The slides from the CMU:DIY sessions during the Roundhouse's Artist Toolkit Day 2015 covering how music rights make money, and how record and publishing deals work.

1. CMUdiy.com
CMU:DIYARTIST TOOLKIT DAY @ ROUNDHOUSE

2. CMUdiy.com
MUSIC RIGHTS
& MONETISING
CONTENT

3. CMUdiy.com
IP PRODUCTS
©
Musical Compositions
Lyrics
PUBLISHING RIGHTS ©
Sound Recordings
Music videos
MASTER RIGHTS
©
Artwork
Photography
ARTISTIC RIGHTS ®
Band Name
Band Logo
TRADEMARKS

4. CMUdiy.com
IP PRODUCTS
©
Musical Compositions
Lyrics
PUBLISHING RIGHTS ©
Sound Recordings
Music videos
MASTER RIGHTS
©
Artwork
Photography
ARTISTIC RIGHTS ®
Band Name
Band Logo
TRADEMARKS
©SONGS ©RECORDS
©MERCH ®MERCH & BRAND
EXTENTIONS

5. CMUdiy.com
 Copyright is a form of ‘intellectual property’.
COPYRIGHT FACTS
 Copyrights run out eventually…
• Life of creator +70 yrs (compositions, lyrics, artwork etc).
• 70 years after release (sound recordings).
 By default the copyright belongs to…
• Creator (compositions, lyrics, artwork, photography).
• Funder (sound recordings).
 Copyrights are automatic.
 Copyright, Designs & Patents Act 1988.

6. CMUdiy.com
COPYRIGHT CONTROLS
REPRODUCTION DISTRIBUTION
RENTAL ADAPTATION
PERFORMANCE COMMUNICATION

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COPYRIGHT CONTROLS
REPRODUCTION DISTRIBUTION
RENTAL ADAPTATION
PERFORMANCE COMMUNICATION
REPRODUCTION OR MECHANICAL RIGHTS
PERFORMING OR NEIGHBOURING RIGHTS

8. CMUdiy.com
MAKING MONEY FROM COPYRIGHT
Someone wants a copy of
one of your recordings
Make a copy
and sell it them
Give them permission
to copy it for a feeCD/VINYL DOWNLOAD
YOU’VE MADE MONEY FROM YOUR COPYRIGHT!

9. CMUdiy.com
MAKING MONEY FROM COPYRIGHT
Someone wants to perform
your song in public
Sing it on stage Play it at clubPlay it on radio
Give them permission to perform your song for a fee
YOU’VE MADE MONEY FROM YOUR COPYRIGHT!

10. CMUdiy.com
MAKING MONEY FROM COPYRIGHT
Someone wants to make
an adaptation of your song
Remix it Rework itSample it
Give them permission to make an adaptation for a fee
YOU’VE MADE MONEY FROM YOUR COPYRIGHT!

11. CMUdiy.com
LICENSING
GIVING PERMISSION
= LICENSING
LICENSE
DIRECT
Sync deals
(maybe)
LICENSE VIA
THIRD PARTY
Getting content into
iTunes and Spotify
via a distributor
(maybe)
LICENSE VIA
COLLECTING SOCIETY
Live Performance
Cover Versions
Broadcast
Bars, cafes, shops
(usually)

12. CMUdiy.com
COLLECTING SOCIETIES (aka PROs or CMOs)
The UK collecting societies are…
PRS For Music for ‘publishing rights’
so composers, songwriters, publishers
prsformusic.com
PPL for ‘master rights’
so recording artists, producers, labels
ppluk.com

13. CMUdiy.com
PERFORMING RIGHTS INCOME
SONGS
YOU
RECORDINGS
YOU
PERFORMANCE COMMUNICATION

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PERFORMING RIGHTS INCOME ONCE YOU’RE SIGNED
SONGS
YOUPUBLISHER YOULABEL
RECORDINGS
PERFORMANCE COMMUNICATION

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REPRODUCTION RIGHTS INCOME
SONGS
YOU
RECORDINGS
YOU
REPRODUCTION DISTRIBUTION

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REPRODUCTION RIGHTS INCOME ONCE YOU’RE SIGNED
SONGS
YOU
PUBLISHER
RECORDINGS
YOU
LABEL
REPRODUCTION DISTRIBUTION

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PHYSICALD2FDIGITAL
WHAT TO DO NOW…
YOU
SYNCPROs YOUTUBE
REPRODUCTION RIGHTSPERFORMING RIGHTS

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WHAT TO DO NOW…
PERFORMING RIGHTS
YOU
REPRODUCTION RIGHTS

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CMU:DIYARTIST TOOLKIT DAY @ ROUNDHOUSE

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LABELS
PUBLISHERS
& DEALS

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MAKING MONEY FROM MUSIC
MUSIC RIGHTS
Recordings
Merchandise
Songs
LIVE INDUSTRY
Tickets
Food & Drink
Corporate Gigs
FAN BUSINESS
D2F Sales
Brand Partnerships
YOU + YOUR MUSIC

22. CMUdiy.com
MEET THE MUSIC BUSINESS
THE MUSIC INDUSTRY
MUSIC RIGHTS
Record Label
Merchandiser
Music Publisher
LIVE INDUSTRY
Booking Agent
Promoter
Ticket Agent
FAN BUSINESS
Direct To Fan
Brand Agency

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MANAGEMENT
THE MUSIC INDUSTRY
MUSIC RIGHTS
Record Label
Merchandiser
Music Publisher
LIVE INDUSTRY
Booking Agent
Promoter
Ticket Agent
FAN BUSINESS
Direct To Fan
Brand Agency
MANAGEMENT (+ lawyer and accountant)

24. CMUdiy.com
ENTERING INTO BUSINESS PARTNERSHIPS
 Some artists see DIY as the end game – they want full control.
 But most DIY artists still ultimately want to get signed.
YOUR CAREER
MANAGEMENT
AGENT
LABEL DISTRIBUTOR
PUBLISHER

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THE BIG COPYRIGHT DEALS
THE MUSIC INDUSTRY
MUSIC RIGHTS
Record Label
Merchandiser
Music Publisher
LIVE INDUSTRY
Booking Agent
Promoter
Ticket Agent
FAN BUSINESS
Direct To Fan
Brand Agency
MANAGEMENT (+ lawyer and accountant)

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THE BIG COPYRIGHT DEALS: WHY?
£

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NEW TALENT INVESTMENT
 Traditionally look to one or two business partners to provide
upfront investment – especially for new talent.
 Label and publisher traditionally provides this investment.
 Label deals remain key for most new acts.

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LABEL PROVIDES
 Advance.
 Production costs for debut album.
 Marketing costs for debut album.
 Distribution of physical and digital content.
 Rights management.
 Contacts, influence, negotiating power.
 Artist development and support.

29. CMUdiy.com
LABEL WANTS
 Investment launches artist, but label makes demands.
 Exclusivity for set period (number of albums).
 Ownership of sound recordings – normally outright.
 Pays royalty – BUT only after recoupment.
 So initially no income from recordings – except 50% of PPL.
 Royalty depends on deal – usually a minority split.
 Label allowed to make future deductions for ongoing costs.

30. CMUdiy.com
HOW A PUBLISHING DEAL COMPATES
 Publisher pays advance.
 Provides A&R, rights management, sync/commission pitching.
 Ownership of songs – though maybe for set period.
 Deal excludes performing rights – they stay with PRS.
 But publisher is paid 50% of PRS money.
 Pays royalty after recoupment – at least 50% for songwriter.

31. CMUdiy.com
LABELS GET BAD REP – WHY?
 Investment does not guarantee success.
 Label may interfere artistically to safeguard investment.
 Label may screw up marketing and/or overspend.
 Label and artist may just fall out over time.
 Artist gets no recordings revenue until recouped.
 Artist may have given up best recordings.
 Most record labels ultimately profit drive.

32. CMUdiy.com
BUT BASICALLY A GOOD INVESTMENT MODEL...
THE CURRENT BIG THING
NEW
BAND1
NEW
BAND7
NEW
BAND3
NEW
BAND4
NEW
BAND5
NEW
BAND6
NEW
BAND2
NEW
BAND8
NEW
BAND9
NEW
BAND10
FAILS:
MAKES
LOSS
FAILS:
MAKES
LOSS
FAILS:
MAKES
LOSS
FAILS:
MAKES
LOSS
FAILS:
MAKES
LOSS
FAILS:
MAKES
LOSS
BAND
BREAKS
EVEN
BAND
BREAKS
EVEN
BAND
BREAKS
EVEN
THIS
ONE
WORKS!
THE NEXT BIG THING

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NEW TALENT INVESTMENT
 While the artist may not earn hugely from their first recordings -
initially or ever - a label would argue that initial investment helps
launch an artist opening up all the other revenue streams…

34. CMUdiy.com
MAKING MONEY FROM MUSIC
MUSIC RIGHTS
Recordings
Merchandise
Songs
LIVE INDUSTRY
Tickets
Food & Drink
Corporate Gigs
FAN BUSINESS
D2F Sales
Brand Partnerships
YOU + YOUR MUSIC

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21ST
CENTURY BLUES – RECORDINGS MAKE LESS MONEY
£

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THE RESULT…
LESS PROFIT
LESS TO INVEST
Labels sign less bands and become more risk averse.
Will look for artists to do more ground-work before investing.
May ask for control and/or cut of other revenues…

37. CMUdiy.com
WHAT ELSE?
MUSIC RIGHTS
Recordings
Merchandise
Songs
LIVE INDUSTRY
Tickets
Food & Drink
Corporate Gigs
FAN BUSINESS
D2F Sales
Brand Partnerships
YOU + YOUR MUSIC

38. CMUdiy.com
WHAT DOES THIS MEAN?
 Record deals are changing.
 Multi-revenue stream or ‘360 degree’ deals increasingly common.
 What does that mean? What do the deals look like?
 Can deals evolve to benefit artists too?

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CMU:DIY