Difference between Mechanical Royalties and Streaming Royalties

Mechanical royalties and Streaming Royalties are two distinct types of royalties that artists and songwriters earn from their music. The main difference lies in how they are generated and collected. Mechanical Royalties are earned from the reproduction and distribution of a song. When a song is purchased as a physical copy or downloaded, mechanical royalties are generated. These royalties are paid to the songwriter or publisher by the record label or distributor. They are typically calculated based on a statutory rate per unit sold.

On the other hand, streaming royalties are generated from the digital streaming of music on platforms such as Spotify, Apple Music, or YouTube. Unlike mechanical royalties, streaming royalties are paid to both the songwriter and the recording artist. The amount earned per stream is usually much lower than the revenue generated from physical sales.

While mechanical royalties are more tangible and directly tied to sales, streaming royalties have become increasingly important in today's digital landscape. As streaming continues to dominate the music industry, understanding the differences between these two types of royalties is crucial for artists and songwriters to effectively monetize their work.

If you need help collecting both your performance and mechanical royalties we can get you started. Click here to start the registration process today so you can earn more from your music.