What is a Performance Royalty?

A performance royalty is a payment made to songwriters and music publishers when their music is publicly performed or broadcast. A public performance can include music played on radio, television, streaming platforms, live concerts, clubs, restaurants, or other public venues. Each time a song is performed in these settings, the copyright holders may earn a royalty.

Performance royalties are typically collected and distributed by performance rights organizations (PROs) such as ASCAP, BMI, SESAC, or similar organizations in other countries. These organizations monitor where music is played and collect licensing fees from businesses, broadcasters, and venues that publicly use music.

The royalties collected are then distributed to the songwriters and music publishers who own the composition rights. Performance royalties are an important source of income for music creators because they compensate artists whenever their music is played for the public.