Namm 2013 kh licensing color


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Namm 2013 kh licensing color

  1. 1. Making $$$ withYour Original Music NAMM 2013 H.O.T. Zone Presented by Keith Hatschek, University of the Pacific 1
  2. 2. Session Objectives Attendees will leave this session knowing:  How music licensing/acquisition works  What creates value to music buyers  Who are the key players & their roles  What steps are necessary to jump start opportunities to profit from your songs and compositions 2
  3. 3. ‹#›
  4. 4. Four Key Themes G = Ground Rules V = Value as Perceived by the Market B = Buyers, in most cases aka Licensees C = Connections, what you’ll need in addition to your talent to develop opportunities to earn $$$ 4
  5. 5. Part One - Ground Rules Knowing music acquisition and licensing practices allows you to be in the conversation Understanding © is critical for all writers In the beginning, there is copyright, the basis for getting paid anytime someone wishes to use your original music. 5
  6. 6. “Grenade” - Two © Sound Recording © 6Song ©
  7. 7. 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” 7
  8. 8. Road Map to Revenue 1 TV Show Synch License Grey’s Anatomy Music Cue One “Side” – Other “Side” – Song © Holder Master © - Publisher Holder - Label Revenue split Revenue % to between pub. Recording & writer Artist 8
  9. 9. Road Map to Revenue 2 Background Music Service “Yesterday” by Lennon & McCartneyMusic Publisher – Licensee – Mood End Service – In- Northern Media, aka store music forSongs, Sony/ATV Muzak retailers Music 9
  10. 10. Road Map to Revenue 3 Mechanical License “Blank Page” by Aguilera, Braide & FullerMusic Publisher End Product– Licensee – RCA – EMI April Lotus CD and Records Music downloads 10
  11. 11. Road Map to Revenue 4 Work-for-Hire “Central Avenue Ford” – Jane Smith, composer End Product –Music Publisher Work-for- Licensee – N/A – N/A Hire, one time payment, $1,000 11
  12. 12. Public Performance Royalties Bonus Earnings - PROs $2.5 Billion annual revenue (US) 12
  13. 13. Ground Rules Summary Original Music Middle Men Buyer/Licensee 13
  14. 14. 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. 14
  15. 15. Valuation Parameters Popularity/recognition Originality or Freshness Branding Needs Price/affordability 15
  16. 16. Does Your Music Fill a 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) 16
  17. 17. 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 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 17
  18. 18. 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” 18
  19. 19. 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 19
  20. 20. 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.) ? 20
  21. 21. Other Factors How critical 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? 21
  22. 22. 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.” 22
  23. 23. 12 BuyersMotion pictures Television Radio (terrestrial, Commercials (TV,(theatrical, DVD, (broadcast, cable, web, cable, radio, film,streaming, etc.) web) satellite) theatrical, web)Video Games Broadway musical Record labels Live events (ex. Green Day) (mechanicals) (sports, trade shows, annual meetings)Sheet music Music libraries for Background and Special Productspublishers TV, film, sports, foreground music (music CDs or etc. services (retail, downloads for hospitals, music Hallmark, on hold, etc.) Victoria’s Secret, Cracker Barrel, Acura, etc.) 23
  24. 24. 12 Foreign Buyers Motion pictures Television Radio (terrestrial, Commercials web, cable, satellite) Video Games Broadway musical Record labels Live events (ex. Green Day) (mechanicals) (sports, trade shows, annual meetings) Sheet music Music libraries for Background and Special Products publishers TV, film, sports, foreground music (music CDs or etc. services (retail, downloads for hospitals, music Tesco, Burberry, on hold, etc.) Audi, etc.)Songwriters will normally partner with a US publisher and various foreign subpublishers to leverage their songs overseas. ©rules and conventions vary in foreign territories – essential to have expert advice or representation. 24
  25. 25. Deadlines Time is money 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 (Nettwerk, Concord, etc.) 25
  26. 26. 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) 26
  27. 27. Some Examples Motion picture 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) 27
  28. 28. Moving Forward Three Steps to Success 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. 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  Join SoundExchange if you control master rights 28
  29. 29. Moving Forward Start Researching 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 you and your creative direction 29
  30. 30. Wrap Up Ground Rules – 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 30
  31. 31. 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  or   31