Publishing Rights Economics
Definition
Publishing rights control the musical composition (song and lyrics) entirely separate from the sound recording (master). Publishers own or administer these rights, collecting royalties from multiple streams: streaming mechanical royalties (65-70% of total composition streaming income), performance royalties via PROs for radio/TV/venue plays (30-35% of composition streaming income), sync licensing fees for film/TV/advertising placements, print music sales (sheet music, songbooks), and international collections through foreign PROs. Standard songwriter/publisher split: 50% to songwriter ('writer's share'), 50% to publisher ('publisher's share'), though modern deals vary widely—75/25 (writer-favorable), 60/40 (balanced), or 100% self-published (writer retains all rights). Publishing catalogs typically trade at 12-20x Net Publisher's Share (annual publishing income minus administration costs) with multiples varying based on growth trajectory, genre diversification, and collection efficiency.
Why it matters
Publishing rights represent 15-20% of total music industry revenue but provide more stable, diversified income than master recordings—less platform-dependent, longer copyright duration, and sync optionality. Bob Dylan's publishing catalog (sold to Universal for $300M-$400M estimated) generates income from: Spotify streams, radio play, TV performances, film sync licenses, cover versions by other artists, international collections, and print music—6+ revenue streams versus 2-3 for master recordings. This diversification reduces single-platform risk that plagues master catalogs. However, publishing income is more fragmented and harder to collect—requires registering songs with 50+ foreign PROs, monitoring cover versions, pursuing sync opportunities, and auditing streaming platforms for proper mechanical payments. Collection inefficiency reduces realized cash flows 10-30% below theoretical maximums, explaining why publishing trades at similar multiples to masters despite lower absolute cash flows.
Common misconceptions
- •Publishing isn't just performance royalties—mechanicals from streaming now represent 60-70% of publishing income, eclipsing traditional performance royalties from radio/TV.
- •Publisher ownership doesn't grant creative control—songwriter retains right to approve or deny sync licenses, cover versions, and derivative works. Publisher can pitch/administer but songwriter has final say on creative uses.
- •Self-publishing doesn't eliminate all intermediaries—still requires PRO membership (ASCAP/BMI/SESAC), MLC registration for streaming mechanicals, and typically publishing administrator for international collections. 'Self-published' means retaining 100% economic interest, not DIY administration.
Technical details
Songwriter vs publisher economic splits
Traditional publishing deal (50/50): Songwriter receives 50% of all income (writer's share), publisher receives 50% (publisher's share). $100K total royalties = $50K to writer, $50K to publisher. Publisher provides: advances ($50K-$500K+ for proven writers), global administration, sync pitching, copyright protection/enforcement, and royalty auditing. Writer trades 50% economics for industry expertise and cash advances.
Co-publishing deal (75/25): Songwriter retains 50% writer's share plus 50% of publisher's share = 75% total. Publisher receives remaining 25%. $100K royalties = $75K to writer, $25K to publisher. Common for established writers with negotiating leverage. Publisher still provides full services but reduced economics reflecting writer's proven track record and reduced risk.
Administration deal (90/10 or 85/15): Writer retains 100% ownership but pays administrator 10-15% for collection/registration services. $100K royalties = $90K to writer, $10K to administrator. No advances, no creative input from administrator—pure back-office services. Ideal for sophisticated writers who want ownership but lack infrastructure for global collection.
Self-published (100% to writer): Writer retains all rights and income but handles all administration. Direct PRO membership, MLC registration, foreign PRO affiliations, sync licensing, cover version monitoring. Requires significant expertise and time investment. Most self-published writers eventually hire administrator once catalog scales (500+ songs, $100K+ annual income).
Publishing revenue stream breakdown
Streaming mechanical royalties (60-70% of publishing income): Digital services pay mechanicals through MLC. Rate: $0.0006-$0.0015 per stream for composition. Song with 100M annual streams generates $60K-$150K mechanicals. Fastest-growing income stream, now exceeding performance royalties for streaming-heavy catalogs. Collection via MLC since 2021 dramatically improved efficiency (90%+ capture vs 60-70% pre-MLC).
Performance royalties (25-35% of publishing income): PROs collect from radio, TV, venues, streaming platforms for public performances. Song with 50M radio audience impressions + 100M streams generates $80K-$150K performance royalties annually. Declining as radio listenership falls but streaming performance revenue growing. 9-18 month payment lag creates working capital needs.
Sync licensing (5-15% of publishing income): Episodic—single major sync worth $50K-$300K can equal years of streaming income. Average catalog: 2-5 sync placements annually at $5K-$30K each = $10K-$150K annual sync income. Highly volatile quarter-to-quarter. Premium catalogs (70s/80s classic rock) derive 20-30% of income from sync due to commercial appeal and recognition.
Print and other (1-5% of publishing income): Sheet music, songbooks, digital transcriptions. Declining revenue source ($500-$5K annually for most catalogs) but valuable for classical, educational, and worship music where print remains relevant. Mechanical royalties from physical sales (CDs/vinyl) now negligible (<1% of income) as physical volume collapsed 95% from peak.
Co-writing and split negotiations
Equal collaboration (50/50 split): Two writers equally contributing lyrics, melody, and structure split 50/50. Each receives 25% writer's share + potential publisher's share. If both self-publish, each gets 50% total. If one has traditional deal, that writer gets 25% while their publisher gets 25%, other writer gets 50% if self-published. Complex cascading splits.
Producer as co-writer: Common practice—producer receives 10-25% publishing despite minimal lyrical contribution. Justified by melodic/structural input and negotiating leverage. Contentious post-success—many litigation cases where artists claim producer shouldn't have writing credit. Example: Max Martin routinely receives 25-33% co-writing credit on hits he produces.
Unequal contribution: Writer providing 80% of song (full lyrics, main melody) negotiates 80/20 or 70/30 split with writer who contributed bridge or minor melody. Splits negotiated pre-recording typically, but often re-negotiated if song becomes hit and contributors feel under-compensated. No standard methodology—purely negotiation and leverage.
Sample clearance impact: When song samples prior work, original songwriter(s) entitled to percentage of new song's publishing. Typically 25-50% depending on sample prominence and negotiating leverage. Rick James received 100% of 'Super Freak' publishing when MC Hammer sampled extensively for 'U Can't Touch This.' Reduces publishing value for sample-heavy catalogs—income shared with multiple parties.
Publishing catalog valuation factors
Net Publisher's Share (NPS) calculation: Gross publishing income from all sources minus administration costs (10-20% typically). $1M gross income, $150K admin = $850K NPS. Valuation multiple applied to NPS, not gross. Multiples: 12-15x for stable/declining catalogs, 15-18x for stable/growing, 18-25x for high-growth or sync-heavy catalogs. Example: $850K NPS × 15x = $12.75M valuation.
Revenue diversification premium: Catalogs with balanced income streams (40% mechanical, 30% performance, 20% sync, 10% other) trade at 10-15% premium versus mono-source catalogs (80% streaming mechanical). Diversification reduces platform risk and rate-change risk. Sync-heavy catalogs command highest premiums—recurring sync potential valued as option on high-margin revenue spikes.
Copyright duration consideration: Compositions created after 1978: life of author plus 70 years. Songwriter age 40 with typical 45-year remaining life = 115 years copyright. However, terminal value beyond 50 years heavily discounted in DCF valuations (3-5% annual discount rate, 50-year terminal value only 8-10% of present value). Practical valuation horizon: 20-30 years. Older catalogs (copyright expiring 2040-2050) trade at 15-20% discount.
Administration quality impact: Self-administered catalogs (songwriter collecting directly) often under-collect 20-40% of potential royalties—missing foreign PRO registrations, failing to claim black box royalties, not pursuing sync opportunities aggressively. Professional administration adds 10-15% to realizable value despite 15% fee—net positive. Sophisticated buyers factor administration improvements into purchase valuation, offering premiums for under-administered catalogs with upside potential.