SOCAN participated in a webinar presented by the Association of Independent Music Publishers (AIMP) on Nov. 14, 2024, that examined the options for a music publisher expanding to a new territory: finding a sub-publisher there, versus affiliating directly with a music rights organization (MRO) there.
Decision Time – Sub Publisher or Direct Affiliation? The Pros and Cons of Each Approach was moderated by Frank Handy of AIMP Los Angeles The panelists were SOCAN’s Tayna Van Luven, Director, Publisher Relations; Jennifer Mitchell, CEO of music publisher Red Brick Songs; Sara Williams, CEO of IMPEL, an international collective of independent music publishers; and Sean McGraw, Senior Vice President, Catalog Management, for DownTown Music Services.
Panelists discussed the hurdles of direct affiliation in different territories, including the steps required for a U.S.-based publisher to affiliate directly with SOCAN, and how, in the U.K., a U.S. publisher typically must set up a U.K. limited company, which needs to be the entity affiliating with PRS For Music.
The participants said that from both the MRO and the music publisher side, multiple memberships for a single songwriter can be complicated. For example, a writer can be represented by PRS for the world, but ASCAP for the U.S. only. Or, a publisher must determine how to handle song registrations for a writer who has multiple affiliations. These challenges in directly affiliating with an MRO in a new territory may steer the publisher toward using an already-existing sub-publisher in that territory.
A sub-publisher serves as a creative partner in the new territory, with “boots on the ground.” They can help with syncs; understand the local/regional/national market, and how to price music accordingly for licensing; understand the nuances of licensing in their territory; track publishing income in their territory; bridge language barriers; deliver catalogue; process statements and handle accounting; and help resolve disputes in that territory.
Direct affiliation with an MRO eliminates some fees; helps with set-up work; enhances songs/compositions/works delivery via cue sheets, set lists, MP3s, and metadata; allows easier statement processing (which requires software and experts); allows income tracking via source data; and can cut down on delays in payment. That said, MROs can be inefficient in clearing up copyright disputes, and can sometimes be slow to respond.