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MonetiseFeb 10, 20261 min read

Mechanical Royalties vs Performance Royalties Explained

Never leave money on the table. Learn the difference between composition royalties and master recording payouts in digital streaming.

Marcus Sterling

Marcus Sterling

Head of Editorial

Mechanical Royalties vs Performance Royalties Explained

The Two Halves of a Recorded Song

Every piece of recorded music consists of two distinct copyrights:

  • The Master Recording: The specific audio capture owned by the artist or record label.
  • The Musical Composition: The underlying lyrics, melody, and chords written by the songwriters and publishers.

What is a Mechanical Royalty?

Every time your song is streamed on Spotify or Apple Music, a mechanical royalty is generated for the reproduction of the composition. In the United States, these are collected and distributed by the Mechanical Licensing Collective (The MLC).

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Marcus Sterling

Marcus Sterling

Editor

Dedicated to helping independent artists, producers, and labels navigate digital music distribution, playlist algorithms, and global publishing rights.

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