Music publishing revenue can be one of the most reliable forms of income in the industry, offering earning potential from a plethora of different usages and sources.
However (and in some ways because of this), for many musicians who are just embarking on their careers, it can be one of the most intimidating and confusing areas of the business.
Here’s a brief introduction to help you grasp the essentials and start collecting your core publishing royalties, even if you aren’t represented by a publisher yet or want to self-administer.
Understanding Music Publishing
Music publishing is all about managing and monetizing the rights to musical compositions. Publishers work on behalf of songwriters to secure revenue generating usages, whether it’s played on the radio, covered by other artists, or featured in films and TV shows. They handle licensing, collect royalties, and make sure songwriters receive their share of earnings.
Music Publisher vs. Record Label: What’s the Difference?
While both music publishers and record labels play similar roles in the music industry, they focus on different elements. Publishers manage the rights to the song itself, overseeing licensing and royalties for the composition. Record labels, however, are concerned with the rights to specific recordings of a song. For instance, John Lennon and Paul McCartney wrote “Yesterday”, which was of course first recorded and released by The Beatles. Whenever their version of the song is played, a publishing royalty is due for the composition and a separate royalty is also due for The Beatles’ recording of it.
Since that first recording was released, the song has been covered many times over. Each time a new version is released and generates revenue, the income is broken down into publishing and recording. The publishing revenue always goes to the rights holders representing Paul McCartney and John Lennon, and the recording revenue would go to the rightsholder involved in creating the new recording of the song.
Do You Need a Publisher If You’re a PRO Member?
A Performing Rights Organization (PRO) collects songwriter performance royalties from radio, TV, and live performances, ensuring you get paid when your music is publicly performed in some way. However, a PRO membership doesn’t cover non-performance usages such as mechanical streaming, CD/vinyl sales, sync licensing, or print rights. Publishers can help fill in these gaps, managing all aspects of royalty collection and ensuring you’re covered for every use of your music.
What Is the MLC and Should You Join?
The Mechanical Licensing Collective (MLC) handles royalties from streaming platforms like Spotify and Apple Music. They collect and distribute these mechanical royalties, similar to how a PRO handles performance royalties. If you’re signed with a publisher, they’ll be a member of the MLC and will manage these royalties for you. If you’re self-published, joining the MLC directly can ensure you receive the streaming revenue your music generates.
Why Consider a Music Publisher?
Even though affiliating independently with a PRO and with the MLC will help an independent songwriter collect their performance and streaming royalties respectively, signing up with a publisher has additional benefits beyond filling in collection gaps for usages not covered by either organization. They are also there to help with creative development, pitching your music for sync opportunities, and facilitating collaborations that can enhance your songwriting and broaden your audience. Publishers also navigate complex licensing scenarios and leverage their industry connections to secure placements that might otherwise be difficult to achieve on your own.
Evaluating a Publisher Offer: What to Watch For
Receiving a publishing offer is a significant milestone, but it’s crucial to review the terms of any agreement carefully. Pay attention to how much of your copyright ownership you’re relinquishing to them, if any, and for how long. Large upfront advances can be appealing, but ensure that the benefits of the deal outweigh the cost of giving up some control over your music. Consider whether the publisher’s support and resources will meaningfully impact your career and avoid long-term commitments that might restrict your future opportunities.
In this ever-evolving industry, a solid grasp of music publishing can go a long way towards establishing a more consistent income stream from your music. If you’re an independent songwriter not currently or yet signed up with a publisher, make sure you affiliate with a PRO and become a member of the MLC so that you can collect your performance and streaming revenues. If you’re considering signing up with a publisher, carefully weigh the deal terms and potential benefits to ensure that your music’s journey is both rewarding and prosperous.
This is a guest post written by Eleven Music Career Success Specialist Sophie Watt, a 15-year veteran in the world of music publishing.