Royalty Statement
Periodic accounting document detailing music earnings and deductions.
Definition
A royalty statement is the financial report provided by labels, publishers, and distributors detailing how much music earned, from what sources, and what deductions were applied. Statements typically arrive quarterly or semi-annually, often six months or more after the income was actually generated.
Statement clarity varies enormously—some provide transaction-level detail while others offer only summary figures. Understanding statement structures is essential for identifying discrepancies and evaluating deal performance.
Why It Matters
Royalty statements are the primary accountability mechanism ensuring artists receive what they're owed. Those who can read and analyze statements catch errors, identify trends, and make informed career decisions.
Professional royalty audits often recover significant underpayments, but require statement literacy to identify audit-worthy discrepancies.
Examples in Practice
An artist's statement shows streaming income declining despite increasing plays, prompting investigation that reveals an unauthorized rate reduction.
A manager creates dashboards comparing royalty statements across quarters, identifying which releases and territories are driving growth versus decline.
An audit triggered by statement anomalies recovers $300,000 in underpaid mechanical royalties that the label attributed to accounting system errors.