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This royalty is freely negotiated in the marketplace and is typically split 50% to the writers and 50% to the artist and record label.
Performance royalties are typically split into two equal halves: a writer share (50%) and a publisher share (50%). Performing Rights Organizations (PROs) and Collective Management Organizations (CMOs) collect and account for each of these revenue sources separately.
Since most producers get 3-7 points and most artist's deals are 12-20 percentage points of sales/streams, you divide the producer point by artist point. So, if you're working with a 4 point producer, you can divide 4 by 16 (typical artist points) and you get 25%. Or 4 divided by 20 would get you 20%.
Under the traditional recording agreement, recording artist royalties usually range from 10% to 25% of the suggested retail price for top-line albums (although many record companies have begun to compute royalties on the wholesale price).
If the label is a major record company, the artist split can range from 13% to over 20%. These artist agreements will often come with album advances. For indie labels, the split can be as high as 50%, but will often not include an advance.
Since most producers get 3-7 points and most artist's deals are 12-20 percentage points of sales/streams, you divide the producer point by artist point. So, if you're working with a 4 point producer, you can divide 4 by 16 (typical artist points) and you get 25%. Or 4 divided by 20 would get you 20%.
Performance royalties are typically split into two equal halves: a writer share (50%) and a publisher share (50%). Performing Rights Organizations (PROs) and Collective Management Organizations (CMOs) collect and account for each of these revenue sources separately.
As explained by Tune Core, the split nods to how much copyright the individual deserves from that particular song. For example, if there are four songwriters working together and it's divided that everyone has an equal percentage, the songwriting split will work out at 25% each.
In each accounting month, the label will receive their share of the revenue from the digital service provider (Spotify, Napster, Tidal, etc.). This revenue amount is from the number of streams played multiplied by the revenue per stream. This amount is then split out among the artists that were played in that duration.
Royalty splits when a song gets recorded and money starts rolling in2026 The publisher gets to first recoup the money they have paid a writer for advances and demo costs (for all songs, not just the one that got recorded). Therefore, they split royalties according to the contract.