Understanding Music Publishing Deals: Types and How Artists Get Paid

Navigating the world of music publishing can be complex, but understanding the various types of deals and how artists get paid is crucial for anyone looking to make a living from their music. Music publishing deals are agreements that govern the use and monetization of a songwriter's compositions. These deals determine how rights are managed, how income is generated, and how payments are distributed. Here, we'll explore the different types of music publishing deals and provide an overview of how artists get paid through each.

Types of Music Publishing Deals

1. Traditional Publishing Deal

In a traditional publishing deal, a songwriter assigns the copyright of their compositions to a music publisher. In return, the publisher handles the administration, licensing, and promotion of the songs. The publisher's role includes registering the songs with performance rights organizations (PROs), securing placements in media (such as films, TV shows, and commercials), and collecting royalties.

Payment Structure: Typically, the income generated from the compositions is split 50/50 between the songwriter and the publisher. This includes mechanical royalties, performance royalties, synchronization fees, and other licensing revenues.

Pros: The publisher provides significant support in promoting and managing the songwriter's works, which can lead to increased exposure and income.

Cons: The songwriter relinquishes a significant portion of their copyright and income, and the split is often non-negotiable.

2. Co-Publishing Deal

A co-publishing deal is similar to a traditional publishing deal, but with a more favorable split for the songwriter. In this arrangement, the songwriter retains a portion of their copyright, often 50%, while the publisher takes the other 50%. The publisher still handles the administrative and promotional duties, but the songwriter has greater ownership and control over their works.

Payment Structure: Income is generally split 75/25 in favor of the songwriter, meaning the songwriter keeps 75% of the revenue, and the publisher takes 25%.

Pros: Songwriters retain more ownership and receive a larger share of the income compared to traditional deals.

Cons: The songwriter still shares copyright ownership with the publisher, which may limit their control over certain decisions.

3. Administration Deal

In an administration deal, the songwriter retains full ownership of their copyright, while the publisher handles administrative tasks such as registering songs, issuing licenses, and collecting royalties. The publisher does not promote the works but focuses on managing the rights and ensuring the songwriter gets paid.

Payment Structure: The publisher typically takes a 10-20% administration fee from the income generated, with the rest going to the songwriter.

Pros: The songwriter retains full ownership of their works and receives the majority of the income.

Cons: The publisher does not actively promote the songs, so the songwriter must handle their own marketing and promotion.

4. Single-Song Agreement

A single-song agreement is a contract between a songwriter and a publisher for one or a few specific songs. This deal is often used when a publisher is interested in a particular song but not the songwriter's entire catalog.

Payment Structure: The terms can vary, but they often resemble traditional or co-publishing deals, with the songwriter assigning partial or full copyright of the specific song(s) to the publisher.

Pros: Flexibility for songwriters to test the waters with a publisher without committing their entire catalog.

Cons: Limited scope and often less advantageous terms compared to broader publishing deals.

5. Work-for-Hire Agreement

In a work-for-hire agreement, a songwriter is commissioned to create music for a specific project, such as a film score, advertisement, or corporate video. The commissioning party (e.g., film studio, ad agency) typically owns the copyright from the outset.

Payment Structure: The songwriter receives a one-time fee or an upfront payment, with no further royalties or income from the work.

Pros: Immediate payment and potentially high upfront fees.

Cons: The songwriter does not retain any ownership or future income from the work.

How Artists Get Paid

Income for songwriters comes from several key sources, each managed and distributed according to the terms of their publishing deal.

1. Mechanical Royalties

Mechanical royalties are earned whenever a song is reproduced, such as in physical sales (CDs, vinyl), digital downloads, and streams. These royalties are collected by mechanical rights organizations or digital distribution platforms and are distributed according to the publishing agreement.

2. Performance Royalties

Performance royalties are earned when a song is played publicly, whether on the radio, in a live venue, on television, or through streaming services. These royalties are collected by performance rights organizations (PROs) such as ASCAP, BMI, or SESAC in the United States, and are distributed to the songwriter and publisher.

3. Synchronization Fees

Synchronization fees are paid when a song is licensed for use in visual media, such as movies, TV shows, commercials, and video games. The fee is negotiated and can vary widely depending on the usage and popularity of the song.

4. Print Music Royalties

Print music royalties come from the sale of sheet music and songbooks. These royalties are typically a small percentage of the retail price and are paid to the songwriter and publisher.

5. Other Licensing Fees

Other licensing fees can come from various uses of a song, such as in corporate videos, educational materials, and public performance venues. These fees are often negotiated on a case-by-case basis and are shared according to the publishing deal terms.

Understanding the different types of music publishing deals and how artists get paid is essential for songwriters looking to monetize their work effectively. Each type of deal has its own advantages and disadvantages, and the best choice depends on the songwriter's goals, resources, and career stage. By carefully considering their options and negotiating favorable terms, songwriters can ensure they receive fair compensation and support for their creative efforts.