Tuesday, July 4, 2017

Music Business/Law Tips - "Making Money From Videos"

Artists these days can make money off the videos that they upload to YouTube. The money is called "ad revenue" ("AdRev"), and its generated by inserting or allowing ads in or attached to videos. The main types of ads one can get paid for are set forth below to see the differences: 1. "Bumper Ads" (short ads of a few seconds that cannot be skipped); 2. "Sponsored Cards" (ads that offer products for sale that appear in the video); 3. "Display Ads" (ads that pop up to the right of video); 4. "Skippable Ads" (ads that play for a few seconds before they can be skipped); 5. "Overlay Ads" (banners that pop up under the video); and 6. "Non-Skippable Ads" (a 30 second ad that one must sit through to watch the video). In order to participate in YouTube AdRev, first an artist must join YouTube's "Partner Program", and then create an "AdSense" account to monetize the ads (but one has the option of opting out of some/all types of ads or just for certain videos). Normally, an artist will want to allow all types of ads to maximize profits (unless he/she has strong feelings about being associate with a product, for instance). The ads are generally placed randomly via an algorithm where YouTube is trying to target market based on an artist's and the artist's videos metrics/data. Since its hard for new artists to make money off record sales these days, AdRev is a good stream of income (and any video can be monetized - not just the ones that have millions of views - but as the views increase so does the AdRev). Ben McLane Esq benmclane.com

Sunday, April 16, 2017

Music Business/Law Tips - "YouTube cover song issues"

These days with the prevalence and ease of using video sites such as YouTube, Facebook, etc., many new artists make "cover" videos of popular songs to gain an audience, and numerous fans create "user generated" videos of famous songs for fun. However, without the proper permission this can be considered copyright infringement, which could lead to some punitive actions. The reason for this is that when one uses someone else's song in a video, that is technically what is called a "synchronization" use (i.e., "sync"), and that legally requires a license from the publisher/writer of the song (as opposed to a straight audio cover version where it's much easier to get a mechanical license from the Harry Fox Agency). Of course, most new artists and fans are not aware of this and often get hit with either a takedown or cease and desist notice. Getting a few of these can actually bar the future use of YouTube for a period of time (YouTube jail). However, sometimes the cover flies under the radar and/or no one makes an issue of it, and more commonly these days the publisher/writer makes a claim to the song rights via YouTube's "Content Management System" which allows the owner of the song to share in the advertising revenues generated by the cover video (but the artist or fan doing the cover will not be able to participate in that ad rev). A solution to avoid problems is to go to a site such as WeAreTheHits.com which has worked out pre-clearances to allow someone to make a cover video and not violate any rights (or to go direct to the owner of the song but they are often too busy to reply). Since there is value to having cover videos up for discovery purposes which can help build a career or earn income in other areas, it would be best to try and get advance clearance before posting a cover video online. Ben McLane Esq benmclane.com

Monday, March 6, 2017

Music Business/Law Tips - "Endorsement Deal Structures"

Talent compensation models when an artist enters into an endorsement deal (i.e., the artist promotes a product by appearing in an advertisement using and/or complementing the product) can be structured in a variety of ways, but 3 of the most common are as follows: (1) Flat Fee (the brand pays the artist a fixed fee to promote the product for a period of time); (2) Flat Fee + Bonus (similar to #1, but if the ad generates a spike in brand revenue that meets a certain threshold then additional fees are paid to artist); and (3) Equity Share (instead of a fee, or for a much reduced fee, the artist can share in a healthy percentage of the net revenues generated from the product sales and/or sometimes even an ownership stake in the company). Of course these types of deals tend to be geared towards a more famous artist, but endorsements (and similarly sponsorships) can exist at all levels, so these examples can be used as a guideline in negotiations. Ben McLane Esq benmclane.com

Wednesday, February 1, 2017

Music Business Law Tips - "Major vs. Indie Record Deals"

In my years of doing deals I have discovered there are pros and cons of an artist signing with a major label versus with an independent label. Of course each artist situation is different and the factors can be negotiable case by case, but below are some of the major general differences to keep in mind: "Pro Major": (1) Bigger advance, (2) Greater promotion to mass media, (3) Perception that artist is a star; "Con Major": (1) Deal terms are longer, (2) Label takes/participates in more rights (i.e., 360 deal), (3) Artist can be a small fish in the system; "Pro Indie": (1) More chance of being a priority act, (2) Higher royalty split, (3) Can keep more rights (e.g., master license); "Con Indie": (1) Smaller advance, (2) Less promotional support, (3) Can be inconsistent due to less resources and staff Ben McLane Esq benmclane.com