What Are Performance Royalties?

Performance royalties are payments made to songwriters, composers, and publishers for the public performance of their music. This includes the use of music in live performances, on the radio, in TV shows and movies, and on digital streaming platforms.

In the United States, performance royalties are collected by performing rights organizations (PROs) such as ASCAP, BMI, and SESAC. These organizations negotiate licenses with businesses that use music publicly, such as radio stations, TV networks, and venues that host live music performances. The PROs then distribute the collected royalties to their members based on the frequency and prominence of their music's use.

Performance royalties can be an important source of income for songwriters, composers, and publishers, especially for those whose music receives frequent airplay or is used in popular TV shows, movies, or commercials. Some songwriters may also receive performance royalties from foreign territories where their music is played.

It's important to note that performance royalties are separate from mechanical royalties, which are earned when music is reproduced on physical or digital formats, such as CDs, vinyl, or digital downloads.