Music Publishing

Table of Contents
1. Music Publishing
2. What Music Publishing Actually Is
3. How Publishing Income Works
4. Publishing Deals and Agreements
5. Setting Up Your Own Publishing Company
6. Co-Writing and Split Sheets
7. International Publishing and Sub-Publishing
8. The Role of Music Supervisors and Sync Licensing
9. Copyright Termination and Reversion
10. Digital Publishing and the Modern Landscape
11. Catalog Valuation and Song Acquisitions
12. Key Terms
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Music Publishing

1. What Music Publishing Actually Is

Let's start with something you probably already know: when you write a song, you own something valuable. But here's what might surprise you-you don't just own "a song." You own a copyright, and that copyright can make money in dozens of different ways. Music publishing is the business of managing, protecting, and exploiting that copyright to generate income.

Think about this: when you hear Happy Birthday sung at a restaurant, when Shallow by Lady Gaga and Bradley Cooper plays on the radio, when someone covers Wonderwall by Oasis on YouTube, or when Eye of the Tiger appears in a movie-someone is getting paid. That "someone" is usually the songwriter, and the system that makes sure they get paid is music publishing.

Here's the key distinction you need to understand right away: there are two separate copyrights in every recorded song:

• The composition copyright (the song itself-the melody, lyrics, chord progression, and structure)
• The sound recording copyright (the specific recording of that song-the master)

Music publishing deals exclusively with the composition copyright. This is what you create the moment you write a melody and put words to it. You don't need to record it, register it, or do anything special-the copyright exists the instant you fix the song in a tangible form, even if you just write the lyrics in a notebook or record a voice memo on your phone.

1.1 Why Publishers Exist

Now, you might be thinking: "If I own the copyright automatically, why do I need a publisher?" Great question. Imagine you're a songwriter in 1950. You've written a beautiful song. How do you:

• Get it recorded by famous artists?
• Make sure radio stations pay you when they play it?
• Track down every nightclub and restaurant that's playing it?
• Negotiate with film studios who want to use it?
• Collect money from overseas when it gets played in Germany or Japan?
• Stop people from stealing it or using it without permission?

You'd need a full-time staff, legal expertise, international contacts, and a lot of time. This is exactly why music publishers exist. A music publisher is a company or individual that administers songwriters' copyrights in exchange for a percentage of the income generated. They handle the business so you can focus on writing.

2. How Publishing Income Works

Let's follow the money. When you write a song and that song gets used somewhere-played on radio, streamed on Spotify, performed in a concert, synced in a TV show-money is generated. This money flows through what we call publishing income streams.

2.1 Performance Royalties

This is often the biggest income stream for songwriters. Every time your song is performed publicly-and "publicly" has a broad definition-you're owed money. Public performance includes:

• Radio broadcasts (AM/FM, satellite, internet radio)
• Streaming services (Spotify, Apple Music, YouTube)
• TV broadcasts (including background music in shows)
• Live concerts and festivals
• Bars, restaurants, shops, gyms-anywhere music plays publicly
• Nightclubs and dance venues

Think about Shake It Off by Taylor Swift. When a radio station in Cleveland plays it, Swift (as the songwriter) gets paid. When someone streams it on Spotify, she gets paid. When a cover band performs it at a wedding, she's supposed to get paid (though this is harder to track). When it plays in a coffee shop's background playlist, she gets paid.

But how? How could Taylor Swift possibly track every single time her song plays everywhere in the world? She can't-and she doesn't have to. This is where Performing Rights Organizations (PROs) come in.

Performing Rights Organizations

PROs are non-profit organizations that collect performance royalties on behalf of songwriters and publishers. In the United States, the three major PROs are:

• ASCAP (American Society of Composers, Authors and Publishers)
• BMI (Broadcast Music, Inc.)
• SESAC (Society of European Stage Authors and Composers-though it now operates in the US)

Here's how it works in practice: Radio stations, streaming services, venues, and businesses pay blanket licenses to PROs. A blanket license gives them permission to play any song in that PRO's catalog. The PRO then tracks what gets played (through reporting, sampling, digital monitoring, and surveys) and distributes the money to the appropriate songwriters and publishers.

Performance royalties are typically split 50/50 between the writer's share and the publisher's share. If you don't have a publisher, you still get the writer's share automatically through your PRO, but the publisher's share might go uncollected unless you set yourself up as your own publisher (which you can do).

2.2 Mechanical Royalties

The term "mechanical" sounds old-fashioned because it is-it comes from the days of piano rolls and phonograph records. A mechanical royalty is paid every time your song is reproduced or distributed in a physical or digital format. This includes:

• CDs, vinyl records, cassettes (physical sales)
• Digital downloads (iTunes, Bandcamp)
• Interactive streams (Spotify, Apple Music, Tidal)
• Ringtones

In the United States, mechanical royalties for physical products and permanent downloads are set by law at a statutory rate. As of 2023, this rate is 12.4 cents per song for recordings under five minutes, or 2.39 cents per minute for longer songs. This is called the statutory mechanical rate.

Let's make this concrete: If someone manufactures 1,000 CDs of an album with 10 songs you wrote, the mechanical royalties owed would be:
1,000 CDs × 10 songs × $0.124 = $1,240

For streaming services, mechanical royalties work differently-they're much smaller per stream (fractions of a cent) and calculated based on complex formulas set by the Copyright Royalty Board.

In the US, mechanical royalties are primarily collected by The Mechanical Licensing Collective (The MLC), which was created in 2021 as part of the Music Modernization Act. Before streaming, mechanical royalties were often handled by the Harry Fox Agency.

2.3 Synchronization (Sync) Royalties

This is where songwriting can get really lucrative. A synchronization license (or "sync license") is needed whenever someone wants to synchronize your song with visual media. This includes:

• Films and movies
• TV shows and series
• Commercials and advertisements
• Video games
• YouTube videos and online content
• Trailers

Remember when Somebody That I Used to Know by Gotye appeared in that Glee episode? That required a sync license. When The Chain by Fleetwood Mac was used in Guardians of the Galaxy Vol. 2? Sync license. When a car commercial uses a popular song? Sync license-and often a very expensive one.

Unlike performance and mechanical royalties, which have set rates or are calculated by formulas, sync fees are negotiated on a case-by-case basis. A sync placement in a student film might be free or $100. A sync placement in a Super Bowl commercial could be $500,000 or more. The fee depends on:

• How the song will be used (background vs. featured)
• Duration of use
• Territory (where it will air)
• Term (how long they can use it)
• Media (TV, film, web, all platforms)
• Exclusivity
• The song's popularity and the songwriter's leverage

This is an area where having a good publisher or sync agent really matters, because they have relationships with music supervisors (the people who select music for visual media) and know how to negotiate favorable deals.

2.4 Print Royalties

Though less significant than in previous decades, print royalties are paid when your song is reproduced as sheet music, in songbooks, or in digital sheet music formats. If your song becomes a standard that music students learn, like Autumn Leaves or Yesterday, print royalties can add up over time.

Companies like Hal Leonard and Alfred Music specialize in print music and pay royalties to publishers, who then split them with songwriters according to their agreement.

3. Publishing Deals and Agreements

Now that you understand how money flows, let's talk about the different types of relationships you can have with a music publisher. Not all publishing deals are the same, and understanding the differences can literally mean the difference between earning thousands or tens of thousands of dollars from the same song.

3.1 Traditional Publishing Deal (Full Publishing Deal)

In a traditional publishing deal, you transfer your copyright ownership to the publisher. Yes, you read that correctly-you give them the copyright. In exchange, the publisher commits to actively working your songs: pitching them for recordings, sync placements, covers, and commercial uses. They handle all administration, registration, licensing, and collection.

The standard split in a traditional deal is 50/50:

• You keep 100% of the writer's share (50% of total publishing income)
• The publisher keeps 100% of the publisher's share (the other 50% of total publishing income)

So from any dollar your song earns, you get 50 cents and the publisher gets 50 cents.

This type of deal typically includes an advance-money paid upfront against future royalties. The advance is recoupable, meaning the publisher recoups (takes back) the advance from your share of earnings before you see additional money. However, advances are typically non-returnable-if your songs don't earn back the advance, you don't have to repay it (though you won't get more money either).

Traditional publishing deals were the industry standard for decades. Think about classic songwriting teams like Jerry Leiber and Mike Stoller (Hound Dog, Stand By Me) or Burt Bacharach and Hal David (Walk On By, Raindrops Keep Fallin' on My Head)-they had traditional publishing deals with companies that actively worked to get their songs recorded by major artists.

3.2 Co-Publishing Deal

As songwriters gained more leverage, the co-publishing deal became more common. In this arrangement, you retain ownership of your copyright but assign administration rights to the publisher. You typically set up your own publishing company (we'll discuss this shortly) and "co-publish" with the larger publisher.

The typical split in a co-publishing deal is 75/25 in the songwriter's favor:

• You keep 100% of the writer's share (50% of total income)
• You keep 50% of the publisher's share (25% of total income)
• The publisher keeps 50% of the publisher's share (25% of total income)

So from every dollar, you get 75 cents and the publisher gets 25 cents. This is increasingly the standard for established songwriters or artists who write their own material.

Advances in co-publishing deals are often higher than in traditional deals because the publisher is taking a smaller percentage, so they need to believe strongly in the catalog's earning potential.

3.3 Administration Deal

In an administration deal (or "admin deal"), you keep 100% ownership of your copyrights and simply hire the publisher to handle the administrative work: registration, licensing, collection, and accounting. The publisher doesn't actively pitch your songs-they just make sure the money gets collected and paid to you properly.

Admin deals typically give you 80-90% of the total income, with the publisher taking 10-20% as their administrative fee. These deals usually don't include advances because the publisher isn't taking on significant risk or doing creative work.

This type of deal makes sense if you're self-sufficient at promoting your own music (you're an artist who performs your own songs, you have direct relationships with sync supervisors, etc.) but you want professional help making sure nothing falls through the cracks internationally or with complex licensing scenarios.

3.4 Work-for-Hire

This isn't really a "publishing deal" in the traditional sense, but it's important to understand. In a work-for-hire arrangement, you're commissioned to write a song and you receive a one-time fee but no ownership and no royalties. The person or entity that commissions the work owns the copyright entirely.

This is common in:

• Writing songs for musical theater productions
• Creating jingles for commercials
• Composing music for specific film scenes
• Ghost-writing for other artists

For example, if you're hired to write a jingle for a local car dealership for $5,000, that's typically work-for-hire. You get the $5,000, but when the jingle airs on radio hundreds of times, you don't get performance royalties-the dealership (or whoever they assigned the copyright to) does.

Always know whether you're entering a work-for-hire situation. The pay should be significantly higher to compensate for giving up all future income.

4. Setting Up Your Own Publishing Company

Here's something that surprises many new songwriters: you can be your own publisher. If you're not signed to a publishing deal, you should seriously consider setting up your own publishing entity. It's not complicated, and it ensures you collect 100% of your publishing income.

4.1 Why Create Your Own Publishing Company?

Remember that publishing income is split between the writer's share and the publisher's share. Your PRO will automatically pay you the writer's share because you're registered as a songwriter. But the publisher's share needs to go to a registered publisher. If you haven't designated one, that money might sit uncollected, or in some cases, it defaults to whoever is administering that particular license.

By creating your own publishing company, you capture both shares-effectively keeping 100% of your publishing income.

4.2 How to Set Up a Publishing Company

The process is straightforward:

1. Choose a name for your publishing company. It should be unique and not already in use. You can search the PRO databases to check. Many songwriters use variations of their own name (Paul McCartney's publishing company is MPL Communications, for "McCartney Productions Ltd") or creative names related to their music.
2. Affiliate your publishing company with your PRO. This is separate from your songwriter affiliation. You'll fill out a publisher application with ASCAP, BMI, or SESAC. There's usually a one-time fee ($50-$250 depending on the PRO).
3. Register your songs with your PRO, listing yourself as the writer (getting the writer's share) and your publishing company as the publisher (getting the publisher's share).
4. Consider forming a legal business entity (LLC or corporation) for liability protection and professional structure, though this isn't strictly necessary when you're starting out.

That's it. You don't need a fancy office or employees. Your publishing company can be just you, operating from home, ensuring that 100% of your income comes to you rather than 50%.

4.3 Registering Your Songs

Once your publishing company is set up, you need to register each song you write. This involves:

• Registering with your PRO: Log into your ASCAP, BMI, or SESAC account and register each composition, providing the title, writers (with percentage splits if co-written), and publisher information.
• Registering with The MLC: If your songs are being distributed digitally in the US, register them at themlc.com to ensure you receive mechanical royalties from streaming.
• Registering with the Copyright Office (optional but recommended): While copyright exists automatically, registering with the US Copyright Office (copyright.gov) provides legal advantages if you ever need to sue for infringement. The fee is $65 for a single song or $85 for a collection.

5. Co-Writing and Split Sheets

Most contemporary hit songs are co-written. Look at the credits for Bad Guy by Billie Eilish-it credits Billie Eilish O'Connell and Finneas O'Connell. Check out Old Town Road by Lil Nas X-eventually, it credited multiple writers including Trent Reznor and Atticus Ross because it sampled Nine Inch Nails. Uptown Funk by Mark Ronson and Bruno Mars credits eleven writers.

When you co-write a song, you're creating joint ownership of the copyright. This means every decision about the song-licensing it, selling it, modifying it-requires agreement from all writers. And critically, it means the publishing income must be split among all writers.

5.1 Split Sheets

A split sheet is a simple document that records who wrote what percentage of a song. It should be filled out during or immediately after every co-writing session. This isn't being paranoid or distrustful-it's being professional and preventing disputes later when money is involved.

A split sheet includes:

• Song title
• Date of creation
• All writers' full legal names
• Each writer's ownership percentage
• Each writer's PRO affiliation
• Each writer's publisher (if applicable)
• Contact information
• Signatures of all writers

The default assumption in the absence of an agreement is that all writers share equally. If three people write a song and there's no split sheet, it's assumed to be 33.33% / 33.33% / 33.34%. But what if one person wrote all the music and melody, and two people contributed just a few lyric lines? Without a split sheet, they still legally own equal shares.

5.2 Determining Fair Splits

How do you decide who gets what percentage? There's no single right answer, but here are common approaches:

• Equal splits: Everyone gets the same percentage regardless of specific contributions. This is common and keeps things simple. Many professional songwriters default to equal splits (if two people are in the room, it's 50/50; if three people, it's 33.33% each, etc.)
• Role-based splits: Different percentages based on who contributed what. For example, 40% to the person who wrote the melody and topline, 40% to the person who wrote the lyrics, and 20% to the person who contributed the chord progression and song structure.
• Separate music and lyrics: Sometimes music and lyrics are split as separate elements. The music writer(s) might split 50% and the lyric writer(s) split the other 50%.

The key is to discuss this openly before anyone leaves the writing session. Have the conversation while everyone is excited about the song, not months later when it's awkward.

5.3 Samples and Interpolations

If your song samples another recording (uses an actual audio snippet from an existing record), you need two clearances:

• Master use license from whoever owns the sound recording (usually a record label)
• Mechanical license from whoever owns the composition (the publisher/songwriter)

If your song interpolates another song (you re-record or re-sing a melody, hook, or lyric from an existing song), you only need permission from the composition copyright holder, but you typically must give writing credit (and thus publishing percentage) to the original writers.

This is why Lil Nas X had to give credit to Nine Inch Nails-Old Town Road sampled the song 34 Ghosts IV. Similarly, when Ariana Grande interpolated the melody from My Favorite Things (from The Sound of Music) in her song 7 Rings, she had to give writing credit and publishing percentage to Richard Rodgers and Oscar Hammerstein II's estates.

Never use someone else's existing music or lyrics without permission and proper clearance. The legal and financial consequences can be severe-you could be sued for copyright infringement, forced to remove the song from distribution, and liable for damages.

6. International Publishing and Sub-Publishing

Music is global, and your song might generate income in dozens of countries. But collecting that income internationally is complex because copyright law differs from country to country, and there are local PROs and mechanical rights organizations in each territory.

6.1 How International Collection Works

Most countries have their own PROs:

• PRS for Music in the United Kingdom
• GEMA in Germany
• SACEM in France
• JASRAC in Japan
• APRA in Australia
• And hundreds more worldwide

These organizations have reciprocal agreements with each other. So if you're affiliated with ASCAP in the US and your song plays on the radio in Brazil, the Brazilian PRO (UBC) collects the money, then passes it to ASCAP through their reciprocal agreement, and ASCAP eventually pays you.

The challenge is that this process can be slow (sometimes taking years) and there can be withholding taxes or administrative fees that reduce what you ultimately receive. This is where sub-publishing comes in.

6.2 Sub-Publishing Agreements

A sub-publisher is a local publisher in a foreign territory who actively works your catalog in that region. Instead of waiting for money to trickle through reciprocal agreements, a sub-publisher collects directly from local sources and usually gets you paid faster and more completely.

Sub-publishers do more than just collect-they might:

• Pitch your songs to local artists for covers
• Secure local sync placements in regional TV shows and commercials
• Translate your lyrics for local markets
• Handle local copyright registration and enforcement
• Provide local expertise on market opportunities

Sub-publishers typically take 10-25% of the income they collect in their territory. This comes off the top before money flows back to your main publisher (if you have one) or to you.

For emerging songwriters, international collection usually isn't a primary concern-you likely won't have significant international income early in your career. But as your catalog grows and especially if you have success on streaming platforms (which are global), international publishing becomes important.

7. The Role of Music Supervisors and Sync Licensing

Since sync placements can be among the most lucrative opportunities for songwriters, let's dive deeper into how this world works.

7.1 What Music Supervisors Do

A music supervisor is the person responsible for selecting and licensing music for visual media. They work on films, TV shows, commercials, video games, and trailers. Their job is to find the perfect music for each scene or moment-music that enhances the emotional impact, fits the budget, and can be legally cleared.

Music supervisors often start with a creative brief from the director or producer: "We need something that feels like an 80s power ballad but isn't too on-the-nose" or "We want something uplifting and anthemic with a building energy for the finale." Then they search through music libraries, consult with publishers, listen to pitches from sync agents, and ultimately present options to the decision-makers.

7.2 Getting Your Music Heard

Music supervisors are overwhelmed with submissions. How do you break through?

• Have high-quality recordings: Your demo doesn't have to be a $50,000 studio production, but it needs to be professionally recorded, well-mixed, and sound contemporary. Music supervisors are imagining your song in their project-it needs to sound finished.
• Create instrumental versions: Many sync opportunities need instrumentals for background use. Having these ready shows professionalism.
• Build relationships: Attend music industry conferences like SXSW or ASCAP's "I Create Music" Expo. Join organizations like the Guild of Music Supervisors. Take music supervisors to coffee (not to pitch, just to learn about their work).
• Work with sync agents or libraries: Sync agents represent songwriters to music supervisors. Music libraries are collections of pre-cleared music that supervisors can browse and license quickly. Getting your music into reputable libraries (APM Music, Warner Chappell Production Music, Marmoset, Musicbed, etc.) dramatically increases your chances of placements.
• Understand what's syncable: Not every song works for sync. Songs with clear emotional tone, strong hooks, interesting textures, and non-specific lyrics tend to work better. A song with the lyric "I saw you last Tuesday at the Starbucks on 5th Avenue" is hard to sync. A song with "I saw you standing there and time stood still" works in countless scenarios.

7.3 Types of Sync Licenses

Not all sync licenses are the same. Terms can vary wildly:

• Term: Perpetual (forever), or limited (5 years, 10 years, "in perpetuity for theatrical, 7 years for all other media")
• Territory: Worldwide, North America only, specific countries, etc.
• Media: All media, theatrical only, TV only, internet only, etc.
• Exclusivity: Exclusive (they're the only ones who can use it in that market for that period) or non-exclusive
• Edit rights: Can they edit your song down, change the arrangement, or must they use it as-is?

A film might pay $50,000 for a featured use with worldwide perpetual rights. A small indie film might pay $500 for a background festival use (meaning they can show the film at festivals, but need to re-negotiate if they get distribution). A commercial might pay $250,000 for exclusive use in a category (meaning no other auto brand can use your song) for one year in North America.

Always read the license carefully or have an attorney review it. The money might sound good, but you need to understand what rights you're granting.

8. Copyright Termination and Reversion

Here's something that might sound unbelievable: even if you signed away your copyrights to a publisher decades ago, you might be able to get them back. US copyright law includes a powerful provision called termination of transfer or copyright reversion.

8.1 The Termination Right

Under the Copyright Act of 1976, songwriters (or their heirs) can terminate a copyright transfer after 35 years, regardless of what the original contract said. This means that even if you signed a contract saying you permanently gave your rights to a publisher "forever," you can reclaim those rights after 35 years by following specific legal procedures.

This right was created because Congress recognized that young songwriters often sign unfavorable deals before they understand their work's value. It gives creators a "second bite at the apple" when their songs have proven their worth.

This is why you're seeing many classic songwriters from the 1980s now reclaiming their copyrights. Starting in 2013 (35 years after 1978, when the current copyright law took effect), thousands of termination notices have been filed. Artists like Prince's estate, Bob Dylan, and Tom Petty's estate have all reclaimed rights to classic songs.

8.2 How Termination Works

The process is technical and requires careful attention to deadlines:

• You can terminate between 35 and 40 years after the original transfer
• You must serve written notice to the current copyright holder at least 2 years but not more than 10 years before the termination date
• The notice must be served on the correct party and follow specific legal requirements
• The notice must be recorded with the US Copyright Office

This is not a DIY project-you need a music attorney who specializes in copyright termination. The stakes are too high and the procedures too exacting to risk making a mistake.

8.3 Exceptions and Limitations

Termination rights don't apply to works made for hire-if you were an employee or created something as a commissioned work-for-hire, those copyrights can't be terminated.

Also, termination only applies to US copyrights. International copyrights are governed by different laws, and many countries don't have similar reversion rights.

Finally, even after you terminate and reclaim your copyright, any licenses granted before termination remain valid. So if a film licensed your song for perpetual worldwide use before you reclaimed the copyright, that license continues-you can't revoke it. But you can negotiate new licenses going forward.

9. Digital Publishing and the Modern Landscape

The digital revolution has fundamentally changed music publishing. Let's talk about what's different in 2024 compared to 1994.

9.1 The Streaming Economy

Streaming now generates the majority of music industry revenue globally. For songwriters, this has been a mixed blessing. On one hand, your music can reach billions of listeners worldwide instantly. On the other hand, the per-stream payments are tiny.

The average songwriter earns approximately $0.004 to $0.006 per stream in combined mechanical and performance royalties from services like Spotify. This is split among all songwriters and publishers on the track. So if you wrote 25% of a song that got 1 million streams, you'd earn roughly:
1,000,000 streams × $0.005 average × 25% = $1,250

That might seem discouraging, but remember: streaming is cumulative and long-tail. A song can continue generating streams (and thus income) for years or decades. The classic album model where you sold a million copies in the first month and then sales dropped off has been replaced by a model where songs build gradually and earn steadily over time.

9.2 The Music Modernization Act

In 2018, the United States passed the Music Modernization Act (MMA), the most significant update to music copyright law in decades. Key provisions include:

• Creation of The Mechanical Licensing Collective (The MLC) to create a comprehensive database of musical works and simplify mechanical licensing for streaming services
• A blanket mechanical license for eligible streaming services, solving the previous situation where services couldn't possibly license every song individually
• Improved rates and transparency for songwriters
• Clarification of pre-1972 recordings receiving federal copyright protection (they previously only had state-level protection)

For songwriters, the most important practical result is that streaming services now report usage data to The MLC, which distributes mechanical royalties to publishers and songwriters. If you write and release music, register at themlc.com-it's free and essential.

9.3 YouTube and Content ID

YouTube is a unique case. It's simultaneously a streaming service, a social platform, and a major source of copyright infringement. YouTube's Content ID system allows publishers to claim their compositions when they appear in videos and choose to either:

• Block the video
• Monetize the video (run ads and collect the revenue)
• Track the video (just gather data)

Many publishers choose to monetize. This means when a teenager in Brazil uploads a video of themselves covering your song, you can automatically start earning money from ads on that video. This has created a new revenue stream called user-generated content (UGC) royalties.

However, Content ID is primarily administered by publishers and administrators-individual songwriters typically need to work with a service like Audiam, Songtrust, or a traditional publisher to claim YouTube money effectively.

9.4 Independent Publishing Services

The digital era has spawned new companies that offer publishing administration services for independent songwriters. These include:

• Songtrust: Provides global publishing administration for a percentage of royalties (typically 15%) with no upfront cost
• TuneCore Publishing: Similar to Songtrust, focused on independent artists
• CD Baby Pro Publishing: Publishing administration bundled with digital distribution
• Kobalt: A technology-focused music publisher offering transparent royalty tracking and administration

These services sit somewhere between setting up your own publishing company and signing with a traditional publisher. They handle the complex global collection work while letting you keep ownership and a higher percentage than a traditional deal.

10. Catalog Valuation and Song Acquisitions

In recent years, we've seen headlines about massive song catalog sales: Bob Dylan selling his entire catalog to Universal Music for reportedly $300-400 million, Neil Young selling his to Hipgnosis for around $150 million, and Stevie Nicks selling hers for $100 million. What's happening here?

10.1 Why Catalogs Are Valuable

Song catalogs are income-generating assets. They're similar to real estate or bonds-they produce predictable revenue year after year. Investors have discovered that classic song catalogs, especially those with proven longevity, are excellent investments because:

• Income is relatively predictable and stable
• Songs don't depreciate (unlike physical equipment)
• Revenue can grow as new uses emerge (streaming, new media formats, new markets)
• They can appreciate in value as the songs become more culturally iconic

10.2 How Catalogs Are Valued

Catalog valuations typically use a multiple of net publisher's share (NPS). The formula is:

Catalog Value = Average Annual NPS × Multiple

The multiple varies based on several factors:

• Catalog age and stability: Classic catalogs with decades of consistent earnings command higher multiples (15-25×) than newer catalogs (5-10×)
• Genre and longevity: Classic rock, country standards, and pop classics tend to have longer earning lives than some genre-specific or trend-driven music
• Revenue growth: Is income increasing, stable, or declining?
• Copyright ownership: Full ownership is more valuable than just administration rights
• Reversion risks: Are any copyrights subject to termination in the near future?

Let's say you own a catalog of songs that generates $50,000 per year in net publisher's share, and a buyer values it at a 12× multiple:
Catalog Value = $50,000 × 12 = $600,000

10.3 Should You Sell Your Catalog?

This is a deeply personal decision. Reasons to sell include:

• Immediate liquidity: Get a large sum now rather than small payments over decades
• Estate planning: Simplify what you pass on to heirs (cash vs. complex royalty streams)
• Risk reduction: Convert uncertain future income into guaranteed present value
• Life goals: Fund retirement, a business venture, or other priorities

Reasons to keep your catalog include:

• Ongoing income: If you're earning $50,000/year and you're healthy, you might collect far more than the sale price over your lifetime
• Growing value: If your catalog is increasing in value, waiting might be wise
• Creative control: Buyers might license your songs in ways you wouldn't approve of
• Legacy: Many songwriters want to leave their songs to their children

If you're considering a catalog sale, consult with a music attorney, a financial advisor, and a tax specialist. The tax implications alone can be complex and dramatically affect your net proceeds.

Key Terms

Composition Copyright

The copyright in the musical work itself-the melody, harmony, lyrics, and structure-separate from any particular recording of it.

Sound Recording Copyright

The copyright in a specific recording of a musical composition; also called the "master" recording.

Music Publisher

A person or company that administers, exploits, and protects songwriters' composition copyrights in exchange for a percentage of the income generated.

Performance Royalty

Payment owed to songwriters and publishers when a song is performed publicly, including broadcasts, streaming, live performance, and public venues.

Performing Rights Organization (PRO)

An organization that collects and distributes performance royalties on behalf of songwriters and publishers; the three main US PROs are ASCAP, BMI, and SESAC.

Mechanical Royalty

Payment owed to songwriters and publishers when a song is reproduced or distributed in physical or digital formats, including CDs, downloads, and streams.

Statutory Rate

The mechanical royalty rate set by law for physical products and permanent downloads, currently 12.4 cents per song for recordings under five minutes (as of 2023).

The Mechanical Licensing Collective (The MLC)

The organization created by the Music Modernization Act to administer blanket mechanical licenses for streaming services and distribute royalties to publishers and songwriters.

Synchronization License (Sync License)

Permission to synchronize a musical composition with visual media such as film, TV, commercials, video games, or online video.

Writer's Share

The portion of publishing income (typically 50%) that goes directly to the songwriter(s) and is paid by the PRO regardless of publishing arrangements.

Publisher's Share

The portion of publishing income (typically 50%) that goes to the music publisher; if the songwriter is self-published, they receive this share as well.

Traditional Publishing Deal

A publishing agreement where the songwriter transfers copyright ownership to the publisher in exchange for the publisher actively working the songs; typically splits income 50/50.

Co-Publishing Deal

A publishing agreement where the songwriter retains copyright ownership and co-publishes with a larger publisher; typically splits income 75/25 in the songwriter's favor.

Administration Deal (Admin Deal)

An agreement where the publisher handles only administrative tasks (registration, collection, licensing) without actively promoting songs; typically the songwriter keeps 80-90% of income.

Advance

Money paid upfront by a publisher to a songwriter against future royalty earnings; typically recoupable but non-returnable.

Recoupable

An advance or expense that the publisher recovers from the songwriter's royalty earnings before the songwriter receives additional payments.

Split Sheet

A document that records the ownership percentages of all writers who contributed to a song; essential for co-written songs.

Work-for-Hire

A situation where a songwriter is commissioned to create a work for a one-time fee with no ownership or future royalties; the commissioner owns the copyright entirely.

Sub-Publisher

A publisher in a foreign territory who collects royalties and actively works a catalog in that region on behalf of the original publisher or songwriter.

Blanket License

A license that allows a user (radio station, streaming service, venue) to play any song in a PRO's entire catalog for a single fee.

Music Supervisor

The professional responsible for selecting and licensing music for visual media projects such as films, TV shows, commercials, and video games.

Interpolation

The re-recording or re-performance of a melody, lyric, or other element from an existing song; requires permission from the composition copyright holder.

Sample

The use of an actual audio snippet from an existing sound recording in a new recording; requires clearance from both the master recording owner and the composition copyright holder.

Termination of Transfer (Copyright Reversion)

A US copyright law provision allowing songwriters or their heirs to reclaim copyrights 35 years after transfer, regardless of the original contract terms.

Content ID

YouTube's automated system that identifies copyrighted music in videos and allows rights holders to claim, monetize, block, or track those videos.

User-Generated Content (UGC) Royalties

Income generated when users create and upload videos containing copyrighted music to platforms like YouTube, TikTok, and Instagram.

Net Publisher's Share (NPS)

The publisher's portion of income after all direct expenses; used as the basis for catalog valuations.

Catalog Multiple

A number (typically 5-25×) multiplied by average annual net publisher's share to determine the market value of a song catalog.