Download, CD and Record Sales

Among the major sources of income for the songwriter and music publisher are the mechanical royalties due from the sale of downloads, CDs 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) which is in effect for 2007, a 100,000 unit sale single would be worth a total of $9,100 in combined royalties to the publisher and writer. If 10 songs were included on a CD and each received an 9.1¢ royalty, a total of 91¢ in mechanical royalties would be generated from the sale of each album. A new rate will be set for 2008 and subsequent years by the Copyright Royalty Board.

Mechanical royalties are paid by the record company to the music publisher or its representative (the Harry Fox Agency), who then shares them with the writer.

© 2008 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.