Music Industry Glossary
A comprehensive guide to music business terminology and concepts
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A
A&R (Artists and Repertoire)
Division of a record label that scouts for new talent and oversees artist development.
A&R executives are responsible for discovering new artists, helping them develop their sound, and guiding their career direction. They often serve as the bridge between the creative and business sides of the music industry.
Key Responsibilities:
- Talent scouting at live shows, online platforms, and through industry networks
- Signing artists to recording contracts
- Overseeing recording projects and album production
- Connecting artists with songwriters and producers
- Providing creative direction and feedback
Related Terms:
Advance
An upfront payment made to an artist or songwriter against future royalties.
Advances are essentially loans that must be recouped through royalty earnings before the artist or songwriter begins receiving royalty payments. They're common in recording, publishing, and distribution deals.
Key Concepts:
- Non-returnable (generally not paid back if royalties don't recoup)
- Recoupable from future royalties
- Often paid in installments tied to specific deliverables
- Size varies based on commercial potential and leverage
Related Terms:
ASCAP (American Society of Composers, Authors and Publishers)
A performance rights organization (PRO) that collects and distributes performance royalties to songwriters and publishers.
ASCAP is one of the major PROs in the United States. It licenses public performances of its members' music, collects royalties from licensees, and distributes them to members whose works have been performed.
Key Information:
- Founded in 1914 as the first U.S. PRO
- Non-profit organization owned and governed by its members
- Collects for performances on radio, TV, streaming, live venues, etc.
- Competitors include BMI and SESAC
- Membership is non-exclusive (but works can only be registered with one PRO)
Related Terms:
Assignment
The legal transfer of rights or ownership from one party to another.
In music publishing, assignment refers to the transfer of copyright ownership from a songwriter to a publisher. This is a fundamental aspect of traditional publishing deals.
Important Considerations:
- Can be temporary (for a term) or permanent
- May include full or partial rights
- Usually includes reversion clauses specifying when rights return
- Should always be documented in writing
- May be limited to specific territories
Related Terms:
B
BMI (Broadcast Music, Inc.)
A performance rights organization that represents songwriters, composers, and music publishers.
BMI is one of the largest performance rights organizations in the United States. Like ASCAP, it collects and distributes performance royalties to its members when their music is publicly performed.
Key Information:
- Founded in 1939 as an alternative to ASCAP
- For-profit organization operating on a non-profit basis
- Represents approximately 1.3 million songwriters and publishers
- Licenses over 20 million musical works
- Free to join (unlike SESAC, which is invitation-only)
Related Terms:
Blanket License
A license that allows the licensee to use any work in a rights organization's catalog for a flat fee.
Blanket licenses are commonly issued by performance rights organizations (PROs) to venues, radio stations, streaming services, and other entities that use large amounts of music. They provide a simplified way to license many works at once.
Key Features:
- Covers entire catalog of works represented by the licensing organization
- Usually charged as an annual fee or percentage of revenue
- Eliminates need to negotiate individual licenses for each work
- Often includes reporting requirements to track usage
- May be subject to rate court proceedings if parties can't agree on terms
Related Terms:
C
Copyright
Legal protection granted to creators for their original works, giving them exclusive rights to use and distribution.
Copyright is the foundation of intellectual property protection in the music industry. It provides creators with a bundle of exclusive rights over their works for a limited time period.
Exclusive Rights:
- Reproduction (making copies)
- Distribution (selling, renting, lending)
- Public performance
- Public display
- Creation of derivative works
- Digital transmission (for sound recordings)
Duration:
For works created after January 1, 1978, copyright lasts for the life of the author plus 70 years. For works made for hire, anonymous works, or pseudonymous works, the term is 95 years from publication or 120 years from creation, whichever is shorter.
Related Terms:
Cover Song
A new recording or performance of a previously released song by someone other than the original artist.
Cover songs require proper licensing to be legally released. In the U.S., this is typically done through a mechanical license, which allows artists to record and distribute their version of someone else's composition.
Licensing Requirements:
- Mechanical license for audio-only recordings (compulsory in U.S.)
- Sync license for video recordings
- Standard mechanical royalty rate (currently 9.1¢ per copy for songs under 5 minutes)
- Permission required for significant arrangement changes
- Services like Loudr, Easy Song Licensing, or The MLC can help secure licenses
Related Terms:
Cue Sheet
A document that lists all music used in a film, TV show, video game, or other audiovisual production.
Cue sheets are essential for ensuring proper royalty payments for music used in audiovisual productions. They're submitted to performance rights organizations (PROs) to track and distribute royalties.
Information Included:
- Song title
- Composer/songwriter information
- Publisher information
- Timing of each music cue (start/end times)
- Type of use (background, featured, theme, etc.)
- Duration of each cue
- Production details (title, episode, production company)
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D
Digital Distribution
The process of delivering music to online platforms like streaming services, digital stores, and social media.
Digital distribution has revolutionized how music reaches audiences, allowing independent artists to release music globally without traditional label support. Distributors serve as the intermediary between artists and digital platforms.
Key Components:
- Delivery of audio files and metadata to DSPs (Digital Service Providers)
- Content ID/rights management for platforms like YouTube
- Royalty collection and accounting
- Analytics and reporting
- Marketing and promotional tools (varies by distributor)
Related Terms:
DSP (Digital Service Provider)
Platforms that distribute digital music, such as Spotify, Apple Music, and other streaming services.
DSPs are the consumer-facing platforms where listeners access music. They license music from rights holders and pay royalties based on various models, primarily streaming.
Major DSPs Include:
- Spotify
- Apple Music
- Amazon Music
- YouTube Music
- Tidal
- Deezer
- SoundCloud
- TikTok (for short-form music use)