Music Royalties Simplified

Royalties are a hot topic for all music professionals, whether they’re earning them or paying them, and as a distributor you could be doing both. But what exactly are royalties, how are they generated and what are you entitled to?

We’re here to simplify all you need to know…

What is a Royalty?

In short, in the world of music distribution, royalties are the payments made to music rights holders by Digital Service Providers (DSPs) every time a piece of music is streamed or downloaded. A rights holder can be anyone from an artist, songwriter or, record label.

How are royalties generated?

Several factors influence how royalties are generated. The longer a song is played, the larger royalty it generates. Different locations pay different rates, so a song streamed in the UK might earn you more than it would in Canada. Premium and free streaming accounts also generate different amounts. As a result, it’s hard to predict exactly what you’ll earn from a single stream for a song. It’s a common myth that there is a set streaming royalty rate.

What royalties does My Client Zone collect and pay?

It’s important to firstly understand that when a song is created, there are 2 types of copyright generated. The first is the master recording also known as the sound recording. This covers the actual recording of the specific track. The second is the publishing copyright, which covers the composition, including melody, lyrics, and the music itself. As a distribution company, and through our white label solution, we are collecting royalties generated by the master / sound recording copyright. Every time your releases are downloaded or streamed, DSPs calculate the money it generates, i.e a royalty. These royalties are collected by DSPs and then paid directly to us on specific payment cycles.

How are royalties paid out?

You can choose to receive payments via PayPal or Convera. You can select your preferred payment method from your white label account directly in My Music Distribution Zone. Simply go to Settings > Payment Gateway on the left-hand menu and you’ll be prompted to set up your preferred option.  We will pay you all of the royalties via this method so you’re free to pay your artists and labels with your own preferred method in the currency of your choice.

Where can I view my royalty reports and analytics?

Because royalties are so complex, it’s helpful to have all the available information at your disposal. Each platform sends us regular royalty reports for all releases we distribute. We make this data directly available to you, your artists and labels within My Client Zone. To view your analytics, you can select ‘Analytics’ in the left-hand menu in your My Client Zone profile. Here you can view and download charts and tables breaking down what you’ve earned from each track, store, or territory, on a daily or monthly basis. You can also view and download your royalty statements by going to Payments > Payments Overview. We account to you on a monthly basis after an initial 3 month period, from once we receive the reports from the DSPs (who themselves take 3 months to provide us with the data).

If you have any queries relating to your royalty collection or reports with My Client Zone we’re on hand to discuss via email and phone. We look forward to continuing to provide you with a transparent and reliable service.