Yes. Independent instrumental record labels can collect music publishing royalties if they own or represent publishing rights in the compositions they release. However, releasing music through a record label does not automatically give that label ownership of the underlying compositions or the right to collect publishing royalties.
Many independent labels specialize in instrumental genres such as LOFI hip-hop, ambient music, jazz, solo piano, neo-classical, instrumental guitar, electronic music, and sleep or meditation music. These labels may release hundreds of recordings across multiple artists while focusing primarily on revenue generated by streaming platforms and music distributors.
What some labels overlook is that the compositions behind those recordings can generate a separate category of royalties.
Music publishing provides an opportunity for qualifying independent record labels to expand their services, represent their artists' compositions, and develop an additional revenue stream beyond traditional master recording income.
What is the difference between record label royalties and music publishing royalties?
When an instrumental artist creates and releases an original recording, there are generally two separate copyrights involved.
The master recording is the actual recorded version of the music. Revenue associated with this recording is commonly collected through a music distributor or record label.
The composition is the underlying music itself, including original melodies, harmonies, and other copyrightable musical elements. This composition can generate publishing royalties through streaming, public performances, mechanical reproductions, synchronization licensing, and other eligible uses.
For example, an independent LOFI record label might release an instrumental track that generates 2 million streams on Spotify.
The label may receive master recording revenue through its distributor, but the composition can also generate publishing royalties that are collected separately.
Whether the label is entitled to receive any of those publishing royalties depends on its agreements with the songwriters and composers.
Without publishing rights or an agreement authorizing publishing representation, the label generally cannot collect those royalties simply because it released the recording.
Why should instrumental record labels consider music publishing?
Independent instrumental labels frequently work with artists who release music consistently.
A LOFI label might release several albums every month. An ambient music label might represent dozens of composers, while a solo piano label might distribute hundreds of original compositions over several years.
As these catalogs grow, so does the importance of organizing and protecting the publishing rights associated with each composition.
For labels that establish publishing divisions, the potential benefits include:
Additional revenue opportunities: Publishing can create another income stream alongside master recording revenue.
Expanded artist services: Labels can offer publishing representation in addition to distribution, marketing, and release support.
Better catalog organization: Publishing representation encourages accurate songwriter credits, ownership splits, and composition registrations.
International royalty collection: Publishing royalties may be generated across multiple countries and require collection through different organizations.
Long-term catalog value: A properly represented publishing catalog can become a valuable business asset.
For an independent label already working with successful instrumental artists, publishing may be a logical extension of its existing business.
Can an instrumental record label start its own publishing company?
Yes. An independent instrumental record label can establish a publishing company to represent the compositions of artists and composers who agree to work with it.
However, starting a publishing company involves more than registering a business name.
The label needs appropriate publishing agreements, accurate songwriter information, composition ownership details, and a process for registering works and collecting royalties from relevant organizations.
For a label releasing hundreds of instrumental tracks, this can become a significant operational responsibility.
For example, a label releasing 20 original instrumental compositions each month could add approximately 240 compositions to its catalog annually.
Over five years, that represents 1,200 compositions requiring accurate documentation and potentially ongoing royalty collection.
Building the systems to manage that catalog can require considerable time, industry knowledge, and resources.
How can Elizabeth Music Group Publishing help instrumental record labels?
Elizabeth Music Group Publishing works with songwriters, producers, composers, and instrumental musicians across multiple genres.
Our company represents publishing rights, helps organize composition catalogs, registers eligible works, and pursues publishing royalty collection through relevant sources worldwide.
For independent record labels interested in offering publishing services to their artists, we also offer a dedicated publishing joint venture program.
Through the Elizabeth Music Group Publishing Venture Program, qualifying record labels, managers, and music companies can explore building their own publishing businesses using our existing infrastructure.
Rather than developing every aspect of publishing registration, royalty collection, catalog management, and related operations independently, partners can work with an established publishing company.
This allows independent labels to focus on their existing strengths, including discovering artists, releasing music, growing audiences, and building relationships with composers.
Our publishing infrastructure can support the publishing-related responsibilities covered by the partnership.
What types of instrumental record labels can benefit?
The publishing joint venture program can be relevant to independent labels working across many instrumental genres.
These include LOFI hip-hop labels releasing frequent instrumental albums, ambient labels representing composers with extensive catalogs, solo piano and neo-classical labels working with original compositions, jazz instrumental labels, and electronic music labels releasing original music.
Labels specializing in meditation, relaxation, cinematic instrumentals, instrumental guitar, and other composition-driven genres may also benefit.
The important factor is not necessarily the genre. It is whether the label works with original compositions and has the appropriate rights or agreements to participate in publishing.
Does an independent label need a large catalog to start a publishing division?
Not necessarily.
A label with a smaller catalog and several consistently releasing artists may have a strong foundation for developing a publishing business.
Other labels may already control or distribute hundreds of recordings but have never offered publishing services to their roster.
Both situations can justify exploring publishing opportunities.
The right approach depends on the label's existing agreements, the number of original compositions being released, its artists' publishing arrangements, and its long-term business goals.
For independent instrumental record labels, music publishing can represent an opportunity to expand beyond releasing recordings and build a business around the compositions themselves.
Elizabeth Music Group Publishing works with qualifying independent labels interested in developing publishing services through our joint venture program.
Learn more about Elizabeth Music Group Publishing or explore our Publishing Venture Program.
