Music publishing is a complex and often misunderstood aspect of the music industry. Many musicians and songwriters are unaware of how their compositions can generate income and how to protect their rights. In this article, we will explain the basics of music publishing, the types of royalties involved, the role of music publishers, and the common deal types.
What is Music Publishing?
Music publishing is the business of managing and exploiting the rights of musical compositions. A musical composition is the underlying melody, lyrics, and music of a song, as opposed to the sound recording, which is the recorded version of the composition¹. Each of these assets has corresponding rights and generates different royalties.
When a musical composition is used commercially, such as in streaming, radio, TV, film, video games, or live performances, the songwriter or composer is owed royalties. Music publishing involves collecting these royalties from various sources, registering the compositions with relevant organizations, negotiating licensing deals, and promoting the compositions to potential users.
The Types of Music Publishing Royalties
There are three main types of music publishing royalties: mechanical royalties, performance royalties, and synchronization fees².
- Mechanical royalties are generated when a composition is reproduced physically or digitally. This includes on-demand streams on interactive streaming services like Spotify and Apple Music, digital downloads on iTunes or Amazon, and physical sales like CDs and vinyl².
- Performance royalties are generated when a composition is performed publicly. This includes live performances, streaming on non-interactive services like Pandora or SiriusXM, radio broadcasts, TV broadcasts, and public places like restaurants or gyms².
- Synchronization fees are generated when a composition is synchronized with visual media. This includes TV shows, movies, video games, commercials, YouTube videos, TikTok videos, and more². Synchronization fees are usually negotiated upfront between the music publisher and the user of the composition.
The Role of Music Publishers
Music publishers are responsible for representing songwriters and composers and ensuring that they receive their fair share of royalties. Music publishers also work to create opportunities for their compositions to be used commercially. The main functions of music publishers are³:
- Publishing administration: This involves registering the compositions with relevant organizations, such as performing rights organizations (PROs) and mechanical rights organizations (MROs), collecting royalties from various sources, distributing royalties to songwriters and composers, and auditing royalty statements for accuracy.
- Publishing A&R: This involves scouting for talent and developing songwriters' careers. Music publishers may provide creative feedback, arrange co-writing sessions, pitch songs to artists or labels, and secure placements for their compositions.
- Negotiating the music rights: This involves granting licenses to users of the compositions and setting the terms and conditions for royalty payments. Music publishers may negotiate with record labels, sync licensors, streaming services, radio stations, and other users.
- Promoting the compositions: This involves marketing the compositions to potential users and increasing their exposure. Music publishers may create promotional materials, such as demos or songbooks, showcase their songwriters at events or festivals, network with industry professionals, and pitch songs to various outlets.
Music Publishing Deals Explained
Music publishing deals are agreements between songwriters or composers and music publishers that define how the rights and royalties of the compositions are shared. There are three main types of music publishing deals: full-publishing deals, co-publishing deals, and administration deals⁴.
- Full-publishing deals: In this type of deal, the songwriter or composer assigns 100% of their rights to the music publisher in exchange for an advance and a percentage of the royalties. The music publisher collects both the writer's share and the publisher's share of the royalties and pays the songwriter or composer their agreed percentage. This type of deal is usually offered to new or inexperienced songwriters who need more guidance and support from the music publisher.
- Co-publishing deals: In this type of deal, the songwriter or composer assigns 50% of their rights to the music publisher in exchange for an advance and a percentage of the royalties. The songwriter or composer retains 50% of their rights and collects their own writer's share of the royalties. The music publisher collects 50% of the rights and collects their own publisher's share of the royalties. The songwriter or composer also receives a percentage of the publisher's share from the music publisher. This type of deal is usually offered to established or successful songwriters who have more leverage and control over their compositions.
- Administration deals: In this type of deal, the songwriter or composer retains 100% of their rights and hires a music publisher to handle only the administrative tasks for a fee. The music publisher does not collect any royalties but instead passes them through to the songwriter or composer after deducting their fee. The music publisher also does not provide any creative or promotional services but only focuses on registration, collection, distribution, and audit. This type of deal is usually offered to independent or self-published songwriters who have their own sources of income and exposure for their compositions.
Conclusion
Music publishing is a vital part of the music industry that allows songwriters and composers to earn money and protect their rights from their musical creations. Music publishing involves managing and exploiting the rights of musical compositions, collecting various types of royalties, negotiating licensing deals, and promoting the compositions to potential users. Music publishing deals are agreements between songwriters or composers and music publishers that define how the rights and royalties of the compositions are shared. There are different types of music publishing deals, such as full-publishing deals, co-publishing deals, and administration deals, that suit different needs and preferences of songwriters and composers.
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