What Are Music Publishing Deals?

If you’re writing original songs, at some point in your career you may be offered a music publishing deal. 

As an independent artist, you likely own all your music rights and manage your own music royalties. Understanding how publishing works, and how royalties are earned and collected, is essential before signing any agreement. 

At WaterBear, our Music Business Department can teach you everything you need to know about the industry. But for now, let’s explore the world of music publishing. 

Here are the basics you should understand before signing on the dotted line… 

1.What Is Music Publishing?

• Copyrights Explained

2. What Do Publishing Houses Do in The Music-Industry?

3. Types of Music Royalties

• Performance Royalties
• Mechanical Royalties
• Sync Licensing and Royalties

4. The Difference Between a Music Publisher and PRO

5. Types of Music Publishing Deals

• Administration Agreement
• Co-Publishing Agreement
• Full Publishing Deal
• Work For Hire
• Self-Publishing

6. Navigate Music Publishing with Confidence

Put simply, music publishing is the business of monetising a musical composition and managing music rights.  

To grasp how it works, it’s important to understand the difference between publishing rights and master rights, as this distinction determines how music royalties are earned and managed. 

Before diving deeper into publishing, let’s first look at copyrights…

Copyrights are the foundation of protecting original music and ensuring that songwriters control their music rights.  

When you copyright a song, you gain exclusive rights to control how it’s used, including who can reproduce, distribute, or perform it.

There are two copyrights for each piece of music: 

The Sound Recording (Master Rights) - Sound recording copyrights, also known as the master rights, give the owner protection and earning ability on their original recording of music. Whether they are an artist or a label, the owner controls how the recording is used and earns royalties whenever it’s streamed, downloaded, or broadcast. These master rights cover the specific recording.  

The Composition (Publishing Rights) - Composition copyrights, also known as publishing rights, refer to the ownership of the underlying musical elements of a song, such as the melody, harmony, and lyrics. The composition is usually owned by the songwriter or composer and represents the creative structure of the piece. Owning the composition copyright ensures that creators earn royalties whenever their music is used, whether through performance, streaming, or licensing.  

Music publishing houses play a vital role in managing music royalties and protecting music rights for songwriters. They are authorised to license compositions and ensure that royalties are collected and distributed fairly. 

While independent artists can manage these tasks themselves, the process can be complex. Different organisations around the world handle different types of royalties, making it easy to miss out on income. 

This is where publishing houses prove their value. Thanks to their established relationships with Performing Rights Organisations (PROs) and other collection societies, they help songwriters receive every royalty they are owed, while allowing artists to focus on what they do best – creating music.

At WaterBear, you’ll be taught by active industry professionals with real-world experience across every part of the music business. You’ll also have the chance to learn from special guests who share insider insights, give career advice, and answer your questions to help you shape your own path in the industry.

Royalties are the payments made to rights holders whenever their music is used, from live performances and digital streams to placements in films, adverts, or other media.  

Let’s take a closer look at the main types of music publishing royalties and discuss how they work…

Performance royalties are earned whenever a composition is played in public – whether live at a gig, on the radio, streamed online, or even as background music in cafes, shops, or other venues. 

These royalties go to the copyright holders of the composition (the songwriter or their publishing house) whenever their work is publicly performed. 

For emerging independent artists, understanding performance royalties is key because every public use of your composition, from small gigs to online streams, can help you generate income from your creations.

Mechanical royalties are paid to the copyright holders of a composition (the songwriter or their publishing house) whenever their work is reproduced. This includes physical formats like CDs and vinyl, as well as digital streams and downloads. 

In the past, these royalties mainly came from manufacturing physical copies, but today, on-demand streaming platforms are the main source.  

Every time someone plays your composition on Spotify, Apple Music, or any other streaming service, mechanical royalties are triggered. 

If you’re developing your music career, knowing how mechanical royalties work means you can earn from every stream, download, or physical sale of your original songs, helping you build a sustainable income as an independent artist.

Sync licensing ensures that your music rights and music royalty payments are protected when your composition is used commercially, such as in adverts, films, TV shows, or video games. 

Anyone who wants to use your composition must obtain a synchronisation licence from you as the songwriter, or from your publisher. 

If they also want to use your original recording, they’ll need a separate master use licence, which pays the owner of the sound recording – this could be you as the performing artist, your label, or whoever holds the master rights. 

Whenever your composition is properly licensed through a synchronisation licence, the copyright holders (you and/or your publisher) earn royalties. For independent artists, this is an effective way to get your music heard and generate additional income from your creations.

A Performing Rights Organisation (PRO), such as PRS for Music, collects performance royalties on behalf of songwriters and composers. These royalties are generated whenever a composition is performed publicly (on radio, TV, live venues, or streaming services). PROs focus only on composition rights (the composition), not master recording rights (the sound recording). 

Mechanical royalties, which come from reproductions of a composition (such as physical sales, downloads, or streams), are managed by music publishers, either directly or via collection societies like MCPS. 

To summarise, PROs focus on ensuring songwriters and composers are paid when their compositions are publicly performed, while publishers handle both this and other revenue streams, helping maximise income from a musical work.

Understanding the different types of music publishing deals is crucial for any independent artist navigating the complex landscape of music publishing.  

Here’s a breakdown of the main types of music publishing deals…

An administration agreement lets you keep full ownership of your compositions and master recordings, while a music publisher takes care of registering your songs with collection societies and collecting royalties for you. They usually take a fee of around 10–15%. 

This type of music publishing agreement is great for artists reaching a global audience, as it makes royalty collection simpler across multiple territories while keeping you in control of your music. 

Key benefits include retaining 100% ownership of your songs, paying a relatively low fee, having professional support, and collecting royalties from all over the world.

A co-publishing agreement is common among modern artists and involves sharing ownership of your compositions with a music publisher. 

In this setup, you give up a portion of control over your compositions but gain the publisher’s active support in promoting your music. 

Typically, the publisher takes around 25% of the total revenue and may provide a monetary advance (a loan against future royalties). This upfront payment can help you fund projects, while the publisher’s vested interest can open up opportunities like sync placements in films or adverts, co-writing collaborations, and broader exposure for your music.

A full publishing deal is less common and involves transferring all your composition rights to a music publisher, meaning the publisher owns the compositions. 

This music publishing deal usually comes with a larger advance payment, but the publisher will recoup this from your royalties first. After recoupment, the songwriter typically receives only 50% of ongoing royalties. 

Full publishing deals can be suitable for artists who want to hand over all publishing responsibilities in exchange for upfront financial support and the publisher’s full promotional efforts, helping your music reach a wider audience.

A work-for-hire agreement is similar to a full publishing deal in that the creator gives up all ownership rights to the composition. However, instead of receiving ongoing royalties, you are paid a one-off flat fee. 

This type of music publishing deal is most common in contexts like film, TV, advertising, or video games. It guarantees an immediate payment for your work, but you won’t earn any additional royalties or retain ownership of the music. 

It’s important for songwriters to understand work-for-hire agreements so you can make informed decisions about when an upfront payment makes sense for your career goals.

If you’re not signed to a music publishing deal, you are essentially your own publisher. 

Self-publishers are responsible for managing their own music rights and collecting their royalties. 

For independent artists and songwriters developing their music careers, joining PRS for Music or another performance rights organisation (PRO) can make this process much easier. These organisations help you collect music royalties without needing a formal publishing deal.

Navigating the world of music publishing can feel exciting but also complex for aspiring musicians. Understanding music publishing deals, music royalties, and your music rights gives independent artists and songwriters the confidence to manage their careers effectively and make sure they’re paid fairly for their work. 

Whether you’re managing your own music or thinking about working with a music publisher, having a clear grasp of these concepts helps you make informed decisions, protect your rights, and negotiate better terms. 

At WaterBear, we’re committed to giving you the skills and knowledge you need to thrive in the music industry. Our courses provide practical, industry-focused insights into the music business, supporting you every step of the way in building a successful music career. 

Explore the opportunities at WaterBear – book an open day, order a prospectus, or apply now to take the next step in your music career.