Who Owns Your Masters?
The single most important question in any record deal — master ownership determines lifetime revenue and creative control.
Master recordings are the original audio recordings of your songs. They are separate from songwriting rights and publishing. When you sign a record deal, the label's ownership of your masters determines how much money you'll make for the life of the album.
Most major label deals give the label ownership of the masters for the initial term plus extended periods. This means that even after your deal ends, the label continues to collect revenue from streaming, downloads, sync placements, and licensing. You might earn money only while the contract is active, or through an artist royalty percentage, but the label owns the asset.
Independent distribution deals work differently. You typically retain master ownership and pay the distributor a small fee or percentage. This means all future revenue belongs to you. However, you also bear all the costs of marketing, production, and distribution.
The key financial difference is profound. If a major label owns your masters for 25 years and the album streams millions of times, the label captures most of the value. If you own your masters, that same streaming revenue goes to you. Many successful artists buy back their masters after their contracts end specifically because ownership becomes so valuable over time.
When negotiating, ask: Does the label own masters forever, or revert to you after X years? What happens to the masters if the label goes out of business or drops you? Can you reclaim them early? These questions shape your entire financial future in music.
Understanding master ownership is the foundation of every record deal discussion. It determines not just your immediate royalty rate, but your long-term wealth and legacy.