Music Royalties Guide UK: Royalties & Rights for Artists 2025
Updated for 2025 by Ron Pye (BSc, BA, MA, CEO, IQ Artist Management)
One of the most complex and widely misunderstood areas of the music industry is music publishing, its associated royalty structures and, how you get paid as an artist through this revenue stream. Here in this 2-part discussion, we take you through every part of music royalties and explain how they are earned and how you, most importantly, get paid. At IQ Management, we offer a plethora of services to our artists and we cannot stress highly enough that music royalties are one of the most important areas of any artist’s career.
IQ Management has been involved in the music industry for over 30 years. In that time, we have seen the landscape of how music earns money for artists change almost immeasurably. Digital streaming services have become integrated into every facet of music and it is now more complex than ever to understand what is earned and who it is paid to, and by which organisation. We have put this guide together to explain how you earn music royalties from multiple sources including, Spotify, YouTube, films, games, and live performances. Not only that but also the percentages that are fair and reasonable, so you can pay royalties in the correct amounts.
The landscape continues to evolve rapidly. While 2024 saw record-breaking royalty distributions, artists face ongoing challenges, including the impact of AI on creative rights, increasing competition from global repertoire, and the continued effects of Brexit on touring and merchandise sales. Understanding your royalty entitlements has never been more crucial for maximising revenue in this dynamic environment.
In part one, we will take a look at copyright, the different types of music royalties, how they are earned, and the different organisations that collect and distribute them.
We hope these in-depth guides help you in understanding music royalties explained, the more complex areas of the music industry, and help you in choosing a reputable company to act on your behalf.
The UK Music Industry in 2024: Record Growth
The UK music industry demonstrated remarkable resilience and growth in recent years. According to the latest UK Music “This Is Music 2024” report, the industry contributed £7.6 billion in gross value added (GVA) to the UK economy in 2023. This represents a 13% increase from £6.7 billion in 2022. Export revenues reached £4.6 billion (up 15%), while employment grew to 216,000 people (up 3%). These figures underscore the increasing importance of music royalties as a revenue stream for UK artists operating in a thriving but competitive market. UK Music
Music Copyright
Sound Recording Artist Copyright
When we talk about sound recording copyright, we’re referring to the legal protection that gives creators control over how their recordings are used. This type of intellectual property right is exclusive, meaning the owner has the sole right to reproduce, distribute, and publicly perform their recorded sound. In most countries, the copyright is held by the person or company that owns the master recording of the sound, giving them exclusive rights over their creation. They can even create derivative works like remixes and sample-based music, and license others to use their recordings for a fee.
However, it’s important to understand that sound recording copyright is separate from the copyright of the underlying musical composition. While the composer may own the copyright to the musical work, the person or company that owns the sound recording of the performance also has a separate copyright on that recording, complicating the music rights landscape.
The length of time that sound recording copyright lasts varies depending on the country, typically ranging from several decades to a century, impacting how music rights are managed. In the United Kingdom, the duration of copyright for sound recordings is legally established to be 70 years from the initial date of publication. Or, 50 years from the creation date, depending on which event occurs first.
Songwriting Copyright
Songwriting copyright is the legal protection that grants creators of musical compositions exclusive control over the use of their works. This intellectual property right enables the copyright owner to have exclusive rights to publicly perform, reproduce, distribute, and create derivative works (remixes, etc) based on their original composition.
In most countries, the person (or company) that writes the lyrics and music of a song is considered the author or creator of the composition and holds the copyright, thus securing their music rights. As the owner, they have complete control over the use of their work, including the right to make and distribute copies of sheet music, lyrics, or audio recordings, thereby managing their music rights effectively. This also extends to licensing the works to others to use their composition, for an agreed fee.
It’s important to distinguish songwriting copyright from the copyright of the sound recording of the song. The sound recording is owned by the person or company that produces the recorded performance of the composition. Therefore, the songwriter and the recording owner have separate copyrights, and each party must be granted permission to use the other’s work.
The duration of songwriting copyright varies from country to country. However, typically it lasts for the life of the author plus a set number of years after their death.
How do I copyright my music?
In the United Kingdom, you automatically obtain a copyright for your original music composition as soon as you create it. This will extend to most countries around the world. You can check how UK copyright law protects your created works here.
You are, however, able to extend protection internationally for territories that may not be covered and enforce your rights in a court of law. You can officially register your copyright with the Intellectual Property Office (IPO). Here are the general steps to register a copyright for your music in the UK:
- Create your original music composition – This can be a song, instrumental music, or any other type of musical work that is original and fixed in a tangible medium of expression.
- Decide who will own the copyright – If you are the sole creator of the music, you will likely already own the copyright. If you collaborated with others or created the music as part of your employment, the copyright ownership may be shared or owned by someone else.
- Complete the copyright registration form – You can register your copyright online using the IPO’s online copyright registration service or by completing a paper form and mailing it to the IPO.
- Pay the registration fee
- Submit the registration form and payment.
Once your works are registered for copyright, you will receive a certificate of registration from the Intellectual Property Office. This provides evidence of your ownership and the date of creation of your music composition, which can be useful in case of any future legal disputes. It is recommended to keep your certificate of registration in a safe place and renew your copyright registration periodically as required by law.
So, do I need a publisher? What is a publisher?
A music publisher is a company that manages the business aspects of music compositions on behalf of the creators and performing artists. The main role of a music publisher is to promote, exploit and administer the rights of the compositions they represent. They work with songwriters, composers, and other music creators to help them monetise their compositions by licensing them for various uses and collecting music royalties.
Music publishers are responsible for finding and pitching compositions to artists, record labels, advertising agencies, and other potential users. They also negotiate licensing agreements and collect the royalties on behalf of the composition’s owner. This allows the creator to focus on creating new music while the publisher handles the business aspects of their career.
Music publishers may also provide services such as songwriting and production assistance, marketing and promotion, and copyright registration and enforcement. They may also be attached to management companies, which offer the services in-house to the clients they wish to represent. They may also offer advances to songwriters to help fund the creation of new compositions.
Music publishing companies play a crucial role in the music industry by helping music creators monetise their work and reach a far wider audience. They act primarily as a liaison between creators and the end user, negotiating deals and collecting royalties to ensure that creators receive fair and accurate compensation for their work.
Music Publishing Royalties Explained: How Music Royalties Work in the UK (2025 Update)
Music royalties are recurring revenues generated from multiple sources that are made to songwriters, publishers, record labels, composers, and performers for the use of their copyrighted music. Multiple different types of music royalties exist. Each of which is applicable to a particular form or usage of the music. Here we discuss the most common types of music royalties.
Note: There are many other types of music royalties that may apply in specific situations, such as ringtone royalties, grand rights royalties (for theatrical productions), and more. The specific types of royalties that apply to a particular piece of music will depend on how it is used and exploited.
Mechanical Royalty Rates
Mechanical royalties are payments made to songwriters, composers, and music publishers for the reproduction and distribution of their music. These royalty payments are accrued when an artist’s music is used to make physical media, such as vinyl records, CDs, and tapes. They are collected by organisations known as Mechanical Rights Organisations (MROs), which represent the interests of music publishers and songwriters.
Mechanical royalty rates in the UK vary by format and are set by the Copyright Tribunal. For physical products like CDs and vinyl, the standard rate is 8.5% of the Published Dealer Price (or 6.5% of retail price if dealer price is unavailable). For digital downloads, rates are typically 8% of gross revenue, while streaming services follow a more complex calculation involving both mechanical and performance royalties.
Ron’s Insight:
Mechanical royalties are music royalties that are generated as a result of the reproduction and distribution of an artist’s music on physical formats such as vinyl records, CDs, and tapes. They are paid out to the entity that owns the rights to the music.
Latest Distribution Data: MCPS distributed £204.3 million in mechanical royalties in 2023, representing an 8.5% increase (£15.9 million) from 2022. This marked a 43% increase in annual distributions over the previous five years, driven primarily by the growth of streaming services and the continued popularity of vinyl records. Music Publishers Association
Public Performance Royalties
Performance royalties generated are the accrued payments that are generated and paid to songwriters, composers, and music publishers for the public performance of their music. This encompasses the use of their music on radio, TV shows, movies, or live concerts. The collection and distribution of these royalties are handled by specialist organisations known as Performing Rights Organisations (PROs).
The United Kingdom has two primary Performing Rights Organisations (PROs) that handle the collection and distribution of performance royalties. These are known as the Performing Right Society (PRS for music) and Phonographic Performance Limited (PPL). The PRS is responsible for collecting and distributing royalties related to musical compositions, which include the lyrics and melody of a song. PPL, on the other hand, handles the collection and distribution of royalties related to sound recordings. These specific royalties pertain to the actual recording of a song.
The rates for performance royalties in the UK are typically based on a number of factors. These include the type of use e.g. radio play, live performance, etc., the popularity of the song, and the revenue generated from the use. The PRS and PPL use a variety of methods to track and monitor the use of music, including digital fingerprinting technology and surveys of radio and TV broadcasts.
Performance royalties are usually divided between the songwriter, composer, and music publisher. The songwriter and composer will normally receive a larger portion of the royalties. The exact distribution of royalties is determined by the specific contractual agreements between the parties involved.
Ron’s Insight:
The most prominent PROs in the UK include the Performing Right Society (PRS) and Phonographic Performance Limited (PPL). Both the PRS & PPL collect music royalties and distribute them as performance royalties to the relevant parties for their licensed music’s public performance.
2025 Update: PPL achieved a landmark year in 2024, with revenues exceeding £300 million for the first time in its 90 year history, reaching £301.0 million, a 6% increase. This growth was driven by increases in both UK licensing (including a 9% rise in public performance revenues) and international collections. In 2024, PPL distributed payments to over 172,000 performers and recording rightsholders, with 19,300 receiving royalties for the first time. Music Week
Synchronization Royalties (Sync) (Syncronisation)
Synchronisation (sync) royalties are a specific type of music royalties that are the financial compensation given to songwriters, publishers, and composers for the usage of their music in various audio-visual productions. These encompass movies, TV shows, video games, commercials, and any other audio-visual production. These royalties are paid out for the synchronisation of the music with the visual images in the production, hence the term “sync”.
Sync royalties can be a significant source of income for musicians and music producers, particularly those whose music is well-suited to use in audio-visual productions. The rates payable for sync royalties can vary widely depending on a number of factors These would include the popularity of the song, the type of production, the length of the song used, and the prominence of the music in the production. Other factors would be if an artist has been specifically commissioned to create music for an audio-visual production.
Sync royalties are typically negotiated and paid out on a case-by-case basis, rather than through blanket licenses like performance and mechanical royalties. This means that musicians and music publishers need to be proactive in securing sync placements and negotiating sync royalties for their music.
In some cases, musicians and music publishers may work with sync licensing agencies that specialise in securing sync placements for their clients’ music. These agencies can help to identify opportunities for sync placements and negotiate favourable terms and rates for their clients.
Ron’s Insight:
Sync royalties are paid out by the company that is using the music in an audio-visual production. This could be as a production company, film studio, or advertising agency.
These entities will typically negotiate and pay sync royalties directly to the songwriters, composers, and music publishers whose music is being used. In some cases, a sync licensing agency may be involved in negotiating the sync placement and sync royalties on behalf of the musician or music publisher. These agencies may take a commission on the sync royalties earned in exchange for their services.
Note: Sync royalties are separate from other types of music royalties, such as performance and mechanical royalties, and may have their own unique contractual and payment terms. As such, musicians and music publishers should ensure that they have clear agreements in place with the entity using their music for sync placements, in order to ensure that they are receiving fair compensation for the use of their music.
Digital Streaming Royalties
In the United Kingdom Digital Royalties refers to music royalties payments that are generated and paid to songwriters, composers, and music publishers for the use of their music played on digital platforms. These include streaming services, download stores, and online radio. Digital royalties are comprised of various types, such as mechanical royalties, performance royalties, and sync royalties.
Mechanical royalties compensate songwriters and music publishers for the reproduction and distribution of their works in digital media. This includes permanent downloads and interactive streams that take place on digital platforms. The current rate for mechanical royalties in the UK is set by the Copyright Tribunal and is currently 9.1p per track or 8.5% of the retail price, whichever is higher.
Performance royalties are paid to songwriters, composers, and music publishers for the public performance of their music on digital platforms. This includes any time their music is played on streaming services or online radio. Performance royalties are collected and distributed by Performing Rights Organisations (PROs) in the UK those being, Performing Right Society (PRS) and Phonographic Performance Limited (PPL).
Sync royalties are paid out to songwriters, composers, and music publishers for the use of their music in audio-visual productions. These include TV shows, movies, video games, and commercials that are streamed or downloaded online.
The digital landscape is constantly evolving, and new ways of consuming and distributing music online are emerging all the time. As a result, digital performance royalties can be a hugely complex area of revenue in the music industry.
Ron’s Insight:
It is hugely important for songwriters, composers, and music publishers to stay informed and work with trusted industry professionals, ensuring they are receiving the correct royalties they are entitled to.
Streaming revenues continued their upward trajectory, with recorded music revenues from streaming and digital formats reaching £1.2 billion in 2023, up 8.8% year-on-year. Streaming growth specifically was 8.4% in 2023, while physical sales rebounded strongly, with vinyl sales surging 18.6% to £142 million.
2024-2025 Update: The digital music landscape has continued its robust growth. In 2024, PRS for Music achieved a historic milestone, paying out a record £1.02 billion in music royalties to songwriters, composers, and music publishers. This is up 8.1% from the previous 2023 – 2024’s £944 million. This marks the first time PRS for Music distributions exceeded £1 billion annually. The society also collected a record £1.15 billion in revenues, representing a 6.1% increase. PRS states that online royalties were a key growth driver, increasing by 9% to £401.2 million in 2024. PRS for Music
Neighbouring Rights Royalties
Neighbouring rights in the United Kingdom are also referred to as International Performance Royalties. They refer to the rights of performers and record labels to receive fair compensation for the use of their recorded music in various contexts. Neighbouring rights are distinctly separate from copyright, which is the right of songwriters, composers, and music publishers to control the use of their musical works.
Performers and record labels earn neighbouring rights music royalties when their recorded music is played on international radio and TV broadcasts, public performances, and digital music streaming services. The royalties are collected and distributed by two main organisations, the Phonographic Performance Limited (PPL) and the Performer’s Rights Society (PRS).
PPL collects and distributes royalties for the use of sound recordings, while PRS collects and distributes royalties for the use of performances, such as those by session musicians and background singers. The royalties collected by these organisations are then distributed to the performers and record labels who are entitled to them.
Neighbouring rights royalties can be an important source of income for performers and record labels, particularly in the digital age, where music is widely consumed on streaming platforms on an international scale.
Ron’s Insight:
Neighbouring rights music royalties are an often misunderstood and overlooked source of income for performers and record labels, particularly in the digital age, where music is widely consumed on streaming platforms on an international scale.
Print Music Royalties
Print music royalties are typically paid out by music publishers, who produce and distribute printed music products, thus facilitating the royalty collection process. The music royalties are usually paid as a percentage of the wholesale price of the printed music product. The percentage is determined by the terms of the contractual agreement between the musician or music publisher and the music publisher.
In the UK, the main organisation responsible for collecting and distributing print music royalties is the Mechanical Copyright Protection Society (MCPS), which operates a blanket license scheme for print music. This allows music publishers to obtain a license from the MCPS for the reproduction and distribution of printed music in return for payment of a set fee. The MCPS then collects and distributes these fees as print music royalties to the relevant songwriters, composers, and publishers.
In some cases, UK musicians may choose to act as their own music publisher and distribute their own printed music products. In this scenario, the musician would need to register with the MCPS and obtain their own license to reproduce and distribute their music in print form. They would then be responsible for collecting and reporting their own print music royalties.
It’s worth noting that print music royalties are typically separate from other types of music royalties, such as performance, mechanical, and sync royalties. It can be confusing but essentially, this means that musicians and music publishers can earn multiple types of royalties for the same piece of music.
Print music royalties are typically paid out by music publishers who produce and distribute printed music products, such as sheet music and songbooks. These publishers obtain a license from the Mechanical-Copyright Protection Society (MCPS) for the reproduction and distribution of printed music, and they pay a set fee in return.
The MCPS is responsible for collecting and distributing print music royalties to the relevant songwriters, composers, and publishers.
Ron’s Insight:
The MCPS operates a blanket license scheme for print music, which means that music publishers can obtain a license from the MCPS to reproduce and distribute printed music products, and the MCPS collects and distributes the music royalties on their behalf.
You may be a bit scrambled by now, but if you have made it this far, thank you! We are hugely grateful for taking the time to read part one. We hope this guide has been beneficial and helps you understand the complex nature and different types of music royalties.
Looking Ahead: As we progress through 2025, the UK music industry continues to set global standards for royalty collection and distribution. With technological advances improving data accuracy and payment efficiency, artists can expect more transparent and timely royalty payments. However, staying informed about your rights and working with reputable industry professionals remains essential for maximising your income from these diverse revenue streams.
In PART TWO we will look in detail at how royalties are generated, calculated and, how the money is distributed before it finds its way to artists!
Originally published May 6th, 2023. Updated January 2025 with the latest industry statistics and 2024 royalty distribution data.
FAQ’s Music Royalties Guide 2025
What are music royalties?
Music royalties are payments made to artists, songwriters, and producers for the use of their copyrighted music. These payments can come from various sources, including streaming services, radio broadcasts, and live performances. Essentially, they are a way for music creators to earn income from their work whenever it is used commercially.
What types of music royalties exist in the music industry?
There are several types of royalties in music, including mechanical royalties, performance royalties, and synchronisation royalties. Mechanical royalties are earned from the sale of physical or digital copies of music, while performance royalties are generated when music is played in public settings, such as concerts or on radio. Synchronisation royalties come into play when music is licensed for use in films or commercials.
What are performance royalties, and how are they collected?
Performance royalties are payments made to songwriters and publishers whenever their music is performed publicly. These royalties are collected by performing rights organizations, which monitor music usage across various platforms, such as radio, television, and live performances. The amount paid is typically based on the frequency and reach of the performance.
What is the difference between mechanical royalties and performance royalties?
Mechanical royalties are earned from the reproduction of music, such as when a song is sold on a CD or downloaded, while performance royalties are earned from the public performance of that music. Both types of royalties are essential for musicians, but they are generated from different usage scenarios within the music industry.
How do I get paid music royalties as a songwriter?
As a songwriter, you can get paid royalties through performance rights organisations (PROs) like PRS for Music or PPL. These organisations collect royalties on behalf of songwriters and distribute them based on the usage of the music. Registering your works with a PRO ensures that you receive payments whenever your music is performed or broadcasted.
What are the roles of performing rights organisations (PROs)?
Performing rights organisations, such as PRS and PPL, play a crucial role in the music industry by collecting performance royalties on behalf of songwriters and publishers. They monitor the public performance of music, track usage, and distribute the collected music royalties to the rightsholders based on their share of the royalties generated.
Can session musicians earn music royalties?
Session musicians can earn royalties, primarily through sound recording royalties, if they have negotiated a share in the royalties from the recordings they participate in. However, this depends on the agreements made with recording artists and record labels at the onset of their collaboration.
How do licensing companies help in music royalties collection?
Licensing companies facilitate the legal use of copyrighted music by granting licenses to music users, such as filmmakers or advertisers. In return, these companies help collect royalties owed to the artists and songwriters whose music has been licensed. This process ensures that creators receive fair compensation for their work.
How does music usage affect royalty payments?
The usage of music directly impacts music royalties payments, as the frequency and context in which a song is used determine the amount of royalties generated. For instance, a song played frequently on the radio or in popular media will typically generate more royalties than one that is rarely used. Understanding music usage helps artists and songwriters gauge their earning potential.
