If you’re serious about making real money in music – the area you should be looking at right now, is music publishing. Why? Nothing else in the entertainment industry generates more money over a longer period of time. Amazingly, it’s one of the few areas in the industry that can be put together for relatively nothing. Okay, well, the cost of a computer, forming and registering a company, and securing membership of a performing collection society (such as ASCAP, BMI, SESAC in the U.S, SOCAN in Canada, PRS in the UK etc).
So, what kind of people are starting music publishing companies? Just about anyone who is touched by the potential of songs and songwriting. What makes the possibility of having a successful publishing house, is the rapid acceleration of digital. Quite frankly, the overheads today compared to those of the physical era (pre digital), have been almost zeroed out. Anyone today owning sound recordings, such as a producer, record label, or manager, and not having a music publishing company – would have to be crazy. If you can only license master rights at Cannes in January, you’re going to have a very tough Midem.
Now, here’s why music publishing is your real goldmine: Over a period of some forty two years, I have worked with some of the most talented songwriters in the world, and had spent many of those years discovering the earning power of commercial songs - (hey, it's what you do when you work for a music publisher!). But of all the things I learned, nothing was more significant or mind blowing than the royalties generated by evergreens (sometimes called “standards”).
Many people attribute a hit song as being the same as an evergreen. Nothing could be further from the truth. Royalties from a hit song can generate thousands and often hundreds of thousands of dollars over a short period of time – before typically dropping to a few hundred dollars per distribution. An evergreen, however, is something quite different. It may start its life as a hit song, then, for some reason or other, it seems to take on a life of its own, making money year in year out - as more and more artists cover the song, or it gets used in yet another feature film, commercial or TV or radio series.
Far from dropping off the royalty scale, an evergreen increases generating royalties every distribution. Many go on to generate money every hour. You see, the difference between a hit song and an evergreen, is like comparing a sequoia seed with a giant redwood.
Many a successful songwriter, having completed, say, four to five hundred songs over the course of his/her career, might be extremely lucky to have accomplished fifteen to twenty hits, and, if that person is extremely fortunate, maybe, just maybe, he/she would have written one evergreen.
Now, look at it from the music publisher’s point of view. From a catalog of some five thousand songs, they might have ten evergreens. Each evergreen, however, would be deemed greater than a nugget of gold. I remember how one song alone paid the salary of a small publishing house for more than thirty years – and is still earning great money today! And that’s one evergreen! The large publishing houses have masses of evergreens! The top music publishing houses would think nothing of spending several million for a catalog of five thousand songs, just to pick up four or five evergreens!
The strategy of the larger publishers is to have both back catalogs (evergreens), and forward catalogs (new songs). The evergreens would going on generating income come rain or shine, while they looked for the new kids on the block to sign and develop.
Okay – here's a big diamond tip - now you can do the same thing. How? Some of the greatest songs in history are in public domain – including some by Cole Porter, Jerome Kearn, Irving Berlin, George M. Cohan. You can pick up the rights by making a slight adaptation or rearrangement, and claiming the copyright – not for millions – just a handful of dollars. Remember, these are famous songs – so you won’t have to work to get them known and there are scores of ways of promoting them: mood library, films, orchestrations, “sound alikes” for starters. Public domain is an almost inexhaustible resource - and generates millions - Walt Disney did it with films - as did Mr. Turner of TCM.
You can now rebuild whole original catalogs up to and over one hundred thousand famous songs – and control arrangements and adaptations in the copyright! There are also musicals and operettas that can be picked up. I should add, that you do need to adhere to strict guidelines when acquiring all or any of these rights. Anyone interested in building up publishing catalogs of famous pd songs, or starting their own music publishing company - give me a call right now!
Your friend and mentor, Dennis R. Sinnott
