Of course, if you’re in a band, you should ideally sort out the splits before you release. Accordingly, you should receive royalties from both sources. That means you hold, respectively, the master rights and the mechanical/performance rights. If you self-release and you write your own material, you are the label and the songwriter. Likewise, Dolly Parton, who was the songwriter and lyricist, receives the mechanical and public performance royalties via her collection society or publisher. How do you know what is what? Take the example of Whitney Houston’s “I Will Always Love You.” Whitney recorded the song with Sony Music, her label, which owns the mastering rights and therefore receives the royalties for streams of the hit song. If you’re not sure what collection agencies are in your country, check out this this list of international collection societies. In the past, this came from the sale of physical recordings, but nowadays private streams are also included. Revenue from mechanical reproduction or performance rights paid to the composer, lyricist, and publisher of each song via a collection society (also known as performing rights organization) - such as BMI (US), ASCAP (US), PRS (UK), GEMA (DE), SACEM (FR), SGAE (ES) or SUISA - or publisher, if they have one.If you self-release, these are directly transferred to your digital music distributor. Royalties from the master rights in the form of income from streams.To break it down roughly, there are two sources of income available to you from Spotify: To understand how to make money on Spotify, you have to understand how money is paid out in the music industry.
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