#+title: revenue 02: publishing #+HTML_HEAD: * Links #+attr_html: :class links - [[../../../toc.org][TOC - Artist Framework]] - [[../../../_data/video/c10-revenue-02.mp4][video]] * notes * Master Copyright vs. Publishing Copyright in Music In the music industry, there are **two main copyrights** for every song: **1. Master Copyright** (*Sound Recording Copyright*) - Covers the **actual recorded version** of the song. - Owned by the **artist, label, or producer** who funded the recording. - Example: The recording of *"Thriller"* by Michael Jackson. - Pays **mechanical royalties, streaming royalties, and sync fees** when used. **2. Publishing Copyright** (*Composition Copyright*) - Covers the **lyrics, melody, and composition** of the song. - Owned by **songwriters and music publishers** (not the artist unless they wrote it). - Example: The **chords and lyrics** of *"Thriller"*, regardless of who sings it. - Pays **performance royalties, mechanical royalties, and sync fees** when used. **Key Differences** | **Aspect** | **Master Copyright** (Sound Recording) | **Publishing Copyright** (Composition) | |-------------------|---------------------------------|----------------------------------| | *What it protects* | The actual recorded version | The melody, lyrics, and structure | | *Who owns it* | Artist, label, or producer | Songwriters & publishers | | *Where it earns money* | Streaming, downloads, CDs, sync | Radio, performances, sync, covers | | *Main royalties* | Mechanical, streaming, sync fees | Performance, mechanical, sync | **Example Usage** If a company wants to use *"Thriller"* in a movie: - They **pay for the Master Recording** (to the record label). - They **pay for the Composition** (to the songwriters & publisher). ** Important! - register your LLC - register your assets under the LLC * Mechanical Royalties & Streaming Royalties (Quick Overview) **1. Mechanical Royalties** - Paid to **songwriters & publishers** when a song is **reproduced or distributed** (physical or digital). - Applies to **CDs, vinyl, downloads, and interactive streaming** (Spotify, Apple Music). - Collected by **Mechanical Rights Organizations (MROs)** like: - **U.S.:** Harry Fox Agency (HFA), The MLC (Mechanical Licensing Collective) - **U.K.:** MCPS - **Europe:** SACEM, GEMA **2. Streaming Royalties (Broken Down)** - **Mechanical Royalties** (for the composition) - **Performance Royalties** (for public playbacks) - **Master Royalties** (for the sound recording, paid to labels & artists) *** Who Gets Paid for Streaming? | **Type of Royalty** | **Who Gets Paid?** | **Collected By** | |------------------------|------------------------------|-------------------------| | *Mechanical Royalties* | Songwriters, Publishers | MLC, HFA, MCPS | | *Performance Royalties* | Songwriters, Publishers | ASCAP, BMI, SESAC | | *Master Royalties* | Labels, Artists, Producers | Spotify, Apple Music (via distributors) | **Example** If a song gets 1 million streams on Spotify: - **Songwriters & Publishers** get **mechanical + performance royalties**. - **Artists & Labels** get **master royalties**. * Sync Placement (Synchronization Licensing) ** What is Sync Placement? Sync placement (short for *synchronization licensing*) is when a song is licensed to be used in visual media, such as: - TV shows - Movies - Video games - Commercials - YouTube videos - Corporate videos - Trailers - Podcasts ** How It Works A *sync license* allows a company, filmmaker, or content creator to legally use a song with their video content. The *music creator (artist, producer, or rights holder)* gets paid for the usage. ** Types of Sync Placements *** TV & Film Sync Placements - Songs placed in *movies, Netflix series, Hulu, etc.* - Usually high-paying, but competitive. *** Commercial Sync Placements - Used in *advertising* (Nike, Apple, car commercials, etc.). - Can be *huge payouts* if the brand is big. *** Video Game Sync Placements - Songs placed in *game soundtracks* (GTA, FIFA, NBA 2K, etc.). - Can be *recurring royalties* if the game sells well. *** YouTube & Online Content Sync - Used in *vlogs, influencer content, indie films, etc.* - Lower payouts, but can add up over time. ** How to Get a Sync Placement - ✅ *Work with a Sync Agency or Music Library* (e.g., MusicBed, Epidemic Sound, Artlist) - ✅ *Submit Music to Music Supervisors* (people who pick songs for shows & movies) - ✅ *Register with a PRO (Performance Rights Organization)* (like ASCAP, BMI) to collect royalties - ✅ *Make High-Quality Instrumentals & Vocals* (instrumental versions increase your chances) - ✅ *Network with Video Creators & Ad Agencies* ** Why Sync Placements Are Valuable - ✔ *Can Pay Large One-Time Fees* ($500 – $100,000+) - ✔ *Gives Exposure & Can Boost a Song’s Popularity* - ✔ *Earns Royalties Every Time It Airs* (Performance Royalties)