MUSIC BUSINESS RESOURCES FROM CMU
Publishing Deals Explained
Find out how publishing deals work, and what options songwriters and composers have when picking business partners to work with. Plus learn more about the ten deal types outlined in the Publishing Deals Guide produced by CMU for the MMF.
#01: Songwriters and composers work with business partners to manage and monetise their copyrights
When songwriters and composers write and compose music, each song or composition they create is protected by copyright.
This gives the writer control over their music. If anyone else wants to copy, distribute, rent, adapt, perform, broadcast or make available the songs or compositions, they need to get the writer’s permission. The writer usually charges for that permission and in doing so makes money from their work.
Songwriters and composers work with business partners to manage and monetise their copyrights. It’s usually the business partners who actually grant permission – or issue a licence – to any third party that is making use of the music.
The business partner will then pass the money generated from the licence onto the writer, usually taking a cut of that money in return for their services.
There are two main kinds of business partners that writers work with…
First collecting societies, aka collective management organisations (CMOs) or performing rights organisations (PROs).
In many scenarios where songs and compositions are used by third parties, the music industry licenses together through collecting societies, which are able to issue blanket licences covering pretty much every song and composition. The collecting society collects money from the users of music and passes it on to their members.
Second, many writers also work with rights administrators or music publishers.
These companies help writers manage all the data associated with their copyrights to ensure they get all the money they are due from the collective licensing system. Publishers also help writers issues licences in scenarios where collective licensing does not apply, and provide other creative, commercial and financial support.
The copyright in songs and compositions is separate from the copyright in sound recordings – we refer to the two kinds of music copyright as the song rights and the recording rights. Many music-makers both write and record music, and would work with a separate set of business partners around their recordings.
#02: Most song right revenue streams flow through collecting societies – making them crucial business partners
Collective licensing is employed a great deal when it comes to the song rights – which means most of a songwriter’s income passes through collecting societies.
That includes income from when songs are broadcast on TV or radio, when they are performed live, and when recordings of songs are copied onto physical discs or played in a public space. Collecting societies also issues licences to digital platforms like download stores, streaming services and social media platforms.
In the UK there are two collecting societies representing song rights.
PRS represents the performing rights, which are exploited when songs are performed, broadcast or made available online.
MCPS represents the mechanical rights, which are exploited when songs are copied onto physical discs, or into TV programmes, or through digital platforms.
Most UK songwriters and composers join PRS. When to do, they actually assign the performing rights in their work to the society, meaning (with just a few exceptions) only PRS can issue a licence to any third party wanting to exploit those rights.
If a songwriter then signs with a publisher, the performing rights in the writer’s songs continue to be controlled by PRS. However, when those rights make money, PRS will pay a portion of the money to the publisher – the publisher’s share – and a portion to the writer – the writer’s share. It’s usually a 50/50 split.
It’s generally publishers that join MCPS, though if a songwriter is not working with a publisher – and is therefore self-published – they also need to join MCPS. With published writers, MCPS pays any money it collects to the publisher, which then shares that money with the writer subject to the terms of their publishing deal.
Because most song right revenue streams flow through the collective licensing system, a writer could simply join PRS and MCPS and not work with any other business partners. The main revenue stream that sits outside the collecting societies is the money generated by sync deals with movie studios, gaming companies and brands.
However, there are lots of reasons why a writer would still want to ally with a music publisher or at least hire the services of a rights administrator.
#03: Songwriters and composers work with publishers to access a range of services and support
Many songwriters and composers opt to work with a music publisher. What support and services a publisher brings to the table depends to an extent on the specific publisher and the specific publishing deal. However, the support might include…
| A cash advance. The publisher advances money to the writer which it recoups from future income generated by the writer’s songs. For some songwriters accessing cash flow is a key reason for signing with a music publisher. |
| Rights admin + data. Making money from song rights involves lots of data management. First, each new song needs to be logged with the songwriter’s own collecting society and then all the other societies around the world. This includes logging details about each co-writer and their publisher, and documenting what share of the copyright was allocated to each writer. Even after the song has been logged, someone needs to check that the data is still correct in all the databases around the world, as information changes – for example when a writer moves publishers – plus errors might be introduced. In addition to logging works, it is wise to track usage of a song – for example airplay, live performances and use in TV programmes – and check that royalties due from that usage via the collective licensing system are being paid. A songwriter’s publisher would usually take responsibility for a lot of this data and admin work, seeking to ensure all the money due flows through to the writer. |
| Creative support. The publisher may also support the songwriter’s creative development – what we often call A&R. This involves connecting writers with possible collaborators, including via songwriting camps, as well as providing feedback and mentoring. This support is most important for writers who predominantly write music for other people, rather than writing music they then record and release themselves. |
| Sync pitching. The publisher may pitch a writer’s songs to potential sync clients, so TV producers, film studios, gaming companies and brands that might want to use the music in their audio-visual productions. The publisher would also negotiate any subsequent sync deal on the writer’s behalf, utilising its team’s knowledge of the sync market. For some writers sync is a key revenue stream, making this kind of support really valuable. |
| Commissions and production music. Some publishers may also seek and/or negotiate original commissions for the writer, especially for those writers who specialise in composing original music for audio-visual and theatrical productions, or other live events, or who mainly work in the classical domain. Some publishers also own production music libraries, music created for use in audio-visual productions. Although production music is usually licensed through the collecting societies, the publisher curates the music and provides a platform and tools to help potential clients navigate the library. A writer may provide music for a production music library as part of a wider publishing deal or, more commonly, via a standalone production music deal. |
| Digital deals. Although the collecting societies issue licences to digital platforms, many publishers have direct deals with these platforms too, especially covering Anglo-American repertoire, which includes UK repertoire. In those scenarios the publisher would license the writer’s songs to the digital services, and also claim and process any royalties that are due. Although – because of the way song rights are managed – some of the money would still flow through the writer’s collecting society. |
| Sheet music + lyrics licensing. We call the song rights business music publishing because the original music publishers mainly made money by selling books of sheet music. For some writers, printed and digital sheet music is still a revenue stream and their publisher will look for opportunities in this space, albeit often by partnering with a specialist sheet music publisher. Additional income can also be generated through the licensing of lyrics, for example to streaming services, social media and search engines. |
#04: A publisher will want a number of things in return for the services and support they provide writers
The publisher usually provides the advance and all of these services free of charge. So what does it want in return?
That depends on the specific publisher and the specific deal, although most publishers will be looking for similar things from each writer.
| Exclusivity. A publisher would usually expect to exclusively represent a writer’s songs for a period of time, on either a global basis or within specific markets. Depending on the deal, this may be specific songs or a writer’s entire catalogue, and it might relate to existing songs and/or new songs created during the deal. With new works, the publisher might exclusively control any works that are written during a set time period, or a set number of new songs, or a combination of the two. The writer usually can’t work with any other publishers in relation to the works covered by the deal for a set time period. Under the UK system, PRS would continue to control and license the performing rights in all the works covered by the deal, but the publisher would have a contractural right to claim the publisher’s share of PRS income. |
| Copyright ownership. Music publishers were traditionally copyright owning businesses, they wanted to own the copyrights in the songs they published, excluding those elements of the copyright owned by PRS. It is still common under the UK system for writers to assign those elements of the copyright not already assigned to PRS to their publisher, though they could also retain ownership and provide their publisher with a wide-ranging licence. The publisher will then either own the rights, or control them under licence, for a period of time, after which the rights revert to the writer. In terms of how long the publisher will own or control the rights, industry convention has changed over time and differs from country to country. With new UK deals, the publisher is unlikely to own the rights for any more than 20 years. |
| Revenue share. The publisher takes a share of any income generated by the writer’s songs. Under the UK system, the publisher will usually keep 10-30% of the money depending on the deal and how much support it is providing the writer. Where the publisher is providing lots of support, the writer would usually expect to receive 70-80% of the money generated by their songs. The exact rate may differ depending on the revenue stream – eg if the money comes from a sync deal the publisher secured, the writer might get a slightly lower rate. With PRS income, the writer already receives 50% of the money directly. The publisher will then usually also share a portion of the 50% it receives. So if the writer is on a 75% royalty, the writer gets 50% directly and the publisher pays through half of its 50%, so that the writer receives 75% of the money in total. The publisher will recoup any money it has advanced as part of the deal out of what the writer is due, although the writer will continue to receive their 50% writer’s share of PRS income even while the publisher is recouping an advance. |
#05: Songwriters and composers have a number of options when picking business partners to work with on their song rights
In the MMF Publishing Deals Guide we identify ten different options for songwriters and composers when it comes to choosing what business partners to work with.
The first option involves the writer simply joining the collecting societies – so PRS and MCPS in the UK – and relying entirely on the collective licensing system to collect all the money the writer is due. This relies on the writer or their manager to provide all the necessary data to their local collecting societies.
They are also then relying on data and money moving around the global network of societies accurately and efficiently, which it often doesn’t. These issues are more problematic if a writer’s music is being used in many different countries.
The next three options involve allying with an additional business partner just on data and admin. There are companies and platforms that provide rights admin as a standalone service, some working on a fee basis and some on a commission basis.
Plus many publishers offer writers the option of doing an administration deal, where they simply provide data and admin support in return for taking a commission. Many publishers will still advance money to writers on an admin only deal.
Deal type five is a more conventional publishing deal, where a writer gets additional support from their publisher, including creative and commercial support.
The other deal types described in the guide include:
> Co-publishing deals, which is a kind of deal that is common in the US.
> Deals where the writer forms a joint-venture business with the publisher.
> Deals where the writer basically sells their catalogue outright to a business partner.
> Deals that are specific to production music or sync representation.
MMF members can access the full guide which talks through all of these deal types in more detail. Though, as is always the case, the general rule is that the more the writer wants in terms of investment and support from their business partner, the more they are going to have to give up in terms of rights and revenue.