29/10/2024
The term "master rights" refers to the ownership of the original sound recording of a song. The owner of the master rights controls how and where the song is used, licensed, and monetized.
🔷️Who Can Own Master Rights?
🔸️Record labels finance the recording and take ownership of the masters in exchange for promoting and distributing the music. This means that even though an artist performs and creates the music, the label retains control over how the recording is used.
🔸️Artists who self-fund their recording projects and release music independently often retain ownership of their masters.
🔸️In some cases, a producer or an external party who invests in the production of the recording may receive a portion or full ownership
🔸️Master rights can also be sold or transferred to other parties, such as music publishers, private investors, etc
🔸️In classical music, orchestras, record labels, or sometimes even conductors may own the master rights to a particular recording of a piece.
🔷️Pros of Owning Your Masters:
🔸️Artists who own their masters have complete control over how their music is used, including in advertisements, films, and TV shows.
🔸️ Master owners collect all royalties generated from the master recording, including from streaming, sync licensing, and physical sales.
🔸️Owning master rights can be a valuable financial asset. Many artists have sold their catalogs for substantial sums, turning their masters into long-term investments.
🔷️Cons of Owning Your Masters:
🔸️Recording an album independently can be expensive. Without label funding, artists bear the full cost of production, marketing, and distribution.
🔸️ Owning your masters involves more risk. If an independently released album doesn’t perform well, the artist may struggle to recoup their investment.
🔸️Without a major label’s backing, artists may miss out on the marketing, promotion, and industry connections
💡Master rights can be bought, sold, or transferred just like any other property.
💡Reversion Clauses: Some record deals include reversion clauses, allowing artists to regain ownership of their masters after a set period (e.g., 35 years)