What does Royalties mean?
Royalties refer to payments made to artists, writers, musicians, and other creatives for the continued use or sale of their intellectual property. In the entertainment industry, royalties are commonly paid for the use of music, film, TV shows, or other works in new formats or distribution channels, such as streaming services, TV syndication, or DVD sales. Royalties are typically based on contracts and agreements, with percentages calculated from the revenue generated by the project. For many creatives, royalties provide ongoing income long after the initial release of their work.
Example:A songwriter earns royalties whenever their song is played on a streaming platform, generating income each time it is streamed by listeners.
Example: A film director receives royalties from DVD sales and digital rentals of their movie, earning a percentage of the revenue from each sale.
Did You Know?
Royalties are often paid out for decades after a project’s release, allowing artists to benefit financially from their work for years to come!
You can also find “Royalties” and related terms in this category: Contracts and Agreements.
