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Mc George 2015 music licensing tips
The document outlines a session led by Keith Hatschek on how to profit from original music through licensing and understanding market value. It covers key aspects such as the importance of copyright, the roles of various industry players, and the steps artists should take to create opportunities for earning. Additionally, it discusses potential revenue streams, market pricing for music usage, and emphasizes the necessity of building professional connections in the music industry.
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Mc George 2015 music licensing tips
- 1. Making $$$ with OriginalMusic Presented by Keith Hatschek, University of the Pacific www.hatschek.com 1
- 2. Session Objectives Attendeeswill leave this session knowing: How music licensing/acquisition works What creates value to music buyers Who are the key players & their roles What steps are necessary to jump start opportunities to profit from an artist’s songs and compositions 2
- 3. Hitting a LicensingHome Run 3
- 4. Four Key Themes G = Ground Rules V = Value as Perceived by the Market B = Buyers, in most cases aka Licensees C = Connections, what you’ll need in addition to artistic talent to develop opportunities to earn $$$ 4
- 5. Prelude - Roleof Counsel Artists love to create new art, many create commercial art Business and legal advice is needed throughout their career – most detest paperwork Example: Red Hot Chili Peppers 5
- 6. Part One -Ground Rules Knowing music acquisition and licensing practices allows you to be in the conversation Educating writers about © is essential In the beginning, there is copyright, the basis for getting paid anytime someone wishes to use your original music. 6
- 7. “Grenade” - Two© 7 Song © Sound Recording ©
- 8. Long & Strong. . . © The copyright duration for a copyrighted song or music cue is the life of the author/composer plus 70 years! By registering your song © with the US Library of Congress (LOC), you gain maximum statutory protection for your works while they are under copyright - $35 per song to eFile “Puff Daddy Hit with $4.3MM Judgment for Unauthorized Sampling of Ohio Players Song” Thicke/Williams Face $7.4 MM Judgment for Infringement 8
- 9. Road Map toRevenue 1 TV Show Synch License The Blacklist Music Cue One “Side” – Song © Holder - Publisher Revenue split between pub. & writer Other “Side” – Master © Holder - Label Revenue % to Recording Artist 9
- 10. Road Map toRevenue 2 Background Music Service “Yesterday” by Lennon & McCartney Music Publisher – Northern Songs, Sony/ATV Music Licensee – Mood Media, aka Muzak End Service – In-store music for retailers 10
- 11. Road Map toRevenue 3 Mechanical License “Blank Page” by Aguilera, Braide & Fuller Music Publisher – EMI April Music Licensee – RCA Records End Product– Lotus CD and downloads 11
- 12. Road Map toRevenue 4 Work-for-Hire “Central Avenue Ford” – Jane Smith, composer Music Publisher – N/A Licensee – N/A End Product – Work-for-Hire, one time payment, $1,000 12
- 13. Public Performance Royalties Bonus Earnings- PROs 13 $2.5 Billion+ annual revenue (US)
- 14. Ground Rules Summary OriginalMusic Middle Men Buyer/Licensee 14
- 15. Part Two -Value Value (noun) – 1. a fair return in goods, services, or money for something exchanged 2. the monetary worth of something, aka “market price,” that is a price actually given in market dealings For original music, certain qualities will help determine the relative value of each piece of music. 15
- 16. Valuation Parameters Popularity/recognition Originality or Freshness Branding Needs Price/affordability 16
- 17. Does Your Music Filla Need? Your original music has to fill one or more of the previous needs, situations, parameters outlined in order to be considered for license or purchase The only way to know for certain is to test your music on persons working in this part of the business (Part Four) 17
- 18. Talking Market Prices On the Low Side “Gratis” (free) license to use single song in video game in exchange for on screen credit and link to band’s FB page Indie film project – classic rock song, 1 year license for Canada, art house exhibition only - $500 “Bumpers” on late night live variety show – major network – short excerpt performed live by house band from well known pop song - $400 per use Instrumental theme song for local cable TV show – work-for-hire, one time fee $500 - plus credit 18
- 19. Talking Market Prices In the middle: The Voice – live performance of a song by a contestant up to 1:05 in duration - $2100 Video game (music centric) add on song available to download to original purchaser of the game – 15% of retail price of the download Parenthood TV show – use of a lesser known song by a classic rock artist - $20K per “side” 19
- 20. Talking Market Prices Higher and higher: Classic rock song used in major motion picture produced by Disney - $50K per side; separate option for playback use in theme parks, cruise lines, etc., $3K extra, per side if exercised Jazz standard – master usage for retail chain covering national TV, cable, in store, Internet for US and Canada – 1 year use - $50K (song rights cleared separately) Classic rock song used by major retail chain as audio “signature” for 12 months TV, radio (40 TV and 85 radio ads) - $400,000; option for second year would increase 20
- 21. Defining License Fees How much of the song is needed? What is the audience? What territories? Term of license (13 weeks, one year, perpetuity) ? What forms of media are requested (TV, Internet, radio, DVD, film, etc.) ? 21
- 22. Other Factors Howcritical is this particular piece to the project? How popular is the song or artist today? Are there other pieces that would work just as well and are more easily or inexpensively available? 22
- 23. Part Three -Buyers Who are the actual buyers that may want to use your music in their product or service? Note – we’ll refer to buyers since a monetary transaction takes place, but the usual terminology is “licensee.” 23
- 24. 12 Buyers Motion pictures (theatrical,DVD, streaming, etc.) Television (broadcast, cable, web) Radio (terrestrial, web, cable, satellite) Commercials (TV, radio, film, theatrical, web) Video Games Broadway musical (ex. Green Day) Record labels (mechanicals) Live events (sports, trade shows, annual meetings) Sheet music publishers Music libraries for TV, film, sports, etc. Background and foreground music services (retail, hospitals, music on hold, etc.) Special Products (music CDs or downloads for Hallmark, Victoria’s Secret, Cracker Barrel, Acura, etc.) 24
- 25. 12 Foreign Licensees Motionpictures Television Radio (terrestrial, web, cable, satellite) Commercials Video Games Broadway musical (ex. Green Day) Record labels (mechanicals) Live events (sports, trade shows, annual meetings) Sheet music publishers Music libraries for TV, film, sports, etc. Background and foreground music services (retail, hospitals, music on hold, etc.) Special Products (music CDs or downloads for Tesco, Burberry, Audi, etc.) 25 Songwriters will normally partner with a US publisher and various foreign subpublishers to leverage their songs overseas.
- 26. Deadlines Time ismoney in TV, film and advertising production Licensing a song and master can be complex, esp. if there are multiple “owners” in the © (see “Grenade”) Fewer people required to say “yes,” the more attractive licensing your song & master may be Rise of “one stop” music licensing solution – one firm administers the song and master © Some artists are now working to hold on to both “sides” to allow easier deal-making (Big Machine, Nettwerk, Concord, etc.) 26
- 27. Part Four -Connections Connecting Buyers with Creators is the job of a varied array of industry professionals – middle men To break into the licensing revenue stream, you must build relationships with them They must affirm that your music has value (Part Two) 27
- 28. Some Examples Motionpicture middle men Music supervisor, music editor, sound editor or designer, label A&R rep, PRO or publisher staff (song plugger) Advertising middle men Advertising agency creative director or staff, commercial director or editor, video post production team Recording artist, record label middle men (A&R) Record producer, recording engineer, studio personnel, PRO or publisher staff (song plugger)28
- 29. Moving Forward Three Stepsto Success Have artist join a national and a regional songwriting organization Benefits: conferences, workshops, webinars, 1-to-1 mentoring, co-writers, building your network, referral to music licensing attorney, music supes, publishers, etc. Have artist join a PRO – ASCAP, BMI or SESAC Benefits: help you learn, connect and earn money as your songs are performed, mentoring, national and international connections 29
- 30. Moving Forward StartResearching Various Music Publishers Benefits: nearly all successful songwriters affiliate with a music publisher to help maximize exposure and earnings Music publishers have many more writers interested in signing than they can serve Not all music publishers are the same As you build your connections, ID the ones that best fit your artists and their creative direction 30
- 31. Wrap Up GroundRules – you must know them to enter the field of play and be taken seriously Value – understand what creates market value Buyers – they pay to use your music, study them, what they use and learn how such deals come together Connections – pledge to connect now to songwriter organizations, then begin to evaluate PROs and publishers 31
- 32. Resources Books Music,Money & Success – Todd and Jeff Brabec All You Need to Know about the Music Business – Don Passman “Hey, That’s My Music” – Brooke Wentz Websites Nashvillesongwriters.com or Songwritersguild.com Westcoastsongwriters.org 32