Skip to content
Dark Lab Records Ltd
A recording studio mixing console with guitars on the wall behind it

Guide

Music royalties explained: where your money comes from

A single stream can create several different payments, going to different people through different organisations. If you only collect one of them, you are leaving money behind. This guide maps where music money comes from.

By Dark Lab Records Ltd · Updated · 6 min read

Recording royalties

When your recording is streamed or downloaded, the store pays the rights holder of the master recording. If you release through a distributor, the money comes to you through the distributor's statements, minus any agreed share. Your split with collaborators and labels is set out in your contracts.

Publishing royalties

The song behind the recording earns separately: performance royalties from public performance and broadcast, and mechanical royalties from reproduction, which includes downloads and on-demand streams. These are collected by PROs and mechanical rights organisations and paid to writers and publishers. See our guide to music publishing for detail.

Neighbouring rights

Neighbouring rights are paid to performers and to the owners of the recording when it is played on radio, in venues or on certain digital services. They are collected by organisations such as PPL in the UK and SoundExchange in the US for digital performances. They are often overlooked because they are paid separately from streaming income.

Video royalties

Music videos earn advertising revenue on platforms that support monetisation. With Dark Lab Records video distribution you keep 70% of the royalties generated.

Why payments arrive late

Royalties are reported and paid in arrears. Stores report usage after the end of a period, collecting societies then pay out on their own schedules, and your distributor or publisher consolidates it all. Expect payment to trail the listening by months, not days.

How to avoid missing money

  • Register every song with a PRO or a publisher, and every recording with the right neighbouring rights organisation.
  • Use accurate, consistent metadata and the same artist name everywhere.
  • Agree and document splits before release, so each writer and performer is paid correctly.
  • Check your statements and ask when something looks wrong.

Frequently asked questions

Why do I get paid by several different companies?

Recording, composition and performance each have their own collecting organisations. A distributor, a publisher and societies each collect a different part.

What is the difference between mechanical and performance royalties?

Mechanical royalties are for reproducing a song, such as downloads and on-demand streams. Performance royalties are for public performance, such as radio, TV and live venues.

Do I need to register my music to get paid?

Yes. Unregistered or incorrectly registered works are the main reason royalties go unclaimed.

Who collects neighbouring rights?

Organisations such as PPL in the UK. You usually need to register as a performer or recording rights holder.

Talk to a person

Questions about your own release? Our team answers every message.