What does Royalty mean?
Royalty refers to the individual payment received by a creator or rights holder for the use of their intellectual property. In the entertainment industry, royalties are paid out for the use of a song, film, TV show, or other creative work in new formats or distribution channels. The term “royalty” is often used interchangeably with “royalties,” though it can specifically refer to a single payment. Royalties are calculated as a percentage of the revenue generated by the use or sale of the creative work and are governed by contracts and agreements.
Example:A filmmaker receives a royalty payment each time their movie is streamed on a subscription service, adding to their earnings over time.
Example: A composer earns a royalty when their song is used in a commercial, with the payment based on the usage agreement in the contract.
Did You Know?
Royalty payments can vary greatly depending on the distribution channel, with some platforms offering higher percentages for creative works!
You can also find “Royalty” and related terms in this category: Contracts and Agreements.
