Entertainment Music Business

Performance Royalty

Payment to songwriters and publishers when their composition is publicly performed or broadcast.

Definition

Performance royalties are payments to songwriters and publishers when their compositions are publicly performed—live performances, radio broadcasts, TV usage, streaming, and music played in businesses. Performance Rights Organizations (PROs) collect and distribute these royalties.

Performance royalties are split between the songwriter and publisher, typically 50/50. The writer's share goes directly to the writer; the publisher's share goes to whoever owns or administers publishing rights. PROs track usage through various monitoring methods and distribute payments quarterly.

Why It Matters

Performance royalties represent ongoing income every time a song is played publicly. For successful songs, this creates long-term revenue streams that persist for decades. Understanding performance royalties helps songwriters ensure they're properly registered and collecting what they're owed.

Many songwriters leave money on the table by not affiliating with PROs or not registering all their works.

Examples in Practice

A songwriter receives quarterly performance royalty checks as their song plays on radio stations nationwide for years after release.

A composer's music on a popular TV show generates substantial performance royalties from broadcast and streaming of episodes.

A restaurant owner pays blanket license fees to PROs, which distribute that money to songwriters whose music plays in the establishment.

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