Music Publishing
The New Math 50-50 Deal
By Professor Ed Calle
Miami-Dade College - School of
Entertainment Design Technology
The Writer
 The writer composes music and/or lyrics.
 Writers own the copyright until they sign it
away.
 The writer is paid for airplay of their
compositions.
Performing Rights Organizations
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ASCAP
BMI
SESAC
These organizations lobby the lawmakers on
behalf or writers and publishers.
 They collect and pay airplay money due to writers
and publishers.
 BMI & ASCAP are non-profit organizations.
Airplay Money
 A pop song receiving airplay on
commercial radio earns approximately 12
cents. (.12)
 50% is paid to the writer(s) and 50% to the
publisher(s).
 2 writers would earn 3 cents each. (50% of
50%)
 Songs driving the market may earn up to
4X’s the statutory rate or 48 cents per play.
Bonus Rates for Airplay
 A pop song receiving higher than average
airplay will be paid at a bonus rate.
 The rate can be as high as .48 cents or 4
times the standard airplay rate.
 More details regarding bonus rates are
available at www.bmi.com and
www.ascap.com.
Other Airplay
 Money paid for other airplay varies depending on
the format. Those formats include:
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College radio
Internet
Television
Digital broadcasts
Cable
Public radio
The Music Publisher
 A publisher offers some or all of these services:
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Administration
Acquisition
Promotion
Print Production
Distribution
Sales
Sub-publisher
Licensing
Publishing Administration
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Business Affairs
Operations
Accounting
Copyrights
Licensing
Permissions
Publishing Acquisitions
 Contract writers.
 Purchase existing catalogs.
 Company mergers and acquisitions.
Publishing Promotion
 Place music via appropriate channels:
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Recordings
Performances
Advertising
Movies
Television
Telephone ring tones
Video Games
Publishing Promotion continued
 Appropriate Channels
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Artists
Producers
A&R
Musical Directors
Decision makers
Print Production
 Create printed music, videos and folios for:
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Amateur musicians
Schools
Churches
Professionals
Orchestras (Concert publishers)
Distribution
 This department ensures that the music is
available to consumers via:
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Rack jobbers
Wholesalers
Retailers
Direct Mail
Catalogs
Internet
Sub-Publishers
 Domestic
 U.S.
 Canada
 Foreign
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Europe
South & Central America
Asia
R.O.W. (Rest of the World)
Licensing
 Publishers will negotiate:
 Synchronization licenses for use with film,
television or other images.
 Commercials.
 Special promotions.
 Any other use not covered by mechanical
royalties.
 The Harry Fox Agency is the largest music
licenser in the world.
The Song Manager
 Publishers will:
 Require writers to sign over the copyright in
order to allow use of the song legally.
 Issue a contract for a specific period of time.
This period will also require a certain number
of works to be created and “placed”.
 Collect and pay money to writers as specified in
the terms of the contract.
Publisher’s Money
 Mechanical Royalties
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New CDs
Remakes
Reissues
Covers
 Licensing music for use in film, television, video
games, telephones, commercials, etc.
 Airplay (Publishers collect 50% of airplay money)
 Printed music
Publisher & Writer
 A song generates two streams of income:
 Mechanical royalties
 Airplay
 The two revenue streams are not equal in
earning potential.
 By law, a writer is entitled to the writer’s
share of the airplay money. That share is
50% of the total airplay money.
Co-Publishing
 The publisher’s share of the money is negotiated
between writer and publisher.
 A writer owns 100% of the publishing share until
such time as he/she enters into a contract with a
publisher.
 The standard contract, known as a co-publishing
deal, is an even 50-50 split of the publishing
earnings between writer and publisher.
The New Math 50-50 Deal
 “I take care of the business and you take
care of the writing,” means:
 The publisher keeps 100% of the publishing
earnings.
 By law, the publisher also receives 50% of the
airplay money.
 The writer earns a 50% share of the airplay
royalties and absolutely no publishing money.
Revenue Streams
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Suppose the following:
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You compose 10 songs of length 5:00 or less which
are recorded on a major artist’s CD.
The record company prints 100,000 copies of the CD.
One of the songs receives 100,00 plays on radio.
A movie licenses the use of the song for $150,000.
An advertising firm pays $75,000 for the use of the
song in a commercial.
All ten songs are subsequently recorded by other
artists. The number of copies printed is 100,000.
Print music, videos and other educational materials
earn $75,000.
Computed Totals
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Mechanicals for 10 songs = 10 * .091 = .91
100,000 copies = .91 * 100,000 = $91,000
Airplay 100,000 * .12 = $12,000
Movie license = $150,000
Advertising = $75,000
Re-records = 100,000 * .091 = $91,000
Print music = $75,000
Co-Publishing Deal Earnings
Source
Publisher Writer/Publisher
Mechanicals $45,500
$45,500
Airplay
$3,000
$9,000
Movie
$75,000
$75,000

Advertising
$37,500
$37,500
Re-records
$45,500
$45,500
Print Music
$37,500
$37,500
TOTALS
$244,000 $250,000
New Math 50-50 Deal Earnings
Source
Publisher Writer/Publisher
Mechanicals $91,000
$0
Airplay
$6,000
$6,000
Movie
$150,000 $0

Advertising
$75,000
$0
Re-records
$91,000
$0
Print Music
$75,000
$0
TOTALS
$488,000 $6,000
Negotiating Strategies
 Present as much material as you seem fit.
 Look for the best possible deal.
 If you are offered the Miami deal, try to negotiate
as few songs at one time as possible.
 If you must give up all publishing on your music
in order to get in the door, minimize the number of
songs affected.
 Once you have negotiated a deal and you think
you have been taken advantage of, hire a good
lawyer and weigh your legal options.
Publishing Alternatives
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File your copyrights.
Start your own publishing company.
Market your music to those in need.
Affiliate with ASCAP, BMI or SESAC. They will
collect airplay royalties for the writers and
publishers respectively.
 Affiliate with Harry Fox to collect mechanical
royalties.
 As the publisher, you will be responsible for
negotiating synchronization licenses.