Guide
How to Read Royalty Reports
How to read royalty statements — understand streaming units, earnings, deductions and which revenue types appear in your reports.
Royalty reports look complex, but once you understand the structure they're straightforward. This guide decodes the numbers artists actually see.
Steps
1 Understand the statement sections
Reports group income by source — streaming platforms, downloads, sync and miscellaneous. Each row shows units, earnings and the territory.
- Units mean streams or sales
- Earnings are typically in your payout currency
2 Check the streaming breakdown
Look at which platforms generated income and how much per unit. Rates vary by platform and tier.
- High units with low earnings may reflect ad-supported plays
- Spot the difference between premium and free-tier streams
3 Separate master and composition income
Master royalties (from distribution) and composition royalties (from societies) may appear on different statements.
- Publishing statements use different terminology
- Match your catalog register to both
4 Watch for deductions and reserves
Some reports show collection fees or reserves held for potential claims. Understand what's deducted and why.
- Reserves are usually released later
- Question anything you don't recognise
5 Reconcile with your releases
Compare report totals to your release dates and expected activity. Big discrepancies signal metadata or registration problems.
- Missing platforms may mean missing metadata
- Keep a simple spreadsheet of monthly totals
Frequently Asked Questions
Why is my royalty report so small?
Streaming pays fractions of a cent per play. Consistent catalogs and promotion grow the volume over time.
What's a reserve?
A portion withheld against potential claims or returns, typically released in later statements.
When are reports available?
Distributors report monthly or quarterly; societies often quarterly or annually.