When it comes to interactive streaming services — the kind where you get to choose which songs you listen to (as opposed to non-interactive streaming services like Pandora) — there are four ways to make money.
When your music is played on Spotify, Beats Music, Rdio, and other streaming platforms, you are owed:
1. The regular ‘ole payment for the stream —
This money is sometimes called a “master use royalty,” an “artist royalty,” or “the master license fee.” What this means in plain-speak is that you’re being paid a fee every time a listener streams your sound recording via Spotify, Beats, etc. If you’re being distributed through CD Baby, these payments are reported in your accounting dashboard.
2. Performance royalties —
If you’re registered as both a songwriter and publisher with a performing rights organization such as ASCAP or BMI, then you’ll receive these royalties through them for any interactive streams. Read more »