Music royalties are payments made to songwriters, composers, and other rights holders for the use of their music. These royalties are generated when music is played on the radio, streamed online, used in films or television shows, or sold as recorded music. The collection and distribution of royalties is typically managed by performance rights organizations (PROs), such as ASCAP, BMI, and SESAC in the US, and by collecting societies in other countries. These organizations are responsible for tracking the use of music and distributing royalties to the appropriate rights holders. When a song is played on the radio, for example, the radio station will typically pay a licensing fee to the appropriate PRO, which will then distribute the royalties to the songwriters and publishers. When a song is streamed online, the streaming service will also pay a licensing fee to the appropriate PRO, which will then distribute the royalties to the rights holders. In most cases, the royalties collected for a song are split between the songwriters and the publishers. The songwriters will typically receive the majority of the royalties, while the publishers will receive a smaller percentage. This percentage can vary depending on the specific agreement between the songwriter and publisher. It’s worth noting that the allocation and collection of royalties can vary depending on the country, and the specific rights organization or collecting society involved.