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Advanced Music Publishing Strategies For Artist: How To Up Your Game

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Advanced Music Publishing Strategies For Artist: How To Up Your Game

As I mentioned in my last blog post, Music publishing is a crucial part of any artist’s career, but understanding what it entails goes beyond just knowing the basics.

To be a game player in the music industry and protect your rights, you need to have a deep understanding of music publishing and contracts. Even seasoned artists usually have trouble figuring out every nook and cranny of music publishing. In this blog post, I’ll explain key terms you should be familiar with, what master rights and publishing rights entail and tips on how to kick off your music publishing company.

Understanding Music Publishing Terms

Before going into complex topics, I want to state that these key music publishing terms I’m about to share frequently appear in every music contract. Understanding these terms will help in making informed decisions and ensure you sign the best deal.

Mechanical Royalties: These are payments given to a songwriter/ artist whenever their song is reproduced in any format, whether it’s on vinyl records, CDs, digital downloads, or streams. How these mechanical royalties are paid out varies depending on the medium. For streaming platforms like Spotify and Apple Music, the royalties are paid directly to publishers.

When it comes to downloads and physical sales, the royalties go first to the owner of the sound recording, which is the record label, which then distributes the appropriate share to the publisher. In another scenario, the record label pays fees to a mechanical rights organization (MRO), which then distributes the royalties to the artist and his publisher.

Performance Royalties: These royalties are earned whenever an artist’s music is played in public, whether it’s on the radio, in a nightclub, or during a live concert. Performance Rights Organizations (PROs) like ASCAP, and BMI typically collect these royalties on behalf of the artist. Public performance users, such as venues, clubs, restaurants, TV channels, and radio stations, need permission to play music publicly.

To do this, they acquire a blanket license from PROs, allowing them to play any music they choose. The PROs then take their cut and distribute the royalties to the music publishers and artists.

Synchronization (Sync) Rights: Synchronization (Sync) Rights involve the permission needed to use an artist’s music in visual media like films, TV shows, adverts, and video games. Sync licenses can be a significant source of income for musicians.

This type of licensing relates to creating a derivative work based on the original composition. Essentially, anytime someone wants to incorporate music into another form of content—whether a TV show, movie, advertisement, or radio show—they must get approval from the copyright owners i.e. music publishers through a process known as sync licensing.

Exclusive vs. Non-Exclusive Agreements: An exclusive agreement grants one publisher the sole right to license your music, while a non-exclusive agreement allows the artist to license their music to multiple entities.

In an exclusive agreement, the publisher has full control over administration, licensing, royalty collection, and creative decisions. This means the artist is restricted from self-publishing and working with other publishers. While, a non-exclusive agreement allows the artist to self-publish, collaborate with other publishers, and maintain creative control and all royalties.

In essence, exclusive agreements offer more support and resources but limit the artist’s creative control and flexibility. Non-exclusive agreements provide greater freedom and control but usually come with less investment from the publisher.

Advance: This is the payment given to an artist by the publisher as compensation for signing a deal, which is later paid from future royalties. Most publishers use huge advances as bait to rip off uninformed artists who are desperate to get a deal. This can be an appealing part of a publishing deal, they come with the risk that they will not receive additional income until the advance is fully paid back.

Term: This refers to the duration of a music publishing contract, typically measured in years or based on the number of album releases. It’s important to understand the duration of commitment to the agreement and to be clear on the terms for renewal or termination.

Now that you’ve understood these terms, it’s unlikely you’ll be caught off guard by any unexpected clause. This has equipped you with sufficient knowledge to start negotiating music contracts

Master rights vs Publishing rights: Detailed Explanation

The difference between master rights and publishing rights is something artists are not aware of, as these two sets of rights are often confused but are two different things entirely.

Master Rights:

These rights refer to the ownership of the actual recording of a song. Whoever holds the master rights has control over how the recording is used, whether for streaming or licensing. These rights are usually owned by the record label, however, independent artists who produce their music are entitled to enjoy the right.

Publishing Rights:

On the other hand, publishing rights are tied to the composition of the song—the lyrics, melody, and structure. These rights belong to the artist and are usually managed by a music publishing company which may be owned by the label or as partners to the record label. Income from publishing rights comes through mechanical royalties, performance royalties, and sync licensing.

How They Intersect:

For instance, if a song is played on the radio or streamed online, both master rights and publishing rights receive income. The holder of the master rights is paid for the use of the recording, while the Artist earns royalties for the use of their music.

For an independent artist who both writes and records their music, understanding and managing both sets of rights is essential to maximizing their income.

Hints on how to start a music publishing company

For artists looking to fully control their music, Self-publishing or starting a music publishing company is a great path. Here’s how to get started:

  • Before launching your own music publishing company, it’s crucial to grasp the fundamentals of how music publishing works. This includes understanding royalty collection, song registration, and licensing deal negotiations.
  • Your first official step is establishing a legal business entity, like an LLC. This protects you legally and allows you to open a business bank account, sign contracts, and manage taxes effectively.
  • After setting up your company, you must register with Performance Rights Organizations (PROs) such as ASCAP, and BMI. This enables your company to collect performance royalties for you and the artists you represent.
  • Begin by publishing your music or signing other songwriters. Building a diverse and high-quality catalog of songs to promote and license makes your company more appealing to potential clients.
  • As a music publisher, promoting the songs in your catalog is one of your main responsibilities. This involves pitching songs to film and TV producers, advertising agencies, and other clients interested in licensing your music.
  • Success in music publishing often depends on your connections. Attend industry events, join music associations, and develop good relationships with key industry players. The more connections you have, the more growth opportunities available to you.

Final-Words: Advanced Music Publishing Strategies For Artist

Music publishing is a crucial, though sometimes complex, part of the music industry that every artist should understand. By familiarizing yourself with key terms about negotiating music contracts, and potentially starting your own music publishing company, you can take charge of your career and boost your earnings.

 

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Do you have any advice for promoting music independently? Or any thoughts on these tips? Let us know in the comments below.

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