What are the differences between mechanical and performance royalties?

What are the differences between mechanical and performance royalties?

Mechanical royalties are paid to songwriters and publishers when their music is reproduced, like on CDs or streaming. Performance royalties, on the other hand, are earned when music is played publicly, such as on the radio or in concerts.

Can you give me examples of each type of royalty?

Sure! An example of mechanical royalties would be when a song is sold on a digital platform like iTunes. Performance royalties would be generated when that same song is played on a radio station or performed live.

How are these royalties collected?

Mechanical royalties are typically collected by music publishers or organizations like the Harry Fox Agency. Performance royalties are collected by performance rights organizations like ASCAP or BMI.

Why are these royalties important for artists?

These royalties provide essential income for artists and songwriters, ensuring they are compensated for their creative work and the use of their music.