This section explains what master recording royalties are and how they are collected.
WHAT MASTER RECORDING ROYALTIES MEAN
| Item | Explanation |
|---|---|
| Also called | Recording royalties |
| Related to | The sound recording (master), not the songwriting |
| Earned from | Downloads, physical sales, and streaming |
| Who earns | Artist or label that owns the master |
These royalties are generated when the actual recorded song is used or consumed.
WHEN THESE ROYALTIES ARE CREATED
| Activity | Royalty Generated |
|---|---|
| Song is streamed | Yes |
| Song is downloaded | Yes |
| Song is sold physically | Yes |
| Song is only written (not recorded) | No |
Every time the master recording is played or sold, a recording royalty is created.
WHO COLLECTS MASTER RECORDING ROYALTIES
| Role | Responsibility |
|---|---|
| Distributor | Collects royalties from platforms |
| Artist or label | Owns the master recording |
| Stores and services | Pay usage revenue to the distributor |
Recording royalties are not collected by songwriter organizations.
HOW THE PAYMENT FLOW WORKS
| Step | Description |
|---|---|
| 1 | Music is delivered to platforms |
| 2 | Listeners stream or buy the song |
| 3 | Platforms report earnings |
| 4 | Distributor collects the money |
| 5 | Royalties are paid to the owner |
The distributor acts as the bridge between platforms and rights owners.
IMPORTANT NOTES
| Point | Details |
|---|---|
| Ownership matters | Only the master owner gets paid |
| Separate from songwriting | Songwriting royalties are different |
| Reporting | Earnings depend on platform reports |
| Payments | Sent based on usage data |
SUMMARY
- Master recording royalties come from the sound recording
- Generated by streams, downloads, and physical sales
- Collected by a distributor
- Paid to the artist or label that owns the master
