Performance Royalties vs Mechanical Royalties: What’s the Difference?

If you’ve ever wondered how money actually flows to songwriters, producers, and composers when their music is used, you’re thinking about royalties—and there are two types that pretty much every working musician needs to know: performance royalties and mechanical royalties. They sound similar, but they do very different things for your music income. Understanding the difference isn’t just an academic exercise; it’s a crucial step if you want to get paid what you’re due.

What Are Performance Royalties?

Performance royalties get triggered when your music is played publicly. That could be on the radio, in a restaurant, in a bar, or streamed on Spotify. These royalties are basically payment for the right to “perform” your song in public—even if “public” sometimes just means a Spotify playlist across a pair of earbuds.

How Performance Royalties Are Collected

Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC are the muscle behind performance royalty collection in the U.S. They track performances, collect fees from music users (think radio stations or venues), and pay out to songwriters and publishers. If you’re not a member of one, you’re very likely leaving money on the table.

Example:
You wrote a song that gets played on a TV show. That show pays a licensing fee to a PRO. You, as the songwriter (and possibly publisher, if you claim that piece), get a cut.

ASCAP vs BMI: Is There a Difference for Performance Royalties?

ASCAP and BMI are the two main PROs in the U.S. Functionally, both collect and distribute performance royalties, but their payout schedules, membership agreements, and weight in different genres sometimes vary. Choosing between them isn’t always a huge income decision, but it’s smart to look at anecdotal evidence within your scene to see which fits your goals better.

What Are Mechanical Royalties?

Mechanical royalties are paid when your song is reproduced. That could be a physical CD, vinyl, digital download, or—importantly—streams on interactive platforms like Spotify and Apple Music. The word "mechanical" is a holdover from the days of piano rolls, but don’t let the name fool you: today, it means any form of copying, whether physical or digital.

How Mechanical Royalties Are Collected

You can’t collect mechanical royalties from a PRO. Instead, in the U.S., organizations like the Mechanical Licensing Collective (MLC), Harry Fox Agency (HFA), and some publishers handle this. For most self-releasing artists, this means registering with the MLC for digital royalties, while publishers or admin publishing services (like Songtrust) can help you collect internationally.

Example:
Someone buys your album on iTunes. Apple, as the “manufacturer,” owes you mechanical royalties. Streaming also pays mechanical royalties, but they’re calculated differently and often bundled with performance royalties from digital service providers.

Performance vs Mechanical Royalties: A Quick Comparison

Key Differences and Why They Matter

The single biggest difference: Performance royalties = paid for public use. Mechanical royalties = paid for reproduction/copying.

• You can be owed both at once. A Spotify stream generates both a performance and a mechanical royalty.
• Only PROs pay performance royalties. You need to sign up with The MLC or a publisher/admin service for mechanical royalties—one account doesn’t get you both.
• For co-writers, your share of each royalty type may differ depending on publishing splits and contracts—always know your deals.

Practical Steps: How to Make Sure You Collect Both

• Register with a PRO for performance royalties. If you’re in the U.S., that’s ASCAP, BMI, or SESAC. Internationally, every country typically has its own PRO (PRS in the UK, SOCAN in Canada, etc.).
• Register with the MLC for mechanicals (in the U.S.). For global coverage, consider a publishing admin service that registers worldwide.
• Keep your registrations and metadata accurate. Wrong info means missed money.
• Understand splits with co-writers. Know how each royalty type is divided and who collects what.

Real-World Example: How Royalties Would Flow

Let’s say you release a song and it gets streamed on Apple Music:

• Apple pays performance royalties to PROs. You (the songwriter) get a check from the PRO (e.g., ASCAP).
• Apple also pays mechanicals to The MLC. To collect, you need to be registered there—or have a publisher/admin service collect for you.
• If your song gets played live at a club, the club pays performance royalties through its blanket license to a PRO, but no mechanical royalties are involved because there’s no “copying.”

Don’t Leave Money Unclaimed

The biggest mistake artists make? Thinking their PRO covers everything. If you don’t take extra steps for mechanical royalties, especially with streaming platforms in the U.S., you’re losing out. Double up your registrations, check your splits, and work with trusted partners who know how to track down every penny.

Feeling Overwhelmed? Here’s Where to Start

1. Join a PRO if you haven’t already. (ASCAP or BMI)
2. Register with The MLC for U.S. digital mechanicals.
3. If international, consider Songtrust or a similar admin publishing service.
4. Check your song registrations and metadata on all platforms.
5. Know your splits—and renegotiate if necessary before releases.

The difference between performance and mechanical royalties isn’t just theory—it’s cash flow. Learning the ropes here is the kind of music-business literacy that sets serious writers apart and gives you a fair shot at building real, ongoing music income.