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The record royalty for a producer is usually between 3% to 4% of the record's sales price or 20% to 25% of the artist's royalties. On a CD that sells for $10.98, the producer's royalty would be about 33 cents for each copy sold and for a digital download of an album priced at $9.98 the producer receives 30 cents.
Whoever wrote the song gets publishing. However, if the artist and producer build a song from scratch and basically co-write the song together, then, yes, the producer gets co-writing credit and ownership. Simply, they get publishing.
Every time a track or record sells, all the songwriters receive a total of 9.1 cents in mechanical-royalty payments.
The standard percentage that Producers & Beatmakers get is 50% of the publishing royalties, and 3%-5% of the master royalties.
This royalty is freely negotiated in the marketplace and is typically split 50% to the publishers (songwriters and producers) and 50% to the artist and record label, meaning there are two levels of clearance for a master recording in a movie.
Usually, a producer makes 3% to 5% (20% to 25%) of the artists share of a master recording. This number could be a bit higher if the producer is influential and has a brand of their own.
The Copyright Royalty Board has established that the current statutory rate for the mechanical reproduction of a composition in a permanent digital download is 9.1 cents per composition or 1.75 cents per minute for compositions over 5 minutes in length (the same statutory rate that applies to mechanical reproduction in
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%.
Record Labels Record labels generate income from mechanical and public performance royalties. They issue contracts that allow them to exploit the recordings in exchange for royalty payments over a set length of time. The artist then receives a flat rate or percentage of these record label royalties.
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.