In a recent deal, Mick Fleetwood, drummer and co-founder of iconic band Fleetwood Mac, sold a significant share of his songwriting royalties from the band's catalog to German media company BMG. The financial details of the transaction were not disclosed.
Fleetwood Mac, formed in 1975, is one of the best-selling bands of all time, with over 120 million records sold worldwide. The band's catalog includes classic hits like "Rhiannon," "Go Your Own Way," and "Don't Stop."
Songwriting royalties refer to the payments songwriters receive whenever their compositions are performed, broadcast, or sold. These rights are separate from the recording rights, which are owned by the record labels or artists who record and distribute the music.
According to the U.S. Copyright Office, songwriting royalties are divided into two categories: mechanical royalties and performance royalties. Mechanical royalties are paid whenever a song is reproduced, such as when a CD or digital download is sold. Performance royalties are paid whenever a song is performed live or broadcast on the radio or television.
Music rights societies, such as ASCAP, BMI, and SESAC, collect and distribute these royalties on behalf of songwriters and publishers. These organizations represent the musical copyrights of their members and license the use of their music to various entities, such as broadcasters, record labels, and music streaming services.
In the case of Fleetwood Mac, the band's music is represented by multiple music publishing companies, including Warner/Chappell Music and Sony/ATV Music Publishing. It is unclear which publishing companies represent the specific songwriting royalties that Fleetwood sold to BMG.
BMG, which stands for Bertelsmann Music Group, is a global music company that operates in more than 20 countries. The company offers various services to artists, including recording and publishing deals, marketing and promotion, and royalty collection and distribution.
Fleetwood's decision to sell a portion of his songwriting royalties is not uncommon in the music industry. Many artists and songwriters choose to sell their royalties to generate income or to secure funding for new projects. However, the financial terms of these deals are often kept confidential.
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