The short version
- Mechanical royalties relate to reproducing or distributing a composition, subject to local law.
- Performance royalties arise when a composition is publicly performed or communicated.
- An interactive stream can generate both mechanical and performance publishing income.
What triggers a mechanical royalty?
Mechanical rights are generally connected to reproducing a musical work. Historically, that meant manufacturing records or CDs. Today it can also include downloads and certain forms of streaming, depending on the legal framework in the territory.
The calculation is not universally a fixed amount per stream. For example, U.S. interactive streaming mechanical royalties are determined through a formula that considers service revenue and other inputs. Rates and licensing structures differ across markets, so a single global per-stream figure is inherently approximate.
What triggers a performance royalty?
Performance rights can be engaged when music is played on radio or television, performed live, played in a public venue or communicated through an online service. Collective management organisations commonly license these uses and distribute royalties to the represented writers and publishers.
A public performance does not have to involve a musician standing on a stage. In copyright terms, broadcasts and many digital transmissions can also be treated as performances or communications to the public.
How one stream can involve both
When a listener chooses a track on an interactive streaming service, the use can involve reproduction and performance rights in the composition. This is why publishing income from streaming is not one simple payment. Separate shares may be licensed, reported and distributed through different organisations.
The recording also generates its own revenue on the master side. That money typically travels through the label or distributor and should not be confused with publishing royalties due for the song itself.
- Master revenue relates to the sound recording
- Mechanical income relates to reproduction of the composition
- Performance income relates to public performance or communication of the composition
Why the distinction matters
Registering with one organisation does not always cover every right or territory. The relevant path depends on where the writer is based, where the music is used, which rights an organisation represents and whether a publisher or administrator is involved.
When reviewing statements, separate the royalty type, source period, territory, work share and service. That makes it easier to identify missing categories and avoid comparing unlike payments.
Questions, answered
Frequently asked questions
Does Spotify pay mechanical and performance royalties?+
Interactive streams can generate both categories of publishing income. The licensing and payment route depends on territory and applicable agreements, while the master recording is accounted for separately.
Are mechanical royalties a fixed amount per stream?+
Not generally. Streaming calculations can depend on service revenue, subscriber numbers, territory, usage and regulatory or negotiated rates. Any universal per-stream figure should be treated as an estimate.
Are live performance royalties mechanical royalties?+
No. Royalties from eligible live performances are normally part of the performance-right system, although the rules and reporting requirements differ by society and country.
Primary sources