Understanding Master Rights: What Every Artist Needs to Know

When diving into the world of recorded music, understanding master rights is crucial for any artist aiming to secure every possible revenue stream. While it might not be the most glamorous topic, knowing how master rights work can make a huge difference in your earnings over the long run.

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What Exactly Are Master Rights?

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Every recorded track involves two major categories of rights: copyrights and master rights. While copyrights relate to the authors, composers, and songwriters, master rights pertain to those who bring a recording to life: performers and producers.

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If you sing, play an instrument, or contribute to the production of a track, you hold master rights. That means you’re entitled to receive master royalties whenever that recording generates income.

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In Europe (and sometimes in North America), these are often referred to as ‘neighbouring rights.’ They exist alongside copyrights and are just as important to secure.

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If you’re an independent artist, remember that you wear multiple hats. You might be the songwriter, performer, and producer all at once. Make sure you collect both your songwriting (copyright) royalties and your master royalties so that you don't leave money on the table.

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How Are Master Royalties Collected?

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For Independent Artists (No Label):

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Master royalties are collected through two primary channels:

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1. Digital (Streaming Services)
   Digital distributors such as DistroKid, TuneCore, CD Baby, and others help you get your music onto streaming services. They collect master royalties generated by your tracks on those platforms and pass them on to you, usually taking a fee or commission.
2. Terrestrial (Radio, TV, Public Venues)
   If your music gets played on radio, TV, or in public spaces, you need to register with a Collective Management Organization (CMO) specializing in neighbouring rights to collect those royalties. Examples include PPL (UK), ADAMI (France), or AIE (Spain).

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For Artists Signed to a Label:

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When you’re signed with a label, they typically handle distribution to streaming platforms and collect the master royalties. They then pay you your share based on your contract.

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For terrestrial royalties, labels often have agreements with CMOs that handle the collection of royalties generated from radio, TV, and other public performances. Depending on your contract, your label will distribute those earnings to you. For your performance share, you might still need to join a CMO directly.

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Key Differences Between Europe and the US

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There are important distinctions between the European and US systems when it comes to master royalties.

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In Europe, digital royalties generally come from your digital distributor, while terrestrial royalties are collected via national CMOs.

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In the United States, the situation is a bit more complex:

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• Interactive streaming (like Spotify) royalties come through your digital distributor.
• Non-interactive streaming (like Pandora) royalties are collected by SoundExchange, the US government-designated agency for this purpose.
• Terrestrial radio in the US doesn’t pay master royalties at all. Unlike Europe, performers and producers don’t get paid for radio plays. Songwriters and publishers do, through BMI, ASCAP, or similar organizations.

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Remember This

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Master rights represent your performer and producer stakes in recorded music. Whether you’re a DIY artist or working with a label, it’s crucial to know how and where to collect these royalties. Protecting your master rights means protecting your income — and ultimately, your career.

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Stay informed, register with the right organizations, and keep control over every piece of revenue your music generates.

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