NXTNOW KNOWLEDGE BASE
Music Business Glossary
Plain-English definitions of music business terms: royalties, publishing, PROs, advances, recoupment, sync and more, for emerging artists and music producers.
Start here: the two copyrights in every song
Melody and lyrics. Owned by songwriters and publishers. Earns performance and mechanical royalties.
Paid through: PROs, The MLC, publishersThe specific recorded version. Owned by whoever paid for or made it, often the artist or label. Earns master royalties.
Paid through: distributors, labels, SoundExchangeAll terms
Showing 29 of 29 terms
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360 deal
DealsA label deal where the label takes a share of income beyond recorded music, such as touring, merch, publishing and brand deals, in exchange for wider investment in your career.
A
Advance
DealsMoney paid to you upfront against your future royalties. It is usually recoupable: you receive no further royalties until your share has paid it back.
B
Beat lease
DealsA non-exclusive license to use a producer's beat, usually with limits on streams or sales. The producer keeps ownership and can lease the same beat to others.
C
Composition
RightsThe song itself: melody and lyrics. A separate copyright from the master recording, owned by the songwriters and their publishers.
Content ID
ReleaseYouTube's system that matches uploaded videos against registered audio, letting rights holders earn from, track or block videos that use their music.
D
Distributor
ReleaseThe service that delivers your releases to streaming platforms and stores and pays you the master royalties they collect.
DSP
ReleaseDigital service provider: a streaming platform or download store such as Spotify, Apple Music or Amazon Music.
E
Editorial playlist
PromotionA playlist curated by a streaming service's own staff. On Spotify you can pitch one unreleased song through Spotify for Artists ahead of release.
EPK
PromotionElectronic press kit: your bio, photos, music, press quotes and contacts in one link to send to blogs, bookers and labels.
Exclusive license
DealsA license that gives one buyer sole use of a beat or song, so the producer stops leasing it to anyone else. Terms on ownership and royalties vary by contract.
I
ISRC
ReleaseInternational Standard Recording Code: a 12-character code that identifies one specific recording. Each version, like a remix or radio edit, gets its own.
ISWC
PublishingInternational Standard Musical Work Code: identifies a composition, not a recording. Usually assigned when the song is registered with a PRO.
M
Master recording
RightsThe specific recorded version of a song. Whoever owns the master controls the recording and earns its royalties.
Master use license
LicensingPermission from the master owner to use a specific recording in a film, ad, game or video. Needed alongside a sync license.
Mechanical royalty
RoyaltiesPaid to songwriters and publishers when a composition is reproduced, including streams, downloads and physical copies.
The MLC
RoyaltiesThe Mechanical Licensing Collective: the US organization that collects mechanical royalties from streaming and download services and pays songwriters and publishers.
N
Neighboring rights
RoyaltiesRoyalties for the public performance of a recording, paid to performers and master owners. Collected by groups like PPL in the UK; US AM/FM radio does not pay them.
O
One-sheet
PromotionA single page summarizing a release: artist, title, date, key tracks, story and contacts. Sent with pitches to press, radio and retail.
P
Performance royalty
RoyaltiesPaid to songwriters and publishers when a composition is performed publicly: radio, streaming, TV, live venues. Collected by PROs.
Pre-save
PromotionA link that lets fans add an upcoming release to their library so it appears there on release day.
PRO
RoyaltiesPerforming rights organization: collects performance royalties for songwriters and publishers. In the US: ASCAP, BMI, SESAC and GMR.
Producer points
DealsA producer's percentage share of a master's royalties, agreed in the producer agreement and often paid after recording costs are recouped.
Publishing administration
PublishingA service that registers your songs and collects your publishing royalties worldwide for a percentage of what it collects, without taking ownership.
R
Recoupment
DealsWhen a label or investor earns back money it advanced or spent from your share of royalties before paying you more.
S
SoundExchange
RoyaltiesUS organization that collects digital performance royalties for recordings played on non-interactive services like satellite and internet radio, for artists and master owners.
Split sheet
RightsA signed agreement that records who wrote a song and each person's ownership share. Best done the day the song is written.
Sync license
LicensingPermission from the songwriters or publisher to pair a composition with visual media such as film, TV, ads or games.
U
UPC
ReleaseUniversal Product Code: the barcode that identifies a release, such as a single, EP or album, as a whole.
W
Work for hire
DealsAn arrangement where the person paying for the work owns it outright, so the creator gets no ownership or ongoing royalties unless the contract says otherwise.
No term matches that search. Try a shorter word, or email info@nxtnowmusic.com and we'll add it.
Know the terms. Now run the operation.
Split sheets, release planning, pitch tracking and client management, all in the Music Accelerator.
Definitions are general information, not legal or financial advice. Rules and rates differ by country and change over time; check with your PRO, distributor or a music attorney before signing anything. Missing a term? Email info@nxtnowmusic.com.
