5% royalties: The complicated business of making it in OPM

In the court of public opinion, mrld understandably drew sympathy. Her story resonates with many: She’s the only one in her family working while her two sisters are still in school.

A song does not belong to just one person

But in the music business, a song’s earnings rarely belong to just one person. Revenue is often divided among many parties—more than some listeners realize. That may include the primary and featured artists, songwriters, producers, session musicians, engineers, managers, publishers, distributors, and marketing teams, among others. By the time those shares are split, percentages that seem small can still fall within industry norms.

Artists themselves acknowledge this complexity. Keiko Necesario noted that labels taking a large share “has been the standard in the Philippine music industry for decades.” Labels often shoulder recording costs and promotion—from music videos and advertising to PR campaigns and playlist pitching. There’s also the concept of recoupment, where labels recover their investment before artists begin earning royalties. From a business standpoint, that risk-sharing is what allows labels to develop new talent in the first place—even if the arrangement sometimes leaves artists feeling the balance could be fairer.

Contracts also vary widely. Who owns the original sound recording? Who owns the composition? Are there multi-album commitments? Are revenues from touring, merchandise, or endorsements shared? These details—often buried in legal agreements—can shape how much artists ultimately earn.

Some musicians avoid the system entirely. December Avenue frontman Zel Bautista said the band learned the industry “the hard way” after struggling to get signed early on. Being independent meant creative freedom and a larger share of revenue—but also fewer opportunities and the absence of a label’s promotional machinery. As he put it, independence means “you have to work your ass off.” (In any case, December Avenue—after they’ve built a decent amount of clout—was able to partner with a label, presumably with a larger share.)

As ABS-CBN Music assistant vice president Jonathan Manalo put it, artists should understand the agreements they sign—while acknowledging that newcomers “often have little leverage and are therefore more vulnerable to abuse.” At the same time, he noted that labels “invest significant time, resources, and capital in building and developing artists, often in good faith.” Still, he stressed that it remains “CRUCIAL TO DIFFERENTIATE” legitimate partnerships from “truly predatory contracts.”