Understanding how royalties work is essential for any artist, producer, or songwriter who wants to get paid for their music. But many creators overlook one of the most fundamental aspects of the music business: the fact that every song is made up of two separate copyrights, and each one generates its own kind of royalties.
These two sides are:
- The Composition – the music and lyrics (aka the "song")
- The Sound Recording – the actual recorded version of that song (aka the "master")
Each of these has its own royalty streams, collection methods, and rights holders. Let’s break them down.
The Composition: Publishing Royalties
The composition refers to the underlying music and lyrics of a song. This is the “idea” of the song—the melody, chord structure, and words. Publishing royalties are generated any time this composition is reproduced, distributed, performed publicly, or streamed, regardless of who performs or records it.
Who earns publishing royalties?
- Songwriters (the people who wrote the lyrics and music)
- Publishers (or administrators, who manage the rights and royalty collection)
Types of publishing royalties:
-
Performance Royalties
Generated when a song is performed publicly—on radio, TV, live concerts, clubs, restaurants, or streaming platforms. Collected by Performance Rights Organizations (PROs) like ASCAP, BMI, SESAC (U.S.) or PRS (UK). -
Mechanical Royalties
Paid when a song is reproduced or distributed—physically (CDs/vinyl) or digitally (downloads, streams). In the U.S., The MLC (Mechanical Licensing Collective) handles mechanicals from digital streaming services. -
Sync Fees (Publishing Share)
When a song is licensed for use in a film, commercial, or video game, the publisher receives a portion of the sync fee for use of the composition.
How are publishing royalties collected?
To collect publishing royalties, a song must be registered with:
- A PRO (for performance royalties)
- A mechanical rights organization (like The MLC)
- Optionally, a publishing administrator or publisher to handle global registration and royalty claims
If you haven’t registered your songs, the royalties may be unclaimed—even if your music is generating revenue.
The Sound Recording: Master Royalties
The master recording is the final, recorded version of the song. This is what you hear on Spotify, Apple Music, or a CD. The master royalty is what gets paid when that specific recording is streamed, sold, or licensed.
Who earns master royalties?
- The master owner (often a record label)
- Independent artists (if self-released)
- Featured artists (in some cases via revenue splits)
Types of master royalties:
-
Streaming Royalties (Master Share)
Every time a track is streamed on Spotify, Apple Music, or YouTube Music, the master owner earns a portion of the platform’s revenue. Paid via distributors like DistroKid, TuneCore, CD Baby, or directly to labels. -
Digital and Physical Sales
Revenue from iTunes downloads, Bandcamp purchases, vinyl, or CDs goes to the master owner. -
Sync Fees (Master Share)
When a recording is licensed for film, TV, or advertising, the label or master owner receives a portion of the sync fee for the use of the recording. -
Neighboring Rights
In some countries (excluding the U.S.), master owners and performers earn royalties from public broadcasts or performances. These are collected by organizations like PPL (UK), Re:Sound (Canada), etc.
Real-World Example
Let’s say a song is written and performed by the same independent artist, and it’s streamed on Spotify:
-
Publishing Royalties
- ASCAP or BMI pays the songwriter performance royalties
- The MLC pays mechanical royalties to the songwriter and/or their publisher
-
Master Royalties
- Spotify pays a portion of its revenue to the artist’s distributor
- The distributor (e.g., TuneCore) pays the master royalty to the artist (who owns the master)
If that song is then used in a commercial (sync placement), both the publisher and the master owner must approve the license, and both are paid separately.
Why This Matters
Understanding the difference between publishing and master royalties helps you:
- Maximize your income: Most independent artists miss out on publishing royalties simply because they aren’t registered to collect them.
- Protect your rights: Knowing who owns what helps avoid conflicts when co-writing or collaborating.
- Unlock sync opportunities: Licensing your music requires knowing who controls both sides of the song.
Quick Summary
| Feature | Publishing Royalties | Master Royalties |
|---|---|---|
| What it’s tied to | The composition (melody + lyrics) | The sound recording (the audio file) |
| Who earns it | Songwriters & publishers | Master owners (labels or artists) |
| Common sources | Radio, TV, live shows, streaming | Streaming, downloads, syncs |
| Collected by | PROs, MLC, publishers | Distributors, labels, neighboring rights orgs |
| Key for sync licensing | Yes (publishing approval needed) | Yes (master approval needed) |
Final Thoughts
If you write, record, or release music, you’re likely generating money from both the composition and the recording. But unless you're actively registered with the proper organizations—or working with a publisher and distributor—there's a good chance you're leaving money on the table.
Learn both sides. Register your songs. Claim your rights. That’s how you turn a release into a revenue stream—and a catalog into a long-term asset.