Follow the Money: How Royalties Flow in the Music Industry

Music Metadata

When it comes to building a sustainable music career, understanding where your money comes from is just as important as making great music.
Your songs might be racking up streams, getting played in cafes, featured on TikToks, or broadcast on the radio.

But how does the money from these plays find its way to you?
Understanding the flow of royalties in the music industry is crucial for independent artists aiming to maximize their earnings.

Most of the money you can earn from your music comes from two sources: publishing royalties and master royalties.
Let’s break down what they are — and how to make sure you’re actually collecting them.

Publishing Royalties: You Wrote It, You Deserve to Get Paid

Publishing royalties are what you earn as the creator of the song itself — not the recording, but the lyrics, melody, and overall composition.
Every time someone plays, performs, broadcasts, or streams your song, publishing royalties are generated.

There are two main types:

Performance royalties come from things like radio airplay, live performances, background music in public places, and digital streaming. These are tracked and paid out by Performance Rights Organizations (PROs) like ASCAP, BMI, PRS, or SACEM.

Mechanical royalties are generated when your song is reproduced — digitally or physically. This includes downloads, streams, and vinyl or CD sales. These royalties are collected by different entities depending on your territory — sometimes a local collective, sometimes your publishing administrator.

Now, let’s talk about something that often confuses new songwriters: Copyright Control.

If you’re an independent artist registering your music without a publisher, you’ll often list “Copyright Control” as your publisher when submitting works to a PRO.

Here’s what that actually means: you’ve chosen to keep full control over your publishing rights.
You’re not giving away a share to a third-party publisher. You retain 100% ownership, and you’re managing it yourself.

And that’s not a bad thing. In fact, it can be a powerful choice — especially if you want full flexibility over how your music is licensed, synced, or monetized.

That said, going this route comes with responsibility. You’ll need to:

• Register your songs with PROs and CMOs
• Collect both performance and mechanical royalties
• Make sure your metadata is accurate and complete
• Handle any international collections or disputes yourself

Master Royalties: You Own the Recording, You Get Paid for the Plays

Master royalties are tied to the sound recording — the actual audio file released on Spotify, played on YouTube, or downloaded on iTunes.

If you recorded, released, or funded the recording yourself, you probably own the master rights. If you’re signed to a label, they may own them instead — and you’ll receive a percentage based on your contract.

Master royalties come from several sources:

• Streaming platforms: Spotify, Apple Music, Deezer, etc. pay master royalties to your distributor, who passes them on to you.
• Digital and physical sales: Each time someone buys your track, you’re paid as the owner of the recording.
• Sync placements: If your master is licensed for use in ads, film, TV, or games, you receive a sync fee — usually alongside a publishing fee.

Master royalties are usually paid out faster and more directly than publishing royalties. But, like with publishing, you need to be organized — and you need to have your rights clearly assigned and metadata locked in.

Who Gets Paid for What?

Let’s say you wrote and recorded a track, and it hits 1 million streams.

As the songwriter, you’re entitled to publishing royalties, which come through your PRO and publishing administrator.
As the recording owner, you’re also entitled to master royalties, which come through your distributor (like DistroKid, TuneCore, or AWAL).

If you co-wrote the track or co-own the recording, you’ll split the royalties with collaborators based on your agreed splits.

If you haven’t registered the song, don’t have clear splits, or your metadata is off — you could lose money without even knowing it.

How to Actually Collect Your Royalties

1. Register with a PRO like PRS, ASCAP, or BMI to collect performance royalties.
2. Consider working with a publishing admin (especially if you’re listed as Copyright Control) to help collect mechanical royalties worldwide.
3. Use a reliable distributor to collect master royalties from streaming platforms and sales.
4. Keep your metadata clean and consistent across all platforms. It's the glue that ties everything together.
5. Use split sheets when collaborating, so everyone's ownership percentages are crystal clear from day one.

The truth is, most artists are already generating royalties — but many aren’t set up to receive them. If you don’t put the systems in place, the money just floats in the system... or ends up in the infamous black box.

Final Thoughts

You’re not just making tracks — you’re building intellectual property.
Publishing and master royalties are the foundation of music income. Once you understand the difference and take the right steps to manage both sides, you're not just making music — you’re running a business.

If you’re currently under Copyright Control, that’s a strong position to be in — you own everything.
Just make sure you’re set up to actually collect what you’ve earned. Whether you go solo or work with a team, the goal is the same: don’t let your royalties go unclaimed.