MUSIC PUBLISHING 101: WHAT CREATORS NEED
TO KNOW
Learn The Basics Of Music Publishing And Unlock Key
Resources To Kickstart Your Music Career.
What is Music Publishing?
Music publishing is all about managing the rights to a song and ensuring that songwriters and publishers get paid when their music is used. It involves collecting royalties when songs are played on the radio, streamed online, performed in public, or used in movies, TV shows, or commercials. There are two main types of copyrights in music:
- Composition Copyright: This covers the music and lyrics of a song, protecting the creative work of the songwriter and composer.
- Sound Recording Copyright: This protects the specific recording of a song, usually held by the artist or record label.
When people talk about music publishing, they’re referring to the composition copyright.
Types of Organizations Involved in Music Publishing Royalties
Several organizations collect and distribute royalties, each with specific roles:
- PROs (Performance Rights Organizations): These organizations collect performance royalties for songwriters and publishers when their songs are publicly performed, such as on the radio or during live concerts. Examples include ASCAP, BMI, and SESAC.
- MROs (Mechanical Rights Organizations): These organizations handle mechanical royalties, which are earned when a song is reproduced, like when it streams on Spotify or sells as a CD. In the U.S., the Harry Fox Agency and Music Reports serve as common MROs.
- CMOs (Collective Management Organizations)/Rights Organizations: These organizations often manage both performance and mechanical royalties, especially in non-U.S. markets. Examples include PRS in the UK, SACEM in France, and GEMA in Germany.
How Long Does It Take to Get Paid?
Each organization has its own timeline for royalty payments:
PROs:
- Payment Schedule: PROs typically pay royalties quarterly.
- Time Lag: Payments usually arrive 6-9 months after a song’s performance. The delay results from the time needed to track, report, and process performances.
MROs:
- Payment Schedule: Mechanical royalties also follow a quarterly payout schedule.
- Time Lag: Payment can take 6-12 months due to varying data reporting speeds. Streaming platforms may report usage data with delays, impacting payout timing.
CMOs/Rights Organizations:
- Payment Schedule: Many international CMOs pay royalties quarterly or bi-annually.
- Time Lag: Payments often take 9-12 months or longer, particularly for international royalties. The cross-border processing adds time to the timeline.
Factors That Affect Royalty Payment Times
Several factors impact how long it takes to receive royalties:
- Data Reporting: Late or inaccurate reporting of performance or streaming data can delay payments.
- Territorial Differences: Royalties from different countries may take longer because of varying reporting standards and processes.
- Registration Issues: If a song isn’t properly registered with the relevant PRO, MRO, or CMO, payments might be delayed or missed entirely.
Final Takeaway
Receiving music publishing royalties involves significant waiting periods. However, understanding the roles of PROs, MROs, and Rights Organizations helps set realistic expectations. By staying informed and managing your registrations properly, you can ensure smoother royalty flows.