Mechanical royalties are one of the most misunderstood income streams in music — and one of the most commonly uncollected. Here is exactly what they are, where they come from, and how to make sure you receive them.
The reproduction right and where mechanical royalties come from
Mechanical royalties exist because of the reproduction right — the exclusive right of a songwriter or composer to control how their composition is copied. Every time your song is reproduced in a fixed format, whether that is pressed onto vinyl, encoded into a digital download, or streamed on Spotify, a mechanical royalty is generated. The term mechanical dates to the era of player piano rolls and early phonograph recordings, when music was literally reproduced by machines. The name has stuck.
Mechanical royalties vs performance royalties
These two royalty types are generated by the same composition but through different rights and collected by different organisations:
- Mechanical royalties — generated by reproduction of the composition. Collected by MCPS in the UK, Harry Fox Agency or Songfile in the US, and equivalent bodies internationally.
- Performance royalties — generated when the composition is publicly performed or broadcast. Collected by PRS for Music in the UK, ASCAP or BMI in the US.
Why both matter
A single stream on Spotify generates both a mechanical royalty (for the reproduction of the composition) and a performance royalty (for the public communication of that composition). If you are only registered with PRS and not with MCPS, you are collecting one and missing the other. In the UK, MCPS operates under the PRS for Music umbrella, but registration and administration are distinct.
How mechanical royalties are calculated in the streaming era
The rate paid for mechanical royalties varies by territory and by agreement type. In the UK, streaming mechanical rates are set through industry-wide licensing agreements between MCPS and the major streaming platforms. The per-stream rate is small — fractions of a penny — but across a catalog of releases and millions of streams, it becomes meaningful. The key variable is not the rate but whether your compositions are correctly registered to receive distributions in the first place.
Physical and download mechanicals
Although streaming now dominates, physical sales and digital downloads still generate mechanical royalties. For physical releases — vinyl, CD — the mechanical rate in the UK is set at 8.5% of the published price to dealers (PPD) for albums. Digital downloads carry a similar statutory rate. If your music is available in physical format anywhere in the world and you have not claimed these royalties, they are almost certainly sitting uncollected.
The most common reason mechanical royalties go uncollected
Most independent artists register with PRS for Music and assume they are covered. The MCPS side of the equation — mechanical royalties from reproductions — requires separate attention. Works must be registered with the correct identifiers, licensing agreements must be in place with relevant distributors, and international mechanical collections require engagement with collecting societies in each territory. Gaps at any of these points create uncollected income.
How to ensure you are collecting mechanical royalties
For UK-based artists, the starting point is confirming that your works are registered with MCPS as well as PRS. Your distributor should have a licensing agreement in place with MCPS for streaming mechanicals — most major distributors do, but not all budget services maintain complete coverage. For international mechanical income, a publishing administrator with multi-territory registration is the most reliable path to full collection.
If you are unsure whether you are collecting your mechanical royalties alongside your performance royalties, our free Catalog Assessment will identify any gaps in your current setup.