Mechanical royalties are paid to the owner or administrator of the composition whenever a copy of one of their songs is made. Each time a consumer purchases a sound recording or streams a recording on demand, music publishers are owed a mechanical royalty, which is then passed on to the songwriter.
The New Formula for Success in the Music Business
The old method of promoting a new act in the music business was for a record company to invest at least $500,000 in studio time with a good producer, the cost of a good video, the advertising budget, and the cost of the first promotional road tour.