Mechanical Royalties Explained: How Songwriters Get Paid Per Stream

What Are Mechanical Royalties?

Mechanical royalties are payments made to songwriters and publishers every time their song is reproduced — whether that's pressed onto a CD, downloaded, or streamed. The term "mechanical" dates back to the era of player pianos and mechanical reproduction, but today it primarily refers to digital streaming income.

Mechanicals are separate from performance royalties (which you earn when a song is played on radio, TV, or live). Many songwriters don't realize they're owed both types of royalties from streaming — performance royalties through their PRO and mechanical royalties through the MLC or their publisher.

How Mechanicals Work by Format

Streaming (Interactive)

Spotify, Apple Music, Amazon Music, and other on-demand services pay mechanical royalties calculated through a complex formula set by the Copyright Royalty Board (CRB). The rate is based on a percentage of the service's total revenue, divided among all compositions streamed.

Approximate per-stream rate: $0.001–$0.003 per stream for the composition (mechanical + performance combined). The exact amount fluctuates based on the service's revenue and total streams.

Downloads

A fixed statutory rate per download — approximately 12.4 cents per song (for songs under 5 minutes). Downloads have declined dramatically but still generate mechanicals.

Physical (CD, Vinyl)

Same statutory rate as downloads — 12.4 cents per unit manufactured and distributed. This is paid by the label to the publisher/songwriter.

Who Collects Your Mechanicals?

The Mechanical Licensing Collective (MLC)

Created by the Music Modernization Act, the MLC collects and distributes digital mechanical royalties from streaming services in the U.S. If you're a songwriter, you should be registered with the MLC directly — even if you have a publisher.

Your Publisher

If you have a publishing deal, your publisher collects mechanicals on your behalf (and takes their percentage). But the publisher may not be collecting from all sources efficiently, which is why direct MLC registration matters.

Harry Fox Agency (HFA)

Historically the primary mechanical licensing and collection body in the U.S. Still relevant for physical and download mechanicals, and provides licensing services.

International Collection

Mechanical royalties earned outside the U.S. are collected by local mechanical rights organizations (e.g., MCPS in the UK, GEMA in Germany). Your publisher or sub-publisher handles international collection. If you're self-published, you may need to register directly with these organizations or use an admin service.

Common Problems

Unregistered songs: If your songs aren't registered with the MLC, mechanicals accumulate in a "black box" of unmatched royalties that may never reach you.

Missing metadata: Incorrect or incomplete ISRC codes, ISWC codes, or writer information can prevent proper matching and payment.

Publisher not collecting internationally: Domestic collection is one thing, but international mechanicals require relationships with local societies. Many smaller publishers miss this entirely.

Controlled composition reductions: As discussed in our controlled composition article, labels may pay reduced mechanical rates on your own recordings.

Action Steps

1. Register with the MLC at themlc.com — it's free

2. Ensure all your songs have correct metadata (writer names, splits, ISWCs)

3. Register with your PRO for performance royalties (separate from mechanicals)

4. If self-published, consider an admin deal for international collection

5. Audit your royalty statements to ensure mechanicals are being paid correctly

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