6 Quick Things to Know About Music Royalties and Royalty Management

“Knowledge is power” is an old saying that will always ring true. At Royalti.io, we always emphasize the importance of knowledge and self-education for music professionals. Whether you are an artist, producer, or songwriter, understanding the business side of music and the mechanics of music royalties is invaluable knowledge. And so, we compiled a few of our resources into this post, highlighting six valuable tips to know about music royalties and royalty management. 

1. What Music Royalties Are In Two Sentences

Music royalties are payments made to rights holders such as songwriters, composers, and producers, whose work is used by entities like streaming services, radio, TV, and venues. These royalties are typically divided using split sheets, which outline each contributor’s agreed percentage share. 

2. Music Royalties Are Classified Into

The main types of music royalties to understand are:

• Performance Royalties: Earned when music is played publicly (e.g., radio, venues, streaming).
• Mechanical Royalties: Generated from the reproduction or distribution of music (e.g., CDs, downloads, streams).
• Synchronization (Sync) Royalties: Paid when your music is used in audiovisual content like movies, ads, or video games. 

3. And Royalty Management?

The process of ensuring accurate tracking and distribution of royalties across multiple revenue streams is described as royalty management. It is the efficient management of music royalties, making sure that artists, songwriters, producers, and rights holders receive fair compensation for their work.

4. Accurate Data = Transparent Royalty Payments

Inconsistencies in music rights information are the most common cause of “black box” money, royalties that remain unclaimed and lost in the system. Accurate metadata prevents this by ensuring your work is properly identified and tracked. Standardized identifiers (like ISRC and ISWC codes) are used to unify data across systems and ensure rightful payouts.

In most cases, royalties are collected directly by artists, record labels, or distributors. In Nigeria, for instance, Collective Management Organisations (CMOs) are responsible for negotiating and granting licenses, collecting and distributing royalties. Regardless of the system, they all rely on metadata for accurate royalty collection. 

5. Royalty Management Platforms Streamline the Process

Royalty management is being simplified by platforms such as Royalti.io. They automate calculations based on predefined splits, integrate with accounting tools, track expenses, and provide real-time analytics. These features make it easier for music professionals to monitor their earnings and receive what they are owed.

6. Music Royalties Are Now an Asset Class

Music royalties are more than earnings; they are tradable, securitized assets. With better data transparency and streaming analytics, catalog-backed financing has emerged, positioning music rights closer to stable, long-term infrastructure investments.

Why This Matters

Royalty management is an essential part of building a sustainable career in music. For artists and rights holders, the key lies in treating art not only as a passion but also as a business. Leveraging tools that ensure accuracy and transparency is not an option, but a necessity. With proper royalty management, music professionals can boost visibility, secure accurate compensation, and even open the door to new investment opportunities. 

Ready to Simplify Your Royalties?

At Royalti.io, we make royalty management simple and transparent. From catalog management to automated calculations and real-time analytics, we give you the tools to stay in control of your music income.