Four poor kids from Liverpool formed a band and became the greatest rock group of all time. And they made a lot of money. Although most musicians make their big money on tour, the Beatles have not performed live since 1966. Two of its members are dead, so there won’t be a reunion tour (although that hasn’t stopped Pete Townshend and Roger Daltrey).

But the money rolls in, and for all of the members or their heirs. To celebrate the release of The Beatles: Rock Band and the release of remastered and mono boxed sets of the Beatles’ albums, this week’s Numberscruncher will look at some of the band’s money matters.

Musicians are paid several ways. They are paid for their professional services whenever they perform, which is why touring can be a good deal for a band with a loyal fan base. For a recorded performance, the artist may have received a one-time fee or may be eligible for a royalty from each sale or play. Then, if they wrote the song, they receive a payment for the use of it, whether when performed by the band or by someone else. That songwriting royalty is split in half, with a share going to the songwriter and another share going to the publishing company that handles the licensing and distribution of the song and the sheet music. Publishing involves a lot of clerical and administrative work that most musicians are not interested in doing, so the separation makes sense. (more…)