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Artist’s Performance Royalties
Performance rights organizations track and pay royalties to song writers, publishers, and musicians for use of their works. Royalties are paid to an artist based on a complicated credit system using a formula with weights assigned for a variety of factors, including the following:
These amounts are multiplied together, and then a radio feature premium is added, if applicable, to arrive at a total number of credits for the particular artist, or his or her credit total for a particular reporting period. Royalties are usually split among the writer, the publisher, and possibly a performer if the writer does not perform his or her own work. The proportion that each party receives is called the share value. All of the money collected for the reporting period divided by the total number of credits for all performers is called the credit value. An artist who wants to figure out what money he or she will receive for a period has to multiply the three factors; credit total, share value, and credit value.
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