Mechanical vs Performance Royalties: What's the Difference?
Two types of publishing royalties that most independent artists leave uncollected. Here's how they differ and how to claim both.
Mechanical Royalties Explained
Mechanical royalties originated in the era of player pianos — the "mechanical" reproduction of music. Today, they apply to any reproduction of a musical composition:
- On-demand streaming (Spotify, Apple Music, etc.)
- Permanent downloads (iTunes, Amazon)
- Physical copies (CDs, vinyl)
- Interactive streaming (where the user chooses the song)
How Much Are Mechanical Royalties?
- US streaming rate: ~$0.0009 per stream (set by the Copyright Royalty Board)
- Physical/download under 5 min: $0.12 per copy
- Physical/download over 5 min: $0.0231 per minute
At $0.0009/stream, 1 million Spotify streams generates about $900 in mechanical royalties alone — money most indie artists never see because they don't have a publishing administrator.
Who Collects Mechanical Royalties?
- The Mechanical Licensing Collective (MLC): For US streaming mechanicals
- Harry Fox Agency (HFA): For physical/download mechanicals
- Publishing administrators: OneSync, Songtrust, CD Baby Pro, etc.
Performance Royalties Explained
Performance royalties are owed when your song is performed publicly:
- Radio (terrestrial, satellite, internet)
- Live performances at venues
- TV broadcasts
- Restaurants, bars, and retail stores playing music
- Streaming services (yes, streaming generates BOTH mechanical AND performance royalties)
How Much Are Performance Royalties?
Performance royalty rates vary widely. Major radio play can generate thousands per quarter. A song in regular rotation on a top-40 station might earn $2,000–$5,000/quarter from performance royalties alone.
Who Collects Performance Royalties?
- ASCAP, BMI, or SESAC (US Performance Rights Organizations)
- PRS (UK), SOCAN (Canada), GEMA (Germany), etc.
- You must register directly with ONE PRO — they don't overlap
Side-by-Side Comparison
| Feature | Mechanical Royalties | Performance Royalties |
|---|---|---|
| Triggered by | Reproduction (stream, download, copy) | Public performance (radio, TV, venues) |
| Streaming? | Yes | Yes |
| Radio? | No (no reproduction) | Yes |
| Downloads? | Yes | No |
| Collected by | MLC, HFA, publishing admin | PROs (ASCAP, BMI, SESAC) |
| Registration | Through publishing admin | Direct PRO membership |
| OneSync handles? | Yes (publishing admin) | Partial (international; register with a PRO for domestic) |
How to Collect Both
- Sign up with OneSync — includes publishing administration that collects your mechanical royalties worldwide at 0% commission
- Register with a PRO — join ASCAP, BMI, or SESAC (free or minimal cost) to collect US performance royalties
- Register with SoundExchange — for digital performance royalties (neighboring rights) on satellite radio, Pandora, etc.
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