Introduction to Music Publishing

1. Music Business Essentials
MUSIC PUBLISHING
© 2006 musicbizclasses.com

2. 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
© 2006 musicbizclasses.com

3. 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
© 2006 musicbizclasses.com

4. 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
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5. 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%
© 2006 musicbizclasses.com

6. 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”
© 2006 musicbizclasses.com

7. 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
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8. 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

9. 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.
© 2006 musicbizclasses.com

10. 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
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11. 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
© 2006 musicbizclasses.com

12. 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
© 2006 musicbizclasses.com

13. 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
© 2006 musicbizclasses.com

14. Publishing Deal Types
– 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
© 2006 musicbizclasses.com

15. 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
© 2006 musicbizclasses.com

16. 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
© 2006 musicbizclasses.com

17. Publishing Deal Types
– 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
© 2006 musicbizclasses.com

18. 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
© 2006 musicbizclasses.com

19. 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
© 2006 musicbizclasses.com

20. Good Publishers
• Music Publishers should:
– Understand contracts and licenses
– Have excellent financial skills
– Have a strong administration systems
– Be financially sound & of high
integrity
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21. 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
© 2006 musicbizclasses.com

22. 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
© 2006 musicbizclasses.com

23. 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”
© 2006 musicbizclasses.com

24. 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
© 2006 musicbizclasses.com

25. For Educational Use Only
This slide presentation is part of the
Music Business Essentials series.
Contact
info@musicbizclasses.com
for more information
© 2006 musicbizclasses.com