Streaming Royalties

Types of Streaming Royalties for Songwriters:

  1. Performance Royalties:
    • Generated when your song is played (streamed) publicly.
    • Collected by PROs (like ASCAP, BMI).
    • Paid to you (songwriter) and your publisher.
  2. Mechanical Royalties:
    • Earned because digital streaming involves a reproduction of your work.
    • Collected by the MLC (Mechanical Licensing Collective) in the U.S.
    • Paid to you if you’re registered and own your publishing rights.

 If you don’t register with both a PRO and the MLC, you may miss a large portion of your streaming income.


How the Money Flows:

  • Spotify (for example) keeps ~30% of the revenue.
  • The remaining ~70% is split between:
    • Master recording owner (artist/label) – usually the biggest share.
    • Publishing rights (performance + mechanical) – this goes to songwriters.


How You Collect:

  • As a songwriter:
    • Performance royalties → via your PRO (ASCAP, BMI, etc.)
    • Mechanical royalties → via MLC or your publisher
  • As a performing artist (if you also release music):
    • You get master royalties via a distributor like DistroKid, TuneCore, or CD Baby.


How Much You Make:

  • Varies by platform and listener location.
  • Spotify typically pays $0.003–$0.005 per stream (total).
  • Songwriters receive a small fraction of that per stream—often 10–15% of the total revenue generated.


Important Notes:

  • Streaming pays less per play than other formats, but the volume can make up for it.
  • To maximize earnings, register your songs with both a PRO and the MLC, and use a digital distributor if you also release your own music.
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