A recording can generate more than streaming and download income.

Neighbouring-rights royalties may be earned when recorded music is broadcast or played publicly. They relate primarily to the sound recording and the performances captured within it.

They are separate from conventional songwriter publishing royalties.

Who can earn neighbouring rights?

Depending on the country and use, money may be payable to:

  • The master owner
  • The featured artist
  • Session musicians
  • Other eligible performers

One person can hold several roles.

An independent artist who owns the master and performs on the recording may have claims on both sides.

What uses can generate royalties?

Qualifying uses vary by territory, but can include:

  • Radio broadcasts
  • Television broadcasts
  • Music played in shops
  • Music played in restaurants
  • Music played in workplaces
  • Certain digital radio services
  • Public venues
  • Other licensed public performances

On-demand streams are normally handled differently through the streaming service and distributor.

How are they different from publishing royalties?

Publishing relates to the underlying composition: the melody, lyrics and musical work.

Neighbouring rights relate to the recording and recorded performance.

Imagine an original song written and recorded by one artist.

That artist may receive:

  • Master-recording revenue through a distributor
  • Songwriting income through publishing collection
  • Neighbouring-rights income as master owner
  • Neighbouring-rights income as performer

Each stream has different registrations and collection systems.

PPL in the United Kingdom

In the UK, PPL licenses recorded music for broadcasting and public use.

Eligible recording rightsholders and performers can register their recordings and performance information.

Accurate contributor data matters. Session musicians who are not credited correctly may find it harder to connect themselves to recordings.

SoundExchange in the United States

SoundExchange collects certain US digital-performance royalties from non-interactive services.

This is different from ordinary interactive streaming where a listener chooses a specific track on demand.

Artists with international audiences may need to consider several collection territories and reciprocal arrangements.

What information should you keep?

Maintain records of:

  • ISRC
  • Recording title
  • Artist name
  • Master owner
  • Featured performers
  • Non-featured performers
  • Instruments or roles
  • Recording date
  • Country of recording
  • Release date
  • Ownership percentages

Collect this information while making the recording, not years later.

Session musicians should keep their own records

Performers should document:

  • Which recordings they played on
  • Their role
  • The artist and release
  • Studio dates
  • Agreements
  • ISRCs once available

Do not assume someone else will register every contribution correctly.

Are neighbouring rights collected automatically?

Not necessarily.

Distributing a recording does not mean every master-owner and performer registration has been completed in every relevant territory.

Review distribution, publishing and neighbouring rights separately.

Independent artists often concentrate on visible streaming income while overlooking less obvious revenue. A complete rights strategy follows both the song and the recording wherever they are used.