Music publishing is the business of ensuring songwriters are compensated when their work is used. While the process can seem complex, it operates on a defined set of principles and partnerships that connect a song’s creation to its commercial use.
What Is Music Publishing?
Music publishing is the management and monetization of a song’s compositional copyright. Every recorded song has two distinct copyrights. The first is for the master recording, which is the specific audio file you hear on a streaming service, and is owned by the recording artist or record label.
The second copyright protects the composition itself: the underlying melody, harmony, and lyrics. Music publishing focuses exclusively on this compositional copyright. A publisher’s job is to find opportunities for the composition to be used, ensuring the creator is paid. A single composition can be recorded by many artists, and the publisher earns money from every version, benefiting the original songwriter.
The Key Players in Music Publishing
The music publishing landscape is defined by the relationship between two parties. The first is the songwriter, who creates the musical composition. This individual or group writes the lyrics and composes the music that forms the song.
The second is the music publisher, who acts as the business partner to the songwriter. The publisher administers and promotes the compositional copyright to generate income.
How Music Publishing Generates Income
A publisher’s function is to find and manage revenue streams for compositions. The income generated from various uses is collected and then shared between the publisher and the songwriter based on their agreement.
Mechanical Royalties
Mechanical royalties are generated whenever a musical composition is reproduced. This originally referred to the process of pressing vinyl records or CDs, but now includes digital formats. Each time a user streams a song on an interactive service like Spotify or Apple Music, a mechanical royalty is generated.
These royalties also apply to digital downloads and the market for physical products. The rate for these royalties is often set by governmental bodies, such as the Copyright Royalty Board in the United States. The publisher is responsible for collecting these royalties from record labels and digital service providers.
Performance Royalties
Public performance royalties are earned when a song is performed, broadcast, or streamed in public spaces. This is a consistent source of income for songwriters, covering a broad scope of public uses.
- Radio play on terrestrial or satellite stations
- Broadcasts on television networks or in films shown in theaters
- Live performances by any artist in a concert venue
- Music played in businesses like restaurants, bars, and retail stores
These establishments pay blanket license fees to collection societies, who then distribute the money to publishers and songwriters based on performance data.
Synchronization Licensing
Synchronization licensing, or “sync,” involves pairing a musical composition with visual media. This generates a one-time sync fee, which can be substantial. The publisher’s creative team pitches songs to music supervisors, directors, and producers for these opportunities.
Examples include placing a song in a television series, a motion picture, or an advertising campaign. Other uses are in video games, corporate videos, and online content. The negotiation for a sync license is a direct deal between the publisher and the party seeking to use the song, with the fee often split 50/50 between the publisher and the songwriter.
The Role of Royalty Collection Societies
Publishers cannot track every use of a song, so the industry relies on royalty collection societies. These organizations serve as intermediaries, collecting royalties from music users and distributing them to the rightful publishers and songwriters.
A primary type of these organizations is the Performing Rights Organization (PRO). In the United States, the main PROs are ASCAP, BMI, and SESAC. Publishers and songwriters affiliate with a PRO, which then issues licenses to thousands of businesses that play music publicly and distributes the collected royalties.
For mechanical royalties from digital streaming in the U.S., The Mechanical Licensing Collective (The MLC) plays a central role. Established by the Music Modernization Act, The MLC administers blanket mechanical licenses to digital service providers. It collects these royalties from platforms like Spotify and distributes them to the correct publishers.
What a Music Publisher Does
A publisher’s functions are divided into administration and creative services. These two areas work together to manage a songwriter’s catalog and career, with the balance of services depending on the publishing deal.
Administration involves registering compositions with royalty collection societies worldwide to ensure proper payment. Administrators track and collect all royalties earned, conduct audits to ensure accuracy, and handle all necessary paperwork and accounting. They are responsible for making sure money flows correctly from the source to the songwriter.
The creative team generates opportunities for the songs in the catalog. A major part of this is pitching songs for synchronization licenses in film, TV, and ads. They also work to connect their songwriters with other artists for collaborations and help develop a songwriter’s overall career through guidance and networking.
Types of Music Publishing Deals
Songwriters have several options when partnering with a publisher, each offering a different balance of services, ownership, and royalty splits. The choice depends on the songwriter’s career stage and goals.
A full publishing deal involves a songwriter assigning 100% of their copyright ownership to the publisher for a specified term. In exchange, the publisher provides a full range of administrative and creative services, often including a financial advance against future royalties. The income is split 50/50 between the songwriter and the publisher.
The co-publishing deal is a common arrangement for established songwriters. The songwriter transfers a portion of their copyright, usually 50%, to the publisher but retains the other 50% through their own publishing entity. This results in the songwriter receiving their full writer’s share plus a portion of the publisher’s share, leading to a 75/25 split of the total income in the songwriter’s favor.
For songwriters who want to retain full ownership of their copyrights, an administration deal is the preferred option. In this agreement, the publisher does not take any ownership of the songs. Instead, they focus solely on administrative tasks like registering works and collecting royalties for a commission of 10-20% of the income they collect. This deal does not include creative services.