What is Music Licensing and How Does it Affect Artists?
- Josephine Gikaru
- Jul 17
- 2 min read
For artists, understanding music licensing is essential not only to protect their intellectual property but also to unlock additional revenue streams. Music licensing is the process of giving legal permission for someone to use a song or sound recording in various forms of media such as films, TV shows, commercials, video games, or even YouTube videos.
In the music industry, music licensing plays a critical role in how artists protect their work and generate income
Royalties play a central role in music licensing. When a song is licensed, the artist typically receives an upfront licensing fee and ongoing royalties depending on where and how the song is used. These royalties ensure that artists are compensated whenever their music is broadcast, performed publicly, or streamed globally. For example, a song placed in a Netflix series may earn both a lump sum and performance royalties through performing rights organizations (PROs) like BMI, ASCAP, or PRS.
Music licensing also affects ownership and control of an artist’s catalog. There are two main types of music licenses: the sync license and the master license
Artists who sign away their publishing rights or master rights to labels or third parties may lose the ability to license their music freely and may earn only a percentage of the royalties. Independent artists, on the other hand, who retain full rights to their music, have more freedom to negotiate licensing deals and keep a larger share of the earnings. This is why owning your masters and publishing is considered one of the smartest moves in a modern artist’s career.
Music licensing directly impacts how much money artists make, who controls their music, and how their work is used. It is not just a legal necessity it’s a major source of revenue and influence. Artists who understand licensing and take steps to protect their rights can maximize royalties, maintain ownership, and build long-term financial stability in an ever-changing music industry.
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