How To Get Paid With Streaming Of Your Music

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How To Get Paid With Streaming Of Your Music

Post by PT »

Streaming generates a lot of revenue in the music business, but are you benefiting from having your music streamed? Should you select a music distributor to submit your music or should you take the time and do all the submission work yourself?

Distribution companies have 2 ways of being paid: take a portion of your streaming royalties or have flat fees. The distribution companies may submit your music to Spotify, Pandora, Tidal, etc., may promote your music, may distribute your CD's, etc. But, you can only work with 1 distributor for each track, so that's the problem when deciding which distributor to work with. They have exclusivity as you will have to sign a contract with them. So, you might want to start off slow, see which distributor works out best for you and then decide on your approach.

There is another catch as some streaming services, for instance Spotify, will not work with you directly and you will have to select a distribution company to be listed on Spotify. So, be sure to find out in advance which streaming services a distribution company works with.

Which streaming services are best for your music? If you write a specific genre, does every streaming service have a large listener base with your type of music? Are there better streaming services for your music to help you reach a listener audience?

Be sure to familiarize yourself with how each streaming service figures royalties as each streaming service is different. Based on the type of streaming services that a company offers impacts the amount of royalties.

Now, how do I collect royalties? There are 3 type of royalties: Mechanical, Performance and Synchronization.

Mechanical: Each time a listener downloads a track, album, ep or purchases a CD.
Performance: Each time your music is streamed in a business or in a public venue.
Synchronization: When a visual (video, movie, etc.) adds your music.

Your music distributor will collect all your Mechanical royalties and pay them directly to you.
Synchronization royalties are a lump sum payment.
Performance royalties are the toughest royalties to collect and you should register your music with Performance Rights Organizations (BMI, ASCAP, etc.).

In the end, you still own all your music based on what you decide to do.
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