Performance Royalties: Understanding Public Performance Income

Performance royalties compensate songwriters and publishers when music is publicly performed. Radio airplay, streaming, live venue performances, and background music all generate performance royalties. Understanding how these royalties work helps musicians collect deserved income.

How Performance Royalties Generate

Public performance triggers royalty obligation. When music plays publicly—not private listening—performance royalties apply.

Radio airplay generates significant royalties. Broadcast radio remains substantial performance royalty source.

Streaming generates performance royalties. Interactive streaming services pay performance royalties alongside mechanical royalties.

Live venue performances create royalties. Concerts, clubs, and venues playing recorded music owe performance royalties.

Background music in businesses generates royalties. Stores, restaurants, and other businesses using music pay through licenses.

Performance Rights Organizations

PROs collect and distribute performance royalties. ASCAP, BMI, and SESAC serve this function in the United States.

PROs license music users. Radio stations, streaming services, venues, and businesses pay PROs for blanket licenses.

PROs distribute to members. Collected royalties are distributed to affiliated songwriters and publishers.

Membership is exclusive. Songwriters choose one PRO; all their work registers with that organization.

Registration Requirements

PRO membership is prerequisite. Joining a PRO as songwriter enables collection.

Song registration activates collection. Each song must be registered with PRO to collect royalties for it.

Accurate information ensures proper payment. Correct titles, writers, splits, and publisher information prevents problems.

Publisher registration captures full royalty. Registering publishing entity collects publisher share in addition to writer share.

Understanding Royalty Calculation

Sampling and surveys inform distribution. PROs use various methods to track performances and allocate royalties.

Rate determination involves multiple factors. Performance royalty rates depend on licensee type, usage, and other factors.

Distribution schedules determine payment timing. PROs distribute royalties on regular schedules, typically quarterly.

Minimum thresholds may apply. Small earnings may accumulate before payment.

Maximizing Performance Royalties

Radio promotion increases airplay royalties. Songs receiving radio play generate performance income.

Setlist registration captures live performance royalties. Registering performed songs from concerts enables royalty collection.

Cue sheet accuracy ensures sync-related royalties. When music appears in TV or film, proper cue sheets enable collection.

International collection extends reach. Setting up collection in foreign territories captures international royalties.

Digital Performance Considerations

Interactive streaming generates performance royalties. Spotify, Apple Music, and similar services pay performance royalties.

Non-interactive streaming differs. Internet radio and similar services pay through different mechanisms.

YouTube generates performance royalties. Music on YouTube triggers performance royalty obligations.

Live Performance Royalties

Venue licenses cover live performances. Venues pay PROs for permission to have music performed.

Setlist registration enables songwriter payment. Reporting performed songs helps PROs allocate venue license payments.

Touring generates royalties across venues. Each performance location with proper licensing generates royalties.

Common Performance Royalty Issues

Unregistered songs generate zero royalties. Songs not in PRO system cannot collect performance royalties.

Incorrect information misdirects payment. Wrong splits, missing writers, or inaccurate details cause payment problems.

International royalties may go uncollected. Without proper international arrangements, foreign royalties may be lost.

Delayed registration loses historical royalties. Royalties from before registration typically cannot be recovered.