How do music royalties work in the UK?

If you're an artist or songwriter in the UK, leveraging royalties is critical to your success and your ability to earn a living. But how do music royalties work? In this article, we'll discuss what music royalties are, the different types of royalties, how to maximise your earnings, and important legal considerations to keep in mind.

Contents:

1. What are music royalties?
2. How do music royalties work in the UK?
3. The 4 main types of music royalties
4. How much can I earn from music royalties?
5. How to maximise your music royalties
6. The legal considerations of music royalties
7. FAQs
8. Conclusion

What are music royalties?

Music royalties are an important aspect of the music industry. They are payments made to the creator of a musical work for the right to use that work in different ways. This means that every time a song is played on the radio, streamed on a music platform or used in a film, TV show or advertisement, the creator of that song is entitled to receive a royalty payment.

The collection of these royalties is crucial to the financial success of musicians and songwriters. Without these payments, it would be difficult for them to earn a living from their creative work.

How do music royalties work in the UK?

In the UK, royalties are collected by organisations called collection societies, also known as PROs (Performing Rights Organisations) and CMOs (Collective Management Organisations), which act as intermediaries between the creators of music and those who want to use it.

Collection societies in the UK have reciprocal agreements with similar organisations around the world, allowing for the collection and distribution of royalties internationally. This ensures that UK-based creators and rights holders receive royalties for their works played or performed outside the country, and vice versa.

There are three main collection societies in the UK: PRS for Music, PPL, and MCPS. All three are interlinked and coordinate with one another to best serve their range of customers.

If you're a music artist in the UK and your music is starting to do well, you may want to look at registering for one of these societies. Most cost a one-off fee of around £100 to join, which will protect your music from copyright and ensure that you reap the rewards of your labour through music royalties.

PRS

One of the most well-known collection societies in the UK is PRS (or PRS for Music as they are now known). They collect and distribute royalties for the public performance and broadcast of musical compositions. This includes royalties from radio and TV broadcasts, live performances, music streaming services, and public venues such as restaurants, clubs, and shops.

PRS have a vast catalogue of music that they license to businesses and organisations, ensuring that the creators of that music are fairly compensated for its use.

Since 1997, PRS have had a formal alliance with MCPS, which they realigned in 2009 to become 'PRS for Music'. The two societies still run their operations separately and represent distinct groups whilst working together to support their customers. Similarly, in 2018, PRS and PPL formed an alliance under their 'PPL PRS Ltd.' venture.

PPL

PPL (Phonographic Performance Limited) is another prominent collection society in the UK. They collect and distribute royalties for the use of recorded music, specifically the rights of performers and record labels. This includes royalties from radio and TV airplay, music played in public places, digital services, and live performances.

PPL ensure that musicians and performers are paid for their work, regardless of whether they wrote the music or not.

MCPS

MCPS (Mechanical-Copyright Protection Society) is a collection society in the UK that collects royalties on behalf of music publishers. They specialise in the collection and distribution of mechanical royalties earned by songwriters, composers, and music publishers when their musical compositions are reproduced or mechanically reproduced, such as in the form of physical copies (CDs, vinyl records) or digital downloads.

They ensure that publishers are paid when their music is recorded or reproduced in different ways, such as when it is used online or in a TV show or film.

The 4 types of music royalties

Music royalties are an important source of income for musicians, composers, and songwriters. It's important to note that there are different types of royalties that you can earn from your music, according to what you're producing and how it's being used. There are four main types of music royalties:

1. Performance royalties: earned when your music is performed live, on TV, or on the radio. This means that every time your song is played on the radio or performed live, you earn a performance royalty. The amount of the royalty depends on a number of factors, such as the type of performance, the length of the performance, and the popularity of the song.
   
2. Mechanical royalties: earned from the reproduction of your music on physical formats or as MP3 downloads. This means that every time your song is sold as a CD, vinyl, or digital download, you earn a mechanical royalty. The amount of the royalty depends on the type of format and the number of copies sold.
   
3. Synchronisation royalties: earned when your music is used in a TV show, film, video game, or other visual media. This means that every time your song is used in a movie or your music video is broadcasted on TV, you earn a synchronisation royalty. The amount of the royalty depends on the type of media, the length of the use, and the popularity of the song.
   
4. Print royalties: earned when sheet music for your composition is sold. This means that every time your sheet music is sold, you earn a print royalty. The amount of the royalty depends on the price of the sheet music and the number of copies sold.

Royalties can be a complex and confusing topic, especially for new musicians. It is recommended that you consult with a music lawyer or accountant to help you navigate the world of music royalties and ensure that you are receiving the royalties that you are entitled to. If you need more help understanding the different ways that your music can be produced, check out our ultimate guide to audio formats.

How much can I earn from music royalties?

Earnings from music royalties can vary greatly, depending on the success of your music and how it's being used. For example, an artist with a hit song that's played on the radio frequently will earn more performance royalties than another artist with a less successful catalogue streaming on Spotify. However, it's possible to earn a decent income from royalties even with less-than-chart-topping music.

Your collection society will calculate and distribute the appropriate costs, but it's worth bearing in mind that as an artist, you're likely to see between 8% and 25% of your music's revenue, depending on how established you are as an artist.

In the UK, you'll earn more for songs played on top radio stations, such as BBC Radio 1 and Radio 2, where you can earn up to around £80 per play. Spotify pays on average £0.006 per stream, which may sound small but it can add up if your song gets popular.

How to maximise your music royalties

One way to boost your royalty earnings is to collaborate with other artists and producers. By working with others, you can create music that has a wider appeal and is more likely to be played on the radio or used in TV shows and movies. Additionally, collaborating with other artists can help you tap into their fan base, which can increase your exposure and your earnings.

It's also important to keep creating and releasing new music in order to generate a steady stream of royalties. The more music you have out there, the more opportunities you have to earn royalties from different sources. So, keep writing, recording, and releasing music that you're passionate about, and the royalties will follow. If you're looking to upgrade your kit, check out our list of the 12 best places to hire musical instruments and equipment in London.

If you're looking to maximise your music royalties, the following tips may help:

• Register your works: Make sure you register your works with one or more collection societies so that you can receive the royalties you're owed.
• Publish your music: If you own the rights to your music, publishing your music can lead to additional income streams, such as sync deals, licenses, and placements.
• Collaborate with other artists: Collaborating with other artists can open up new revenue streams through samples, remixes, and co-writing agreements.
• Create music for sync: Writing music specifically for placement in a TV show, film, or advertisement can lead to lucrative sync deals.
• Promote your music: By employing the right marketing strategies, you can boost your visibility, build a loyal fanbase, and increase your profits. Check out our marketing strategies for musicians.

The legal considerations of music royalties

When it comes to music royalties, there are many legal considerations to keep in mind. One of the most important things to consider is the ownership of the rights to a particular piece of music. This can be a complex issue, particularly if there are multiple parties involved in the music creation and production journey.

For example, if you're a songwriter, you may own the rights to the lyrics and melody of a song, while the producer may own the rights to the instrumental arrangement. In this case, both parties would be entitled to a share of the royalties generated by the song.

Another legal consideration when it comes to music royalties is the terms of your contract with a publisher or record label. These contracts can be complex and may impact how you receive and split royalties. For example, some contracts may require you to give up a percentage of your royalties in exchange for promotional support or other services.

It's also important to be aware of copyright laws when it comes to music royalties. Copyright laws protect the rights of creators and owners of original works, including music. If you're using someone else's music in your own work, you may need to obtain permission or pay royalties to the original creator.

Understanding the legal considerations of music royalties is crucial if you want to protect your rights and maximise your earnings as a musician. By working with a lawyer or legal expert who specialises in music law, you can ensure that you're fully informed and protected when it comes to your music royalties.

FAQs

What are music royalties?
Music royalties are payments made to songwriters, composers, performers, and copyright holders when their music is used, performed, or sold. These royalties compensate the creators for the use of their intellectual property.

What types of music royalties exist in the UK?
There are four main types of royalties:

• Mechanical royalties (for physical and digital reproduction)
• Performance royalties (for public performances, including streaming)
• Sync royalties (for music used in films, TV, and commercials)
• Print royalties (for sheet music sales)

How does streaming impact music royalties?
Streaming services like Spotify, Apple Music, and YouTube generate both performance and mechanical royalties. Royalties are calculated based on the number of streams and the revenue generated by the streaming platform, which is then distributed to the rights holders. For more info, see our tips for using music in YouTube videos.

How are royalties split between songwriters, performers, and producers?
Royalties are typically split based on the contractual agreements between the involved parties. Songwriters and composers generally receive mechanical and performance royalties, while performers and producers may receive performance royalties (through organisations like PPL) or session fees.

How can I register to receive music royalties in the UK?
To receive music royalties, you must register with the appropriate organisations. Songwriters, composers, and publishers register with PRS for Music and MCPS for performance and mechanical royalties, while performers and record labels register with PPL for performance royalties.

What happens if my music is played internationally?
If your music is played internationally, royalties are still collected. PRS for Music has agreements with collecting societies in other countries, which allow them to collect royalties on your behalf when your music is performed or broadcast abroad.

How does copyright affect my ability to earn music royalties?
Copyright ensures that the creators of a song or recording have exclusive rights to its use. As the copyright holder, you have the right to earn royalties when others use your music. Copyright typically lasts for 70 years after the creator’s death.

Conclusion

Music royalties are an essential part of succeeding within the music industry, as they ensure that creators of music are fairly compensated for their work. Without these payments, it would be difficult for musicians and songwriters to continue creating the music that we all love and enjoy.

Therefore, while it may seem daunting, understanding how music royalties work in the UK as well as the legal considerations that come with them is essential if you're looking to make a career in music. By educating yourself and seeking expert advice, you can take control of your music career and maximise your earnings, taking you one step closer to success.