Royalties 101: Mechanical Performance Sync with Flows

If money were a song then royalties are the sheet music that tells people where the cash should go. You wrote a hook that makes a stranger cry in a movie theater. You recorded a vocal that made someone pause a commercial carrier so they could Shazam it. Now you need to know who pays what, who gets paid when, and how to collect without turning into a bureaucratic hermit. This guide explains mechanical royalties, performance royalties, and sync money with clear payment flows, practical examples, and the exact registration moves you should not ignore.

Everything below is written for millennial and Gen Z musicians who want to stop guessing and start getting paid. Expect real life scenarios, bits of truth, and language you can text your collaborator. You will learn the difference between the song and the recording, where money comes from, which organizations collect which checks, and what to do the instant your song starts to sync with pixels and people watching screens.

Quick roadmap

• What each royalty means in plain English
• How money flows for mechanical royalties
• How money flows for performance royalties
• How sync licensing works and who negotiates what
• Practical registration checklist so you can actually get paid
• Real scenarios with sample splits and payment paths
• Common mistakes and how to avoid them

Core vocabulary explained like you are texting your collaborator

If you do not know these words yet then bookmark this paragraph and read it twice. Use them correctly and you will stop losing money to mysterious accountants and bad metadata.

• Composition. The song itself. The melody, the lyrics, the chord progression. Think sheet music. This belongs to writers and publishers.
• Sound recording. The recorded performance of the composition. This belongs to the artist or the label.
• Mechanical royalty. Money paid to the owner of the composition when a copy of the song is made or a download is sold or a stream triggers a mechanical right. Historically this was physical copies and downloads. Now it includes stream mechanicals in many territories. Mechanical is paid to the publisher and then to the writers.
• Performance royalty. Money paid when a composition is publicly performed. Public performance includes radio, live shows, TV broadcasts, and in many places interactive streams count too. These are collected by performing rights organizations or PROs. PROs pay songwriters and publishers for performances of compositions.
• Sync license. A synchronization license lets someone put your composition with moving images. If they use your master recording they also need a master use license from the sound recording owner. Sync fees are negotiated up front and can include backend royalties.
• PRO. Performing Rights Organization. In the US this means ASCAP, BMI, and SESAC. They collect performance royalties for compositions. International equivalents include PRS for Music in the UK and GEMA in Germany.
• MLC. The Mechanical Licensing Collective in the US. This organization administers digital mechanical royalties for interactive streaming and downloads under the Music Modernization Act. It collects and distributes to publishers and songwriters.
• SoundExchange. In the US this non profit collects certain digital performance royalties for sound recordings from non interactive digital services and distributes them to recording artists and labels.
• ISRC. International Standard Recording Code. A unique identifier for a specific recording.
• ISWC. International Standard Musical Work Code. A unique identifier for a composition.

Big picture split

When a song streams, two separate rights are in play. The composition right and the sound recording right. Each right generates different royalty types and goes to different people. If you wrote the song and recorded the track yourself then you might be on both sides of that split. This is excellent news. It means you can collect twice.

Mechanical royalty flow

Mechanical money is the payment for someone making a copy of your composition. In 2025 mechanicals show up on downloads and also as a component of interactive streaming revenue. The collection path is different by country, but the flow concept is universal. Below is a simplified mechanical flow for the US interactive streaming case and also for downloads and physical copies.

Interactive streaming mechanical flow in the US

1. Listener presses play on a streaming platform such as Spotify or Apple Music.
2. The streaming service calculates royalties based on revenue and usage and reserves a mechanical payment portion for songwriters and publishers.
3. The streaming service reports usage data to the Mechanical Licensing Collective known as the MLC. The DSP pays a mechanical royalty pool which is administered by the MLC.
4. The MLC matches usage to musical works using metadata and assigns payment to the publisher. If a song is self published the writer can register as publisher with the MLC.
5. The publisher receives the mechanical payment and then pays the songwriter according to the agreed writer split. If the songwriter is also the publisher then the same person receives both halves.

Quick note. Historically Harry Fox Agency and other agencies handled digital mechanicals. The MLC now centralizes much of the US interactive mechanical process under the Music Modernization Act implemented in recent years. Some international markets still use local collection societies and their own rules.

Downloads and physical copies mechanical flow

1. Someone buys a download or a physical CD from a retailer or DSP.
2. The retailer or distributor withholds mechanical royalties or pays the manufacturer who then reports to a mechanical rights agent.
3. The mechanical rights agent or publisher receives payment and distributes to writers and any copublishers based on the registered splits.

In the United States there is a statutory mechanical rate for physical and permanent downloads. For most songs the statutory rate is nine point one cents per copy for songs up to five minutes. For songs longer than five minutes the rate is calculated per minute or fraction thereof. This rate is a floor for compulsory licenses. Interactive streaming mechanicals do not pay at that flat rate. They come from a negotiated pool and vary by platform and territory.

Performance royalty flow

Performance royalties pay for public use of the composition. This includes radio, television, live performance, and in some cases interactive streams. Performance royalties are handled by PROs. Here is the general flow.

1. A broadcaster, venue, or digital service plays your song.
2. The broadcaster reports playlists to a PRO or the PRO monitors the broadcast. For venues there may be blanket licenses that cover all music played in the space.
3. The broadcaster or venue pays license fees to the PRO. Digital services often pay performance fees as part of their licensing deals and report public performances.
4. The PRO distributes the collected royalties to publishers and writers according to the registered splits. If you registered direct as both writer and publisher you receive both shares after the PROs administration fees and foreign society reciprocal charges where applicable.

In the US interactive streaming landscape most streaming platforms pay both a composition performance and a mechanical component. The PRO handles the performance component for compositions. For the sound recording there is no performance right for terrestrial radio in the US but there is a digital performance right handled by SoundExchange for certain digital uses.

Sound recording performance money

Sound recording performance royalties are separate. In many countries broadcasters pay labels and artists when a recorded track is played on radio. The US does something unusual. Terrestrial radio does not pay labels or recording artists for over the air plays. Instead there is a digital performance right for sound recordings that covers non interactive internet radio and satellite radio. SoundExchange collects and distributes that money to recording artists and labels. Make sure you register your artist account with SoundExchange if you want to collect that slice.

Sync licensing flow

Sync is where the real fun and negotiation happen. Someone wants to use your song with moving images. They come to your publisher and ask to license the composition. If they want your actual recorded performance they also need permission from the recording owner, often the label or the artist if you own your masters.

Basic sync flow

1. Music supervisor or ad agency identifies the composition and the recording they want to use in visual media.
2. The music supervisor contacts the publisher to license synchronization rights for the composition. The publisher negotiates a sync fee and usage terms. Payment is typically upfront but can include backend participation.
3. If the recording is not a newly recorded custom performance the music supervisor also negotiates a master use license with the owner of the sound recording. This is often a separate fee.
4. When licenses are signed the publisher and the master owner get their sync and master fees. Publishers will then pay writers according to splits. Master owners will pay performers and featured artists according to their agreements.
5. If the visual media airs publicly then performance royalties for the composition will later be reported to and collected by PROs. The recording owner may also earn performance money via digital performance societies in certain territories.

Sync fees can vary wildly. A local independent film might pay a few hundred to a few thousand. A national TV ad can pay tens of thousands to hundreds of thousands. Films can pay anywhere from a low five figure buyout to mid six figures for big campaigns. The price depends on budget, territory, duration of use, prominence, exclusivity, and whether the artist's master is required.

Who collects what in a sync

• Publisher collects sync fees for the composition and then pays the writer split.
• Master owner collects the master license fee and splits with the artist according to the master agreement.
• After broadcast the PROs will collect performance royalties for the composition and distribute to publishers and writers.
• Sound recording performance societies or digital performance organizations may collect additional payments for the recording depending on territory and type of broadcast.

Registration checklist so you actually get paid

Most lost royalties are lost because of sloppy registration. Metadata is the oxygen of modern royalty collection. Treat it like your job.

1. Register with a PRO. Pick ASCAP, BMI, or SESAC in the US. Register each song with accurate writer splits and contributor names. If you have co writers list the exact percentage share for each person. Do not leave it to guesswork.
2. Register with the Mechanical Licensing Collective in the US if you are a publisher or self publisher. Upload your song splits and metadata. The MLC handles interactive mechanicals and you need your work matched to collect.
3. Register with SoundExchange if you are a recording artist or label and you want digital performance money for non interactive plays. Claim your recordings and link your payouts.
4. Get ISRC codes for your recordings. These live with the recording metadata and help DSPs and collection societies match plays to recordings.
5. Get ISWC codes for your compositions. These help global societies match works.
6. Use a digital distributor that supports good metadata delivery. Upload correct songwriter and publisher data when you distribute. Many disputes start at the distributor stage.
7. Keep a master split memo signed by all participants. If your co writer splits are informal get them in writing. You would be surprised how many writers fight about 5 percent decades later because someone forgot to document a split.
8. Monitor statements from PROs, the MLC, and SoundExchange monthly. If you see unidentified income open a ticket. If a song is miscredited fix it immediately.

Example flows with real life scenarios

Scenario 1. Indie songwriter releases a track that gets playlisted on Spotify

Characters

• Writer A wrote and recorded the song and owns both the composition and the master. Writer A used DistroKid to distribute.

Flow

1. Listener streams the song on Spotify.
2. Spotify allocates revenue. A portion is for the composition mechanical and performance pieces and another portion is for the recording owners.
3. Spotify reports the composition usage to the MLC and the performance usage to the relevant PROs. Spotify pays the recording share to DistroKid who forwards the owner share to Writer A after DistroKid fees and distributor's payout schedule.
4. The MLC credits the mechanical portion to Writer A as publisher if registered. The PRO credits the performance portion to Writer A as writer and publisher if registered.
5. Writer A receives mechanical and performance payments separately and the recording royalty from the distributor. That adds up to multiple income streams from the same play.

Scenario 2. A TV show wants to use the recorded song in a montage

Characters

• Writer B co wrote the song with Producer C. Writer B is signed to a small publisher. Producer C owns the master through their indie label.

Flow

1. The music supervisor requests sync for the composition from the publisher. The publisher negotiates a sync fee with the show. Terms include territory, duration, and exclusivity.
2. The show also requests a master use license from Producer C. The label negotiates the master fee.
3. The show pays the sync fee to the publisher and pays the master fee to the label. The publisher distributes the writer share to Writer B and pays Producer C nothing for the master because that comes from the master license.
4. When the episode airs the PROs log the performance of the composition and pay performance royalties later to the publisher and writers based on broadcast reporting rules. Sound recording digital performance societies may also collect payments for certain broadcasts depending on territory.

Tip. If you are in both camps and own the master and the composition you can negotiate both fees. That doubles your negotiating power. Do not lowball either side because very often sync fees are the biggest single checks a writer or artist will receive outside touring.

Splits and paperwork

Everything revolves around splits. If you and a collaborator do not sign a split agreement you are setting yourself up for a theatrical fight that will always end with lawyers. Get a split memo. It can be a single page that lists percentages and roles. Sign it and timestamp it. Upload it where you register songs with your PRO and the MLC. If you do not want to share publishing rights you can set up a separate publishing entity for your share. That is normal. Many pros and regs will call that the publisher share and writer share.

Example split memo

• Song title
• ISWC if available
• Writer A 50 percent writer share 50 percent publisher share
• Writer B 50 percent writer share 0 percent publisher share publisher share owned by Writer B Publishing LLC
• Signed by both writers with date

Common gotchas and how to avoid them

Bad metadata

If your song is not linked to the correct writer or publisher the payments get stuck in unidentified income. Fix this by maintaining clean metadata in your distributor, the MLC, and your PRO. Use consistent artist names and spelling. Keep ISRC and ISWC codes accurate.

Unregistered splits

If Writer A registers the song with PRO X but Writer B does not then Writer B may not receive their share. Always make sure every writer is registered with a PRO and that the split is matched across all systems including publisher registration at the MLC.

Assuming streaming covers everything

Streaming money is messy. Some services pay mechanicals and performance differently. Non interactive radio and playlists may be covered by different societies. That is why multi registry registration is essential. Do not rely on a distributor to fix every mistake for you.

Signing away publishing without understanding

Many new writers sign deals that bundle their publishing and give the publisher both writer and publisher shares for many years. That reduces what you see on every mechanical and performance check. Know what you sign and negotiate splits and reversion terms if possible.

How to audit your income when something looks wrong

1. Get the track usage data from the DSP or request reports from your distributor.
2. Cross reference the ISRC and ISWC codes. Make sure the song title and songwriter names match the registered metadata at your PRO and the MLC.
3. If revenue is reported as unidentified open a dispute at the MLC or PRO. Provide proof of ownership like the split memo, recording files with ISRC, and registration screenshots.
4. If you suspect incorrect splits at a PRO you may need to submit documentation proving the agreed splits. PROs can freeze distributions until you resolve the dispute so move fast.

Practical timeline when you get a sync placement

• Pre clearance. Music supervisor asks for the composition and the recording. Publisher and master owner negotiate terms.
• Agreement. Sync license and master use license signed. Show pays sync and master fees per contract terms. The licenses detail usage, territory, and duration.
• Airing. The show airs. The PRO logs the performance. The recording may generate additional non interactive recording royalties via societies like SoundExchange depending on territory.
• Post airing. PROs distribute performance money on their payout schedule. Sync and master fees are distributed immediately according to contractual terms and pay schedules.

How much should you expect for sync fees

There is no universal price. Expect these ballpark ranges. Remember that dramatic exceptions happen every day.

• Low budget web series or indie film: a few hundred to a few thousand dollars.
• National TV placement or prime time network show: low five figures to mid five figures depending on prominence and exclusivity.
• National TV ad campaign: tens of thousands to hundreds of thousands. Big brand ads and exclusives can climb much higher.
• Film soundtrack inclusion: can vary. Placement fees plus potential backend participation and soundtrack mechanical income if the soundtrack sells.

When to hire help

If you are negotiating a sync that might hit six figures or that asks for longterm exclusivity hire a lawyer or a reputable sync agent. Cheap advice on a big deal can cost you ten times the fee you would have paid for counsel. For daily streaming checks and small placements you can handle it alone. Make sure you document everything and do not sign away publishing rights without fully understanding the impact.

Real life micro scenarios you can use today

Micro scenario 1. You wrote a jingle and want to sell it to a small brand

Set your price based on the brand reach. If the brand is local and only uses the jingle in a single store front then a license in the low hundreds is reasonable. If they want a national ad buy then ask for a national rate and consider an upfront fee plus a revenue share. Always require a written license. If they insist on no master then offer an instrumental only and keep the recording rights for future use.

Micro scenario 2. Your song goes viral on TikTok and a brand DM s you for a partnership

TikTok virality can lead to sync opportunities. If a brand DMs you ask for a formal request that covers usage, duration, territories, and whether they want exclusive rights. If they want exclusive rights do not grant them without compensation reflective of the reach. If the brand only wants a short campaign consider a license for a fixed term like six months and ask for a buyout plus credit so future placements remain possible.

Micro scenario 3. You have a co writer who was not registered with the PRO

Get them registered immediately and register the song split with all systems. The PROs will often back pay if evidence shows the co writer contributed and the split memo proves it. Do not wait. The longer you delay the more money sits as unidentified income.

Checklist you can copy and paste right now

• Register each song with a PRO and specify exact writer splits.
• Register each song with the MLC in the US and upload accurate split and publisher data.
• Claim your recordings at SoundExchange if you are a recording artist or label in the US.
• Assign ISRCs to each release and ensure these travel with your distributor.
• Create a signed split memo for every collaboration and store it in a cloud drive with timestamps.
• Keep a master list of all works with ISWC, ISRC, writer splits, publisher details, release date, and distributor.
• Check statements monthly and fix miscredits on the first day you see them.

FAQ

What is the difference between mechanical and performance royalties

Mechanical royalties pay for the reproduction of the composition such as downloads and the mechanical component of streams. Performance royalties pay when the composition is publicly performed such as on radio, at concerts, or on TV. Both are paid to writers and publishers but are collected by different organizations and follow different reporting rules.

Do I need to register with multiple organizations to collect all royalties

Yes. To maximize collection you should register with a PRO for performance royalties, with the MLC for interactive mechanicals in the US, and with SoundExchange if you are a recording artist who wants non interactive digital performance money. International collection may require registration with local societies. The metadata must match across all systems.

Who do I talk to when a brand wants to use my song in an ad

If you own both the composition and the master you can negotiate both the sync fee and the master use fee. If you are signed to a publisher or a label contact them immediately. If you are independent negotiate terms and get a written license that includes territory, duration, exclusivity, and payment terms. Hire counsel for big offers.

How do streaming royalties break down between writers and performers

Streaming revenue is split into many parts. There is a recording owner payout to the label and artists if applicable and a composition payout that includes mechanical and performance components. The composition portion is split between writers and publishers according to registered splits. The exact percentages vary by service and by territory because platforms negotiate separate deals for recording and publishing usage.

What if my collaborator refuses to sign a split memo

Do not publish or release under unclear ownership. Either negotiate or decide not to release the work until splits are documented. If you release and later need to fix splits you will make collection and distribution messy and potentially lose revenue. Protect yourself early with clear written agreements.

Action plan: what to do in the next 30 days

1. Pull your discography and make a list of each song with ISRC, co writers, and publisher information.
2. Register or confirm registration with your PRO and the MLC and upload any missing split memos.
3. Claim your recordings at SoundExchange if you have recordings eligible for digital performance payments.
4. Audit your distributor metadata and correct any mismatched writer names or missing ISRCs.
5. Save a template split memo and use it for every new collaboration. No exceptions.

Get Contact Details of Music Industry Gatekeepers

Looking for an A&R, Manager or Record Label to skyrocket your music career?

Don’t wait to be discovered, take full control of your music career. Get access to the contact details of the gatekeepers of the music industry. We're talking email addresses, contact numbers, social media...

Packed with contact details for over 3,000 of the top Music Managers, A&Rs, Booking Agents & Record Label Executives.

Get exclusive access today, take control of your music journey and skyrocket your music career.

Unlock Instant Access