Splitting music royalties: a plain guide for independent artists
Every song earns money in two ways: from the recording and from the composition. Here is how the money flows and how to make sure you get it.
Music royalties can feel complicated, but they start from one simple idea. Every released song has two copyrights, and each one earns money in its own way.
Two copyrights in every song
- **The recording (the master).** The actual audio file. It is usually owned by the label, or by the artist if they release independently.
- **The composition.** The melody and lyrics, owned by the songwriters and their publishers.
When a song is streamed, played on the radio or used in a film, both can earn money.
Where recording money comes from
Streaming services pay the master owner, usually through a distributor or label. Performers can also earn money when recordings are played in public or on radio, collected by organisations for performers and producers. In Sweden that is SAMI for performers.
Where songwriting money comes from
Songwriters earn performance and mechanical royalties when their songs are streamed, broadcast or played live. These are collected by collecting societies. In Sweden that is STIM, and similar societies exist in every country and work with each other.
A publisher can help register songs worldwide and collect money you might otherwise miss.
Agree on splits early
Splits decide who gets what share of a song. Agree on them in writing when the song is written, not when it starts earning money. A short split sheet with names, roles and percentages is enough, and it prevents most disputes.
Register everything
Money you do not register for is money you may never see. For every release:
- Register the composition with your collecting society, with correct splits.
- Make sure the recording has an ISRC code and correct performer credits.
- Keep your metadata consistent everywhere: song titles, names and spellings.
Get advice on contracts
Royalty terms in label, publishing and management deals vary a lot. Always have a music lawyer review a contract before you sign it.
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