Is it important to own your masters as an artist?

In the music industry, “Masters” is one of the most recurring words.

You hear it in song lyrics, interviews, and label disputes. But what does this word mean, and what is the implication of its ownership or lack thereof to an artist?

What is the meaning of masters in music?

To keep it simple, your masters are the original recording of your song. It’s the main file from which other copies, variants, and modifications are made.

The lyrics, melodies, and production combine to make a final song. It’s that final song in its finished format that’s the masters.

Whoever owns the masters controls and makes the call on how the song is used, licensed, and monetised.

If a person, brand, or company wants to use a song, they must first get permission from whoever owns the masters.

Whoever owns the masters of a song also takes a cut from the revenue generated from the streaming of the song on digital platforms since they own the copyright that is being used.

What it means to own your masters and the benefits

To own your masters means you are fully in charge of how your music is used, for what, and by whom.

Owning your masters allows you to keep a huge percentage of your revenue, whether from licensing, streaming, reproduction via covers, recreation, or sampling.

This ownership and the potential benefits that accrue from them is the reason why Record Labels mostly insists on owning the masters of the artists they invest in because this gives them a chance for recouping their investment and making a profit in the long run.

The history of the music business is filled with artists who have fought hard to get back their masters, with many successful ones even buying them back from their previous labels.

Some artists also enter into contractual agreements, such as distribution deals that allow them to own their license and retain total creative control of their work.

Can you still make money without owning your masters?

Yes, you can still make money from your music by not owning your masters. Typically, the agreement you have with your label will determine the cut of the streaming royalties you get after the label has deducted its cut, which is high if they own the masters.

Even without your music, you can still earn money from your publishing rights, performances, image rights, and merchandise.

What to consider before signing away your masters?

Your masters are your intellectual property and the most effective means of generating lifelong revenue through your music.

Before signing it off in return for a label advance or catalogue purchase, understand that they are a long-term asset. Hence, it’s wise to get a lawyer with expertise in the music business to scrutinise the contract to ensure that the deal is worth it.

Know that in music, fame fades, trends end, the audience moves on, but your masters last forever.