Learn
Music Royalties, Simplified
Recording
DistributionPayments from streams, downloads, and sales on music streaming platforms.BroadcastPayments for recordings played on satellite radio, internet radio, and webcasts (in the US, via SoundExchange).Which royalties come from where
Royalties by platform type
| Platform type | Recording | Mechanical | Performance | Neighboring | Sync |
|---|---|---|---|---|---|
| Interactive streaming (Spotify, Apple Music) | ● | ● | ● | — | — |
| Non-interactive radio (Pandora, SiriusXM, iHeartRadio) | ● | — | ● | ● | — |
| Download / DJ stores (Bandcamp, Beatport) | ● | ● | — | — | — |
| Short-form & social (TikTok, Meta, Snap) | ● | ● | ● | — | ● |
| Fitness, sync & background (Peloton) | ● | — | ● | — | ● |
| Karaoke & sing-along (Singa, WeSing) | — | ● | ● | — | ● |
Interactive streaming (Spotify, Apple Music) pays recording, mechanical, and performance royalties — not neighboring rights, which come from non-interactive radio via SoundExchange. Karaoke also generates a print (lyric) royalty not shown above. ROXi-style on-demand music-video and karaoke TV is audiovisual, so it leans on sync and master-use licensing rather than the statutory mechanical.
When you reuse someone else's music
Covers, samples, interpolations & remixes
Every recording is two copyrights — the composition and the master. What you have to clear depends entirely on which one you touch. The clean rule: a sample uses the original recording (clear both), an interpolation re-records it yourself (composition only).
| Reuse type | Composition | Master | Compulsory license? | What you clear |
|---|---|---|---|---|
| Cover — audio only | ● | — | ● | Composition only — the §115 mechanical license, no permission needed. |
| Cover — in a video | ● | — | — | Composition only, but a negotiated sync license (the compulsory license is audio-only). |
| Sample | ● | ● | — | Both — a master-use license and a composition license, all negotiated. |
| Interpolation | ● | — | — | Composition only — you re-record it yourself, usually as a publishing co-write split. |
| Remix | ● | ● | — | Both — it's a derivative work built from the original recording. |
A straight cover is a reproduction under the §115 mechanical license — not a derivative work. Samples and remixes are. The only thing that excuses clearing entirely is genuine parody or fair use, and that's a narrow, case-by-case defense.
From the play to your account
Who collects each royalty
Every royalty has a collector — the body that gathers it and pays it out. This is the whole map: which side of the song each royalty comes from, who collects it, and who ends up paid.
| Royalty | Side | Who collects it | Who gets paid |
|---|---|---|---|
| Recording royalties | Recording | Your distributor (direct DSP deals) | The master owner — you |
| Digital-performance / neighboring | Recording | SoundExchange | Master owner + featured & non-featured performers |
| Mechanical royalties | Composition | The MLC (US streams & downloads) | Songwriter + publisher |
| Performance royalties | Composition | PROs — ASCAP, BMI, SESAC | Songwriter + publisher |
| Sync royalties | Both | Negotiated — publisher + recording owner | Songwriter + master owner |
| Print royalties | Composition | The publisher | Songwriter + publisher |
| Non-featured musician royalties | Recording | AFM & SAG-AFTRA Fund | Session musicians & background vocalists |
| International royalties | Both | Foreign PROs / societies + sub-publishers | You, via reciprocal agreements |
Built on the record
Sources & further reading
- 17 U.S.C. §115 — Compulsory mechanical license (covers, streaming mechanicals)Cornell Legal Information Institute ↗
- 17 U.S.C. §114 — Sound-recording rights & the §114(g) SoundExchange splitCornell Legal Information Institute ↗
- 17 U.S.C. §106 — Exclusive rights, incl. derivative works (§106(2))Cornell Legal Information Institute ↗
- Music Modernization Act & the §115 blanket licenseU.S. Copyright Office ↗
- Sampling, Interpolations, Beat Stores and More — for MusiciansU.S. Copyright Office ↗
- How It Works — mechanical & unclaimed royaltiesThe MLC ↗
- Digital Performance Royalties — interactive vs. non-interactiveSoundExchange ↗