There are many ways for songwriters to generate money, most often making the majority of their royalty income when their songs are publicly played or streamed. We put together a comprehensive review of the various royalty streams a songwriter can (and should) be collecting. In fact, there are at least 50 different income streams every creative should know about – so be sure to read on and make sure you’re not leaving any money on the table!
Performance Royalties
Performance royalties are collected when a song is played publicly, whether it is performed live at a concert or has been broadcast on the radio or TV. Any songwriter who is receiving performance royalties is registered with one of the major Performing Rights Organizations (PRO’s), whether it’s ASCAP, BMI, SESAC, PRS for Music, GMR, or another global CMO (Collective Management Organization).
These organizations were created to track and collect royalties from businesses and entities that publicly perform music like restaurants, bars, live music venues, radio stations, and more. These collected funds are then distributed to songwriters and publishers.
So how does that actually work? Any outlet that plays music in a public setting is required to have a license to do so. While this includes obvious outlets like radio stations and music venues mentioned above, it also includes public settings like amusement parks, airports, and hospitals. The license is purchased by these businesses from one (or many) PRO’s, and those funds are then paid out as a performance royalty to the associated songwriter and publisher.
Mechanical Royalties
Additionally, Digital Service Providers (DSPs) like Spotify and Apple Music have evolved in the past decade and so has the way songwriters collect royalties from this kind of digital streaming. In 2018, The Music Modernization Act and the U.S. Copyright Office established the Mechanical Licensing Collective (MLC) to collect the royalties that are due to songwriters, composers, and publishers from those DSPs, and pay them to the associated publisher, which then pays the songwriter or composer.
The MLC distributes their royalty payments to their members (the associated publishers or self-published songwriters/composers) monthly between the 12th and 16th of each month.
As previously mentioned, PRS for Music is one of the major PROs based in the UK. Since the Music Modernization Act of 2018only applies to the United States, PRS for Music also pays out MCPS mechanical royalties to their members. Similar to the MLC, these are paid out monthly.
Performance Royalties Payment Schedule*
ASCAP, BMI, SESAC, and PRS for Music pay performance royalties to their members on a quarterly basis.
The following are the performance period and payment distribution schedules for ASCAP, BMI, SESAC, and PRS:
PRO |
Quarterly Payment Months |
| ASCAP (domestic) | January, April, July, October |
| ASCAP (international) | February, May, August, November |
| BMI | February, May, August, November |
| SESAC | March, June, September, December |
| PRS for Music | December/January, April, July, October |
*Please note that these dates are estimates and can change without notice.
Advances on Royalty Payments
Whether you’re a songwriter working on a new project or looking to invest in your career, getting an advance on any of the above-mentioned payments could be the ideal solution for you!
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