What are royalties in the music business?

Royalties are payments received by authors and publishers when their works are used. This is conditional upon them granting GEMA the rights of use; GEMA then issues licences to music users and generates revenue as a result. We distribute this revenue to the rights holders, after deducting administrative costs, in accordance with the GEMA distribution plan. Payments are made on a sector-specific basis across five areas:

• Television/Radio/Film
• Live Performances/playback
• Sound carriers/audiovisual recordings
• Online
• International income

The GEMA distribution plan sets out the binding criteria according to which revenue is divided amongst composers, lyricists and music publishers.

You can find details on royalties and the individual categories in our section ‘Everything you need to know about the payment of your royalties’.