The terms master royalties and publishing royalties are two of the key concepts in the music industry, yet they often get confused. Knowing the difference between them is essential for any musician or artist looking to make money from their work. Regardless, songwriters, artists, producers, and as many as hold ownership to a song or songs can still maximize earnings. the way to maximize your earnings from your music is by taking advantage of royalties

Royalties are payments made for the use of intellectual property, including literary and artistic works such as music. These rights are paid to the creators or owners of a work whenever it is used by someone else. Master royalties and publishing royalties are two types of music royalties, and they refer to different components of the same piece of music.

What Are Master Royalties?

Master royalties refer to the revenue earned from recordings of a song. Whenever someone purchases, streams, or downloads a recording of a song, the master royalties are paid to the owner or owners of the sound recording. This includes albums, singles, ringtones, and streaming services such as Spotify or Apple Music.

Examples of how master royalties are used include:

• Purchasing a physical or digital recording from a store
• Streaming a song on Spotify, Apple Music, or other streaming services
• Downloading a song from iTunes or other digital music stores
• Broadcasting a recording on the radio
• Making a copy of the song for sync licensing purposes , such as commercials

What Are Publishing Royalties?

Publishing royalties refer to the revenue earned from the composition of a song. Whenever someone purchases sheet music, performs the song live, synchronizes it to a film or TV show, or uses it for any other type of mechanical use, the publishing royalties are paid to the owners or writers of the composition.

Examples of how publishing royalties are used include:

• Purchasing sheet music for a song
• Performing the song live in a concert, show, or other venue
• Broadcasting the song on TV or radio
• Synchronizing the song to a film, television show, video game, or other visual media
• Making a copy of the song for print purposes, such as sheet music or lyric books
• Selling or licensing karaoke versions of the song
• Making a remix of an existing composition for commercial purposes

How Does the Split in Master & Publishing Royalties Work?

How Does The Split In Master Royalties Work?

The split in master royalties is determined by the record label and artist(s) contract. Typically, the artist receives a majority of the master royalty payments, while the record label will receive a smaller portion. The exact percentages vary depending on the situation and may be negotiated as part of an agreement between the artist and label.

How Does The Split In Publishing Royalties Work?

The split in publishing royalties is determined by the publishers and songwriters. The exact percentages vary depending on the situation, but typically the songwriter receives a majority of the publishing royalties, while the publisher will receive a smaller portion. This can be negotiated as part of an agreement between the publisher and songwriter.

In some cases, the songwriter may be entitled to a higher percentage of the publishing royalties than the other writers involved in creating the song. This could include co-writers, arrangers, and producers who helped create the composition. Additionally, if the song is used for sync licensing purposes, such as commercials or TV shows, the writers may be entitled to a higher percentage of the royalties.

Master Royalties Vs Publishing Royalties:

How Are They Different?

Master royalties refer to the revenue earned from the actual recording of a song, while publishing royalties refer to the revenue earned from the composition of a song. Master royalties are usually paid out when someone purchases, streams, or downloads a recording, while publishing royalties are typically paid out when someone purchases sheet music, performs the song live, or licenses it for sync use.

The split in master and publishing royalties is usually determined by the record label or publisher contract(s). This means that the exact percentages may vary depending on the situation, but typically the artist will receive a larger portion of the master royalty payments than the other writers involved in creating the song. Additionally, the songwriter may receive a larger portion of the publishing royalties than the other writers involved in creating the composition.

Who Earns Them?

Master royalties are typically paid out to the artist, record label, and/or producer who created the recording of a song. Publishing royalties are usually paid out to the writers (including co-writers) and publishers who own the rights to the composition of a song. In some cases, additional royalty payments may be due to arrangers or producers who helped create the composition. Additionally, if the song is used for sync licensing purposes, such as commercials or TV shows, the writers may be entitled to a higher percentage of the royalties.

How To Earn The Royalties?

The artist, record label, and/or producer typically earn master royalties when someone purchases, streams, or downloads a recording of their song. The writers (including co-writers) and publishers who own the rights to the composition of a song may earn publishing royalties when someone purchases sheet music, performs the song live, or licenses it for sync use. Additionally, if the song is used for sync licensing purposes, such as commercials or TV shows, the writers may be entitled to a higher percentage of the royalties.

Dependency On Each Other:

Master and publishing royalties are both important sources of income for songwriters, artists, and other creatives. While the master royalties are paid out when someone purchases, streams, or downloads a recording of their song, the publishing royalties may only be earned if someone purchases sheet music, performs the song live, or licenses it for sync use. For this reason, it is important for songwriters and artists to be aware of both master and publishing royalties when creating a song. Additionally, the writers may need to negotiate an agreement with the publisher in order to ensure they receive a fair percentage of the publishing royalties. By understanding both types of royalty payments, songwriters and musicians can maximize their earnings.

Key Differences:

Type of Rights: Master royalties are earned from the use of a recorded song, while publishing royalties are earned from the use of a written song.

Source of Income: Master royalties come from the sale of physical copies of music, streaming, and sync licensing. Publishing royalties come from the sale of sheet music, synchronization and performance royalties.

Ownership: Master rights are owned by the recording artist or the label, while publishing rights are owned by the songwriter or the publisher.

Calculations: Master royalties are calculated as a percentage of the retail price or based on a set rate per unit sold, while publishing royalties are calculated as a percentage of the song’s earning.

Collecting Society: Master royalties are collected by SoundExchange, while publishing royalties are collected by organizations such as ASCAP or BMI.

FAQs:

Q: How do I register for royalties?

A: To register for royalties, you will need to join a performance rights organization (such as ASCAP or BMI) and submit your music for review. Additionally, if you are registering for publishing royalties, you may also need to negotiate an agreement with the publisher of your song.

Q: How are royalties split?

A: The exact percentage of royalties can vary depending on the type of usage, but typically master royalties are split between record labels and artists, while publishing royalties are split between publishers and songwriters. If a song is used for sync licensing purposes, such as commercials or TV shows, the writers may be entitled to a higher percentage of the royalties.

Q: How can I maximize my royalty earnings?

A: To maximize your master and publishing royalties, it is important to research the different revenue sources, as well as negotiate for a fair split of the royalties. Additionally, registering your music with relevant performance rights organizations, taking advantage of sync licensing opportunities, and negotiating with record labels for a higher percentage of master royalties can help you maximize your earnings.

Conclusion:

It is important to understand the key differences between master and publishing royalties in order to ensure that you are maximizing your earnings from your music. Master royalties are typically paid out when someone purchases, streams, or downloads a recording of a song while publishing royalties are usually paid out when someone uses the composition rights of a song. Additionally, it is important to register your music with performance rights organizations and take advantage of sync licensing opportunities in order to increase publishing royalties. By understanding both types of royalty payments, songwriters and musicians can maximize their earnings.