“My Song is on the Radio and I’m Still Broke”
Music is central to our lives. It is a rare day we don’t hear music piped through speakers in a store, an office or in the car. Imagine films without a soundtrack, it may not be noticed immediately but likely one would sense something amiss. Most of us have a playlist on our computers, phones and we play curated channels from one of the many streaming music services. It can lift our moods, remind us of good times, sad memories and is a source of bonding with people we may not think we have any interests in common. The point is music is everywhere, ubiquitous.
It is fair to say if music means so much to us, a songwriter is aloud to not only earn a proper living from their artistry, he or she is entitled to protect it. One of the best books I read in college, “All You Need to Know About the Music Industry” by Don Passman is an excellent primer for anyone in the music industry, creatives, technicians and record label staff. The chapter about publishing, starts bluntly, “publishing is the cash cow of the music industry”. Hefty claim yet true. Performers don’t necessarily own the song they play let alone have the right to profit without the publishing owner making a profit as well. Note the distinction, “owner” of the publishing rights. The history popular music is rife with tales of songwriters being persuaded to relinquish some or all of their publishing rights for a record deal or some other incentive.
Song rights owners (there might be multiple songwriters credited) collect royalties in two “pies” (think pie chart, divided by percentage of ownership) one for sales of the recording: physical album sales (vinyl, CDs, and cassettes), digital downloads, ringtones and streaming services as well as negotiating use of songs for soundtracks and video games. These rights are known as mechanical rights. Licensing and royalties are tracked through a licensing agent, for example Harry Fox Agency.
The other royalty “pie” is performance rights. There are multiple organizations throughout the world. In the United States, there are two prominent players, ASCAP and BMI. The royalty schedule is much more complex. Under the performance royalty “banner” includes live performance (by another performer), radio, television, streaming, the list goes on. For a better understanding of the royalty rates for performance consult with an attorney specializing in performing rights or contact one of the performing rights organizations directly. Their websites are brimming with information for your benefit.
As a former music industry professional and music lover, I have met many talented musicians. On Occasion I inquire if they license their music, the answer surprisingly too often is “I haven’t done that yet”, “I’m thinking about doing it”, or “I don’t have a record deal yet” is understandable. If you are a songwriter it is a necessity to educate yourself about publishing. Think of songwriting and publishing like peanut butter and jelly, they just go together.
