Music publishing

Music publishing is a business that deals with the management, promotion, and monetization of musical works. Publishers ensure that songwriters are paid for the use of their compositions, and help organize the performance and distribution of these compositions.

Publishing is one of the oldest areas of the music business. It has existed long before the first recording devices were invented, and played a key role in the music industry back in the early 20th century. At that time, the release of sheet music was the main way to distribute music. Publishers printed sheet music, distributed it to stores, and paid the authors a share of the sales, thereby ensuring their income.

As technology advanced, the music industry has changed significantly. The advent of radio, vinyl records, magnetic tapes, compact discs, digital downloads, and streaming services completely changed the way music is consumed. However, the core of music publishing has remained the same: publishers represent composers and songwriters, ensuring that they are paid for the commercial use of their work. Today, publishers manage copyrights, handle licensing, and collect royalties worldwide. Whereas revenue used to come from selling printed albums of songs, publishers now track payments from streaming services, radio stations, concerts, and other sources. We’ll talk about how these mechanisms work in the following sections.

Two Types of Music Copyright: Composition and Master Recording

In the music industry, copyright is divided into two categories: composition rights and master recording rights. These terms are often thrown around in the industry, but if you’re still unsure what they mean, let’s break them down.

• A composition is the musical idea itself, including melody, harmony, and, if applicable, lyrics. Think of sheet music or lyrics in a notebook — that’s the basis of the piece, something that can be performed in many different ways;
• A master recording is the specific, recorded version of a composition created by an artist or producer. These are the recordings we listen to on digital platforms, on the radio, or on physical media.

Because of this distinction, each song effectively has two sets of copyright: one for the composition itself, and one for the specific recording. In some cases, both rights are owned by the same person, such as if the artist wrote and recorded the song themselves.

But more often, the rights are shared between different people and organizations. For example, if you record a cover of a Beatles song, you will only own the master recording, while the rights to the composition itself will remain with the owners of the band’s catalog. In even more complex cases, when a song is created by a group of authors, uses elements from other tracks, or contains samples, the distribution of rights becomes a real puzzle. At the same time, the process of creating and subsequently monetizing a composition requires a completely different approach than working on a master recording. Both areas are important, but today we will focus specifically on the rights to compositions that belong to the songwriters and are managed by publishers.

Three Types of Music Publishing Royalties You Need to Understand

The system for calculating royalties for music is governed by copyright law, and each country may have its own rules. However, the core principles of the publishing business are similar all over the world. In this article, we will look at how the royalty system works in the United States, since that is where the largest publishing companies are located. Even though the details may differ in other countries, the basic principles remain the same.

In the United States, the copyright for a piece of music belongs to its creator from the moment it satisfies two conditions: it is original (that is, created by the author from scratch) and it is recorded in a tangible medium. This can be a musical notation, a digital file, or even a text message with a melody.

Once the author has the rights to his work, he has the exclusive right to:

1. Reproduce and distribute his music;
2. Perform or broadcast it publicly;
3. Create new versions based on the original work.

These rights allow the owner to decide who can use their music and under what conditions. If someone wants to reproduce, perform or rework the work, they will need a license, and the author will receive royalties for this. In practice, royalties for publishing music are divided into three main categories, each of which is associated with certain aspects of the copyright of the composition. How exactly this system works and what payments the author can receive – we will talk about this further.

Mechanical royalties: How they work

Mechanical royalties are payments that songwriters receive for the reproduction of their compositions. These payments come from third parties who want to record, release, and distribute musical works. Originally, this type of royalty was associated with the production of physical media such as records and CDs, hence the name. Today, in the digital age, the main source of mechanical royalties are streaming services.

Royals are accrued when a user starts playing a specific song on a digital platform. It is the ability to choose a track that creates the need for payments to authors. However, non-interactive services such as Pandora radio do not generate mechanical royalties, since the music is played without any choice on the part of the listener.

The payment mechanism depends on the format of music distribution. In the case of streaming, services such as Spotify and Apple Music transfer royalties directly to publishers. When it comes to downloads and physical sales, payments are first made to the owner of the master recording, i.e. the label, and then transferred to the publisher.

Mechanical royalties are distributed by specialized organizations. In the US, this is done by the Harry Fox Agency, and in the UK, by the Mechanical Copyright Protection Society. In a number of European countries, similar functions are performed by organizations that are responsible for both mechanical payments and public performance royalties. These structures provide authors and publishers with compensation for the use of their compositions on various media and platforms.

In the US, mechanical royalty rates are regulated by the Copyright Board (CRB) and depend on the format of music distribution. For digital downloads and physical media, a flat rate of 9.1 cents per copy is set if the song is no longer than five minutes. If the track is longer, a calculated rate of 1.75 cents per minute is applied.
For interactive streaming, the calculations are more complicated. The CRB sets the so-called All-In Royalty Pool — the amount that the service is obligated to pay to songwriters. It is determined by three formulas, from which the maximum is selected:

1. A percentage of the platform’s total revenue. Currently, it is 11.8%, but the rate is gradually increasing and was supposed to reach 15.1% by 2022;
2. A percentage of the amount paid to record labels. Currently, it is 21-22%, increasing to 26% in 2022;
3. A minimum flat rate of 50 cents for each subscriber of the service.

The streaming service applies all three formulas and selects the one that gives the largest amount. The resulting figure is the All-In Royalty Pool — the total amount of royalties that the service must pay. Public performance fees, which are established in negotiations with copyright collective management organizations (PROs), are first subtracted from this amount. The remainder is a mechanical royalty, which is then distributed to songwriters based on their share of the compositions, similar to payments to master recording owners.

Public Performance Royalties

Public performance royalties are paid to authors and copyright holders for the use of their music in public places, on radio, television, streaming services, and other broadcasting channels. These payments compensate for the portion of the copyright associated with the public performance or display of a musical work.

Royals are accrued every time a song is played on the radio, in a cafe, or streamed on a service. Even if you play a track on your headphones via streaming, this is also considered a public performance.

The collection and distribution of these payments is handled by copyright collective management organizations (PROs). In the US, these include ASCAP, BMI, and SESAC; in the UK, it is PRS. The payments are formed from two main sources: streaming services and traditional broadcasters.

Streaming platforms such as Spotify and Apple Music pay a percentage of their revenue to PROs. This amount is then divided between all the rights holders registered in the system. The exact share of payments is determined by negotiations between the services and the PRO, but is usually around 6-7% of the total platform revenue.

Traditional broadcasters include radio stations, TV channels, cafes, bars, concert venues and other venues that use music. For legal public performance, they purchase a so-called full license from the PRO, which gives the right to play any registered music. The cost of such a license depends on the size of the audience: the more potential listeners, the higher the amount of payments.

Music usage is recorded in various ways: playlist checklists, broadcast logs and other reports. Even street musicians performing in the subway are required to provide data on the songs they perform if the venue they play at is regulated by the relevant rules.

Next, the PRO calculates payments to authors and publishers, taking into account many factors. For example, performing a song on a national TV channel during prime time will bring copyright holders significantly more royalties than playing it on a student radio station at night. The whole system is designed so that royalties are related to the scale and frequency of music usage.

Public performance royalties are paid to authors and copyright holders for the use of their music in public places, on radio, television, streaming services, and other broadcasting channels. These payments compensate for the portion of the copyright associated with the public performance or display of a musical work.

Royals are accrued every time a song is played on the radio, in a cafe, or streamed on a service. Even if you play a track on your headphones via streaming, this is also considered a public performance.

The collection and distribution of these payments is handled by copyright collective management organizations (PROs). In the US, these include ASCAP, BMI, and SESAC; in the UK, it is PRS. The payments are formed from two main sources: streaming services and traditional broadcasters.

Streaming platforms such as Spotify and Apple Music pay a percentage of their revenue to PROs. This amount is then divided between all the rights holders registered in the system. The exact share of payments is determined by negotiations between the services and the PRO, but is usually around 6-7% of the total platform revenue.

Traditional broadcasters include radio stations, TV channels, cafes, bars, concert venues and other venues that use music. For legal public performance, they purchase a so-called full license from the PRO, which gives the right to play any registered music. The cost of such a license depends on the size of the audience: the more potential listeners, the higher the amount of payments.

Music usage is recorded in various ways: playlist checklists, broadcast logs and other reports. Even street musicians performing in the subway are required to provide data on the songs they perform if the venue they play at is regulated by the relevant rules.

Next, the PRO calculates payments to authors and publishers, taking into account many factors. For example, performing a song on a national TV channel during prime time will bring copyright holders significantly more royalties than playing it on a student radio station at night. The whole system is designed so that royalties are related to the scale and frequency of music usage.

Sync royalties

This type of income is related to the right to create derivative works based on a musical composition. When a song is used in a film, TV series, advertisement, computer game or other type of content, the creators are required to obtain permission from the copyright holders. This process is called syncing, and the payments for using music are called sync licenses.

Unlike mechanical royalties and public performance royalties, syncing has two important differences. First, it is always formalized through individual agreements. While public performance of music is regulated by general licenses and standard payments, syncing requires an agreement between the music user and the copyright holder. For example, radio rotation of a track costs the same for all artists, but the cost of a license to use the same song in advertising can vary by a thousand times. Famous artists like Drake demand huge royalties for the use of their music in commercial projects, while the rights to a track by an unknown artist can cost several times less.

The second difference is that a synchronization license requires an agreement with two parties: the owner of the composition (the authors and publisher) and the owner of the recording (the label or artist). This makes synchronization a unique part of the music business, as the money flows are split between different industry participants.

There are other types of payments in the publishing business, such as lyric royalties, but they are small compared to synchronization, mechanical royalties, and public performance royalties. Now that the main sources of publisher income are clear, it is worth understanding what exactly music publishers do and what role they play in the industry.

What is a Performing Rights Organization?

A Performing Rights Organization (PRO) collects royalties for the public performance of musical works on behalf of composers and songwriters. These organizations operate within a specific country or region, monitoring the payment of royalties for the use of music on radio, television, streaming services, venues and other public spaces.

Each country has its own PRO. In the UK, it is PRS, in the US – ASCAP, BMI and SESAC. To receive royalties, an author or composer must register with one of these organizations or delegate this responsibility to their music publisher.

How is a PRO different from a music publisher?

PROs are created and controlled by authors, composers and music publishers. Their main job is to manage the licensing and collection of royalties for the performance of millions of songs, simplifying the payment process and reducing costs for rights holders. They pool copyrights, allowing for more efficient negotiations with digital services, radio stations, TV channels and venues.

PROs do not collect mechanical royalties, however. These are administered by separate organisations such as MCPS in the UK, MLC and the Harry Fox Agency in the US. Music publishers are usually members of both types of organisations to ensure that authors receive all possible royalties for the use of their compositions.

Intellectual Property Management in the Music Industry

Music publishers and publishing companies are responsible for ensuring that songwriters and composers are paid for the use of their work. This process is based on a publishing contract, in which the author transfers their rights to the composition to the publisher. In return, the company handles licensing, controls where and how the music is used, collects royalties, and distributes them to the authors.

Publishers also work to promote music. They help place compositions in films, TV series, advertisements, and offer them to performers for recording. Sometimes publishing companies organize the creation of custom music and provide authors with commissions for their work.

Copyrights in musical works are the most important form of intellectual property in the industry. In addition to the rights to the compositions, there is also the copyright in the master recording, which is most often owned by record companies. Publishers play a key role in managing these assets, ensuring that authors are fairly compensated for the use of their music.

The Role of Music Publishers

Music publishers are responsible for licensing music and managing the copyrights of composers and songwriters. They enter into contracts with copyright holders to control the use of their compositions and ensure that royalties are collected from all available sources.

The first step in a publishing house’s work is to register the works with a collective management organization (CMO). This is necessary so that authors can receive payments for public performance, mechanical royalties, and synchronization.

1. Publishing Administration: Registration, Collection, and Royalty Control

Registering a composition with PROs and MROs is not technically difficult. In the US, there are ASCAP, BMI, SESAC, and HFA, while in the UK there are PRS and MCPS. Registration allows authors to receive payments for mechanical reproduction and public performance, while licensing fees for synchronization require separate registration. It seems that this is enough, but in reality the process is much more complicated.

Pros focus on collecting royalties, but do not engage in detailed verification of payment distribution. Their goal is to accumulate funds, not to ensure that the money reaches each copyright holder. Because of this, a significant portion of income is lost or remains unclaimed. The industry even has the concept of a “black box” of royalties – money that for various reasons was not paid. According to various estimates, 10% to 25% of all collected funds end up in it every year. The reasons for such losses are varied: errors in metadata, duplicate applications, disputed claims, or even attempts to manipulate the system. Over the years of working with artists, publishers have encountered hundreds of cases of chaos in royalty accounting. For example, one song can be claimed by several companies at once, with each of them claiming 35% of the rights. As a result, the streaming platform receives demands for 140% of the composition. How does it react to this? Very simple – no one gets money, because it is impossible to correctly distribute payments.

In addition to domestic revenue, songwriters can earn royalties for the use of their compositions abroad. In theory, collective management organizations (CMOs) in different countries exchange data and transfer payments to each other. However, in practice, this process is far from ideal. Due to accounting complexities and constant disagreements in the publishing industry, a significant portion of international royalties does not reach authors.

To receive all the payments due, songwriters must register with collective management organizations in each country where their music is performed. It is almost impossible to do this on your own, so publishers take on the registration, checking accruals, filing for payments and disputing disputes. In essence, the publisher acts as a representative who ensures that no part of the revenue is missed.

Due to the complexity of international royalty collection, effective administration is only possible with a global reach. This is why rights management is most often concentrated in the hands of large global companies. Independent publishers often outsource their catalog to international corporations through sub-publishing agreements. In this arrangement, a local publisher handles royalties in its home country and then outsources rights to major players such as Sony ATV, Warner Chappell, BMG, UMG, Peermusic, Downtown Music Publishing (Songtrust), or Kobalt to serve the global market. These companies handle international administration in exchange for a small percentage of royalties, giving authors access to their earnings from around the world.

2. A&R Department in a Music Publishing House: Finding Talent and Developing Songwriters’ Careers

The role of a music publishing house in an artist’s career depends on their creative work. For many performers, publishing songs is just an additional source of income. For example, if a band writes and records their own music, the main income will come from sales of records, concerts, merchandise and other commercial activities. In this case, the publishing house plays more of an administrative role, helping with the registration of rights, collecting royalties and licensing songs.

However, the situation changes when it comes to musicians who write not only for themselves, but also for other performers, and also create soundtracks for films, TV series and video games. A striking example is Ed Sheeran. Many know him from the hits “Shape of You” and “Perfect”, but not everyone knows that he is also a songwriter for artists such as Justin Bieber and Major Lazer.

There are also those who are completely focused on writing music for others. These writers remain behind the scenes of the industry, but their influence on the global music market is colossal. For example, Max Martin is a name that is little known to the general public, but his songs are heard in every corner of the world. He has worked with Katy Perry, The Weeknd, Backstreet Boys and many other artists, creating some of the most recognizable hits of the last decades.

How does a songwriter go from writing for a local band to collaborating with global stars? This is where publishing A&R comes into play. For songwriters and producers working for other artists, publishing becomes more than just an administrative partner; it is a key link in their professional development.

In general, A&R functions in publishing and record labels are similar. They are responsible for finding talent, signing contracts, and developing songwriters, helping them establish connections with artists, producers, and managers around the world. However, there is an important difference between the two that defines the specifics of publishing A&R.

The main goal of A&R (Artists and Repertoire) is to maximize the long-term profits that can be made from artists and their music. However, it is important to understand that A&R in record companies and A&R in publishing have different goals. For example, when Ed Sheeran wrote the song Love Yourself for Justin Bieber, his label didn’t make a dime from it. Meanwhile, his publisher made millions in royalties and licensing.

While an A&R at a record label is focused on the success of a particular record, an A&R at a publishing house is focused on making sure the song itself (regardless of the artist) makes money. Although their functions overlap, their priorities, and therefore their approach to work, are different.

To understand the difference in A&R duties, consider two artists: a beatmaker (aka a producer, if we’re talking about hip-hop) and a rapper. If they work together on a track, their shares would be divided as follows:

A beatmaker/producer gets:

• 50% of the publishing rights to a song for the instrumental part they create;
• A share of the master recording (about 2-3% of the main rights).

A rapper gets:

• 50% of the publishing rights for writing the lyrics;
• The main share of the revenue from the master recording (usually along with the label).

Because their income depends on different sources, the A&Rs of these artists work in different directions. A&R of a rapper focuses on the successful release and promotion of a track. He organizes the recording process, forms the image of the artist, and is engaged in the marketing strategy and promotion of the release.

A&R of a beatmaker, on the other hand, is focused on getting his composition to the most popular artist. The bigger the artist’s name, the more likely it is that the song will bring in money. If you manage to negotiate a collaboration with a top artist like Drake, this is almost a guaranteed success.

For an A&R working with songwriters, connections in the industry are crucial. Composers and beatmakers rarely achieve success alone – their careers are built on collaborations. The more contacts they have with famous artists, the higher the likelihood that their music will be in demand and bring in money. In fact, the key to success is to write a song for someone who is already occupying top positions in the charts.

3. Music Rights Negotiations

One of the key tasks of a music publisher is to protect the interests of songwriters and obtain the most favorable terms for them. This is especially important when several people are working on one composition. Imagine a situation where four writers are working on a song, and in standard practice the rights are divided equally between them, regardless of who contributed what. However, such a division is far from always fair. It is in such cases that publishers enter into negotiations to determine what share is due to each participant.

In the process of creating modern hits, the distribution of rights can be even more complicated. Sometimes songwriters are brought in to work on a specific part of a track. One specialist is responsible for writing the chorus, another for the instrumental riff, a third works on the lyrics of the verses, and the producer, initially hired for the arrangement, suddenly suggests a line that becomes the key to the entire work. In such cases, the issue of distributing rights becomes the subject of complex negotiations. This is especially important if the song suddenly becomes popular and begins to bring in significant income. Remember the story of the copyright disputes around Truth Hurts – these are the cases we are talking about. In addition to classical authorship, there is also so-called indirect collaboration. Modern music is full of borrowings and reinterpretations. Composers and producers often use elements of existing tracks, creating new compositions based on them. Sampling has long gone beyond hip-hop and electronic music and has become a common tool in a variety of genres. However, from a copyright point of view, as soon as a sample appears in a song, the author of the original composition automatically receives a share of the rights to the new work. This applies not only to audio fragments, but also to melodic lines or even borrowed lyrics.

In cases like these, the standard rule of equal division doesn’t apply. The owners of the original music negotiate with the publishers to determine how much of the copyright will go to them. The share can range from 5 percent to 100 percent, depending on how prominent the sample is in the new song. Sometimes the authors of the original material don’t ask for compensation at all, but if your track uses a sample from a Notorious B.I.G. song, rest assured that you’ll have to share the rights. Sampling negotiations are often a complicated and lengthy process, but they can’t be avoided. If you plan to monetize a track that uses someone else’s music, without official approval, you risk losing all rights to your song and losing all income from it.

4. How publishers help promote music

Many people know the song My Way performed by Frank Sinatra, but its history began long before it hit the charts. The original version was written by French composer Claude François, and it was only in 1969 that Canadian author Paul Anka acquired the rights to adapt it for a symbolic $1. However, the deal had an important condition: the authors of the original, Claude François and Jacques Revaux, retained their share of the royalties on any versions created by Anka. This means that every time My Way is played on the radio – in any performance, from Sinatra to Sid Vicious – it is the creators of the original melody who receive the income. For composers, this can be compared to a gold mine, because their work continues to bring in money for decades.

Promotion of musical works is an important part of the publisher’s job. His task is to ensure that the catalog he manages not only exists, but also brings in maximum profit. This is achieved through cover versions, sampling, adaptations and other forms of use of the composition. Active publishers do not simply wait for requests to use a track, but initiate cooperation themselves. They approach artists, producers and companies, offering compositions for interpretation and inclusion in new projects. The more the work is used, the higher its commercial value and the more income it brings to the authors. However, not all authors need the same approach. Depending on the career and goals of the composer, different publishing agreements can be concluded. Over time, several standard types of such deals have formed in the industry, allowing authors to choose the most favorable conditions for working with publishers.

5. How Disputes Arise Between Writers and Publishers

In the music industry, publishing royalties are typically split 70/30: 70% goes to the songwriter and 30% goes to the publisher for their services. However, in practice, there are different types of agreements, and they are not always beneficial to composers. In some cases, performers demand a share of the publishing in exchange for choosing a song to record, especially if the author has not yet made a name for themselves. Sometimes, the artist’s managers or producers also want some of the rights, as Norman Petty and Phil Spector did. And sometimes, the publisher himself insists on being included in the list of authors, as happened more than once with Morris Levy. Such situations range from standard industry practice to outright unscrupulous schemes.

One of the most dubious types of publishers is the so-called songshark. Unlike bona fide companies, these publishers do little to promote composers or make money from song performance fees. Instead, they make money off of inexperienced authors by offering them paid “services” that a normal publisher would provide for free. This could be payment for a demo recording, arrangement, or even fictitious fees for “listening” and “rating” songs. Of course, there are situations where paying for a professional seminar or for an expert audition is entirely justified, but if a publisher makes money off of a composer instead of finding opportunities for him, it is more likely to be considered fraudulent.

Publishing issues often cause conflicts between musicians and their managers. In 1958, Buddy Holly broke up with his manager Norman Petty over a dispute over music rights. Almost a decade later, The Buckinghams faced a similar problem when they parted ways with producer James William Guercio. One of the most famous lawsuits in the music industry was between John Fogerty and his former publisher Saul Zaentz. Zaentz sued Fogerty, claiming that one of his solo songs was too similar to a Creedence Clearwater Revival track from the publisher’s catalog. The court sided with Fogerty, but the fact that such a lawsuit was filed demonstrates how complicated the relationship between artists and the owners of their songs can be.

Some artists try to avoid such problems by creating their own publishing companies. This allows them to control their own rights and receive all the profits from the use of their compositions. However, not all musicians manage to do this in time, and losing control of their songs can be catastrophic for them. Little Richard, one of the key figures in the history of rock and roll, was cheated and lost a significant part of his royalties. The Beach Boys Brian Wilson and Mike Love were in for a real shock when they learned that the Wilson brothers’ father, Merry Wilson, sold the Sea of Tunes publishing company to A&M Records for an amount that turned out to be several times lower than its actual value.

One of the most high-profile cases of losing control of publishing rights is associated with The Beatles. In 1969, their publisher Dick James sold his share of the Northern Songs company to Associated TeleVision (ATV), receiving a significant amount for it. This led to The Beatles losing control of the rights to their own songs. Attempts by managers Lee Eastman and Allen Klein to prevent this were unsuccessful, and ATV became the largest owner of the group’s catalog. After this, John Lennon and Paul McCartney decided to sell their remaining shares, thereby giving up ownership of their own works, retaining only the right to receive royalties. George Harrison and Ringo Starr retained small stakes, but this no longer gave them any influence.

How Music Publishing Deals Work

Any publishing deal involves transferring a portion of the copyright to the publisher, which allows them to license the music and collect royalties. In return, the author receives a percentage of those fees. However, the system of rights distribution is more complex than it might seem at first glance.

Author’s share vs. Publisher’s share

Each song is automatically split into two equal parts: 50% goes to the author, and 50% goes to the publisher. Even if a song is written by one person, it still consists of these two shares. The author’s share always belongs to the creator of the work and cannot be transferred to another person – payments go directly through collective rights management organizations (PROs).

The publisher takes on the task of collecting and increasing the income from the publishing share of the song, representing the interests of the author. For his work, he receives a percentage of the collected royalties. If the composer does not have a publisher or his own company, he can only count on the author’s share, that is, 50% of possible royalties.

It is not so difficult to create your own publishing company today. Organizations that collect royalties from authors, such as PRO (responsible for royalties for public performance) and MRO (collecting mechanical royalties), offer authors tools for self-administration of rights. This allows musicians to be independent from third parties and receive income from all sources.

Three Types of Music Publishing Deals

The relationship between a publisher and a songwriter, as well as the responsibilities of the publisher, largely depend on the type of contract concluded. Over the years, the music industry has developed several standard models of cooperation. Let’s look at the main ones.

1. Full publishing deals

This format used to be the most common. When concluding such a deal, the author transfers 100% of his rights to the written material to the publisher. The contract covers all works created during its term, and, as a rule, includes minimum obligations regarding the number of songs. The rights to each composition transferred under such an agreement remain with the publisher in perpetuity.

In return, the publisher takes on full support of the author: promoting his songs, establishing professional contacts, helping to conclude profitable deals. He also pays an advance, which is then returned through royalties.

Although this format is less common than 20 years ago, it is still used. Most often, such contracts are concluded with beginning authors who have not yet had serious success. The publisher takes on financial and reputational risks by investing in the author’s development, and receives a large share of the income for this.

2. Joint publishing deals

Today, this contract format is the most popular among songwriters. In such a deal, the author and the publishing company jointly release musical material, dividing the publisher’s share equally. As a result, the author receives 75% of the income: 50% as the creator of the work and another 25% from the publishing share owned by his own micro-company.

This type of cooperation is suitable for authors who already have some success and influence, but still need the support of a publisher. Unlike a full publishing contract, here the author has more control over the rights, since they can return to it at the end of the contract. The duration of these rights is individual and varies from several years to several decades.

Otherwise, such a deal is similar to a full publishing contract. The publisher provides an advance, which is then reimbursed from the author’s income, promotes his songs, helps establish contacts in the industry, finances the creation of demo recordings and organizes cooperation with famous artists. In turn, the author undertakes to write a certain number of songs during the term of the contract.

The distribution of income from licensing musical material in advertising, film and television is negotiated separately in each specific case. The final share of the author depends on the terms that he was able to agree on when concluding the deal.

3. Administrative publishing deals

This format of cooperation differs from others in that the publisher here performs only one function – collects and verifies royalties. The author fully retains the rights to his works, and the publisher receives from 10% to 25% of the commission as an administrative fee. With such a contract, the publisher receives a share only during the term of the contract, and after its expiration ceases to participate in the distribution of income. This is why such deals are usually concluded for a longer period than joint ones – sometimes up to 5 years.

This option is most often chosen by experienced songwriters and performers who are already firmly established in the industry and do not need additional promotion. For example, well-known producers and songwriters such as Max Martin do not need the support of a publishing company to find performers – they already have established connections. However, they do need professional help in registering works with various copyright societies, auditing royalties, checking the use of compositions in films and advertising. Such deals allow major writers and artists to retain full control over their songs, while ensuring maximum royalty collection. This approach is also convenient for musicians who create music exclusively for themselves and do not plan to transfer the rights to anyone else. This is why many digital distribution services such as TuneCore, CDBaby and Ditto Music offer administrative publishing services along with distributing music on streaming platforms.

Preparing Music for Sync

Licensing music for sync is an important part of music publishing. It allows tracks to be used in combination with video content, for example, in films, advertisements or video games. This format not only brings the author income from licensing, but also significantly expands their audience.

Connecting to services that work with sync gives musicians access to a wide range of opportunities. This includes placing songs in films, TV shows, commercials and game projects. Sync licenses can be a great source of stable income and increase artist recognition on an international level.

How to collaborate with a music publisher

To monetize their music as effectively as possible, the author needs to collaborate with a publisher who will take care of administrative issues. This includes registering songs with copyright societies, tracking royalties and submitting music for sync.

The publisher performs the following tasks:

• Registers works with international organizations that protect the rights of performers;
• Enters music into databases for collecting mechanical royalties;
• Controls and collects royalties for public performance and mechanical reproduction;
• Offers tracks for use in films, advertising and other media formats, and ensures collection of licensing revenues.

The Future of Music Publishing

Publishing remains an important part of a songwriter’s career, but its format is changing significantly. Current trends in the industry are in many ways reminiscent of the evolution of record labels.

Twenty years ago, most artists signed to major labels that covered the costs of recording and promotion in exchange for a significant cut of sales. At the same time, songwriters signed full publishing deals, hoping to get their songs played on radio, where most of the money is made.

That has changed: digital technology has given songwriters and artists more opportunities to self-promote. Instead of working in large studios as was the case in the past, hits are being created at home by small teams and promoted through social media and streaming services.

Co-publishing deals with a focus on writer development remain popular, but more and more songwriters are opting for administrative agreements. This is similar to how in the record industry, artists increasingly work with distributors rather than labels. Independence is becoming a key factor, allowing artists to retain control over their catalog instead of handing it over to large corporations.

However, even completely independent songwriters cannot do without publishing administration, just as independent artists need the services of digital distributors. New companies like Kobalt and Songtrust are moving in this direction, creating automated systems for collecting and distributing royalties.

Today, the lines between different sectors of the music business are blurring. Distributors are starting to offer services traditionally reserved for labels, and publishing companies may in the future expand their role by taking on promotional functions. New players may soon emerge in the market that combine songwriter management with capabilities previously available only to publishing giants.