If you’re interested in investing in music, you might have heard terms like “master share” and “publisher share” thrown around. These terms can be confusing for those who are new to the music industry, but understanding the difference between these types of shares is crucial for making informed investment decisions.
What you need to grasp
Music intellectual property is two-fold. Every song is legally dual: it consists of a work of art (lyrics and composition) and a sound recording (financed by the producer, performed by the performers).
What is the master recording?
It is the ownership of the recording. A sound recording (or master tape) is a recording of the performances of artists and musicians. It is the property of a producer. Each cleared version of a record creates a new master tape and consequently a new master recording.
What is publishing?
It is the ownership of the lyrics and the composition. The musical work consists of the lyrics and the composition of the music. It is the score, so to speak. It is created by songwriters and owned by publishers.
What is the musical creation process?
A producer (independent or label) teams up with one or more performing artists and one or more songwriters. These parties work together and the fruit of their collaboration is a phonographic recording. Each phonographic recording will give birth to musical intellectual property, i.e. the master and the editions.
At Bolero, our platform makes it easy to invest in music catalogs by purchasing and trading Song Shares. Those Song Shares which are fractions of music IP encapsulated in a decentralized digital asset. But before you dive into the world of Song Shares, it’s important to understand what these shares represent and how they differ from publisher shares.
Master’s recording vs. Publishing
The master recording refers to the final audio mix of a song that is used for distribution and playback, while the composition refers to the underlying lyrics and melody of the song.
A master share represents ownership of the master recording of a song. This means that the owner of a master share has control over how the song is used and distributed, and can earn royalties every time the song is played or used in other media.
Publisher shares, on the other hand, represent ownership of the composition of a song. This means that the owner of a publisher share has control over how the song is used in different types of media, such as film and TV, and can earn royalties every time the song is licensed.
Benefits of owning master shares
While both types of shares can be valuable, owning master shares can be particularly lucrative for investors. This is because master shares provide more control over how a song is used and distributed, and can result in higher royalty payments. When you own a master share, you have the ability to license the song to different types of media, such as films, TV shows, and commercials. This can result in substantial earnings, particularly if the song becomes popular and is licensed frequently. In addition, owning master shares can provide greater flexibility when it comes to selling your investment. Because master shares represent ownership of the actual recording of a song, they can be sold as standalone assets. This means that you can sell a portion of your ownership in a particular song without having to sell your entire music catalog.
Revenues sources: record streams, physical sales, downloads, social media monetization, sync’, neighboring rights
Benefits of owning publisher shares
Owning publisher shares also has its benefits. Because publisher shares represent ownership of the composition of a song, they provide greater control over how a song is used in different types of media. For example, if a song becomes popular and is licensed for use in a film
Investing in music IP requires understanding these different rights. Bolero's platform democratizes this process, making it easy for anyone to invest in and profit from music catalogs.
Start investing in music IP with Bolero and leverage the growing digital music economy. Our platform offers transparent, secure, and strategic investment opportunities in Song Shares.
Important: This is not an investment advice. Buying digital assets carries risks of capital loss, illiquidity and lack of valuation. It is up to each person to do their own due diligence before becoming an owner of a digital asset through the Bolero Music platform.