Table of Contents
Now, publishing may not be the most glamorous part of the music industry, but it’s definitely one of the most important parts there is. It’s how songwriters get paid, and if you’re managing artists, you need to know how to do it the right way. Luckily for you, this guide breaks down the basics, so you can support your roster, unlock more revenue, and keep things running as smoothly as possible.
Publishing 101 for Indie Labels: What You Need to Know to Do It Right
Let’s break it down…
When it comes to managing an indie label, most of the focus tends to fall on finding great artists, releasing tracks, and promoting them to the world. But if you control publishing rights on behalf of your writers, there’s another side of the business that’s just as important… music publishing.
Publishing is how the people behind the songs (aka the writers) get paid when their music is performed, streamed, sold, or synced. For indie labels, understanding the basics of publishing can help you better support your artists and make sure everyone gets the royalties they’re owed.
The good news? You don’t need a law degree or a team of accountants to at least get started.
Master Rights vs. Publishing Rights
Master rights refer to the recording of a song. These are usually owned by the label or whoever paid for and released the track. If you’re distributing music, collecting royalties from streams, or licensing the recording for use in a film or commercial, that’s all tied to the master.
Publishing rights, on the other hand, belong to the composition, aka the lyrics, melody, and structure of the song itself. These rights are owned by the songwriters (and any publishers they work with). Whenever a song is played live, streamed, covered, or synced, publishing royalties come into play. To make it easy, just remember:
Master = the sound recording
Publishing = the underlying composition
If your artist writes and records their own songs, they technically own both the master and the composition. But as an indie label, you typically only collect royalties from the master side, not the publishing side. To earn publishing royalties, your label would need a publishing agreement with the artist or have its own publishing arm in place… If you’re a bit lost, no worries! Happens to the best of us.
Maybe this example will help make this a little easier to understand:
Let’s say your label signs an artist named Luna. 🌙🧚♂️ Let’s also say she writes and records all her own music. By default, Luna owns both the master and the publishing rights. If your label only releases her music, you’re earning royalties from streams, downloads, and licensing of the recording… that’s the master side.
But let’s say you also want to help Luna pitch her songs for film and TV, collect her publishing royalties from around the world, and make sure she’s registered properly with a PRO. You can offer her a publishing agreement where your label takes on that role. In return, your label gets a cut of any publishing income earned. Now, you’re collecting both master and publishing royalties.
- And if your label has its own publishing arm (like a separate company set up just to handle publishing), Luna could sign directly to that. Then, you’d be acting as both label and publisher, wearing both hats.
Got it? Good!
——
📚 Feed yo’ brain…
How The Music Industry Is Fighting Artificial Streaming
Label Funding: Self-Funding vs. Grants vs. Investor Capital
Pre-Release Day Tips to Maximize Your Music Video Performance
Your Story Starts Here: A Chapter of FEATURETTE
——
Types of Royalties: Performance, Mechanical, and Sync 💰
Now that we’ve got the basics of master rights and publishing rights down, it’s time to break down different types of royalties that come with publishing. These royalties are the ways artists and songwriters get paid when their music is used in different contexts. For indie labels, understanding how these royalties work helps ensure your artists receive the payment they rightfully deserve.
Performance Royalties
Performance royalties are earned whenever a song is publicly performed. This includes everything from radio plays to concerts, to even being played in a public space like a store or bar. These royalties are typically collected by a Performance Rights Organization (PRO) like ASCAP, BMI, or SESAC. (You can only choose ONE, btw.) The PRO tracks performances, collects the royalties, and distributes them to the songwriters and publishers.
Mechanical Royalties
Mechanical royalties are earned when a song is reproduced, whether through physical formats like CDs or vinyl, or digital formats like downloads or streaming. In today’s world, streaming platforms like Spotify and Apple Music are a huge source of mechanical royalties. Every time a song is streamed, the songwriter and publisher earn a mechanical royalty.
Sync Royalties
Sync royalties are earned when a song is used in visual media, like movies, TV shows, commercials, or video games. These royalties are negotiated through a licensing agreement between the publisher and the company using the music. For indie labels, securing sync placements can be a great way to generate significant revenue, but it requires cultivating relationships with media companies and music supervisors. And if the label has a publishing deal or handles publishing through a partner, they can collect a portion of the sync royalties as well.
For labels without publishing rights, services like Bodega Sync can help streamline this process, offering indie labels like yours the opportunity to tap into the sync market by connecting artists with key players in the film, TV, and beyond. // If you want to expand your artists’ revenue streams and get their music placed in high-profile projects, Bodega Sync could get them there!
Publishing Splits
Publishing splits are just the way royalties from songwriting are divided between everyone involved, usually the songwriter, any co-writers or producers, and the publisher. The standard setup is a 50/50 split: half goes to the songwriter (called the “writer’s share”), and the other half goes to the publisher (the “publisher’s share”).
- If your label doesn’t offer publishing services, you’re probably not involved in these splits at all. But understanding how they work still matters, especially when your artist is collaborating with other writers or producers. These splits impact what your artist earns, which can affect their overall success (and your relationship with them, of course).
- If your label does offer publishing services or you’ve signed a publishing agreement with your artist, then your label becomes the publisher. That means you’d earn part of the publisher’s share, usually somewhere between 10% and 50%, depending on what you’re handling (like registering songs, collecting royalties, or pitching for sync placements).
At the end of the day, just keep in mind that getting the splits in order from the start ensures everyone gets their fair share, so you can avoid any headaches and arguments later on.
Registering with a PRO (Performing Rights Organization)
PROs are the ones who make sure you’re getting paid every time your song is played. In the USA, we have three main PROs to choose from (and you can only choose one). To make sure you receive the royalties you’re rightfully owed, your songs need to be properly registered with either ASCAP, SESAC, or BMI.
These guys rely on the information you provide to determine who they need to pay and how much, so you have to be sure to provide everything you need the first time around.
If you’re a Symphonic client, we can help you through our partnership with Songtrust! By signing up with Songtrust, they’ll register your songs with the PRO for you. Easy peasy. // To learn more about it, check this out.
Admin Publishing Deal vs. Full Publishing Deal
When you’re dealing with music publishing, there are two main types of deals:
Admin Publishing Deal: You stay in control of your music, but you have a publisher handle things like collecting royalties. They get a small percentage (usually 15-20%) for doing the work, but you keep most of the rights and earnings.
Full Publishing Deal: The publisher takes a bigger role here. They not only collect royalties but also pitch your music for things like sync placements. They usually take a bigger cut (50%) and get part of the rights, but they’re working harder to make things happen for you.
Simply put, if you want to stay in control, the admin deal may be a good fit for you. If you’re okay with giving up some control for more help and opportunities, a full publishing deal might be a better fit.
To wrap things up…
From understanding the difference between master and publishing rights to making sure your songs are registered and collected properly, it all adds up to making sure everyone gets paid exactly what they’re owed. Keep in mind, you don’t have to become an expert overnight! Just knowing where to start (and who to partner with) puts you ahead of the game.
And if you need some help with publishing admin, we can help you with that! Symphonic’s Publishing Administration services are built for independent artists and labels. We’ll help you collect what you’ve earned and simplify the process every step of the way.
In the meantime, you got this!
