hmmm.... why give up your writer's share as well??
I kinda get that you sell to an entity that because they stand to make money from it will make all sorts of efforts to get your music out into the world....though of course they don't really care where that income comes from, hence putting songs in commercials, films, whatever.... But I suppose he thinks that having a company that is motivated to push more of his work out into the public forum is better than being stuck with a dud record company who will only promote the flavor-of-the-month artists. But clearly the "what's in it for us" mentality of the companies is that they will get to keep all the profits going forward which they clearly expect to be more than what they are giving the artist now.
Never knew producers could sell off their future royalties as well... Learn something new every day. So someone else will be making money off the work he did on Stevie's and Tom's albums... not sure how you promote the producer's work if it is contingent on the songwriter/artist controlling the songs, but what do I know