CD, Tape and Record Sales

Among the major sources of income for the songwriter and music publisher are the mechanical royalties due from the sale of CDs, tapes and records containing musical compositions. Under the current U.S. mechanical rate (known as the statutory rate) of 9.1¢ per song (or 1.75¢ per minute) for the years 2006 and 2007, a million-selling single would be worth a total of $91,000 in combined royalties to the publisher and writer. In terms of album sales, the above royalties would be multiplied by the number of songs on the album. For example, if 10 songs were included on a CD and each received a 9.1¢ royalty, a total of 91¢ in mechanical royalties would be generated from the sale of each album. If the album sells between one-million and ten-million copies, the aggregate writer and publisher royalties for the album would range from $910,000 to $9,100,000. Mechanical royalties are paid by the record company to the music publisher or its representative (the Harry Fox Agency).

© 2007 Todd Brabec, Jeff Brabec
For more information, check out the book Music, Money and Success: The Insider's Guide To Making Money In The Music Business (Schirmer Trade Books/Music Sales/502 pages) available for sale at Amazon.com, Barnes & Noble, Borders, Music Sales Group and www.musicandmoney.com.