
Last year, the US Copyright Royalty Board ([CRB](https://www.crb.gov/)) set a new mechanical royalty rate for streaming services to pay songwriters and music publishers. [The new rate of 15.1 percent](https://variety.com/2022/digital/news/copyright-royalty-board-streaming-royalty-publishers-songwriters-1235308088/) was set for 2022 and had increased steadily from 11.4% in 2018. Streaming services paying the old rate before the decision was required to backpay the difference.

Although Spotify, Google, Amazon, and Pandora [kicked](https://variety.com/2020/music/news/spotify-amazon-songwriter-royalties-court-appeals-1203528044/) against the increase, the National Music Publishers Association (NMPA) even hopes the rate increases to 20 percent for 2023–2027.

This news may cause anyone outside music circles to wonder and ask specific questions. Questions like: What are mechanical royalties? Why are they important? Why was an increment so necessary? Why did giant streaming services fight the increment? If you have these questions and more, read this comprehensive article to learn all about mechanical royalties.

## **Mechanical Royalties:** What Are They?

[Decades ago](https://thejacobsonfirmpc.com/the-brief-history-of-mechanical-royalties-and-music-in-the-u-s/), when a label wanted to sell a piece of music, they would need to reproduce the record on a blank vinyl disc mechanically. In other words, the label would have to compensate the songwriter for their composition whenever they had to print new discs. This gave rise to what is known as mechanical royalties.

Years later, compact discs (CDs) would replace vinyl records, and it wouldn't be long before CDs would be phased out by digital formats such as downloads and music streams—especially the latter. This is why the news about the increase in mechanical royalties strongly concerned streaming services. These royalties represent a payment to songwriters and music publishers to reproduce their compositions. This means that when a recorded song is produced in physical formats (e.g., CDs and vinyl records) or digital formats (e.g., downloads and streams), it is expected that the songwriter and publisher would earn mechanical royalties.

Mechanical royalties are a significant source of income for musicians, songwriters, and composers. They play a crucial role in compensating artists for the reproduction and distribution of their musical works.

![CD](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/mechanical/Cover.webp)

## How Do Mechanical Royalties Work?

The calculation of mechanical royalties varies from region to region and is subject to specific legal and industry regulations. In the United States, for instance, the Copyright Royalty Board often determines the rate. Other countries may have different rates or adopt a negotiated approach between the rights holders and the users.

Mechanical royalties are often considered the cousin of [performance royalties](https://talentir.com/blog/performance-royalties), but performance royalties are owed to musicians only when they perform their work publicly—however, both royalties sync in cases like music streaming. For instance, if a Spotify user selects a song to listen to, that selection would trigger performance and mechanical royalties. Performance royalties because since the listener doesn't own the music, the song at that point qualifies as a public performance. On the other hand, mechanical royalties are also triggered because for the listener to play the track, Spotify must reproduce the underlying composition.

But one significant distinction for mechanical royalties is the listener's choice. This means that if the listener doesn't have the option to select what they listen to, no mechanical royalties would be owed. This is why non-interactive streaming services do not pay mechanical royalties since they broadcast, not reproduce, compositions.

So if all platforms are not required to pay mechanical royalties, what factors determine who pays?

## The Channel Of Mechanical Royalties: Who Pays? Who Collects?

Although mechanical royalties are due to composition owners, they do not collect them directly from the entities that reproduce and distribute the music. This implies that mechanical royalties go through certain channels before getting to the songwriter. One entity pays, and another collects and distributes.

### Who Pays Mechanical Royalties?

Paying mechanical royalties depends on the context of use and is primarily the responsibility of the party reproducing and distributing the music. This includes record labels, streaming services, online stores, and physical distributors. For physical and digital sales, the record label pays the royalties. But in today's world, only a small proportion of mechanical royalties are paid this way. A significant chunk is allocated to streaming services. So, when Spotify or Amazon adds a song to its library and allows users to access it, it becomes responsible for paying mechanical royalties to the appropriate rights holders. In other words, every time the user hits play, Spotify or Amazon would have to compensate the rights holders in mechanical royalties.

### Who Collects Mechanical Royalties?

Like who pays mechanical royalties depends on the context of use, and who collects the royalties is also determined by the same. For physical and digital sales, mechanical royalties are collected by the same Performance Rights Organizations (PROs) that collect performance royalties. Notable PROs include Broadcast Music Inc. ([BMI](https://www.bmi.com/)), the American Society of Composers, Authors, and Publishers ([ASCAP](https://www.ascap.com/)), and the Society of European Stage Authors and Composers ([SESAC](https://www.sesac.com/)).

However, it is different for streaming services since the collectors of mechanical royalties can vary depending on the region. For example, in the United States, mechanical royalties are collected by mechanical royalty collection agencies such as the [Harry Fox Agency](https://en.wikipedia.org/wiki/Harry_Fox_Agency), which represents all the major music publishers. But in European countries like France or Germany, a single body like [SACEM](https://www.sacem.fr/) or [GEMA](https://www.gema.de/) collects mechanical and performance royalties.

It is important to note that whether the song is reproduced physically or digitally, the collecting entity is responsible for distributing the royalties to the rights holders.

## Mechanical Royalty Rates

In the US, from 2023 to 2027, [the statutory mechanical royalty rate](https://www.billboard.com/pro/songwriter-royalties-raised-cds-vinyl-mechanical-rate-12-cents/) set by the Copyright Royalty Board is 12.0 cents per track or 2.31 cents (whichever is greater) for each minute of playing time for physical recordings. For 2018 to 2022, it was 9.1 cents or 1.75 cents per minute for songs over 5 minutes. This rate applies only to physical recordings (vinyl, CDs, DVDs, etc.), downloads, and ringtones. For ringtones, the statutory royalty is 24 cents.

However, [for interactive streaming](https://www.law.com/2023/03/13/music-rates-and-royalties-2023-past-present-and-future/), the royalty rate is set differently and depends on several factors. These factors include the revenue of the digital music service, the fee a streaming platform pays to license and use the master recordings of compositions, the type of streaming offered, the number of subscribers, and so on.

A complex calculation determines the mechanical rate for interactive streaming services. For ad-based streaming services, the rate would be determined by selecting the higher value between a specific percentage of the digital music service's revenue and a specific percentage of the licensing costs related to the master recordings of the compositions. This entails expenses directed mainly toward record companies that possess and/or manage these masters, recognized as Total-Content Costs or "TCC."

The calculated rate would be adjusted by deducting the funds allocated for acquiring public performance rights, encompassing payments made to performing rights organizations like ASCAP, BMI, and SESAC. This is how the CRB arrived at 11.4% for 2018, that increased annually till it reached 15.1% in 2022, which is also the rate for 2023. This rate will increase annually till it gets to 15.35% in 2027.

For subscription-based services, the mechanical royalty rate is calculated as per-subscriber penny rate royalty multiplied by the number of subscribers.

### Mechanical Royalty Rates In Different Regions

[In the UK](https://www.curveroyaltysystems.com/royalties-101-recorded-music/lesson-8-mechanical-royalties-for-master-rights-holders#:~:text=For%20example%2C%20in%20the%20UK,6.5%25%20of%20the%20Retail%20Price.), the mechanical royalty rate for physical reproductions has historically been approximately 8.5% of the dealer price or 6.5% of the retail price. However, due to the shift in digital music and streaming, mechanical royalty rates can be more complex, considering factors like advertising revenue and subscription fees. For digital reproductions, streaming platforms such as Apple and Spotify are responsible for ensuring a general license agreement with the local mechanical society within the region.

[The EU](https://www.royaltyexchange.com/blog/mechanical-royalties#:~:text=In%20Europe%2C%20the%20mechanical%20royalty,currently%20is%208.712%25%20of%20PPD.) has a similar rate for physical reproductions as the UK. The rate sits at 8.712% of the dealer price. However, EU countries are at liberty to vary their rates. For example, some countries might set their mechanical royalty rates at around 6-12% of the suggested retail price. In contrast, others might calculate royalties based on the wholesale price or the price that music distributors pay to the record label. Some countries also have different rates for physical sales (like CDs and vinyl) versus digital sales. The rates depend on the streaming platforms for digital reproductions, just like in the UK.

### Does YouTube Pay Mechanical Royalties?

YouTube generally pays mechanical royalties to songwriters and publishers. However, [YouTube and its Content ID system](https://talentir.com/blog/youtube-content-id) do not pay mechanical royalties directly; YouTube typically pays those to mechanical rights organizations, which then distribute the royalties to the appropriate parties.

Moreover, monetized YouTube content can also trigger micro-sync royalties—an unconventional combination of performance and mechanical royalties—when music is synchronized with visual media. But generally, micro-sync royalties are a subset of [synchronization royalties](https://talentir.com/blog/synchronization-royalties), a distinct type of royalty of their own. Please read our complete guide on YouTube royalties [here](https://talentir.com/blog/youtube-royalties).

## Understanding Royalties Through The Eyes of Talentir

Talentir is the pioneering platform that transforms YouTube videos into tradable assets because it recognizes the significance of empowering artists and creators to optimize their royalties. Through Talentir, creators and artists can share and trade ownership fractions of their videos with their community, fostering an intimate and genuine bond with them. This innovative approach allows for scalable royalties, reaching a broader audience of fans. As more individuals own and engage with a video, its popularity and profitability naturally soar. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## Final Words

Mechanical royalties serve as a crucial lifeline for artists and songwriters, providing compensation for the use of their creative works. Understanding how these royalties work, who pays and collects them, and their significance in the digital era can empower creators to protect their rights and seek fair compensation. As the music industry continues to evolve, artists and stakeholders must collaborate and find innovative solutions that ensure a sustainable and equitable future for the creators of the melodies that enrich our lives.

## FAQs

### What is the Difference between Mechanical Royalties and Masters?

Mechanical royalties are payments to songwriters and publishers for the right to reproduce their compositions. This typically happens when a song is recorded and distributed in physical or digital formats such as CDs, vinyl records, and streaming platforms. Masters, on the other hand, refer to the actual recorded performances by artists and are licensed separately for use in various formats.

### How Much are Mechanical Royalties?

The mechanical royalties can vary based on factors like the country, sales or streaming volume, and the contract terms between the songwriter and the publisher. It's important to note that different music rights organizations collect and distribute many mechanical royalties, which may have additional fees and impact the final amount received.

### How to Collect International Mechanical Royalties?

International mechanical royalties can be collected through performance rights organizations (PROs) or mechanical rights organizations (MROs) in each country. Some companies also specialize in helping artists collect royalties globally. Collecting international mechanical royalties can be complex, as it involves navigating various international copyright laws, licensing agreements, and collecting societies.


Director of Marketing


For songwriters and publishers, performance royalties are one of the critical components of their revenues. And in the digital era, especially with the growth of streaming platforms, performance royalties have become an essential source of income for many artists. But the digital age has its challenges regarding collecting and distributing performance royalties. It’s become more complicated for songwriters and publishers to collect 100% of their revenue streams.

At the bare minimum, it’s a right for artists to demand fair compensation for their creativity! And the first step towards ensuring that artists and publishers are fully compensated for their work is to know who pays performance royalties and collects them. These will be the main focus of this guide.

![Radio](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/performance/radio.webp)

## What are performance royalties?

Performance royalties are the fees music users pay when music is performed publicly. Ideally, music users need to obtain a license from the songwriters and publishers of [the musical compositions](https://en.wikipedia.org/wiki/Musical_composition) they want to use. This license gives them the right to publicly broadcast or perform the music in exchange for a fee. This fee is the performance royalty.

Performance royalties are revenues paid to songwriters and publishers for any public broadcast or performance of their musical compositions. These royalties are the license fees generated from businesses and streaming platforms that play the music, like live venues, TV and radio stations, and online streaming platforms. Note that public performance royalties are applied to music and sound recordings and any public performance of a musical composition, such as at concert venues.

## When are performance royalties paid?

Any public performance of a musical composition incurs performance royalties. Public performance royalties are paid to songwriters and publishers for the public broadcast or performance of their musical compositions. These royalties come from license fees paid by businesses or platforms that use music, such as radio, TV, live venues, or streaming services. Performance royalties are generated when a song is publicly performed. Performance royalties are also generated when a song is performed live (whether by the original artist or another performer).

But, when you are outside and hear music, whoever wrote that song is owed performance royalties. Any business that wants to play music within its premises must obtain a license. When your song is played on the radio, streamed online, or performed live, you are entitled to receive a payment using your music.

When someone privately streams music from a streaming platform like Apple Music or Spotify, the platform pays royalties to the rightsholders of the musical composition and sound recording. These royalties are typically divided into two parts: one for the composition (paid to the songwriter and publisher) and one for the sound recording (paid to the recording artist and record label). The composition royalties are further divided into [mechanical royalties](https://talentir.com/blog/mechanical-royalties) and public performance royalties. We’ll discuss the difference between performance royalties and mechanical royalties later in this article.

## How do performance royalties work?

The entire process of how performance royalties work can be summarized in three steps:

- The songwriter or publisher registers their songs with a Performing Rights Organization (PRO).
- The PRO tracks the use of music in public.
- The PRO distributes the royalties to the songwriters and publishers entitled to them.

You can imagine how tedious and time-consuming it could be for artists to track the use of their songs and get paid. Typically, songwriters and publishers must register their music compositions with a PRO and Collective Management Organizations (CMOs) for them to be eligible to collect their performance royalties. They must submit their compositions and setlist to ensure their performances are accurately tracked.

The primary function of PROs and CMOs is to collect the license fees from these music users, which it then distributes to the songwriters and publishers as performance royalties. If songwriters and their publishers are not registered with a PRO or CMO, they will not receive the performance royalties they are owed. To fully understand how performance royalties work, we'll discuss who pays and collects them.

## Who collects performance royalties?

Performance royalties are collected by Performance Rights Organizations (PROs) and Collective Management Organizations (CMOs). PROs act as intermediaries between artists and the entities using their music for public performances. They monitor and track performances, collect licensing fees from venues, broadcasters, and streaming platforms, and ensure that the appropriate royalties are distributed to the rightsholders.

CMOs operate globally and collaborate with PROs. They ensure that artists receive compensation for their performances, regardless of the country.

While many countries have their own Performing Rights Organizations (PROs), not all do. However, songwriters and publishers in countries without a PRO can still receive performance royalties through agreements with PROs in other countries. These agreements allow the foreign PROs to collect and distribute royalties to the appropriate parties on behalf of the songwriters and publishers from the country without a PRO.

### Performance royalty rates

Firstly, there’s no set rate for performance royalties. The rates vary depending on each public performance's specific circumstances and agreements. And that means not all musical compositions attract similar performance royalties. Therefore, songwriters and publishers must understand [how performance royalties are calculated and split](https://www.billboard.com/pro/music-streaming-royalty-payments-explained-song-profits/).

Note that the calculation of performance royalties can vary depending on the country and the PRO that collects and distributes them. So, read the fine print when you sign-up with PROs globally. But universally, the rate of performance royalties is based on the terms of the distribution and recording agreements.

After calculating the royalties, PROs distribute the payments to the songwriters and publishers based on predetermined splits. Again, the specific details and calculations can vary between PROs, CMOs, and countries.

### How to collect performance royalties

Songwriters must join a PRO or CMO to collect their performance royalties. These organizations establish licensing agreements with establishments and platforms that publicly use music, ensuring proper payment terms. Venues, broadcasters, and streaming platforms pay licensing fees to these organizations, distributing them to the respective rightsholders.

PROs also form direct agreements with international CMOs to facilitate the global licensing of artists' music compositions. Global licensing enables songwriters and publishers to earn performance royalties worldwide.

PROs employ [digital fingerprinting](https://www.pathpartnertech.com/audio-fingerprinting-understanding-the-concept-process-application/) and manual matching to identify performed songs by comparing data from music users with their registered song databases.

If an artist is not registered with a PRO, they will not receive performance royalties for their music being played on streaming platforms like Spotify. Note that artists who are not registered with a PRO can still receive other types of royalties, such as mechanical royalties. However, artists need to register with a PRO to ensure that they receive all of the royalties they are owed using their music. Here’s a list of [PROs globally](https://en.wikipedia.org/wiki/Performance_rights_organisation#Organisations).

## Who pays performance royalties?

Music users primarily pay performance royalties. PROs issue licenses to music users, such as radio and TV stations, streaming services, and public event organizers, which allows them to play the music in the PRO’s catalog. In turn, PROs track the music usage and then distribute the collected royalties to the songwriters and publishers. The split of the performance royalties depends on the agreement between the songwriters and publishers.

Interactive streaming services, such as Spotify, Apple Music, and Amazon Music, allow users to choose the specific songs or content they want to listen to or watch. These services pay recording artists through record companies, labels, copyright management companies, or distributors. They make three different payments to rightsholders – mechanical royalties, public performance royalties, and payout to recording owners.

On the other hand, [non-interactive digital streaming services](https://help.songtrust.com/knowledge/what-is-interactive-streaming-vs.-non-interactive-streaming) pay digital performance royalties for streaming musical content. These royalties are paid to performing artists each time a sound recording is streamed on non-interactive digital streaming services. Note that interactive digital streaming services do not pay digital performance royalties to recording artists, just songwriters (or composition owners).

## What’s the difference between performance and mechanical royalties?

As mentioned, performance royalties are paid to songwriters and their publishers in exchange for the right to broadcast or perform a copyrighted musical composition in any public setting. Mechanical royalties, on the other hand, are paid to songwriters and publishers for the reproduction and distribution of a musical composition, such as when a song is streamed or downloaded.

While performance royalties are prominent in the digital era, in most cases, both performance and mechanical royalties are intertwined.

For example, streaming services like Spotify pay both mechanical and performance royalties. When a song is streamed, the songwriter and publisher are owed both mechanical and performance royalties. Mechanical royalties are paid for the reproduction and distribution of the musical composition, while performance royalties are paid for the public performance of the composition through the interactive digital stream. Traditionally, mechanical royalties got paid out of sales generated by the distributors.

![Club](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/performance/dj.webp)

Here’s a quick snapshot of performance royalties vs. mechanical royalties:

### Performance Royalties
- Paid for the public performance or broadcast of a musical composition
- Collected by PROs on behalf of songwriters and publishers
- Includes radio airplay, TV broadcasts, live performance in venues like bars and clubs, and interactive digital streams
- Calculated based on various factors, including the type of performance, the license fee paid by a station or group of stations, the number of hours included in the appropriate survey, etc.
- Distributed to songwriters and publishers based on their share of the composition
- Paid by the business or organization that is playing the song

### Mechanical Royalties
- Paid for the reproduction and distribution of a musical composition
- Collected by publishers, collecting societies, and mechanical agencies
- Includes physical sales, downloads, and streaming
- Calculated based on the number of copies sold, downloaded, or streamed
- Distributed to songwriters and publishers based on their share of the composition
- Paid by the record label or distributor

## How to elevate your royalties with Talentir?

We understand the importance of empowering artists and creators to maximize their royalties, [especially from YouTube](https://talentir.com/blog/youtube-royalties). Talentir is the first platform to turn YouTube videos into an asset you can buy and sell. It lets creators and artists share parts of their videos with their fans, which helps to build a close and authentic community. With Talentir, royalties become scalable, enabling distribution to many fans. We focus on artists and creators, ensuring a seamless and user-friendly process. Talentir is the backbone, facilitating an effortless experience to make shared ownership and payouts a reality. The more people own and interact with a video, the more popular and profitable it becomes. Got curious about how it works? [Explore Talentir now.](https://talentir.com/)

## The bottom line

Performance royalties are a vital component of the music industry, compensating songwriters, composers, and music publishers for the public performance of their works. And for songwriters to receive what they are duly owed for their compositions, they must understand who pays and collects their performance royalties. This has been the central theme of this guide. We've discussed performance royalties, how they work, who produces and collects them, and how they differ from mechanical royalties.

## FAQs

### How are performance royalties calculated?

Performance royalties are calculated based on various factors, including the type of performance, audience size, duration of the performance, and licensing agreements in place. Rates may differ depending on the platform or region, and they are often determined through negotiations or industry standards.

### How do performance royalties work?

When a song is performed publicly, performance rights organizations (PROs) or collective management organizations (CMOs) collect fees from the venues, broadcasters, or streaming platforms. These organizations then distribute the collected royalties to the appropriate artists and rights holders.

### What’s the difference between mechanical royalties and performance royalties?

Mechanical and performance royalties are two different types of royalties paid to songwriters and publishers. Performance royalties are paid for the right to play a composition in public. Mechanical royalties are paid for the right to reproduce a composition through recording, manufacturing, and distributing the work.



Whether you’re an up-and-coming music artist or simply a fan of good music, you’ve probably wondered how YouTube royalties work and how YouTube Music pays its artists. If so, you’re in the right place.

With many artists across the globe earning royalties from YouTube, the site has proven to be a highly lucrative platform for content creators and musicians alike. Videos that contain music have the potential to generate [royalties](https://en.wikipedia.org/wiki/Royalty_payment) for the artist whose music is being used, but the royalty process can be confusing at times.

Don’t worry. We’re here to break it down for you. In this article, we’ll be breaking down the ins and outs of YouTube royalties, how to collect them, and how much you can make when your music is used on YouTube.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT1.jpg)

## How royalties work on YouTube

As an artist, it’s crucial to understand how streaming royalties work and how they are paid. Knowing about these topics will help you maximize your revenue and set realistic long-term goals for your music career. YouTube’s royalty system can be confusing because the platform pays different rates under the categories it uses: YouTube Music, your official channel as a musician, and Content ID. So what are these three groups?

[YouTube Music](https://music.youtube.com) is a premium service separate from standard, free YouTube. Your official channel is where you’ll post your music in YouTube video format. And finally, Content ID is YouTube’s automated system for allowing copyright owners to identify YouTube videos that include content they own. For instance, you could claim videos that use your music through Content ID in the music industry.

### Does YouTube pay royalties?

The short answer: Yes. YouTube does pay royalties for musicians and content creators of all types. But when it comes to music, things can get complicated quickly due to the three categories that we just covered. Depending on how your music is used and who listens to it, you can make vastly different amounts of royalties on YouTube.

### YouTube’s royalties per view structure

YouTube pays out royalties depending on how many views your videos get. You will get performance royalties for any broadcast of your music. You will also get mechanical royalties for the interactive streaming of your song. The revenue you receive as the owner of your music will come from monetizing the content on YouTube.

In order to monetize your content, you’ll need to sign up for Content ID. If you’re approved, YouTube will place ads (or banner ads) on your content – it all depends on the viewers. If a viewer watches more than 30 seconds of the ad or clicks on the banner ad, you will generate revenue, [split between YouTube (45%) and you (55%)](https://support.google.com/youtube/answer/72902).

### Does YouTube pay royalties for music?

Yes, YouTube pays royalties for music directly through YouTube Music. On regular YouTube, you will get royalties after content monetization, which involves placing ads on your videos. The amount of royalties you will make changes due to a few different factors.

### What are YouTube music royalties?

YouTube Music is a premium subscription service different from free, open YouTube that anyone can access. It’s YouTube’s move to compete with platforms like Spotify and Apple Music. When users stream your songs on YouTube music, you will get a payout that has nothing to do with content monetization. You will get paid per stream.

## Making money with royalties from YouTube

To make money from YouTube, you need to place ads on your videos – that is unless your videos are viewed through the platform’s paid services, such as [YouTube Premium](https://support.google.com/youtube/answer/6306276) and [YouTube Music](https://support.google.com/youtubemusic/answer/6312991). Let’s break down how much you can make from YouTube royalties on each of these subcategories of YouTube.

### How much are YouTube royalties?

The amount you’ll make in YouTube royalties depends on how exactly people consume your music. You’ll make different amounts if users listen to your music on YouTube music, directly from your channel, or through videos monetized within [Content ID](https://support.google.com/youtube/answer/2797370). These second two categories can fluctuate significantly, but here are some average numbers.

On average, 1,000 views of your video on your official channel will make you around $1.64. That amounts to $0.00164 per stream. 1,000 views of a video monetized within the Content ID system will make you an average of $0.087 – or $0.00087 per view.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT2.jpg)

### How much does YouTube pay per music stream?

On YouTube Music, you’ll get paid per stream. The average payout right now is $0.008 per stream, which means that you’ll make $8 for every 1,000 streams. On regular YouTube, you’ll get paid according to ad clicks and other content monetization processes.

### How often does YouTube pay royalties?

YouTube pays out royalties on a monthly basis. You’ll need to ensure that your payment information is up-to-date both on your YouTube account and your AdSense account in order to ensure you receive all the money that is due to you.

## How to collect royalties from YouTube

[As of 2022](https://blog.youtube/creator-and-artist-stories/6-billion-paid-to-the-music-industry-in-12-months/), YouTube has paid artists, songwriters, and other rights-holders over $6 billion within a year. With over 2 million users logging on each month and over 1 billion hours of content being watched every day, YouTube is a definitive entertainment giant in our society. For up-and-coming artists, it can be a great way to get the word out about our music.

You can make money from putting your music on YouTube, especially if you own the rights to your music. You’ll be able to make money through Content ID, which basically scours the platform for videos with your music – then, you’ll be able to profit from content monetization on those videos.

The other way to make money on YouTube is through video streams on your own channel. There is a catch, though – in order for YouTube to place ads on your videos and in order for you to make a profit, you’ll need [at least 1,000 subscribers and over 4,000 watching hours](https://support.google.com/youtube/answer/72851) in the past 12 months. Once you’ve met this threshold, you’ll be able to monetize your videos through the YouTube Partner Program.

![YouTube](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube-royalties/YT%20Partner%20Program.png)

### How does YouTube Music pay its artists?

It’s important to remember that YouTube Music pays artists differently than plain old YouTube. YouTube Music is a premium service, like paid versions of Spotify and Apple Music, and it pays relatively well compared with other platforms.

YouTube Music pays an average of $0.008 per stream – a number that sounds small until you compare it to how much Spotify pays (from $0.003 to $0.005) and how much Amazon pays ($0.004). Even Apple Music pays slightly less than YouTube Music ($0.0078 per stream). Of course, that rate can change based on a few different factors, including:

-   Your agreement with your distributor or label – depending on your split with your label, you’ll receive more or less of the streaming revenue.
-   The subscription tiers of your listeners – if you have a lot of free listeners, you’ll make less than you would from paid or premium tier listeners.
-   Where your listeners are located – YouTube Music monthly subscription prices are different depending on the country, so if many of your listeners are located somewhere with a lower subscription price, you’ll make less too.

Understanding how YouTube royalties work can be extremely helpful in maximizing your profits and earning a sustainable living from your music, especially at the beginning of your career.

### How to elevate your YouTube royalties with Talentir?

With our co-ownership model, fans can directly participate in the success of their favorite artist by owning a fraction of a YouTube video. The core feature that sets Talentir apart is its ability to transfer your video rights into something that can be shared. As a creator, you can define the parameters, such as the percentage of royalties you want to convey through our rights-management software within your internal crew, band, label, etc. Once set, your video is published on Talentir, also ready to boost its engagement by sharing it with your fans. All these new people holding positions of the rights in their hands will now be the ones to push your content as they are currently growing with you.

The most obvious benefit of this model is that it opens up a new revenue stream. Besides the regular income from YouTube's ad revenue and sponsorships, this empowers creators to leverage their content in a new way, effectively monetizing their creativity and hard work.

Beyond monetization, our platform offers a unique way to connect with your audience. Fans can now play a vital role in every artist's success. By owning a part of their content's royalties, they're becoming an active participant in the creative journey.

Talentir provides financial flexibility. Need funds for a new project or upgrade your equipment? Instead of relying on sporadic brand deals or dipping into personal savings, you can finance your endeavors by releasing some of your video royalties to your fans.

Talentir's user-friendly dashboard provides creators with insightful analytics, helping to track the performance of your assets. Keep an eye on views, earnings, shares sold, and other important metrics, allowing you to make informed decisions and tailor your content strategy accordingly.

Talentir is more than a tool — it represents a shift in the content creation industry. It embraces the growing trend of participatory culture, allowing fans to be more than just passive consumers. It provides an innovative and exciting way to elevate your YouTube royalties, empowering you to take control of your creative career like never before. Whether you're a seasoned YouTube creator or just starting, we provide an exciting new way to elevate your earnings and deepen your connection with your audience.

## FAQs

### How do royalties work on YouTube?

The amount of royalties you make on YouTube will depend on how people access your videos. You’ll make the most when paid users listen through YouTube music and the least when people hear your music through Content ID.

### How do YouTube Music royalties work?

YouTube Music is a paid platform associated with YouTube that’s a competitor of Spotify, Apple Music, and the like. The average royalties you’ll receive from YouTube Music are $0.008 per stream, but that number can change due to various factors.

### How much royalties do you get from YouTube?

On average, you will receive $0.008 per stream with users listening through YouTube Music. You’ll receive an average of $0.00164 per stream when viewers listen through your direct channel, and you’ll receive just $0.00087 per stream through Content ID.



Gone are the days when fan participation was limited to buying an artist's music or cheering them on at concerts. Today, a shift is happening, fundamentally transforming how you engage with and contribute to your favorite artists' success. This unique digital experience adds a whole new dimension to the music you love. The era of passive consumption is making way for active participation, and we're excited to introduce our platform, which offers you a chance to become co-owner of your beloved music creations.

As a music enthusiast, have you ever wished to become more than just a consumer and be a vital part of an artist's journey? Well, here we are to make that wish come true.

## Own a fraction of a YouTube video

Today we are live with our rights management software and a clear mission to add new revenue streams to the portfolio of millions of creators, musicians, artists, and fans. You can now acquire and co-own a piece of a YouTube video. Your stake in the video brings you a portion of its ad revenue for every view. Artists and fans deserve a platform where they can grow and succeed together. We're committed to providing you with the most transparent, reliable, and rewarding experience. Get ready for what's to come.

## Rusanda Panfili offering shares of her music video

With anticipation running high, we present [Rusanda Panfili](https://www.rusandapanfili.com), the renowned solo violinist of [Hans Zimmer](https://www.rusandapanfili.com/events/the-world-of-hans-zimmer-tour-63fzy-7zcdb-bemxm-9wbxb-wzcw3), as our very first release. Rusanda has captured the hearts of audiences worldwide. She has truly made her mark in the classical, cross-over, and pop music scenes.

<iframe
    width="100%"
    style={{ aspectRatio: 16 / 9, marginTop: 64, marginBottom: 64 }}
    src="https://www.youtube.com/embed/7QtGOWemQhY"
    title="YouTube video player"
    frameborder="0"
    allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share"
    allowfullscreen
/>

Known for her versatility, virtuosity, and creativity, Rusanda has been touring the world's largest arenas. She explores new sonic worlds using her multi-instrumental skills as a composer and arranger. Our first collaboration in this ambitious venture has shown that Rusanda Panfili has proven to be a versatile and innovative force in the music world as she was willing to iterate [Talentir](https://talentir.com) to fully operational.

Now, fans of Rusanda Panfili can co-own a piece of her YouTube video, specifically, her breathtaking interpretation of [Jules Massenet's Meditation from Thais](https://www.youtube.com/watch?v=7QtGOWemQhY). By doing so, they participate in the success of every view for this timeless masterpiece. During her musical journey, she worked alongside superstars like Hans Zimmer, Brian May, Gavin Greenaway, Gabriel Yared, Steve Vai, Guthrie Govan, Carlos Rafael Rivera, Valentina Nafornita, Tina Guo, Worakls or Igudesman & Joo. We're thrilled to have you onboard, Rusanda.

![Live](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/first-video-out-now/Live.jpeg)

## Create an account and share your experience with us

Talentir aims to build a community where artists and fans can grow and succeed. Artists gain a new way to monetize their work and deepen their relationship with their fans. In contrast, fans can participate in the journey and growth of their favorite artists directly and meaningfully.

Securing a stake in a YouTube video is more than just an act of fan affection. It's a novel way to participate in an artist's journey, and it's about making a tangible contribution to the music you love and sharing in the success that follows.

To get a share of Rusanda's interpretation of Jules Massenet's Meditation from Thais all you have to do is go to [Talentir](https://talentir.com). All you first-time investors out there, let us know your experience with us. Whenever you have direct feedback, send it right away to office@talentir.com.

Welcome to Talentir, welcome to the world of content trading.

## Follow Rusanda Panfili

-   [Website](https://www.rusandapanfili.com/)
-   [Patreon](https://www.patreon.com/rusandapanfili)
-   [Instagram](https://www.instagram.com/rusandapanfili/)
-   [Youtube](https://www.youtube.com/@RusandaPanfili)
-   [Facebook](https://www.facebook.com/rusandapanfiliofficial)
-   [Spotify](https://open.spotify.com/artist/7i3Xc8Q0FEGHlsERoPgejc?si=Y6STTr-4TWim7pBhey1Ddw&nd=1)


Johannes Kares, CTO


We want to thank Quantstamp for conducting a thorough audit of our codebase. Regardless of how much expertise, dedication, and effort you devote to your programming work, a second pair of professional eyes is always advantageous.

This audit constituted one of the final necessary steps before we launched our Beta version. We have received our final audit report from [Quantstamp](https://quantstamp.com) (one of the leading security companies in the blockchain industry).

![Quantstamp](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/we-have-been-hacked-it-was-painful-but-at-least-we-paid-for-it/Quantstamp.png)

This milestone brings us closer to realizing our vision of enabling artists to transform their YouTube videos into tradable and sharable assets and letting them share ownership with their fans. In this blog post, we will show you the inner workings of Talentir and explain why smart contract audits are essential for maintaining the security and integrity of our platform.

At Talentir, we offer two types of smart contracts. The first one enables fractional ownership of YouTube videos, implementing the ERC1155 standard. This means fans can own small parts of the video's rights.

![Buy](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/we-have-been-hacked-it-was-painful-but-at-least-we-paid-for-it/Buy.png)

Additionally, we have developed a decentralized marketplace where these fractions can be bought and sold, providing a transparent and efficient platform for creators and fans to engage in an entirely novel way.

To safeguard our platform and protect the interests of our future users (You), we enlisted the services of Quantstamp, one of the best companies specializing in securing blockchain ecosystems. Together with their expertise in automated and manual auditing techniques, the amazing Quantstamp team thoroughly examined our smart contract code. Their auditors meticulously tested the code against various known vulnerabilities, documenting its behavior and identifying potential issues.

> Following the audit, we can confidently state that our platform's foundation – the smart contracts – have undergone a rigorous audit to ensure maximum security for all users.
>
> <cite>[Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), CTO Talentir</cite>

One significant advantage of an in-depth contract audit is the level of transparency it provides. Even if you don't fully understand all the underlying technology, it's vital to know that we're making every effort to guarantee the safety of your assets. Having our code audited by an independent entity like Quantstamp offers our users an impartial view of the security precautions we've implemented on our platform. Of course, full transparency might come with difficulties, but it fosters trust and confidence in everything we do.

During the four-week audit period, the auditors identified several issues within our smart contract code. As it is a new way to use these special contracts, looking for vulnerabilities was even more critical. This process allowed us to strengthen our platform's security, ensuring that everybody can safely engage with Talentir.

Completing our smart contract audit is a significant milestone for us and our vision.

While experiencing this test was undoubtedly a painful experience, we recognize the value of undergoing smart contract audits. We will soon start to open our platform to more fantastic artists and creators to join us on the way to unchaining the full potential of digital content.



# This is the story of how a Swiss-Austrian startup unleashes the power of co-ownership.

Content creation is booming, and fans have become the lifeblood of the entertainment industry - This is the perfect birth environment for our venture, Talentir. Talentir is the first platform to turn YouTube videos into a shared success story.

> We strive to make it as easy as possible for musicians and creators to turn their content into tradable and sharable assets.
>
> <cite>[Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), CTO Talentir</cite>

By investing more than time in digital content, fans become more than mere spectators – they become stakeholders with a direct financial interest in the artist's achievements. This concept of co-ownership strengthens the bond between artists and their fans and empowers fans to contribute to the artist's economic growth.

> We spent a lot of effort to make the Talentir user experience as smooth as possible.
>
> <cite>Patrick Wibmer, Talentir's UX-Designer</cite>

Creators paste the YouTube URL into the Talentir platform, define the percentage of shares they are willing to offer, and share the news with their fans. Talentir does the heavy lifting in the background to let fans receive a portion of the ad revenue generated by their videos. This unique setup establishes a direct support line between fans and artists, forging a symbiotic relationship that benefits both parties.

[This](https://talentir.com/create) is the entry point to turn your YouTube Video into a sharable and tradable asset.

## But why would talents choose to sell parts of their revenue streams?

The relationship between artists and fans is rapidly transforming in today's interconnected digital world. With the rise of platforms like Talentir, established artists are discovering innovative ways to deepen fan engagement and, in the process, unlock a new promotional powerhouse.

Artists convert their followers into influential promoters by allowing fans to invest in their success. These fan investors are now vested in the artist's success and are naturally incentivized to share, stream, and promote their music. This type of organic promotion, rooted in genuine fandom and financial interest, has the potential to reach far beyond traditional advertising campaigns.

![Loudspeaker](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/how-a-swiss-austrian-startup-unleashes-the-power-of-co-ownership/Loudspeaker.png)

Beyond promotion, this revenue-sharing model helps build a closely-knit community of dedicated fans. These aren't just passive listeners but active participants in the artist's journey. This tight-knit community can generate a level of loyalty and advocacy that no amount of marketing spend can buy.

Revenue sharing also creates a ripple effect that can significantly expand an artist's reach. As fan investors share and promote the artist's work within their networks, the artist gains access to a much broader audience. This can help established artists break into new demographics and geographies.

![Stats](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/how-a-swiss-austrian-startup-unleashes-the-power-of-co-ownership/Stats.jpg)

Finally, this innovative approach can positively impact the artist's brand image. It demonstrates a commitment to fan engagement and a willingness to share success. This strengthens the relationship with existing fans and makes the artist more appealing to potential new fans.

As the industry continues to evolve, Talentir stands at the forefront, defining how we value and engage with the artists we admire.



> What if you could be part of a movement that revolutionizes the music industry, democratizes content, and creates authentic connections between artists and fans?

This question came to my mind as I wanted to take a new step in my professional career, transitioning from the Head of Artist Marketing for Universal Music Austria to becoming the Marketing Director for Talentir.

After spending more than 11 years for the ORF Radio FM4 and 4 ½ years for Universal Music, I had established a fruitful career in the music industry. My last role involved shaping artists' careers and navigating the entertainment business's complex landscape. However, despite the fulfillment and accomplishments I experienced, I couldn't shake the feeling that something was missing — a desire to challenge the status quo, disrupt traditional models, and significantly impact the industry I loved.

![FM4](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/fm4.png)

That's when I met the guys from Talentir. This young Austrian startup shares my vision of transforming people's thoughts about content, democratizing the music industry, and focusing on the artist-fan relationship. The more I learned about Talentir's mission, the more convinced I became that this had to be the next step in my career journey. I wanted to be part of an organization that had the potential to revolutionize an entire industry and create sustainable change.

Talentir is creating a new era of creative ownership and community-building. It empowers artists to take ownership of their work and share it with their fans as tradable assets. This innovative approach allows greater participation and democratization in an industry dominated by big players. By allowing fans to invest, collect, and trade digital content, Talentir is redefining how people engage with music and enabling artists to build loyal and supportive fan communities.

Throughout my career in the music industry, I witnessed the immense impact that a strong connection between artists and fans can have. However, traditional models often limit the potential for this connection to thrive. Talentir's platform offers a unique opportunity to bridge that gap, enabling artists to share their work directly with their fans and giving fans a chance to participate in an artist's success actively.

![Dashboard](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/dashboard-david.png)

As a marketing executive, I am deeply passionate about entrepreneurial thinking and constantly seek challenges that align with my values and goals. Therefore, Talentir's mission resonated with me on a profound level. I want to change how people think about content, challenge established norms, and create a more inclusive and sustainable music industry. By joining Talentir, I am in a position to make a tangible impact and drive positive change.

> I am confident that Talentir will revolutionize how we monetize moving images, democratize access to music, and create a sustainable ecosystem that benefits artists and fans alike.

Moreover, Talentir's focus on creative ownership and community building aligns perfectly with my belief in the power of strong connections. As a natural connector and communicator, I firmly believe that fostering authentic and sustainable relationships is the foundation for success. Talentir's platform provides the tools and opportunities to build and nurture these connections, creating a vibrant ecosystem where artists and fans can thrive.

In addition to my alignment with Talentir's mission, I am equipped with the necessary skills and experience to contribute to its success. With 19 years of work experience, including ten years in leadership and management roles, I bring a wealth of marketing, project management, information technology, and web3 knowledge. Besides, my preference to drive innovation, embrace change, and navigate complex challenges will be helpful as we shape the future of the music industry together.

We can change how people think about content and forge a brighter future for the creative industry, where artists and fans are united in their passion for music, empowered by creative ownership, and connected in a community built on trust, authenticity, and mutual support.
The journey ahead is exciting, challenging, and full of opportunities, and I am more than ready to start this adventure.



In an era where content creation and consumption are experiencing exponential growth, our vision to redefine the landscape of content monetization has steadily grown from an idea to a venture, bringing a new set of opportunities for creators, fans, and believers alike.

Coming from the music industry, our deepest wish to add new revenue streams to the artist's portfolio has also led to ready and easy-to-use software solutions to help reduce complexity in every conceivable way. We streamline the often-convoluted rights management process for labels, Artists, and Creators and distribute generated royalties to all parties involved automatically and at scale. This innovative approach allows creators to focus on their craft while their fans and investors actively participate in the success of their favorite content.

> Our technology is designed to work seamlessly with YouTube's Content ID system, ensuring that creators' intellectual property remains protected.

We take care of the complex rights management process, enabling creators to easily share, transfer, and trade their content while ensuring transparent and fair revenue distribution to all rights holders at any time.

In addition to the benefits for creators and fans, Talentir has the potential to add a whole new way for investors to approach digital content. We are proud to be the first to offer YouTube videos not only as a source of entertainment but an exciting opportunity for everybody to invest. **From now on, YouTube will be a new asset class, enabling our generation to capitalize on the success of famous videos creators and channels.**

As the lines between creators, fans, and investors continue to blur, we offer a glimpse into a future where content consumers are not just passive viewers but active participants in the success of their favorite creators – Time to change how digital content is seen, used, and traded.



> It is the end of a day, and just falling asleep and being fit the next day is an option. You decide to open YouTube, and the next time you check your watch, three hours have passed…

We've all been there, falling down the rabbit hole of captivating videos and losing track of space-time. From unboxing lightsabers to exploring quantum physics in giant black holes in the vast emptiness of space, YouTube offers an endless array of content to entertain, educate, inspire, and extract our time. But what if we told you there's a way to go beyond passive consumption on this incredible platform…

In the past, our engagement with YouTube creators was limited to watching, liking, and subscribing. We admired their talent and creativity, but we were more or less spectators in thceir journey.

![Youtube Image](https://hyjrzzgpknhicizwpwna.supabase.co/storage/v1/object/public/blog-images/youtube.jpg)

However (and thx to a dedicated team of engineers and lawyers at Talentir), times have changed: From now on, everybody can become active stakeholders in the success of their favorite creators - On YouTube.

YouTube videos generate tens of billions of dollars every year in ad revenue, and our technology and legal setup offer all the amazing creators, channels, and artists out there a solution that improves payouts and engagement on the one hand and reduces complexity in the rights management process.

The next time you find yourself immersed in the fascinating world of YouTube, remember that you have the choice to invest your time in the creators you admire, find content that has the power to generate momentum, and then go to bed or make the best out of your time spent in the rabbit hole and turn it into a path of shared growth and opportunity.



In today's digital age, content creation has become a powerful tool for artists, musicians, and creators to express their talent and engage with audiences worldwide. However, monetizing this content and generating sustainable revenue streams can be a significant challenge. This is where we, Talentir, a startup based in Vienna and Zurich, aim to make a difference. Our vision is to transform YouTube videos into manageable assets, allowing creators to share the financial benefits of their content with fans and investors alike.

The concept behind Talentir is simple yet innovative. Once a video reaches a certain number of streams, it generates revenue. Through our platform, creators can trade the rights to their videos with a mouse click. This means that content creators can sell a portion or all of their future earnings to fans or investors. This groundbreaking approach opens up new possibilities for artists to capitalize on their work while allowing fans to actively participate in their favorite creators' success.

Recently, we secured a multimillion-dollar investment. [Bitpanda](https://www.bitpanda.com/de)-CEO [Eric Demuth](https://www.linkedin.com/in/eric-demuth-9ba02943/) led the funding round, with notable participation from [Johannes Braith](https://www.linkedin.com/in/johannesbraith/), [Ferdinand Dietrich](https://www.linkedin.com/in/ferdinand-dietrich-284baaa1/), and [Christoph Sandraschitz](https://www.linkedin.com/in/christoph-sandraschitz-5b737510a/), the founders of [Storebox](https://www.yourstorebox.com). Other participants included venture capital firms [Hardlymountain Capital](https://www.hardlymountain.com) and Eru Ventures ([All About Apps](https://allaboutapps.at/en/) & [Dots and Lines](https://www.dotsandlines.io)), and [Masters of Dirt's](https://www.mastersofdirt.com) CEO [Georg Fechter](https://www.linkedin.com/in/georg-fechter-4592b8112/) also joined as a contributor.

> There are still so many areas out there that need disruption. The content monetization industry is one of them.
>
> <cite>Eric Demuth, Bitpanda-CEO</cite>

Our founders, [Lukas Sticksel-Steiner](https://www.linkedin.com/in/lukas-sticksel-steiner-a250a7139/) and [Johannes Kares](https://www.linkedin.com/in/johannes-kares-75b2698b/), have developed a co-ownership model for YouTube videos. The idea originated during the COVID-19 pandemic when the team sought to create a new revenue stream for artists and musicians. [Sticksel-Steiner](https://www.linkedin.com/in/lukas-sticksel-steiner-a250a7139/) explained, "Digital content is the gold of our generation, and we make it accessible to everyone." On talentir.com, content creators can offer a certain percentage of their content for financial participation by interested parties. We act as the facilitator, turning fans into co-owners and automatically distributing the ad revenue generated by the underlying videos to the shareholders.
This approach provides various opportunities for content creators. Established artists can cash out while emerging artists can utilize the received funds to finance new productions. On the other hand, fans have the chance to grow alongside their favorite creators, fostering a deeper connection and sense of shared success.

As Talentir approaches its product launch in the coming weeks, excitement is building. Content creators who have already produced and released their content can now sign up on talentir.com. The website launch will follow a top-down approach, allowing the company to identify and address issues in real-time, iterate quickly, and foster a content-like growth trajectory.
As Talentir continues to evolve and expand its services, the future looks promising for content creators seeking innovative ways to monetize their work and fans eager to support and grow with their favorite artists. Stay tuned for exciting developments as Talentir reshapes the content ownership and monetization landscape.


Compensation for Mechanical Royalties: Paying and Collecting

Performance Royalties Explained: Who pays and collects them?

What Are YouTube Royalties and How Do They Work?

Rusanda Panfili Launches First Fan-Owned YouTube Video

Our Codebase Has Been Put to the Test

From Startup To Changing The Content Industry

Head of Marketing Universal Music joins Talentir

Talentir Pioneers YouTube Video Investments

The YouTube Rabbit Hole That Is Creating Value

The Million Dollar Pre-Seed Round