Royalties
Print Rights
Print Rights are royalties due for usage of lyrics or written musical works. For example, sheet music, magazines or books,
apps or lyric websites. It can also apply to any apparel featuring a songwriter’s words, as well. These royalties are paid to
the publisher of a song.

25. Lyrics reprints

26. Guitar tabs
27. Music sheet books

Print Royalties
As the name suggests, this royalty, generated from the Public Display copyright, has to do with printed materials—lyrics,
sheet music, tablature, etc. When music publishers like Hal Leonard or Alfred Music Publishing create sheet music, or a
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company prints t-shirts with lyrics on them, they are required to pay a print royalty. There’s no government rate for this
royalty—it’s a one-to-one negotiation. If we’re talking sheet music, the royalty is usually 15% of retail price, and/or a one-
time fee for pressing is negotiated.
Description: A royalty generated from the “Public Display” copyright. Either a one-time or per unit payment based on the
printing of lyrics, sheet music, tablature, etc.

Who/What generates and pays this royalty: Hal Leonard, Alfred Music Publishing as well as various magazines (i.e.
Guitar Player showing tabs for a song), books, etc. On rare occasion, a hotel (or other entity) may have a lyric quoted (like
the Hard Rock Hotel), and in this case the hotel pays. If the lyrics appear on a t-shirt, the entity making the t-shirt pays a
royalty.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
It’s a one-to-one negotiation. For sheet music, it is usually 15% of retail price, and/or a one-time fee for pressing is also
often negotiated.

DIGITAL SONGWRITER ROYALTIES & REVENUE

Digital Royalties
DART Royalties
DART royalties (or Digital Audio Recording Devices and Media) were established to allow for reproduction of works
through digital formats on digital audio tapes to combat infringement lawsuits. These royalties can be distributed to
copyright holders and publishers whose sound recording or musical work has been played publicly.

28. Online streaming (e.g. Spotify)

29. Internet radio (e.g. Pandora)
30. Collaborative listening (e.g. Turntable)

Digital Print
Google any song and you’ll immediately find dozens of sites with the song lyrics, sheet music, or tablature available for
your use. The use of the music on these sites is yet another form of public display, and the lyric sites, musician sites, and
even sites with avatars wearing virtual t-shirts with song lyrics (yup, those count) all generate and pay this songwriter
royalty. Once again there’s no government rate set worldwide, and the rate is typically a fee for a specific period of time,
and/or a percentage of the site’s gross revenue from paid subscriptions or advertising.
Description: A royalty generated from the “Public Display” copyright. Either a one-time or per unit payment based on the
display of lyrics, sheet music and tablature on websites, apps, etc. (this includes avatars with virtual t-shirts).
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Who/What generates and pays this royalty: On-line lyric websites, musician websites, websites with avatars, digital
version websites of magazines, etc.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
The royalty is typically a fee for a Term (period of time) and/or a % of the Gross Revenue from the site (paid subscriptions,
advertising).

Mechanical Royalty for a Ringtone/Ringback Tone

Selling/Distributing ringtones. Ever purchase a ringtone? Or distribute your own to the iTunes store on your
phone? Whenever a ringtone or ringback tone is purchased for a mobile device, a royalty is owed (it’s generated from the
“Reproduction” and “Distribution” copyrights). Music services and telecoms like AT&T, Verizon, T-Mobile, Cricket,
Vodafone and more are required to pay mechanical royalties to the tune of $0.24 per ringtone (in the U.S.) and a
percentage of gross revenue (outside the U.S.).
Description: A royalty generated from the “Reproduction” and “Distribution” copyrights. A royalty is owed from the
purchase of a ringtone/ring- back tone for mobile devices.

Who/What generates and pays this royalty: Telecoms (AT&T, Verizon, T-Mobile, Cricket, Vodafone, etc.) and music
services.

Amount owed to the songwriter:

 In the United States it is $0.24 per ringtone.

 Outside of the United States, there is no government rate set. It is a % of Gross Revenue.

Public Performance Royalty for a Ringtone/Ringback Tone

In addition to the royalty generated in the purchase of a ringtone/ringback tone, a songwriter royalty is owed from the
public performance that occurs when someone plays the tone outside of the U.S. Once again, the telecoms and music
service need to pay up, and the rate is determined by a one-to-one negotiation.
Exhausted from reading this but ready to get the money you’re owed from the use of your compositions? That’s the right
attitude! When you get a publishing deal with a publishing administrator, the publishing administrator will license and
collect for you worldwide all of the royalties that should be coming to you, the songwriter, and nobody else. It’s a good
idea to get in the know now, because as the music industry landscape keeps evolving, there’s no doubt you’ll soon have
more royalties to collect.
Description: A royalty generated from the “Public Performance” copyright. A royalty owed for the public performance that
occurs with the play of a ringtone/ringback tone.

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Who/What generates and pays this royalty: Telecoms (AT&T, Verizon, T-Mobile, Cricket, Vodafone, etc.) and music
services.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
It’s a one-to-one negotiation.

Digital Download Mechanical Royalties

Selling your digital music If you write a song and distribute it to download music services like iTunes, Amazon, or Google,
you’re owed a royalty for every unit of your music that’s downloaded. This royalty type comes from the “Reproduction”
and “Distribution” copyrights, and the royalty payment mirrors physical reproductions: $0.091 per reproduction in the U.S.,
and generally 8% - 10% of the list price outside the U.S.
Description: A royalty generated from the “Reproduction” and “Distribution” copyrights. This royalty is owed to the
songwriter for each and every unit downloaded.

Who/What generates and pays this royalty: Any download music services: i.e. iTunes, Amazon, Google, Beatport,
Spotify, Rhapsody, Xbox Music, Verizon, etc., as well as any “direct to fan” sales (i.e. RootMusic, TopSpin, etc.).

Amount owed to the songwriter: It works the same as physical reproductions.

 In the United States: $0.091 per reproduction of a song. If it’s over five minutes, a formula rate kicks in. The U.S.
Government sets the rate.
 Outside of the United States: There is no government-mandated rate, however, the royalty rate is typically 8% –
10% of the list price (varies by country).

Important Note – outside of the U.S., the digital music services need both the right of Reproduction and the right of Public
Performance to allow a song to be downloaded. Therefore, the local PRO and/or collection agency bundle these two rights
together and usually charge 8% – 10% of the list price (varies by country).

Streaming Mechanical Royalties

Streaming is the name of the game these days, and if you distributed your music to digital stores, it’s likely that you chose
a few interactive streaming services like Spotify, Rhapsody or Rdio. In case you’re not familiar with the term, “interactive”
means that the user can choose songs, stop, go backwards, create playlists, etc. As was the case with digital downloads,
a songwriter is owed a royalty (from the “Reproduction” copyright) for every stream of his or her song on an interactive
streaming service. In the U.S. there’s a government-mandated rate of around $0.005 per stream (expected to grow!), and
outside of the U.S. the royalty is typically 8% - 10% of the list price.

9 
 
Description: A royalty generated from the “Reproduction” copyright. This royalty is owed to the songwriter for each and
every stream of his/her song via an “interactive” streaming service (“interactive” means the user can choose his/her songs,
stop, go backwards, go forwards, create custom playlists, etc., with no restrictions).

Who/What generates and pays this royalty: Any interactive digital music service: Spotify, Rhapsody, Rdio, Deezer,
Simfy, Xbox Music, Mog, MySpace Music, MixRadio, Slacker, etc.

Amount owed to the songwriter:

 In the United States: A government mandated rate of 10.5% of Gross Revenue minus the cost of “Public
Performance” (at the moment, the average rate per stream is about $0.005. Note – this rate has increased rapidly
over the past two years and is expected to continue to grow).
 Outside of the United States: There is no government-mandated rate. The royalty rate is typically 8% – 10% of the
list price.

Digital Performance Royalties

Digital Performance royalties are paid out for digital performances or streams. These include:

 Non-Interactive “Streaming” Public Performance Royalties: These apply to services like Pandora, iHeartRadio, and
SiriusXM Satellite Radio. Make sure you’re collecting your non-interactive digital royalites by signing up with
SoundExchange: www.soundexchange.com (there might already be money waiting for you!)
 Interactive “Streaming” Public Performance Royalties: These royalties come from streams on services like
YouTube, Spotify or Rdio. They are collected by your digital distributor.

Digital Non-Interactive “Streaming” Public Performance Royalties

We talked “interactive,” and now we’re talking “non-interactive.” A non-interactive streaming service is one through which
you can’t pick songs, create playlists, or otherwise “interact” with the music, kind of like AM/FM radio. A non-interactive
stream is a “Public Performance” and therefore generates a songwriter royalty, paid by the streaming service, like
Pandora, Slacker, iHeartRadio, Sirius XM Satellite Radio, cable companies, and thousands of other entities. Worldwide,
the royalty rate is determined by a one-to-one negotiation between the PRO and the other entity (generally based on a %
of the entity’s Gross Revenue).
Description: A royalty generated from the “Public Performance” copyright (also known as the “Right of Communication”).
This royalty is owed to the songwriter for each individual “Public Performance” of a song via the internet or any other
digital source (cable, satellite) via a “non-interactive” digital service (“non-interactive” means the user cannot pick songs,
create playlists, go backwards, see what song is playing next, etc. Think of it like AM/FM radio).

Who/What generates and pays this royalty: Pandora, Slacker, LastFM, iHeartRadio, Sirius XM Satellite Radio, cable
companies, any radio simulcast on the Net (about 3,000+ entities in the U.S., thousands more outside of the U.S.).
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Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
There is a one-to-one negotiation between the Performing Rights Organization (PRO) and the other entity. The rate they
charge the entity is usually based on a % of its Gross Revenue. Then the PRO uses its own formulas and methods to
calculate how much the songwriter gets paid.

Interactive “Streaming” Public Performance Royalties

When someone streams your song on an interactive streaming service like YouTube, Spotify or Rdio, it also counts as a
“Public Performance,” which means you’re owed additional songwriter royalties. There’s no set government rate in or
outside the U.S.—it’s determined individually by the PRO and the other entity, once again usually based on a % of the
entity’s gross revenue. A few formulas and calculations from the PRO later, and you’ve got a royalty.
Description: A royalty generated from the “Public Performance” copyright (also known as the “Right of Communication”).
This royalty is owed to the songwriter from each individual “Public Performance” of a song via the Internet or any other
digital source (cable, satellite) via an “interactive” service (“interactive” means the user can choose his/her songs, stop, go
backwards, go forwards, create custom playlists, etc., with no restrictions)

Who/What generates and pays this royalty: YouTube, Spotify, Rhapsody, Rdio, Deezer, Simfy, MySpace Music, any
other telecom and/or subscription streaming music service anywhere in the world. Also applies to on-line gaming (i.e.
Mafia Wars, etc.).

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
There is a one-to-one negotiation between the Performing Rights Organization (PRO) and the other entity. The rate they
charge the entity is usually based on a % of its Gross Revenue. Then the PRO uses its own formulas and methods to
calculate how much the songwriter gets paid. Important Note – outside of the U.S., the digital music services need both
the right of Reproduction and the right of Public Performance to use a song in an interactive streaming service. Therefore,
the local PRO and/or collection agency bundle these two rights together and usually charge 8% – 10% of the list price
(varies by country).

Digital Synchronization Royalties

Synchronization royalties also exist in the digital world! If one of your songs is used in the background of a video uploaded
to YouTube, you are owed a royalty for its use. Services like Audiam or TuneCore can help you collect these royalties.

Digital Synchronization License

Sync also applies to the digital world. We all know it’s common for people to create YouTube (or Vimeo) videos that use
someone else’s music in the background. In slightly more technical terms, what’s happening here is that the song is being
synchronized with a moving image, and when this happens, a per use license payment is required.

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[Exciting news: TuneCore can now help artists make more money on YouTube, as our Music Publishing Administration
service includes YouTube monetization. Plus, our new partnership with INDMUSIC helps you develop your channel, which
results in even more money for you.]
As far as the royalty rate goes, there is no government rate, just a one-to-one negotiation that sets the per use royalty
rate. It’s typically a percentage of Net Revenue as generated by advertising dollars.
Description: A royalty generated from the “Distribution” and “Reproduction” copyrights. A per use license payment to
synchronize a song (either the original recording or a cover version) with a moving image (i.e. YouTube, Vimeo, etc.).

Who/What generates and pays this royalty: Primarily sites like YouTube and Vimeo that have “User Generated
Content” (aka UGC), although artists can upload their own videos.

Amount owed to the songwriter: In both the United States and outside the United States there is no government rate.
There is a one-to-one negotiation that sets the per use royalty rate. It’s typically a % of Net Revenue as generated by
advertising dollars.

Foreign Monies
These types of royalties vary based on country and usage, and they’re paid to PROs, publishers, and occasionally record
labels. While it is an option to sign up with multiple PROs to represent you internationally, domestic PROs can also collect
any foreign royalties due to you as well.

Foreign mechanical royalties are paid out to the PRO by the digital distributor, but if you’re not registered with a PRO (or
society) in that country, you’ll be considered a “lost” writer.

“Lost” writers can, after a certain period of time, collect these payments as black box royalties - essentially an escrow
account where countries will keep these royalties for a certain amount of time. To ensure that you’re collecting those
royalties, you can use a service like Songtrust.
 

SONGTRUST 
http://blog.songtrust.com/songwriting‐tips/30‐sources‐of‐royalties‐and‐fees‐for‐songwriters/ 

TUNECORE 
https://www.tunecore.com/guides/thirteen‐ways‐to‐make‐money 

BANDZOOGLE 
https://bandzoogle.com/blog/music‐licensing‐101‐8‐royalties‐you‐can‐collect‐from‐your‐songs 

12 
 
 

  CANCION INTERPRETE
  OBRA MUSICAL FONOGRAMA
EJECUCION
AUTOR INTERPRETE
  DIGITAL SOUND EXCHANGE
EDITORA DISQUERA FONOGRAMA
  SOUND EXCHANGE
PRO VENTAS
Y AGREGADOR DESCARGAS AGREGADOR
CANCION
STREAMING
AGREGADOR
AUTOR INTERACTIVO
DIGITAL FONOGRAMA AGREGADOR
EJECUCION DE LA OBRA TERRESTRE PRO YOUTUBE (FIRMAR APARTE)
LIVE LICENCIA MASTER
STREAM RESIDUOS DE
MECANICAS DESCARGAS PAC PANTALLA
SAG AFTRA
PURCHASE (MUSICA COMO
VOICEOVER)
YOUTUBE EJECUCION PRO
YOUTUBE COMPOSICION PAC
SYNCH LICENSE

13