Recording Royalties

Recording Royalties

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Recording Royalties -

Picture this. You’re a new artist and you decide to throw up your hot new single on Distrokid for $19.99. A few months pass and you’ve generated $3.

That’s over 700 streams!

The $3 that you’ve earned is classified as recording royalties.

These are royalties generated from digital service providers like Spotify, Apple Music, Tidal, and Youtube. Due to your ownership % or royalty stake for the master recording, you are entitled to a percentage of these royalties.

why does this matter?

For independent artists, recording royalties are the first and most common income stream. Due to the average payout rate per stream being $0.004, the majority of independent artists cannot survive on this income alone. If you factor in the various costs of releasing a new song, it would take around 50 thousand streams to earn $200 (assuming you own 100% of the master recording).

 
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Performance Royalties

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The Master Recording vs. The Composition