1. Music Publishing Chapter Six

2. Start Thinking... 1. Once a song is written, what’s the next step? How does it get from the writer to the customer? Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

3. Chapter Goals Acquire an understanding of how music publishing companies are structured and how they function today. Learn how a publisher selects, then promotes, new material. Gain an understanding of the essential elements of a songwriter publishing contract. Identify a publisher’s potential income sources. Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

4. Music Publishing Heart of music publishing industry  no longer “print” business  now marketing and administration of rights  key to success is how well publishers exploit music and generate royalties “Keep your publishing!” Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

5. Types of Publishers Major Companies Wide range of musical styles in catalogs Origins in  Hollywood  Broadway  Tin Pan Alley Offer full line of services Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

6. Types of Publishers Recording Company Affiliates Full-line publishers Often operate independently of record label Acquire extensive catalogs Publishing/recording deals can be good for new artists Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

7. Types of Publishers Independent Publishers Not associated with multinational publisher or label Many are members of AIMP Some independents  administrative duties only (for a fee)  little or no exploitation Other independents  old-style publishing and songplugging Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

8. Types of Publishers Independent Publishers Artist-owned companies  keep all publishing income  generally publish only their compositions  not involved in print publishing  negotiate subpublishing deals abroad Writer-owned companies  control copyrights and get songs published  control promotion Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

9. Writer-Owned Publishing Company [Insert Figure 5.2] Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

10. Types of Publishers Educational Publishing Limit catalog to music intended for students and schools  choirs, marching bands, concert bands Biggest sellers = piano + guitar Bench packs Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

11. Types of Publishers Specialty Publishers Limited to one genre of music, for example, Christian Country music = largest independent publishers Most specialty publishers are small Prosper from sales + print business Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

12. Types of Publishers Concert Music Classical music:  opera, symphony, ballet, recital, choral, religious music Special editions for school orchestras and choirs Income = rental + licensing of scores, instrumental, vocal parts Maintain catalogs of older European music Publish works of 20th-century serious composers Some publishers are subsidized Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

13. Types of Publishers Print Licensees Few music publishers print; they license to “print” companies Print firm  bears full cost  pays licensor royalty on sales (often 20% of wholesale) Print firm = selling agent Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

14. Subpublishing Subpublishing Agreements Major publishers have branch offices in foreign countries  exploit American catalogs  acquire compositions in foreign territories Independents seek subpublishers  foreign independents  affiliates of multinational companies  The Harry Fox Agency Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

15. Subpublishing Subpublishing Agreements Royalty splits  80/20 or 90/10  advances paid based on projected success 3- to 5-year deals Local PROs collect royalties Collection deal versus subpublishing deal Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

16. Subpublishing At-Source Deals Versus Receipts-Based Deals Multinational companies offer at-source deals At-source deal  shares calculated on income earned in territory before deductions by subpublisher Receipts-based deal  shares calculated on income earned in territory after deductions by subpublisher Agreements for multiple territories Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

17. Administration Royalty Department Managed by accountant or finance person Handles  receipts  disbursements  inquiries Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

18. Administration Copyright Department 1. Conducts title searches 2. Registers claims of copyright 3. Records transfers of copyright ownership 4. Forms a liaison with The Harry Fox Agency to issue and administer mechanical licenses 5. Keeps records of subsisting copyrights and their pending expiration and termination dates Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

19. Administration Legal and Business Affairs Lawyers must be expert in  copyright law  music publishing  tax law  artist management  recording industry Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

20. Administration Print Publishing Operations Editing for print publications  correct errors in notation  rewrite portions to make musical sense  notation software changed print publications Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

21. Administration Print Publishing Operations The print production line: 1.Piece of music accepted for publication 2.Title of ownership confirmed 3.Claim to copyright registered 4.Arranger scores piano-voice version 5.Printer duplicates the music 6.Promotion/advertising department generates sales 7.Publisher pays author royalties based on sales volume Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

22. Administration Distribution Most publishers sublicense and merely receive royalties Print trail:  publisher  print publisher  rack jobber  retailer  customer Online sales  online aggregators  music retailers’ websites  publisher’s website Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

23. Administration Audit/Tracking Collect payments from licensees Ensure licensees are conforming to their licensing agreements Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

24. Administration Creative Department 1. Discover and sign new writers 2. Maintain good working relationships with writers under contract 3. Persuade artists and producers to record the writer’s music 4. Convince film, TV, and commercials to buy synch licenses; negotiate favorable rates when licensing uses of the copyrights 5. Search out ancillary uses of those copyrights Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

25. Administration Creative Department Sources for new material:  Writers currently or recently hot on the charts  Recommendations from the field  Writer already under contract Acceptance criteria Catalog acquisitions Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

26. Contracts With Writers Refer to pages 102-106 of the text for a sample contract. Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

27. Split Publishing, Copublishing Sharing of publishing income, not responsibilities Administration can be difficult  PROs split performance royalties  HFA splits mechanical royalties and synchronization fees Contract needed for sharing synchronization fees A single song may have multiple authors and multiple publishers Cut-ins Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

28. Copyright Protection: Sampling Sampling: 1.The process by which the amplitude and frequency of some sound waves are measured and reproduced 2.Digital copying of portions of existing recordings for use in other recordings Permission for sampling must be obtained Sampling = lucrative subsector of music industry Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

29. Promotion, Advertising Popular Music Main concern of publisher = getting music recorded and broadcast Song casting Cover records Digital promotion Synchronization promotion Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

30. Promotion, Advertising Educational Field Promotion of music intended for student and school use: 1.Direct mail campaigns 2.Ads in music education journals 3.Reading clinics 4.Internet Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

31. Promotion, Advertising Classical Field Remind customers of great music of the past Rentals of scores and parts for performance and recording Performance fees for dramatic musical works Ads placed in music journals Overlap with educational field Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

32. Income Sources Type of Music UseWho Pays the Publisher Broadcast performancePublisher’s PRO (from broadcasters) Nonbroadcast performancesPublisher’s PRO (from venues) Mechanical royaltiesRecording company Sheet music salesPublisher’s print music licensee Synchronization of musicMovie, video, or game producers Special permissions licensesPublisher’s licensee JukeboxesPublisher’s PRO Dramatic (or grand rights)Producer of the dramatic performance Foreign rightsSubpublishers; reciprocating PROs Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners Table 6.2 Publisher’s Potential Income Sources

33. Income Sources Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

34. Trade Associations National Music Publishers’ Association Provides leadership for the music publishing/songwriting community Helps formulate policy regarding  protection of copyrights in an age of advancing technology  payment of royalties for electronic delivery of music throughout the world Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

35. Trade Associations The Harry Fox Agency, Inc. Established by NMPA in 1927 as an information source, clearinghouse, and monitoring service for licensing musical copyrights. Acquired by SESAC in 2015. 1.Mechanical licensing 2.Royalty collection and distribution 3.Royalty compliance Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

36. Trade Associations Association of Independent Music Publishers Formed in 1977 to educate and inform local music publishers about industry trends and practices Members include  publishers affiliated with record labels and motion picture and TV companies  individuals from entertainment community Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners

37. For Further Thought... 1. If the heart of the music industry is no longer about the print business, but about exploiting rights, what avenues for income are available to publishers? 2. What are the different types of publishers, and how do they differ in focus? 3. What are the implications of the shift in publishing revenues away from mechanical royalties in favor of performance fees and synch licenses? Music Business Handbook and Career Guide, 11th Ed. © 2013 Sherwood Publishing Partners