In the music industry what are royalties?

Updated: 4/28/2022
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Royalties are percentages of sales that are distributed to the people involved in the production of the album, DVD, or whatever the item is. You may also hear the term "points" on an album. This is again referring to a percentage of the profits.

When a CD is created many people are involved. Obviously you have the artist, but then you have producers, engineers, labels, and a number of other people that can be responsible for the album actually coming together. All of those people are given points on the record. For a person that co-wrote 1 song on the album, they will get very little (maybe nothing) but the artists and labels will make a bit more.

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Q: In the music industry what are royalties?
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