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Home . Music Royalties Explained: A Beginner’s Guide

Music Royalties Explained: A Beginner’s Guide

🎵 Music Royalties Explained: A Beginner’s Guide

Understand How You Get Paid as a Musician in South Africa

If you’re a songwriter, producer, or performer hoping to make a living from your music, understanding music royalties is essential. It’s one of the most misunderstood, yet most important, areas of the music business. In this beginner’s guide, we’ll break down exactly what music royalties are, how they work, and how to start earning from your music in South Africa and beyond.

What Are Music Royalties?

Music royalties are payments made to rights holders (like songwriters, artists, and publishers) every time their music is used. Whether your track plays on radio, streams on Spotify, or is used in a film, someone owes you money for that usage.

There are different types of royalties, and each one plays a key role in your music career and income stream.

Types of Music Royalties

1.

Performance Royalties

Earned when your music is:

  • Played on radio or TV

  • Performed live (by you or others)

  • Streamed online (Spotify, Apple Music, etc.)

In South Africa, SAMRO (Southern African Music Rights Organisation) collects and distributes performance royalties to composers and authors. If you write or perform original music, registering with SAMRO is a must.

2.

Mechanical Royalties

Paid when music is:

  • Reproduced physically (CDs, vinyl)

  • Downloaded digitally

  • Streamed on platforms

Mechanical royalties are managed in SA by CAPASSO, which works with platforms like Spotify and Apple Music to pay songwriters and composers.

3.

Sync Licensing Royalties

Generated when your music is:

  • Used in TV shows, films, ads, video games, or YouTube content

This type of royalty usually involves a negotiated upfront fee, and you or your publisher can license your song to earn from sync deals.

4.

Neighbouring Rights (Needle time Royalties)

These go to:

  • Recording artists (like vocalists and instrumentalists)

  • Record labels

SAMPRA (South African Music Performance Rights Association) handles neighbouring rights. These royalties are paid when your recorded track is played publicly, like in malls, clubs, or radio.

Why Are Royalties Important for Musicians?

  • 📈 They provide passive income long after the song is released

  • 💡 They protect your intellectual property

  • 🛠 They fund your next project or tour

  • 🌍 They open doors to international income when your music is used overseas

How to Start Earning Music Royalties in South Africa

  1. Register with Collecting Societies:

    • SAMRO (for performance rights)

    • CAPASSO (for mechanical royalties)

    • SAMPRA or AIRCO (for neighbouring rights)

  2. Use Digital Distributors:

    Services like DistroKid, TuneCore, or Ditto Music distribute your music and collect some royalties from digital platforms.

  3. Understand Your Splits:

    If you collaborated with other artists, producers, or writers, always define royalty splits in writing.

  4. Keep Accurate Metadata:

    Include your real name, IPI number, ISRC codes, and all relevant info when registering your work. This ensures you’re paid accurately and on time.

Final Thoughts: Royalties = Your Music Career’s Lifeline

Knowing how royalties work is not just admin, it’s business survival. If you’re serious about building a music career in South Africa (or globally), this knowledge empowers you to earn fairly for your art.