In the digital age, performance is split into two different areas: linear and nonlinear. For example, if you’re listening to internet radio on NPR or satellite radio, like XM or Sirius, there’s a royalty, a linear royalty, which is different than a nonlinear royalty. For example, if you’re choosing songs not in a row, and you’re not listening to an internet radio station, maybe you’re choosing some of your favorite songs or a playlist that you made on your Spotify; that would be a nonlinear royalty.
Linear royalties are collected by an organization in the music industry called SoundExchange. You register your song with SoundExchange and they collect those linear royalties for you. In the case of nonlinear royalties, like an Apple Music or Spotify song, for example, they pay the artist directly. Those performance royalties can add up, and these days, now more than ever, it’s a main source of income for many artists who are generating a significant amount of spins online. This is important to know if you’re into music education or taking online music education courses.
Last but not least are sync fees. Sync fees are paid any time your song is placed in a commercial, a TV show, an online commercial, or film. That song must be licensed. There’s a master fee and a publishing fee. The publishing fee is collected by your publisher, who quotes on your behalf, or in your case, you quote on your behalf how much you are licensing your song for. In the case of the master recording, that will be licensed by your record company or by you (if you own your own masters).
