1. Public Performance & Mechanical & Sync Licensing

As a songwriter, your music and specifically, your composition, has the potential to generate income in multiple ways. Registering and publishing your compositions, ensures that you receive royalties for the use of your compositions.

Publishing royalties fall into three primary categories: mechanical royalties, public performance royalties, and synchronization (sync) licensing. Let’s break down these revenue streams and how they work.

1. Mechanical Royalties

Mechanical royalties are earned whenever your composition is reproduced in any format. This includes physical copies (like CDs and vinyl), digital downloads, and even streams on platforms such as Spotify, Apple Music, or YouTube Music. Essentially, any time your music is copied or sold digitally, mechanical royalties come into play.

For example, if a listener streams your composition on a music platform, the service pays a mechanical royalty to the rights holder/ songwriter or their Publisher.

2. Public Performance Royalties

Public performance royalties are generated when your composition is played in public settings or a recording of it is broadcasted to an audience. This includes:

• Radio airplay (both terrestrial and internet radio)
• Television broadcasts
• Live performances (concerts, festivals, or even in bars and restaurants)
• Music played in public spaces, such as gyms, malls, and cafes

These royalties are managed by performing rights organizations (PROs) like ASCAP in the US, IMRO in Ireland, or PRS in the UK. These organizations collect royalties from businesses and broadcasters that use your music and distribute them to songwriters and publishers

Public Performance: Writer’s Share vs Publisher’s Share

Songwriters work with a publisher to collect 2 types of royalties generated from the exploitation of the composition, the Public Performance & Mechanical royalties, which we collectively call Publishing Royalties.

Whenever a composition is created, there are two equal shares of Public Performance royalties attached to it, meaning the royalties are split into two parts: the writer’s share and the publisher’s share, each worth 50% of the composition. If you’re credited as a writer on a composition, whatever you do, you will always own the writer’s share of your copyright, even if you’ve signed away your publisher’s share. The ownership of the writer’s share can’t be assigned to a publisher — it’s paid directly to the songwriter by PROs. On the other hand, the publisher’s share may only be collected by a publishing entity.

So a publisher like Tiny House Music may only collect the “publisher’s share” of your royalties, which is why it’s crucial that every songwriter is registered with a PRO to receive the “writer’s share” of royalties, which again, a publisher cannot legally claim and collect on your behalf.

3. Sync Licenses

Sync licensing royalties are earned when your composition is used in combination with visual media. This includes placements in:

• Movies
• Television shows
• Commercials
• Video games
• Online user-content like YouTube videos or TikTok

Sync licensing differs from mechanical and public performance royalties because it involves a one-time licensing fee negotiated between the publisher and the entity using the composition*. The fee’s amount depends on factors such as the prominence of the placement, the duration of the usage, and the type of media.

*For online user-generated content platforms, micro-sync licensing does not require a direct license negotiation but falls under “blanket licensing” like with public performance and mechanical rights.

Sync Licensing Online: YouTube and Micro-Sync Royalties

YouTube and other online platforms have introduced a newer form of publishing income known as micro-sync royalties. These royalties are generated when your music is used in user-generated content, such as YouTube videos, TikTok clips, or Instagram Reels. Platforms like YouTube pay royalties for both the synchronization and public performance aspects of your music’s use. Publishers and content ID systems help track these uses, ensuring you are compensated for every play or view your music receives in this context

Conclusion: The Three Pillars of Publishing Income

As a songwriter, these three types of royalties form the foundation of your income. Mechanical royalties ensure you’re paid for reproductions of your music, public performance royalties compensate you for your music’s use in public and broadcast settings, and sync licensing provides income from visual media placements.

Your publisher plays a critical role in tracking, negotiating, and collecting these royalties on your behalf, maximizing your earnings and allowing you to focus on creating music. Understanding these income streams empowers you to make informed decisions about your music career and ensure your creative efforts are fairly rewarded.