Whether you’re a seasoned music distributor or just stepping into the world of digital distribution, understanding royalties is essential. Royalties are central to how you and your clients earn revenue in today’s music landscape. At My Client Zone, we’re here to make royalty management more transparent, more accessible, and tailored to the needs of labels and distributors, not just artists.
What Are Music Royalties?
Music royalties are ongoing payments made to rights holders – such as songwriters, artists, producers, and labels – whenever their music is used. These payments stem from copyright licensing and cover different aspects of a song, including its composition, recording, and public performance.
Understanding the different types of music royalties is essential for anyone navigating the music industry. Here’s a breakdown of the main royalty categories:
1. Mechanical Royalties
These are paid to songwriters and publishers when a song is reproduced, whether physically (CDs, vinyl) or digitally (downloads, streams). Every time a track is played on a streaming platform or sold online, mechanical royalties are generated.
2. Performance Royalties
Collected by performance rights organisations (PROs), these royalties are paid when a song is performed publicly. This includes radio play, live concerts, and even background music in cafes or in shops.
3. Print Music Royalties
These apply when sheet music or other printed formats of a song are sold. Though less common in the modern music industry, they’re still relevant for classical works and educational music materials.
4. Sync Royalties
Earned when a song is licensed for use in a visual project, such as a film, TV show, commercial, or video game. Sync deals are often negotiated directly between the rights holders and the production company.
5. Digital Performance Royalties
These are specific to the streaming of recorded music on digital radio services like Pandora, SiriusXM, or other non-interactive platforms. They’re typically paid to both the performer and the copyright holder of the master recording.
6. Master Recording Royalties (Recording Royalties)
Paid to the owner of the mastered sound recording (often a label or directly to an independent artist) when the recording is streamed, downloaded, or licensed for use. This is separate from the royalties earned by the songwriter or publishing rights holder.
In digital music distribution, royalties refer to the payments made to music rights holders whenever a track is streamed or downloaded on platforms like Spotify, Apple Music, Amazon Music, and more. Rights holders can include labels, publishers, songwriters, and yes – distributors like you, depending on the deals you’ve structured with your clients.
What Royalties Does My Client Zone Collect?
When music is released digitally, two types of copyright are created:
- Master Rights – covering the actual sound recording.
- Publishing Rights – covering the composition (melody, lyrics, etc.).
As a distribution platform, My Client Zone facilitates the collection of royalties generated from the master recording. These are the earnings generated from downloads and streams on digital platforms. Once collected, these royalties are passed on to you, the distributor, and then split based on the agreements in place with your artists or label clients.
How Are Master Royalties Generated?
Master royalties are influenced by several variables:
- Duration of the stream: Longer plays generally mean higher earnings.
- Geographic region: Streams in countries like the U.S. or UK may earn more than in other regions.
- User subscription type: Premium users typically generate higher payouts than free-tier listeners.
Because of these fluctuating factors, it’s difficult to predict exactly how much each stream is worth. However, My Client Zone simplifies the process by giving you full access to reporting and analytics, so you and your clients can track trends and revenues with ease.
When and How Are Master Royalties Paid Out?
Royalties collected by My Client Zone are paid out monthly, typically around the 15th of each month. You can choose how you’d like to receive your payments – either via PayPal or Convera (formerly Western Union Business Solutions).
Where to View Music Royalty Reports and Analytics
We understand that transparency and data access are crucial for distributors managing multiple artists or releases. That’s why My Client Zone provides you with a full suite of royalty data and analytics tools.
Inside your My Client Zone dashboard:
- Click on Analytics in the left-hand menu to view earnings breakdowns by track, store, and territory
- Reports can be viewed daily or monthly
- For downloadable royalty statements, head to the Payments Overview page.
What About Publishing Royalties?
At this time, My Client Zone focuses on collecting master royalties only – those earned from streams and downloads on digital platforms. Publishing royalties, which are owed to songwriters and composers, are not collected through My Client Zone. If you manage both rights for your clients, we recommend ensuring that publishing is handled through a separate administrative service or publisher.
Need Help?
Whether you’re troubleshooting a statement or have questions about a specific payout, our support team is here to assist. Reach out to us via email.
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At My Client Zone, we’re committed to making royalty management clear, consistent, and distributor-focused. By giving you the tools and insights you need, you can keep your clients informed and your business running smoothly.