Music Royalties Explained
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- Main Types Of Publishing
There are three main types of publishing royalties, which are performance, mechanical and record royalties.
- What Are Performance Royalities?
Performance royalties are from performances of your song based on how much you own. If you own 100% of the song you get all the money. If you own just the lyrics you get 50%, or just the music 50%. If you sample, the sample would take 25% of what is left so you get 25%. Through ASCAP and BMI you are paid when a radio station, concert, dance hall or club plays your music. When your records sell you receive two types of royalties, mechanical and record royalties.
- What are Mechanical Royalties?
Mechanical royalties are about .0715 cents per song and you can be paid up to about ten songs, but in due to a statutory clause a record label only pays 75% of the .0715 royalty.
So if your album goes platinum (sells a million records) you would get paid 1,000,000 times 10 (ten songs) and then take that 10,000,000 and times that by 75% of .0715 or .06639 to get $663,9001,000,000 records * 10 songs----------------------10,000,000 * $.06639 royalty percent----------------------$663,900This cost is without recoupment costs of the album and assumes you own 100% of the publishing. If the record label owns 50% of the publishing the record label gets paid 50% of this sum. All cost of the album are then taken from the artist’s portion of this sum including studio time, promotion, producers, retail, distribution, mastering and anything that costs money.- What Are Record Royalties?
Record Royalties are from record sales taken after the recoupment costs at rates agreed upon in contract in points (a point is equal to a percent), usually by 10%-20% percent or 10-20 points of the retail sale.
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