Royalties are the recurring income streams that make music a sustainable career. The main types are:
Performance royalties: earned when music is played publicly — radio, streaming, live venues, TV. Collected by Performance Rights Organizations (PROs) like ASCAP, BMI, GHAMRO, or COSON.
Mechanical royalties: earned when music is reproduced — physical sales, digital downloads, and streaming (yes, streaming generates both performance AND mechanical royalties).
Sync royalties: one-time fees for placing music in visual media.
Master royalties: earned by the owner of the master recording (often the label or artist) from sales and streams.