What song royalties are and how they are collected

What song royalties are and how they are collected

Updated: November 2026 · Diskover team

Quick answer: royalties are the money a song generates every time it is listened to, sold or used. Every song generates two types of royalties: those for the recording (master), which you collect through your distributor, and those for the composition, which you collect as a songwriter through SGAE or a publisher. On top of that, performers and producers have neighbouring rights (AIE and AGEDI). At Diskover you collect master royalties from 30+ platforms and from YouTube Content ID (you keep 80% on Starter and 100% on Unlimited), you receive them via PayPal, and we can also collect your publishing and neighbouring rights.

Calculate your royalties: find out how much your streams generate and how your master is split with our Spotify royalty calculator, free and with no sign-up.

What are music royalties?

A royalty is a payment for the use of a protected work. In music, every stream, every sale, every time it plays on the radio, in a bar or in an ad, generates a small amount of money for whoever holds rights in that song.

The key to understanding them is knowing that a song is actually two different things:

  • The work or composition: the lyrics and the music. It belongs to the authors (composers and lyricists) and, where applicable, their publisher.
  • The recording or master: the specific audio you hear. It belongs to whoever produced and financed it (the independent artist or the label).

Types of royalties a song generates

Type What generates it Who collects it How it reaches you (Spain)
Master royalties Streaming and downloads Owner of the recording Distributor or label
Songwriting royalties (public performance) Radio, TV, concerts, bars, streaming Songwriters and publishers SGAE or another authors’ society, or your publisher
Songwriting royalties (reproduction / mechanicals) Copies and streaming Songwriters and publishers SGAE or publisher / publishing administration
Performer rights Public performance and making available Performing artists and musicians AIE
Phonogram producer rights Public performance of the recording Producer of the master AGEDI
Sync Use in ads, series, films, video games Owners of the composition and master Licence negotiated directly
Content ID / social YouTube, TikTok and Instagram videos that use your music Owner of the master Distributor

How do you collect royalties, step by step?

  1. Distribute your music with a distributor that pays your master royalties, ideally with Content ID included. We explain it in how to distribute music.
  2. Register your songs as a songwriter. If you write, join an authors’ collecting society (in Spain, SGAE) and declare each work with its authorship percentages.
  3. Sign a split sheet with your co-writers before releasing: who wrote what and what percentage each has.
  4. Consider publishing administration to collect your songwriting royalties outside Spain, where local societies often don’t reach well.
  5. If you are a performer or session musician, join AIE to collect your rights as an artist.
  6. If you own your masters, consider also managing your rights as a phonogram producer (AGEDI) to get paid when your recording plays on radio, TV or in venues.
  7. Check your reports regularly and make sure the ISRCs and credits are correct.

When are royalties paid?

Royalties are never immediate. Platforms report with a one- or two-month delay, the distributor processes the reports and pays you according to its schedule. Collecting societies usually pay out several times a year and with more delay, because they have to identify every use. That’s why it’s normal to see money from a song months after it plays.

How much money do streaming royalties generate?

There is no fixed rate per stream. Each platform shares a percentage of its revenue according to each song’s share of listening in each country. We explain it in detail in how Spotify royalties work in Spain.

How you collect your royalties with Diskover

Royalty Does Diskover handle it? Plan
Master: streaming and downloads on 30+ platforms Yes All (80% on Starter, 100% on Unlimited, custom % on PRO)
YouTube Content ID Yes All
Official Artist Channel on YouTube (OAC) and Vevo Yes Unlimited and PRO
Publishing: songwriting royalties worldwide Yes, with publishing administration Optional on Unlimited and PRO
Neighbouring rights (artist, performer, phonogram producer) Yes PRO
Syncs (advertising, film, TV) Yes, we pitch to music supervisors PRO
Splits between collaborators Yes, automatic % split PRO

How we pay you: you request your payout directly to PayPal (on PRO, also by bank transfer). If you want to know which works out better for you, Starter or Unlimited, we do the maths in how Spotify royalties work in Spain.

See Diskover’s plans.

Frequently asked questions

What are a song’s royalties?

They are the payments received by a song’s rights holders (songwriters, performers, producers and publishers) every time it is played, sold or used.

Who collects a song’s royalties?

The master owner collects through the distributor or label; songwriters through SGAE or another society and their publisher; performers through AIE; and phonogram producers through AGEDI.

Do you need to be in SGAE to collect Spotify royalties?

Not for the master: your distributor pays it. But if you wrote the song, without registering with an authors’ society or a publisher you’ll leave the songwriting royalties generated by streaming uncollected.

How long do royalties take to be paid?

Master royalties usually arrive one or two months after the listen. Songwriting royalties can take several months longer, depending on each society’s payout schedule.

How do I collect my royalties with Diskover?

Diskover collects master royalties from 30+ platforms and from YouTube Content ID, and you request your payout directly to PayPal. On the higher plans we also collect your publishing and neighbouring rights.

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