The music publishing industry has long been a battlefield, with independent publishers often struggling against the overwhelming dominance of the majors. Companies like Warner Chappell, Sony Music Publishing and Universal Music Publishing Group control vast resources and have significant influence due to their connections with their major record label counterparts, making it difficult for indies to compete.
Despite these challenges, independent publishers continue to embody the spirit of creativity and resilience, navigating the obstacles with unparalleled determination in the face of industry issues including licensing and financial disadvantages, increasing competition and costs, fewer income streams, and more that threaten to push us out of business. Recently, these obstacles have intensified, demanding a more assertive and determined approach from indie publishers. As we progress through 2024 and look ahead to 2025, the reasons for our frustration are pressing and undeniable.
Over the past few months, the gap between indie and major publishers has widened due to systemic problems and recent controversies. TikTok’s licensing deals, heavily influenced by agreements with major record labels and publishers, have sidelined indie publishers, affecting our ability to monetize our catalogs effectively on a platform that has become critical for music discovery. TikTok’s role in propelling songs and artists to the top of the charts and securing lucrative synch deals makes this marginalization particularly troubling. Indie publishers find themselves at a disadvantage, forced to either accept less favorable deal terms or risk losing out on the opportunity to reach these audiences and, in turn, straining our label relationships.
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Similarly, the recent Spotify bundling controversy highlights the stark inequalities between major and independent publishers. By adjusting its service offerings to lower mechanical royalty rates, Spotify has given a significant advantage to major publishers. While all publishers are aligned in fighting Spotify’s move, major publishers, with their extensive financial reserves, can more easily absorb the impact of reduced royalties. Additionally, integration with their record label arms allows their parent companies to negotiate recording royalty deals that help offset losses on the publishing side. Independent publishers, however, operate with much tighter margins and lack the diversified revenue streams of their larger counterparts. For us, every penny matters. A reduced mechanical rate isn’t just a cut; it’s a threat to our very existence.
Beyond these specific cases, the challenges of 2024, including rising operating costs and intense competition in catalog acquisitions, have placed a heavier burden on indie publishers. The surge in catalog acquisitions by major publishers, driven by their financial power and access to capital, has driven up prices, making it increasingly difficult for indies to compete. This trend not only inflates catalog values to potentially unsustainable levels but also concentrates power in the hands of a few dominant players, stifling diversity in the market. Additionally, the rising costs of daily operations, from licensing negotiations to administrative expenses, are squeezing indie publishers even further, forcing some to consider selling their businesses, merging or even closing down.
Despite these challenges, there are still reasons for indie publishers to be optimistic. The Luminate 2024 Midyear Report shows that indie artists’ market share has grown by an average of 1.76%, with the most significant increase in the 500M+ on-demand audio streams category, increasing 2.7% over 2023 to 9.9%. Additionally, 62.1% of artists with 1 million to 10 million U.S. on-demand audio streams have independent distribution. These two examples out of many showcase the continued impact and growing influence of indie creators in the digital space. Advances in technology, especially AI tools, are providing new opportunities for music production, metadata refinement and distribution, leveling the playing field for indie artists and creators. Organizations like the National Music Publishers’ Association (NMPA), the Association of Independent Music Publishers (AIMP) and the American Association of Independent Music (A2IM) continue to advocate for and support indies, ensuring we have the tools and knowledge needed to navigate the industry. Additionally, the rise in synch opportunities and revenue following 2023’s entertainment labor disputes offer indie publishers a growing source of income in a segment of the industry that, fortunately, remains a free market.
The path forward for indie publishers is clear: We must unite and use our challenges to motivate change. By channeling our collective frustration, we can fight for fairer treatment and greater solidarity in the industry. Far from being destructive, our anger can be a powerful force, driving indies to recognize our strength, advocate fiercely for our rights, and reshape the industry. We can create a more just environment for our songwriters, ensuring they are fairly compensated and contributing to a more balanced music industry. The time for complacency is over; it’s time for indies to take action and secure our future, and the future of the songwriters who depend on us.
Marc Caruso is the co-founder and CEO of Los Angeles-based independent music publisher Angry Mob Music, with successful operations in publishing, music rights management and music production. Throughout his more than 20-year career in music as an entrepreneur, composer, producer and Emmy-nominated music editor, Marc has been at the forefront of music publishing and master rights administration for film and TV and has continually been a champion for musician and songwriters’ rights.
