Performance royalties is the revenue that is derived from the exploitation (or the use) of music in the form of plays on Radio, TV broadcasts, Live performances and online music streaming platforms (e.g Spotify, Apple Music e.t.c)
Performance royalties are collected by institutions called performance rights organisations on behalf of songwriters, composers and music publishing companies. In addition, each country has it’s own performance rights organisation to serve the needs of artists and music publishing companies.
For an artist or music publishing company to receive their entitled performance royalties they have to be affiliated with a Performance Rights Organisation otherwise they will miss out on revenue they would have received if they had done so accordingly.
How Performance Royalties Are Paid Out
Performance royalties are paid out in such a way that the performance rights organisation will send money in correspondence to the ownership of the writer’s share and the publisher’s share. That’s because in the context of music publishing copyrights a song consist of two parts which are the writer’s share and the publisher’s share.
If an artist writes their own music and releases it without being affiliated with any music publishing company except their own. It means that artist in question will be entitled to both the writer’s share and the publisher’s share income.
But if an artist has a deal with a music publishing company e.g a co-publishing agreement this means the artist will be entitled to receive all their income from the writer’s share perspective and 50% of their publisher’s share because the other half of the publisher’s share would go to a music publishing company.