MUC109 LEC 8.Music Publishing

Music Business Essentials

MUSIC PUBLISHING

© 2006 musicbizclasses.com

What is Music Publishing?
• Music Publishers are companies
that derive income from promoting
g
and managing copyright-protected
Musical Works-a.k.a songs.

• Music publishers are responsible for:
– Acquiring songs
– Marketing Songs
– Managing the business and legal
side of song copyrights


The Business
• Music publishing revenues represent
one of the fastest growing sectors
in the US powerful g
p growth engine
g

• Music Publishers earn money from
the Film, TV, Advertising, Video Game,
Sheet Music, Software, Technology,
Radio, and Record businesses-->
Multiple Revenue Streams

• In Music Publishing, overheads are low
and profit margin i potentially hi h
d fit i is t ti ll high-->
Good investment opportunity

Publishing Companies
• Major Label Publisher-
Warner-Chappell
Universal Music Group Publishing
EMI
Sony/ATV Publishing

• Independent-
Cherry L
Ch Lane
Peer Music
Bug Music
g

• Full Service
• Administrative


Publishing Process
Songwriter

Copyright ownership
Writes a song is automatic

Makes the song Becomes the
Music Publisher
publicly available
automatically
t ti ll

Song is divided into Songwriter s
Songwriter’s
Share/50%
equal portions or
“shares”
shares Publisher s
Publisher’s
Share/50%

Ownership in Publishing

The Song Is publicly available
i.e. “Published”

Songwriter’s
50%
Share Published songs
always have a
Publisher’s
50% “Songwriter Share”
Share and a “Publisher
Publisher
Share”

Publisher Services
• Music Publishers provide their
songwriter clients a range of
administrative and marketing services:
– Register new copyrights with
Performing Rights & Mechanical
Societies & Copyright.gov
– License the use of copyrights
– Collect and track royalties-
provide accounting
– Promote songs for placement
songcasting
g g
– Develop new songwriting talent

Publishing Revenue
• Music Publishers earn money
with their copyrights via:
py g
–Mechanical Licenses
–Performing Rights Licenses
Performing
–Synchronization Licenses
–Print Licenses
–Foreign Licenses
Foreign

–NOTE: a li
NOTE license=
permission to use a song © 2006 musicbizclasses.com

Licenses
– Mechanical License= gives a record
company or other party the right
to reproduce a song in a recorded
format, like a CD.

– Performing Rights Licenses= gives
live
li performers and those
f d th
presenting sound recordings in
public the right to publicly
perform a song.


Licenses
– Synchronization License=
authorizes the use a song (in synch) with
visual images-->i e in TV Film Video
images >i.e. TV, Film,

– Print Licenses= A print license aut o es
t ce ses p t ce se authorizes
the sale of a song in printed form-->
i.e. Sheet Music

– Foreign Licenses= authorizes agents
located in foreign countries (aka sub-publishers)
to collect royalties generated
in their country,
• These agents retain about 15-25%
g %
as their fee

Publishing Deal Types
–Individual Song Agreements-
I di id l S A t
contract for rights to one song at a
time; full o e s p o pub s e s
e; u ownership of publisher’s
share of income; 100% ownership of
copyright

–Exclusive Songwriter
Agreements—
Agreements
contract for songwriters to write for the
company; full ownership of publisher’s
share of income; 100% ownership of
copyright


Single Song & Exclusive
Songwriter Agreements
Songwriter

Writes and makes Owns
100% of
a song publicly Income
I
available
Splits
Makes a deal income
with a publisher with publisher
50%/50%

Transfers 100% ownership
of copyright to publisher

How it works :
Single Song & Exclusive
Songwriter Agreements

Songwriter’s =50% of total
Share income

Publisher’s
Share =50% of total
income

100% ownership of
copyright for
duration of term



– Co-Publishing Agreements-
songwriters have
song riters ha e their income
share and take a partial portion
of publisher’s income share;
publisher s
partial ownership of the copyright


Co-Publishing Deals

Songwriter

Writes and makes Owns
100% of
a song publicly Income
I
available
Splits
Makes a deal income
with a publisher with publisher
75%/25%

Splits ownership of copyright
with publisher- 50/50

How it works :
Co-Publishing

Songwriter’s =50%
of income
Share
Co-Publisher’s Co-Publisher’s
Share/ Share/
writer publishing co.
=50% of
25% 25% income

Songwriter Publisher
75% of total income 25% of total income

– Administration Agreements-
Agreements
providing administrative/business
management for copyrights; no ownership

– Sub-Publishing deals- leasing rights
to foreign catalogues or songs.
Or, contracting with a foreign
, g g
publisher to manage US copyrights
abroad

– Acquisition deals- purchasing full
ownership rights of a catalogue of songs

Self Publishing
– Self- publishing:
• Songwriter creates own
publishing company

• More creative control;
100% ownership of copyright
and i
d income stream
t

•M
Must provide or arrange f marketing,
id for k i
promotion and administration


Good Publishers
• Music Publishers should:
– Be well connected & respected
in diverse industries

– Able to recognize outstanding songs

– Match artists with songs and artists
with other artists

– Have a pool of talent demo artists
p
and producers

Good Publishers
• Music Publishers should:

– Understand contracts and licenses

– Have excellent financial skills

– Have a strong administration systems

– Be financially sound & of high
integrity


Company Structure
• Music Publishers are similar
to Record Labels

• A&R Dept.- Talent/Song Acquisition
& ept a e t/So g cqu s t o
• Marketing- Song plugging
• Business Affairs
• Administration- Copyrights, royalties


A Cautionary Tale
• The Beatles & The Northern Songs
Catalog:
– Deal with Publisher Dick James
– Tried, unsuccessfully to renegotiate
ownership several times
– Catalog sold to ATV
– Paul McCartney start MPL
Communications
– Outbid for ATV catalog by
Michael Jackson- $47MM
– Michael Jackson merges ATV with
Sony for $95MM

Key Take Aways
– Music Publishing is the business
of making money from songs
that are copyright protected

– Music Publishing deals with
songwriting/songwriters only
(
(not sound recordings)
g )

– As soon as a song is publicly distributed
in the marketplace and sold as
a product, it is considered “published”


Key Take Aways

– Every song contains
a “Songwriter’s Share”=50% and
Songwriter s Share =50%
a “Publisher’s Share”=50%

– A songwriter can be his/her
own publisher, or hire an outside
publisher
company to manage
the publishing
g


For Educational Use Only

This slide presentation is part of the
Music Business Essentials series.

Contact
info@musicbizclasses.com
for more information


MUC109 LEC 8.Music Publishing

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MUC109 LEC 8.Music Publishing