Quick Definition
Performance royalties are payments owed to songwriters and publishers whenever a musical composition is performed publicly. "Public performance" includes radio airplay, live concerts, TV broadcasts, and background music in shops/restaurants, as well as digital streaming.
Performance Royalties Explained
Any time music is played in a public setting, the songwriter is owed money. This right is managed by Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC in the US, or PRS, SACEM, and GEMA in Europe. These organizations issue blanket licenses to venues and broadcasters, collect the fees, and distribute them to their members.
It is important to note that in the US, performance royalties are generally NOT paid to recording artists/labels for terrestrial radio play—only to songwriters. (Digital radio is an exception, paid via SoundExchange).
Why Performance Royalties Matter
They are the bedrock of a songwriter's income. A hit song on radio can generate significant recurring revenue for years. Live performance royalties also allow touring bands to earn extra income from their own setlists.
Examples
Your song plays on FM radio → PRO collects performance royalty. Your song plays in a coffee shop via a licensed service → PRO collects performance royalty. You play your own song at a venue → You submit a setlist to your PRO to claim the royalty.
How to Collect Performance Royalties
Join a PRO in your home territory (e.g., ASCAP or BMI in the USA, SOCAN in Canada). Register all your songs. If you are performing live, remember to submit your setlists.
Related Terms
See also: Mechanical Royalties, PRO (Performance Rights Organization), SoundExchange.
Track Your Airplay with Soundcharts
Your PRO statement might take months to arrive. Soundcharts shows you your radio airplay in real-time so you know what royalties to expect.