When a song is written, performed, or recorded, it can generate royalties - payments made to the copyright holders of the song.
Let’s return to the case of Tom Petty and Sam Smith we explored in the introduction as an example.
When Sam Smith released Stay With Me, it was a massive hit.
Smith earned significant royalties through
1. Performance royalties
These are earned when the song is played on the radio, performed live, or streamed online.
2. Mechanical royalties
These are generated from album or single sales, whether digital or physical (like CDs or vinyl).
3. Sync royalties
These apply if the song is used in TV shows, movies, or ads.
After recognising the similarity between Stay With Me and Tom Petty’s I Won’t Back Down, Petty was credited as a co-writer of Stay With Me. This meant he was entitled to a percentage of the song’s royalties.
So, every time Stay With Me earns money—whether through streaming, radio play, or a live performance— Petty and Smith both earn money.
This cover of Stay With Me by Angus and Julia Stone was performed live but also recorded and released on Spotify.
What type of royalties from the list above do you think Smith and Petty earned?
HOW DO I EARN ROYALTIES?
If you write and perform your own music, you may be entitled to royalties - even when playing at your own gigs!
One way is through APRA AMCOS Performance Reports
If you perform your own original songs at gigs, you can submit a Performance Report to APRA AMCOS. This ensures you receive a share of the licence fees that venues pay for live music.
What do you include on a Performance Report?
- What songs you played
- Where you played
- When you played
And don’t forget—if you perform cover songs, list them too! That way, the original songwriters also get paid for their work.
