Mechanical Royalties
The royalty paid to songwriters whenever their composition is reproduced, including every stream and download.
Why this matters
What is it?
A mechanical royalty is paid to the owner of a composition (the songwriter or their publisher) whenever that composition is reproduced in some physical or digital form. The name comes from the player piano era, when 'mechanical' reproduction meant a physical piano roll. Today, streaming a song counts as a reproduction too, so a tiny mechanical royalty is generated on every single stream, separate from anything paid for the recording itself.
In the US, mechanical royalties for streaming and downloads are collected through an organization called the MLC (The Mechanical Licensing Collective). Streaming services pay the MLC, and the MLC pays out to whoever is registered as the songwriter and publisher of each song. If your song isn't registered there, the money it generates sits unclaimed.
This is separate from performance royalties, which are paid when a song is played publicly rather than reproduced. Mechanicals and performance royalties often arrive from different organizations for the exact same stream, which is why understanding the difference matters.
A simple example
Why you should care
When you'll use it
Common mistakes
- Assuming your distributor automatically registers you with the MLC. It usually doesn't; that's a separate step you have to take.
- Leaving songwriter splits unregistered or incorrect, so mechanicals get paid to the wrong person or nobody.
- Forgetting that cover songs you release also generate mechanical royalties you may owe to the original songwriter, which requires a mechanical license.
Register every released song with the MLC directly, even if you're using a service like Songtrust, so nothing falls through the cracks.
Keep reading
A unique numeric code assigned to an entire release (single, EP, or album) that identifies it across stores and streaming platforms, similar to a barcode on a physical product.
A unique identifier assigned to a specific recording of a song, used to track plays, streams, and royalties for that exact version, distinct from the song's UPC.
The set of text information attached to your release, like song title, artist name, genre, and release date, that DSPs use to display and organize your music correctly.
A promotional tool that lets fans save an upcoming release to their streaming library or playlist before it's even out, so it appears automatically on release day.
A running list of every task that needs to happen before a song can go live, used to make sure nothing gets missed.
The recurring payments you earn every time your song gets streamed, sold, played on the radio, or used somewhere else.
The royalty paid to songwriters when their composition is performed publicly, including radio, live shows, and some streaming plays.
The business of owning, registering, and collecting income from the songwriting side of your music, separate from the recording.
A simple written document that records who wrote what percentage of a song, signed before disputes can happen.
The organizations, like ASCAP and BMI, that collect performance royalties on behalf of songwriters and pay them out.
The company that takes your finished song and delivers it to Spotify, Apple Music, and every other store or streaming service.
DSP stands for Digital Service Provider, the industry term for streaming platforms and download stores like Spotify, Apple Music, and Amazon Music.
A widely used digital distributor known for its subscription-based pricing and fast turnaround from upload to release across DSPs.
One of the earliest and longest-running digital music distributors, offering artists a one-time payment model with no subscription required.
A long-established digital distributor offering distribution, publishing administration, and other artist services, historically priced per release.
The specific day (and often time) you choose for your music to go live on streaming platforms and stores, set in advance through your distributor.
The full schedule of everything that needs to happen between now and release day, and after it, laid out with dates.
Playlist pitching is the process of submitting your song to curators, whether that is Spotify itself or independent playlist owners, hoping to get added.
Editorial playlists are playlists curated by a streaming platform's own staff, like Spotify's 'New Music Friday,' rather than by an individual listener.
An EPK is a one-page digital packet with your bio, photos, music links, and contact info, built so anyone from a journalist to a booker can learn about you fast.
How and roughly how much artists actually get paid for streams, and why the amount per stream varies so much between platforms.
The number of unique people who played at least one of your songs on Spotify in the last 28 days, shown on your artist profile.
The final audio polish applied to a finished mix, making it loud, consistent, and ready for release across all platforms.
The square image that represents your song or album everywhere it's sold or streamed.
Put this into a real release plan
Diamond Release turns terms like this into dated steps for your single, EP, or album — with the full 160-article Encyclopedia inside.