What are Royalties?
Music royalties are paid to artists when their music is used by businesses or played live by themselves or others. These royalties come from the licensing of work and are paid to the rights holders of the music. Rights holders include recording artists, song writers, publishers and producers. Musicians can keep track of their own royalties or they can register with organisations such as APRA AMCOS to handle it for them.
Where do Royalties come from?
As mentioned, royalties can come from businesses using music or live performances of the artist or by others. Almost all businesses and organisations use music whether it is back ground music in a café, on radio, in TV ads or on a streaming service. These are only a few examples of ways music is used that generate royalties. The other way musicians can acquire royalties is through live performance. If registered with APRA AMCOS, artists can submit performance reports that outline when, where and what songs were performed to then receive a royalty payment. Artists can also receive royalties when other musicians perform their original music.
When and How to receive royalty payments?
Performing artists can receive royalties after they have performed original music in public. After one performance artists are eligible to submit performance reports and be paid royalties. This does not require them to have released music on a streaming service. For example, a band could perform original music for a month in the lead up to releasing it on Spotify and all of those performances qualify for royalties.
The easiest way to receive royalty payments is by registering with APRA AMCOS. They handle the administration and tracking of what royalties artists are owed. To be paid these royalties, performers need an Australian Business Number (ABN).
For further information about royalties visit the APRA AMCOS website: APRA AMCOS