Music royalties explained: complete UK guide

Performance royalties are generated when your song is performed or played publicly. This includes: - Radio airplay (BBC, commercial stations, online radio) - Television broadcasts (including streaming services with linear TV content) - Live performances (concerts, festivals, gigs) - Public venues (shops, pubs, restaurants, gyms playing music) - Streaming services (Spotify, Apple Music, Amazon Music - the publishing portion) PRS for Music collects these royalties on behalf of songwriters and publishers. When a business wants to play music publicly, they pay a licence fee to PRS. PRS then distributes that money to the writers of the songs that were played. To receive PRS royalties, you need to: 1. Be a PRS member 2. Register your songs (works) with PRS 3. Report your live performances so PRS knows they happened PRS royalties are typically paid quarterly, with a delay of several months from when the music was actually used.

Mechanical royalties are generated when copies of your song are made. This includes: - Physical copies (CDs, vinyl) - Digital downloads - Certain streaming uses (the mechanical reproduction element) In the UK, mechanical royalties are collected by MCPS (Mechanical-Copyright Protection Society), which is administered by PRS. Most PRS members are also MCPS members. Mechanical royalties from streaming are relatively small compared to performance royalties. The bigger mechanical income comes from physical sales and downloads, which have declined significantly in recent years. If you have a publishing deal, your publisher may handle mechanical licensing directly rather than through MCPS.

PPL collects royalties when sound recordings are played publicly or broadcast. This is separate from PRS, which deals with the underlying song. PPL royalties are generated when: - Recordings are played on radio or TV - Recordings are played in public venues (shops, restaurants, etc.) - Recordings are used in certain online services PPL splits the royalties it collects 50/50 between: 1. The recording rights holder (usually the label or whoever funded the recording) 2. The performers who played on the recording If you are an independent artist who owns your own recordings, you should register with PPL as both a performer AND a recording rights holder to collect both halves. To receive PPL royalties, you need to: 1. Register as a PPL performer and/or recording rights holder 2. Register your recordings with PPL (including ISRC codes) 3. Ensure all performers are credited

When your song is streamed on Spotify or Apple Music, several different royalty streams are generated: 1. Recording royalties: Paid by the streaming service to your distributor (DistroKid, TuneCore, etc.), who then pays you. This is typically the largest portion. 2. Performance royalties: Paid by the streaming service to PRS, who then pays the songwriters. This is a smaller portion. 3. Mechanical royalties: A small portion for the reproduction right, collected via MCPS/publishing. 4. PPL royalties: For certain UK uses, PPL may also collect a small amount. The exact split varies by service and territory. Many artists are confused when their PRS royalties seem small compared to their distributor payments - this is normal, because the recording share is larger than the publishing share for most streaming income. If you are a self-releasing artist who writes your own songs: - Your distributor pays you the recording royalties - PRS pays you the songwriting royalties (if you are a member and have registered the work) - PPL may pay you performer royalties for certain uses

Sync licensing is when your music is synchronised with visual content: films, TV shows, adverts, video games, YouTube videos, etc. Sync is typically negotiated deal-by-deal rather than through blanket licenses. Two separate permissions are usually needed: 1. Master license: Permission to use the specific recording (from the label or whoever owns the master) 2. Sync license: Permission to use the song/composition (from the publisher or songwriter) Sync fees vary enormously - from nothing for small YouTube creators to hundreds of thousands of pounds for major advertising campaigns. The fee depends on the project, the usage, the territory, and the profile of the music. If you own both your masters and your publishing, you control both licenses. If you have a label or publishing deal, they may have the right to negotiate sync licenses on your behalf (check your contract). Sync income is often a one-time fee, though some deals include royalties for broadcast uses.