Mechanical vs Performance Royalties Explained for Independent Artists
Mechanical and performance royalties are two major income streams for songwriters. Learn the difference, how they work, and how independent artists can collect both.
If you’re releasing music on streaming platforms, royalties are how you get paid — but not all royalties are the same.
Two of the most important types are mechanical royalties and performance royalties.
Understanding the difference helps you:
Know where your income comes from
Avoid missing payments
Register your songs correctly
Build long-term revenue streams
Let’s break it down clearly and accurately.
What Are Mechanical Royalties?
Mechanical royalties are generated when a musical composition, meaning the lyrics and melody, is reproduced.
They apply when your song is:
Streamed on platforms like Spotify, Apple Music, Amazon Music, or JioSaavn
Downloaded on digital stores
Manufactured on CDs or vinyl
Originally, the term referred to physical reproduction, but today it also includes digital copies created during streaming.
Who Earns Mechanical Royalties?
Mechanical royalties belong to the songwriters and publishers. If you wrote your own music, you are entitled to them.
How Are They Paid?
Depending on the country, these royalties are paid through:
Publishing administrators
Mechanical rights societies
Collective management organizations
Streaming platforms usually license these rights through publishers or collective management organizations rather than paying songwriters directly.
What Are Performance Royalties?
Performance royalties are earned when a song is played publicly.
This includes:
Radio or TV broadcasts
Live concerts and festivals
Clubs, cafés, malls, or gyms
Cable and satellite television
Licensed public venues
Personal listening at home normally does not count as a public performance.
Who Earns Performance Royalties?
They go to:
Songwriters
Composers
Music publishers
Who Collects Them?
They are collected by performing rights organizations such as:
IPRS (India)
PRS for Music (UK)
ASCAP and BMI (USA)
SOCAN (Canada)
Mechanical vs Performance Royalties — Key Differences
Aspect | Mechanical Royalties | Performance Royalties |
Triggered when | Music is reproduced or streamed | Music is publicly performed |
Covers | The composition | The composition |
Paid to | Songwriters and publishers | Songwriters and publishers |
Collected by | Mechanical societies or publishers | Performing rights organizations |
Applies to live shows | No | Yes |
Applies to radio and TV | No | Yes |
What About Distributor Streaming Royalties?
When you distribute music through PlayGeet, you earn royalties from the sound recording side of your work, including:
Streaming payouts
Download sales
YouTube Content ID monetization
These are separate from songwriting royalties. Many independent artists collect recording royalties via a distributor and publishing royalties via PROs or administrators.
Both together maximize income.
Why Registering Your Songs Matters
Without registering your compositions, mechanical and performance royalties may:
Remain unclaimed
Be delayed
Never reach you
Registration ensures:
Correct songwriter credits
Accurate splits
Global tracking
It is one of the smartest moves an artist can make early on.
PlayGeet helps artists monetize the recording side of their music through global digital distribution and Content ID, while artists keep ownership of their rights.
Final Thoughts
Mechanical royalties pay you when your song is reproduced.
Performance royalties pay you when your song is publicly played.
Understanding both puts you in control of your music business and ensures you collect what your work earns.