Performance royalties and mechanical royalties are both paid to songwriters and composers, but they come from different types of music use and are collected by different organisations. Understanding the distinction is essential for knowing where your income should come from — and where it might be missing.
The core distinction
Performance royalties are generated when a composition is performed or broadcast publicly. Mechanical royalties are generated when a composition is reproduced — physically or digitally. Both are paid to the composer and songwriter (not the performer or record label), but they arise from different types of use and are collected by different organisations in the UK.
Performance royalties in detail
A performance royalty is triggered whenever a composition is communicated to the public: broadcast on radio or television, streamed on a platform, performed live in a licensed venue, or played as background music in a commercial space. In the UK, PRS for Music is the collecting society responsible for licensing these performances and distributing royalties to registered writers and publishers. The royalty is split 50% to the writer and 50% to the publisher. PRS collects from broadcasters (BBC, ITV, commercial radio), digital platforms (Spotify, Apple Music, YouTube), live venues, and businesses using background music. These royalties are calculated on different bases depending on the usage type — broadcast uses a blanket licence, streaming platforms pay per stream based on a percentage of revenue.
Mechanical royalties in detail
A mechanical royalty is triggered whenever a composition is reproduced in a fixed form: pressed onto a CD or vinyl record, encoded in a digital download file, or streamed (because each stream involves a temporary reproduction of the composition). In the UK, MCPS (the Mechanical Copyright Protection Society, which operates alongside PRS for Music) handles mechanical licensing. For streaming platforms, MCPS operates through the Online Music Licensing Centre (OMLC) and collects mechanicals automatically for PRS members — you do not need a separate MCPS registration for streaming if you are a PRS member. For physical manufacture, a separate MCPS licence is required. The UK mechanical rate for streaming is set by the Copyright Tribunal as a percentage of platform revenue.
The same stream pays both
This is the point most songwriters miss: a single Spotify stream generates both a performance royalty and a mechanical royalty. Both flow to the songwriter (and publisher), but through the same PRS/MCPS system. For UK songwriters who are PRS members, both are collected via PRS. The royalty statements you receive from PRS include both the performance (online) and mechanical (MCPS/OMLC) components, though they may appear as separate line items.
What this means for your income
For a UK songwriter:
- A radio broadcast generates a performance royalty (PRS). It does not generate a mechanical royalty because no reproduction is made for the listener.
- A stream on Spotify generates both a performance royalty (PRS) and a mechanical royalty (MCPS via OMLC) from the same usage event.
- A CD sold generates a mechanical royalty (MCPS licence). The performance royalty arises only if the CD is played publicly.
- A sync in a TV programme generates a synchronisation licence fee (negotiated separately) and, once the programme airs, a broadcast performance royalty (PRS).
- A live performance generates a performance royalty (PRS), collected from the venue's blanket licence.
US vs UK: where things get more complex
In the US, performance royalties and mechanical royalties are collected by entirely separate organisations. ASCAP, BMI, and SESAC handle performance; the MLC (Mechanical Licensing Collective) handles digital mechanicals; and HFA (Harry Fox Agency) handles physical mechanicals. UK songwriters with US income need to understand this split because the US has historically had poor mechanical royalty collection — a significant proportion of US mechanical income went uncollected before the MLC was established in 2021. If you have US streaming income, verify that your mechanicals are flowing via the MLC.
Code Group Music manages both performance and mechanical royalty collection for UK songwriters, including cross-border collection gaps. Begin with a catalog assessment at codegroupmusic.co.uk/#catalog-assessment.
Frequently Asked Questions
Do I need a separate MCPS registration?
For streaming, no — MCPS mechanical collection is handled automatically through PRS membership via the OMLC. For physical manufacturing (CDs, vinyl), you need a separate MCPS licence to reproduce your own compositions. Contact MCPS directly for physical manufacturing licences.
What is the mechanical rate in the UK?
The mechanical rate for streaming in the UK is set by the Copyright Tribunal as a percentage of platform revenue, divided across all streams. It is not a fixed per-stream rate. The effective rate per stream varies by platform, tier, and territory but typically represents a small fraction of a penny per stream.
Who collects mechanical royalties for physical sales in the UK?
MCPS issues licences to manufacturers and distributors for physical product. If you are manufacturing your own CDs or vinyl, you need an MCPS licence even if you wrote the compositions yourself. Contact MCPS at prsformusic.com/royalties/mcps.
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