What is the difference between performance and mechanical royalties?

What is the difference between performance and mechanical royalties?

Performance royalties are earned when a song is played publicly, like on the radio or in a concert. Mechanical royalties are earned from the reproduction of a song, such as when it's sold on CDs or streamed.

Can you give me examples of each type of royalty?

Sure! An example of performance royalties would be when a song is played at a live event. Mechanical royalties would come from a music streaming service that pays artists for each stream.

How are these royalties collected and distributed?

Performance royalties are typically collected by performance rights organizations (PROs) and distributed to artists. Mechanical royalties are collected by music publishers and paid to songwriters and rights holders.

Why is it important for artists to understand these differences?

Understanding these differences helps artists maximize their earnings and ensure they receive the correct payments for their work.