The Dictionary

The idea that a relatively small base of paying, committed fans can sustain a career without mass-market scale.

A deal in which a label takes a share not just of recordings but of multiple income streams: touring, merch, publishing and more.

Artists and Repertoire: the people inside a label who find, sign and develop talent and decide what gets released and pushed.

The fixed schedule (often every six months, months after the fact) on which a label or publisher reports and pays royalties.

A publishing deal where the writer keeps full ownership and the publisher collects and administers for a percentage, without taking any copyright.

Money paid up front against future earnings. It is not a gift; it is recouped (paid back) out of the royalties the artist or writer would otherwise have earned.

A self-serve distributor (DistroKid, TuneCore, CD Baby, AWAL and similar) that puts an independent artist’s music onto streaming platforms for a fee or percentage.

The different pricing levels aggregators offer (flat fee, percentage, or premium service), each with its own trade-off on cost and control.

The contested question of whether and how AI models may be trained on, or clone, an artist’s recordings and voice.

A deal where a single budget must pay the producer and everyone else, so a bigger producer fee eats into the artist’s own share.

Costs HMRC accepts as deductible from music income before tax: instruments, travel, studio time and the like.

Spreading the cost of a long-lived asset (such as a purchased catalogue or an advance) across the years it earns, rather than all at once.

The main US performing-rights organisations, which collect song performance royalties. The US counterparts to PRS.

A customs document that lets a touring act take equipment across borders temporarily without paying import duties.

The contract clause that sets out when and how an artist can audit the company that pays them.

The instruments and amplifiers used on stage, either carried on tour or hired at the venue. A significant line item in touring costs.

Licensing a beat to an artist on lease, exclusive or full-sale terms, each giving the buyer different rights for a different price.

Royalties that have been collected but cannot be matched to a rights-holder (often because of missing or wrong data) and may eventually be redistributed to others.

A single licence covering a whole catalogue or type of use, rather than clearing each track one at a time.

An averaged headline figure (such as “£0.003 a stream”) that hides big variation by subscription tier and country.

The person who books an artist’s live shows and tours, usually for around 10% of the live fees.

A paid partnership between an artist and a brand (sponsorship, endorsement or content), now a major modern income line.

The point at which income exactly covers costs, with nothing left over and nothing lost.

The accountant or financial manager who looks after an artist’s money: bookkeeping, tax, cashflow and reporting.

A fee a support act pays the headliner or promoter to secure a slot on a tour, trading cash for exposure.

Treating a recoupable advance as an asset on the balance sheet to be recovered over time, rather than an immediate expense.

A negotiated exception to a broad contractual provision, for example excluding touring income from a 360 deal.

Managing the timing of money in and out so feast-and-famine music income covers bills and tax across the year.

Selling your future writer royalties for a single lump sum, giving up the long-term income in exchange for cash now.

An investment vehicle (a specialist fund, a pension fund, or a private-equity firm) that buys music rights to earn from the income they throw off.

Actively working an existing catalogue (reissues, syncs, playlist pitching) to grow its long-tail income.

Estimating what a body of music rights is worth, from its income, the multiple buyers will pay, and how its income is expected to decline.

The documented trail proving who owns a right at each step. Gaps in it are a serious red flag in any catalogue purchase.

The structured list of categories an artist’s or firm’s bookkeeping is organised into, so income and costs can be tracked consistently.

Securing permission, and agreeing terms, to use someone else’s music: a sample, an interpolation, or a sync.

A publishing deal where the writer keeps a share of the copyright (typically 50%) and the publisher administers and exploits the rest. The most common deal for established writers.

Writing a song collaboratively, where splits between the contributors must be agreed and documented.

How a screen composer is paid: a fee, a buyout of rights, or a deal that retains some rights and royalties.

The underlying song itself (the melody and lyrics) as a piece of intellectual property, separate from any particular recording of it.

When a team member’s own incentives pull against the artist’s interests, for example a manager who is also the promoter.

YouTube’s system for identifying copyrighted music in uploads and routing the resulting ad revenue to rights-holders.

A clause that caps the mechanical royalties a label pays on songs the signed artist wrote themselves, often below the statutory rate.

The exclusive legal right to control how a creative work is copied, used and exploited.

The US tribunal that sets the statutory mechanical and other compulsory royalty rates that platforms must pay.

How long a copyright lasts before the work enters the public domain. In the UK, generally the creator’s life plus 70 years.

Letting a label or publisher recover the unrecouped costs of one project out of the earnings of another, so a hit can be eaten up paying off a flop.

A log of every piece of music used in a film or TV programme, filed so performance royalties can be paid to the right writers.

How splits and deal terms differ in electronic music, where labels, remixes and DJ income work on their own logic.

Valuing a catalogue by projecting its future income and discounting it back to today’s money. More rigorous than income times a multiple.

The shape of how a catalogue’s income falls over time as songs age, central to pricing future earnings.

Selling music, merch or memberships straight to fans (Bandcamp, Patreon, Substack), keeping most of the money and the customer relationship.

The rate used to convert future income into present value; a higher rate means a lower valuation, reflecting greater risk.

A company that delivers recordings to streaming platforms and shops and collects the recording revenue on the artist’s or label’s behalf, for a cut.

The distributor’s or aggregator’s share of recording revenue, taken before it reaches the artist.

A Digital Service Provider: a streaming platform such as Spotify or Apple Music that licenses music and pays out a share of its revenue pool.

The checks a buyer runs before purchasing a catalogue, verifying income, ownership and risks, and discounting accordingly.

A contractual mechanism where the royalty rate rises once sales or streams pass a defined threshold, rewarding success with a bigger share.

Planning what happens to music rights and the income they earn after the rights-holder dies.

Whether a licence or agreement stops the music being used elsewhere. Exclusive uses command higher fees.

A performer’s status on a recording, which determines their share of neighbouring-rights income.

Managing the risk that foreign-currency music income loses value before it is converted to pounds.

Landing a song on another artist’s release. The main way a non-performing songwriter earns.

The rights to use music in a staged dramatic performance (an opera, musical or ballet), licensed directly from the publisher, not through a collecting society.

The difference between headline income (gross) and what actually remains after all costs are taken out (net).

A fixed fee a promoter pays an act regardless of how many tickets sell: the simplest and lowest-risk deal for the artist.

A standalone show where fans buy a ticket specifically for that act, as opposed to a festival slot where attendance is bundled.

The US organisation that historically collected mechanical royalties for physical and download sales on behalf of publishers.

Writing down the carrying value of a right or advance when it is no longer expected to earn back what it cost.

A deal or licence term meaning forever: the rights never revert to the creator.

UK tax on profits, charged as income tax for a sole trader and corporation tax for a limited company.

Any record label not owned by one of the three majors, ranging from one-person operations to large companies.

Cover for the risks of a music career: non-appearance, public liability, equipment loss, and health.

Collecting the royalties a work earns outside its home territory, usually via reciprocal deals between societies or a sub-publisher.

Re-recording a melody or section of an existing song rather than sampling the original recording, so only the song needs clearing, not the master.

The International Standard Recording Code, a unique identifier for a specific recording, used to track and pay it.

The International Standard Musical Work Code, a unique identifier for a composition (the song), used to track and pay it.

A partnership where artist and label share investment and profit, an alternative to a traditional royalty-bearing record deal.

How a label is organised internally (A&R, marketing, promotion) and who decides which acts get money and attention.

A deal where an artist keeps ownership of their masters but pays a company to provide label-like services (marketing, radio, playlisting) for a fee or revenue share.

The recurring ways money goes missing on the way to a rights-holder: wrong rates, unmatched usage, undeclared income.

Pre-cleared music licensed in volume for screen use, fast and cheap to drop in because the rights are already sorted.

The process of releasing money previously withheld as reserves, paying it through to the artist over a set schedule.

One of the three dominant music corporations (Universal, Sony and Warner) and their many sub-labels, which together control most of the recorded-music market.

The percentage a manager takes of the artist’s income, typically 15–20%, in return for guiding the career.

The copyright in a specific sound recording. Whoever owns the master controls, and earns from, that recorded version of a song.

The recording-side licence in a sync deal, paired with the song-side sync licence so a track can be used on screen.

The UK mechanical-rights society, which collects reproduction (mechanical) royalties for the song; administered alongside PRS.

A royalty paid to the songwriter and publisher each time the composition is reproduced: on a CD, a download, or a stream.

Branded goods (shirts, vinyl, posters) sold to fans, often a major and high-margin income line on tour.

The identifying data attached to a track (titles, codes, writer splits and credits) that travels to platforms and societies so the money can be routed correctly.

The routine of reconciling and finalising the books each month so the numbers are reliable and up to date.

A clause guaranteeing one party terms no worse than those given to any comparable party. If someone else gets a better rate, you get it too.

The 2018 US law that created the MLC to handle streaming mechanicals, modernising a royalty system built for physical sales.

A company that administers and exploits the composition (the song), registering works, collecting royalties and paying the songwriter their share.

The view of music catalogues as income-producing financial assets that funds buy for predictable, uncorrelated returns.

The person who selects and clears music for film, TV and games, and a key gatekeeper for sync placements.

Royalties paid to the performers and the owner of the recording when that recording is broadcast or played in public. Collected in the UK by PPL.

The ticket income from a show after VAT and agreed deductions are removed: the starting figure for working out what the act earns.

The annual income a catalogue earns after the publisher's costs and the writer's share are taken out: the standard metric buyers use to price a catalogue.

The income that remains after a label or distributor deducts its costs and fees: the base on which an artist royalty is calculated.

A streaming or radio service where the listener cannot choose specific tracks on demand. This distinction determines whether SoundExchange or a distributor collects.

When a single party controls both the song and the recording, so a sync can be cleared in one place rather than chasing several owners.

A statement summarising income minus costs over a period: the basic tool for seeing whether a tour, release or year made or lost money.

A royalty paid to the songwriter and publisher when the composition is performed in public, broadcast or streamed. Collected by a PRO such as PRS.

The streaming platform’s share of streaming revenue, typically around 30%, taken before anything reaches the rights-holders.

The cuts taken by direct-to-fan platforms and payment processors before the artist sees the money.

A song a publisher actively pushes and pitches, as opposed to a catalogue song left to earn passively.

The person whose job is to get a record played, pitching tracks to radio, playlist editors and media on behalf of a label or publisher.

Commission a former team member continues to earn on income that flows from work done while they represented the artist.

The UK organisation that collects neighbouring-rights royalties for performers and recording owners when a recording is played in public.

A performing-rights organisation / collective management organisation that licenses music to users and collects royalties on rights-holders’ behalf.

The standard streaming payout: the whole revenue pool is split in proportion to each track’s share of all streams on the platform.

The contract setting a producer’s fee, points and credit, and whether they earn an ongoing royalty or take a one-off buyout.

A producer’s percentage share of the recording royalties (each “point” is one percent), paid for producing the track.

The publishing share a producer earns when their production work counts as co-writing the composition.

A deal that splits net profit between artist and partner rather than paying a fixed royalty. Used in joint ventures and label-services deals.

The person who puts on a live show, pays the act and takes the financial risk on tickets.

The ways a promoter can pay an act: a flat guarantee, a guarantee plus a share, or a share of profit (a “versus” deal). Each carries different risk.

The UK organisation that collects performance and communication royalties for songwriters and publishers (the song side).

Works whose copyright has expired, so anyone may use them freely without permission or payment.

Licensing businesses that play recorded music (shops, gyms, cafés) so the writers and performers get paid.

A recoupable advance paid to a writer as a regular instalment, recovered out of their future publishing royalties.

The portion of publishing royalties paid to the publisher by the collecting society: the other half of the split from the writer's share.

The main structures a writer can sign (administration, co-publishing, or full publishing), differing in how much the writer keeps and gives up.

The copyright in the underlying song (the melody and lyrics), as opposed to any recording of it. The publishing side of the two pots.

The right to record a new version of songs to bypass ownership of the original master. Typically restricted for several years after the deal ends.

Checking a royalty statement against your own records to find income that is missing, late or mis-paid.

The contract between an artist and a label setting the royalty rate, term, options and territory for recordings.

A company that finances, owns and exploits recordings (masters), usually paying the artist an advance recouped against future recording royalties.

A specific recorded version of a song. It carries its own copyright (the master), separate from the copyright in the song itself.

The artist’s share of income earned by the master recording under a record deal.

The process of a label or publisher recovering advances and certain costs out of an artist’s royalties before the artist sees any further money.

The clauses and patterns in a deal that signal it is unfair, aggressive or predatory, and worth pushing back on.

Recording your songs and recordings with the right collection bodies so the royalties they generate can be matched to you and paid.

How a remixer is paid (a flat fee or points) and whether they own any part of the remix master.

Money a label withholds from royalties to cover stock that might be returned unsold, released back to the artist over time.

The practice of a sync library re-registering a composition under an alternative title so it can track and collect royalties from its own placements.

Deciding which accounting period royalty income belongs to, given that statements arrive months after the money was earned.

When ownership of rights returns to the creator after a set period or on termination of a deal.

The document attached to a live booking that specifies the act's technical requirements (sound, lighting, backline) and hospitality needs.

Any person or company that owns a copyright or related right in a piece of music and is entitled to the income it generates.

A payment made to a rights-holder each time their music is used (sold, streamed, broadcast or performed). It is a share of income, not a one-off fee.

A formal examination of a label or publisher’s books to recover royalties that have been underpaid.

The number a buyer multiplies annual net publisher share by to price a catalogue. A quick rule of thumb rather than a full valuation.

The percentage of income an artist or writer keeps under a deal, for example a 20% recording royalty on net receipts.

The periodic report from a label or publisher showing how a royalty was built: rate, units and territory, less recoupment, reserves and fees.

A catalogue's expected annual income once one-off spikes and anomalies are stripped out: the baseline a buyer underwrites.

Reusing part of an existing recording in a new track. Needs permission from both the master owner and the song’s publisher.

The UK system through which self-employed musicians report income and pay income tax each year.

The choice between a one-time sale of rights for cash now and licensing them to keep earning income over time.

A performer hired to play on a recording or live show for a fee, usually at union rates rather than for a royalty.

The end-of-night reckoning of a show’s ticket income against costs that determines what the act actually gets paid.

Streaming pays each track a share of a big revenue pool based on its share of total plays. There is no fixed price per stream.

A festival or multi-act event where the audience has not bought a ticket for a specific act. The economics and risk profile differ from a hard-ticket show.

The two main ways to structure a music business in the UK, with different tax, liability and admin consequences.

How the money works for a pure songwriter who earns from the composition without performing or owning recordings.

How the writers of a song divide up the 100% of its publishing, agreed, ideally in writing, on a split sheet.

The US body that collects digital performance royalties for the recording from non-interactive services such as internet and satellite radio.

A simple document recording who wrote what and what percentage each writer owns, signed at the session to avoid later disputes.

A royalty rate set by law rather than negotiation. In the US, the Copyright Royalty Board sets the mechanical rate that platforms must pay.

On-demand listening that pays both recording and publishing royalties out of a shared revenue pool, rather than a fixed price per play.

A publisher appointed to collect a songwriter’s publishing income in a foreign territory, in exchange for a percentage.

A clause letting a former manager keep commission on income from work begun during their term, tapering off after the relationship ends.

A licence (and fee) to pair a piece of music with moving picture: in a film, advert, game or trailer. Both the song and the recording must be cleared.

A company that pitches music for sync placements and helps clear them, in exchange for a commission.

An agreement between two countries that prevents the same income being taxed twice, often via relief on foreign withholding.

How long a deal runs and how many further periods (options) the label can choose to extend it for.

A short summary of the headline commercial terms of a deal, agreed before the full long-form contract is drafted.

The geographic area a grant of rights or a deal covers: one country, a region, or the world.

The process of matching reported plays and usage to the correct rights-holders; when it fails, the money feeds the black box.

The US Mechanical Licensing Collective, which collects streaming and download mechanical royalties for songwriters and publishers.

Every released track contains two separate copyrights: one in the song (the composition) and one in the recording (the master). They are owned and paid separately.

The same song generates two separate income trails: the recording (master) side and the publishing (composition) side. Following the money means tracking both.

The sequence of cuts (platform, then distributor, then label) that each take a slice of streaming revenue before the artist is paid.

The weekly costs of touring (crew, bus, freight and backline) that the live income must cover before any profit.

The working cash advanced to fund a tour’s up-front costs before ticket income comes in, reconciled at the end.

The scale fees set by the Musicians’ Union (UK) or AFM (US) for session and orchestral work, plus pension and health contributions.

An alternative payout where each listener’s subscription is split only among the artists that listener actually played.

UK value-added tax, which a music business must charge once its turnover passes the registration threshold.

The share a venue takes of merchandise (and sometimes bar) sales at a show.

High-margin extras sold on top of a ticket (meet-and-greets, early entry, signed merch) that can dwarf the ticket itself.

Tax deducted at source in a foreign country on touring or royalty income, sometimes reduced or reclaimed under a tax treaty.

A US copyright concept where the commissioning party, not the creator, is treated as the author and owner from day one, blocking any future reversion right.

The portion of publishing royalties paid directly to the songwriter by the collecting society: typically 50% of performance income, which the publisher cannot touch.

An organised multi-day session where publishers bring writers and producers together to create songs, often targeting a specific artist or project.