Revenue Streams associated with Publishing and Copyright

Copyright Revenue and Royalties

  • Copyright in the music industry is a legal mechanism that gives the creator of a piece of music the exclusive rights to its use and distribution.
  • Equivalent to owning a physical asset, copyright is the ownership of an intellectual property and forms a valuable part of an artist’s earnings.
  • One of the main ways artists earn money from copyright is through royalties. Every time a recorded song is sold, streamed, broadcast in public or performed, royalties are paid to the holder of the copyright.
  • Publishing royalties are a type of royalty that is paid to the songwriter or publisher whenever a song they have written is used commercially.
  • A music publisher’s role is to govern and exploit the copyrights owned by the artists.
  • Copyright can be sold or licensed, producing additional sources of income for artists.

Licensing Revenue and Types

  • Licensing is a significant revenue stream in the music industry, permitting others to use a piece of copyrighted music in exchange for a fee.
  • There are several types of licences in the music industry:
    • Mechanical licenses are issued by a songwriter or publisher, allowing a third party to record and distribute a songwriter’s composition.
    • Performance licenses typically cover the right to publicly perform music and are usually issued by Performing Rights Organisations (PROs).
    • Synchronization licenses are agreements between copyright owners and a client (like a film or ad company) who wants to synchronize the music with their video.
  • Each form of licensing can generate a significant amount of revenue, depending on the scale of use.

Key Differences Between Publishing and Copyright

  • It’s essential to distinguish between the roles of music publishing and copyright. While copyright refers to the ownership of a song or sound recording, music publishing relates to the business of licensing and making money from copyrights.
  • Both music publishing and copyright are vital to an artist’s revenue streams, as they present opportunities to earn money in various ways, from direct sales to licensing for TV shows or advertisements.
  • Partnering with a music publisher can be a significant step for an artist in managing and monetizing their copyright. However, artists must remember that selling their music and copyrights can limit their control over their work. It’s always important to weigh up the benefits.