If the song is used in a television program, the amount of money made depends upon the way in which the song is used and when it is aired. If a song is performed in prime time, ASCAP, BMI and SESAC will pay more money because supposedly more people are watching. Synchronization fees for television are modest compared to film for mainly two reasons: (1) the synch fee takes away from the producer's bottom line profit; and (2) the songwriter and publisher stand to make money from the exposure.
If the song is used in a major film, the fees paid for the synch license can be much higher than television for mainly two reasons: (1) films are generally produced on a much higher budget than television programs; and (2) the rights to exhibit the song in all media (i.e., film, television, video) for the duration of the copyright are usually obtained by the producer.
Now, more than ever, there is an abundant need for songs in major and independent films, network and cable television, and other media. Hence, there are chances out there for songwriters to generate revenues and gain exposure for their music; these opportunities should not be overlooked or scoffed at.
Ben McLane Esq
benmclane.com
Monday, September 27, 2010
Monday, September 20, 2010
Music Business/Law Tips ""Synch License" (Part 1)
There is a major source of income that many songwriters overlook: the use of music in television or film. Television and film producers need material for their projects. Not only is there money involved in licensing music for television and film, the use of a song in either of these mediums can mean widespread exposure. However, a producer will require the songwriter to sign a contract so that the producer can "license the rights". This allows the producer to utilize the material in whatever way the producer wishes.
In the world of film and television, decisions are made quickly and the producer will generally license the song which is the easiest to obtain at the cheapest price. The producer will not use a song until there is satisfaction that all of the rights are "cleared" (i.e., the copyright owner has granted the producer the right to use the song). If there are several songwriters, clearance must be obtained from each. Thus, songwriters need to make sure that the rights are easily obtainable.
The earnings generated from the use of a song in television or film normally come from performing and synchronization rights. A significant portion of ASCAP, BMI and SESAC (performance rights societies) revenues are collected from television broadcasters (in the United States, motion pictures currently do not generate performance royalties payable by ASCAP, BMI or SESAC). These monies are divided up amongst ASCAP, BMI and SESAC writers and publishers. Therefore, songwriters are advised to become members of one of these societies, and register with them all songs written. A producer will not usually take a chance on using unregistered material because of the likelihood that the rights may not be available. Further, in the television and film business, music is reproduced when it is recorded on the soundtrack for the production. The right for the producer to make such a reproduction is called a synchronization right and the producer must negotiate a synchronization ("synch") license for each composition to be used.
[part 2 next week]
Ben McLane Esq
benmclane.com
In the world of film and television, decisions are made quickly and the producer will generally license the song which is the easiest to obtain at the cheapest price. The producer will not use a song until there is satisfaction that all of the rights are "cleared" (i.e., the copyright owner has granted the producer the right to use the song). If there are several songwriters, clearance must be obtained from each. Thus, songwriters need to make sure that the rights are easily obtainable.
The earnings generated from the use of a song in television or film normally come from performing and synchronization rights. A significant portion of ASCAP, BMI and SESAC (performance rights societies) revenues are collected from television broadcasters (in the United States, motion pictures currently do not generate performance royalties payable by ASCAP, BMI or SESAC). These monies are divided up amongst ASCAP, BMI and SESAC writers and publishers. Therefore, songwriters are advised to become members of one of these societies, and register with them all songs written. A producer will not usually take a chance on using unregistered material because of the likelihood that the rights may not be available. Further, in the television and film business, music is reproduced when it is recorded on the soundtrack for the production. The right for the producer to make such a reproduction is called a synchronization right and the producer must negotiate a synchronization ("synch") license for each composition to be used.
[part 2 next week]
Ben McLane Esq
benmclane.com
Monday, September 13, 2010
Music Business/Law Tips - "Endorsements" (Part 2)
Although endorsements tend to go to the established players, it possible for a local or new artist to enter into an endorsement deal. The key is whether the manufacturer thinks that someone will be attracted to the product if they see the artist endorsing it. For example, a local artist that is playing a guitar in his shows could have the ability to draw buyers into the guitar store.
Obviously, a more established player is generally approached by the manufacturers because there is name recognition and respect already in place. However, if you are not yet a recognized player, the first step to becoming an endorsee is to contact the manufacturer of the product you would like to endorse (i.e., the instrument you play) and let them know you are interested in endorsing the product. Then, send a press kit with a list of the gigs you have/will play. The gig schedule is very important because then the manufacturer will know that your playing is being exposed to the public. Finally, follow up and see if there is any interest.
If there is interest from the manufacturer, you will enter into an endorsement deal. Generally, in exchange for endorsing the product for a period of time, the artist will either get gear at a reduced price, get free gear, or be paid a fee. Fees are rare and are usually paid to an artist with great notoriety.
In conclusion, an endorsement deal is a way for an artist to gain some exposure and pick up some first rate equipment for little or no money. However, it is advisable from a philosophical standpoint that the player really believe in the product being endorsed.
Ben McLane Esq
benmclane.com
Obviously, a more established player is generally approached by the manufacturers because there is name recognition and respect already in place. However, if you are not yet a recognized player, the first step to becoming an endorsee is to contact the manufacturer of the product you would like to endorse (i.e., the instrument you play) and let them know you are interested in endorsing the product. Then, send a press kit with a list of the gigs you have/will play. The gig schedule is very important because then the manufacturer will know that your playing is being exposed to the public. Finally, follow up and see if there is any interest.
If there is interest from the manufacturer, you will enter into an endorsement deal. Generally, in exchange for endorsing the product for a period of time, the artist will either get gear at a reduced price, get free gear, or be paid a fee. Fees are rare and are usually paid to an artist with great notoriety.
In conclusion, an endorsement deal is a way for an artist to gain some exposure and pick up some first rate equipment for little or no money. However, it is advisable from a philosophical standpoint that the player really believe in the product being endorsed.
Ben McLane Esq
benmclane.com
Monday, September 6, 2010
Music Business/Law Tips - "Endorsements" (Part 1)
An important sales tool for musical product manufacturers is to have musicians endorsing their products. Hence, an endorsement deal is something serious players should investigate.
Product endorsements generally involve endorsing musical gear such as guitars, strings, drum sticks, pedals, etc. Product endorsements can include any/all of the following: (1) mentioning the product in liner notes on albums, (2) mentioning product in interviews, (3) endorsing the product at trade shows, (4) giving clinics, and (5) appearing in ads.
Both the artist and the manufacturer extract a benefit from such a deal. For the manufacturer, an endorsement by an artist is an opportunity for a player to be seen using their product. By mentioning/playing the product, or appearing in ads, the player is essentially saying that he or she recommends the product. To the manufacturer, they hope the endorsement will be a magnet to draw people into the stores to purchase the product. The benefit to the artist is free or reduced cost gear, and possibly a fee.
[part 2 next week]
Ben McLane Esq
benmclane.com
Product endorsements generally involve endorsing musical gear such as guitars, strings, drum sticks, pedals, etc. Product endorsements can include any/all of the following: (1) mentioning the product in liner notes on albums, (2) mentioning product in interviews, (3) endorsing the product at trade shows, (4) giving clinics, and (5) appearing in ads.
Both the artist and the manufacturer extract a benefit from such a deal. For the manufacturer, an endorsement by an artist is an opportunity for a player to be seen using their product. By mentioning/playing the product, or appearing in ads, the player is essentially saying that he or she recommends the product. To the manufacturer, they hope the endorsement will be a magnet to draw people into the stores to purchase the product. The benefit to the artist is free or reduced cost gear, and possibly a fee.
[part 2 next week]
Ben McLane Esq
benmclane.com
Monday, August 30, 2010
Music Business/Law Tips - "Distribution" (Part 2)
Major label distribution has some other players that contribute to sales. One stops are middlemen who buy records from labels and then make them available to local record stores that prefer the convenience of one stop shopping. Rack jobbers are middleman that buy records from labels and then stock them in the racks that they operate within retail stores. Chain stores such as Wal-Mart buy records from labels and then place them in their stores. Record clubs buy from labels and then resell to their members at discount prices.
Independent distribution can put records in stores, although to a lesser extent. Some independent distributors have huge territories, while others are much more regional. Independent distributors generally distribute the product of smaller labels. Occasionally, they will distribute an unsigned artist's record if they can be convinced that there is potential for substantial airplay and sales (the artist will probably have to generate some sales first).
As the reader can now see, without distribution, the public would never have an opportunity to buy a record. Further, an artist fortunate enough to obtain a deal which has major distribution in place stands the best chance of achieving economic prosperity in the music business.
Ben McLane Esq
benmclane.com
Independent distribution can put records in stores, although to a lesser extent. Some independent distributors have huge territories, while others are much more regional. Independent distributors generally distribute the product of smaller labels. Occasionally, they will distribute an unsigned artist's record if they can be convinced that there is potential for substantial airplay and sales (the artist will probably have to generate some sales first).
As the reader can now see, without distribution, the public would never have an opportunity to buy a record. Further, an artist fortunate enough to obtain a deal which has major distribution in place stands the best chance of achieving economic prosperity in the music business.
Ben McLane Esq
benmclane.com
Monday, August 23, 2010
Music Business/Law Tips - "Distribution" (Part 1)
The key to selling records is to find a way to place them in stores. This is where the concept of distribution comes into play. Distribution can come in the form of either major or independent or online distribution. Since major labels have distribution down to a science, that will be the focus of this article.
Assuming that an artist signs to a major label, the major label will then distribute the finished record. Another scenario for major label distribution is for an independent label to be distributed through a major label. This usually happens only if the independent label has several acts on its roster (distributors are interested in a steady flow of product). Occasionally, a major label will sign an act off an indie and re-release the record under the major label banner.
Major labels utilize major label distribution systems to position records in physical and online stores. These are giant conglomerates known as "the big 4" which consist of: SONY/BMG, EMI, UNI, and WMG. "The big 4" in turn distribute a multitude of major and independent labels. Each of "the big 4" has a regional warehouse in each major metropolitan area from which the records are distributed to local record stores and other outlets. It is the distributor's obligation to (1) wherehouse inventory, (2) solicit sales from stores, (3) fill orders, (4) process returns (unsold records), (5) bill/collect, and (6) generate sales reports.
[part 2 next week]
Ben McLane Esq
benmclane.com
Assuming that an artist signs to a major label, the major label will then distribute the finished record. Another scenario for major label distribution is for an independent label to be distributed through a major label. This usually happens only if the independent label has several acts on its roster (distributors are interested in a steady flow of product). Occasionally, a major label will sign an act off an indie and re-release the record under the major label banner.
Major labels utilize major label distribution systems to position records in physical and online stores. These are giant conglomerates known as "the big 4" which consist of: SONY/BMG, EMI, UNI, and WMG. "The big 4" in turn distribute a multitude of major and independent labels. Each of "the big 4" has a regional warehouse in each major metropolitan area from which the records are distributed to local record stores and other outlets. It is the distributor's obligation to (1) wherehouse inventory, (2) solicit sales from stores, (3) fill orders, (4) process returns (unsold records), (5) bill/collect, and (6) generate sales reports.
[part 2 next week]
Ben McLane Esq
benmclane.com
Monday, August 16, 2010
Music Business/Law Tips - "Development Deal" (Part 2)
With a right of first refusal, the record company protects itself by not allowing the artist to make a great sounding demo and then use that demo to get a deal elsewhere - that is, until the label is certain that it wants nothing to do with the artist. After the artist delivers the finished demos to the label, under the right of first refusal concept the artist has to give the label a period of time ranging from thirty to sixty days in which it has to decide whether it wants to sign the artist. From the artist's perspective, it is best to keep that period short. Moreover, under this same concept, the label will generally provide in the demo deal that if the label wants to sign the artist, the artist must negotiate a recording deal, and, if an agreement cannot be made, the label gets first refusal. This means that the record company gets a chance to match an offer given to the artist from a competing label, and if it matches or betters that offer, the artist must sign with the demo company. The artist should limit the time within which the label which funded the demo can accept or reject the other offer. Ten to fifteen days is a reasonable amount of time, and never give the record company more than thirty days to match the offer.
If the label which funded the demo passes on the artist and does not match an offer under the first refusal provision, the artist is free to record elsewhere. However, the original label will still want to make its money back for the cost of the demos. The only recourse for the demo label is to get the money from a record deal an artist might make in the future. Most labels signing an artist are willing to reimburse the demo company for the cost of the demos as long as the cost is recoupable from the artist's royalties. The artist should include in the demo deal that the company funding the demos can only get its money back if the artist makes a record deal within a specified time limit (i.e., one year).
Since a record deal is not easy to come by, a demo deal can be the entree an artist needs to obtain a record deal. Therefore, it is probably to the artist's advantage to enter into such an agreement with a reputable label so long as the above matters are discussed.
Ben McLane Esq
benmclane.com
If the label which funded the demo passes on the artist and does not match an offer under the first refusal provision, the artist is free to record elsewhere. However, the original label will still want to make its money back for the cost of the demos. The only recourse for the demo label is to get the money from a record deal an artist might make in the future. Most labels signing an artist are willing to reimburse the demo company for the cost of the demos as long as the cost is recoupable from the artist's royalties. The artist should include in the demo deal that the company funding the demos can only get its money back if the artist makes a record deal within a specified time limit (i.e., one year).
Since a record deal is not easy to come by, a demo deal can be the entree an artist needs to obtain a record deal. Therefore, it is probably to the artist's advantage to enter into such an agreement with a reputable label so long as the above matters are discussed.
Ben McLane Esq
benmclane.com
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