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Andy Lykens

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exclusive contracts

Should You Choose An Exclusive Contract To Get Your Music Licensed?

November 7, 2012 by Andy

Previously I discussed some of the pros and cons of signing a non-exclusive contract to get your music licensed. It’s definitely an interesting option and can provide a lot of opportunity. But before you go uploading your music to Pump Audio, why not consider all options?

Always consider all sides of the story...

Exclusive deals can be very rewarding experiences not just from a monetary stand point (though that’s certainly nice), but also from an artistic one. However, they’re definitely not as easy to come by and there can be other drawbacks to signing on with a major publisher or label.

Let’s check out a the pros

Pros:

  • Perceived Value is Higher
  • Retain Greater Performance Royalties
  • Better Synch Fees
  • Better Percentages
  • Creative Control

It all starts with perceived value

When I was pitching music for ads at a music library it was usually a struggle to get them to consider a library song versus a commercial track. In most cases I got the phone call only when the budget was low and not before.

Was the music quality THAT much different between the two tracks? Generally speaking, no. In many cases you could easily send a library track and commercial track and save for the name attached to it have no idea which was which. That’s the power of perceived value; big money opportunities are more available.

Performance royalties, sync fees, and percentages…

The number 1 fantastic thing about an exclusive deal is that all fees and percentages are negotiable. It doesn’t matter if you’re U2 or You Who?, you too (see what I did there?) CAN negotiate to some extent (and I’ll talk about how to do that as a little guy in a future article).

The bottom line is: any additional percentage you can get negotiate pays dividends.

Negotiate.  Always.

Creative control

For the most part music doesn’t get pitched for political or religious advertisements just out of principle. However, how stoked would you be if your song got placed in an ad for a discount furniture store? If your answer is “ehhh,” that should be a clue about which contract to pursue.

Think of all the products you see at your local drug store and if any of those (like adult diapers or prescription drugs) are not something you’d want to attach your music to, then creative control is an important thing for you. You also get the opportunity to turn down jobs that don’t pay enough (you hoity-toity art-nerd).

Looking at the list initially it may seem like a no-brainer – hit the pavement and get after a major label or publisher. But hold on, there are some cons to consider before you go hucking your wares to Universal.

Cons:

  • Difficult to secure
  • Lost in the shuffle
  • Are they pro-active?
  • Organization

Don’t overlook how difficult it can be

It can take years. In fact they can just not happen at all. However they DO still happen and they are out there. If you decide to go for it, do it with all your heart and soul. Just know that like anything worth having, it is tough work!

Lost in the shuffle

Major labels and publishers have some pretty amazing music to tout when it comes to placing music in film, TV, and advertising. On top of that, they also have a ton of other music that is maybe not so amazing, but that they still need to make money on.

For that reason its possible you’ll get lost among the other artists in the catalog. You might make the same case for non-exclusive style companies, but keep reading as the next two items are what REALLY separates the wheat from the chaff.

Are they pro-active?

Many companies are changing but still far too many wait for the phone to ring or depend on clients to reach out to them. So sure, they may get a call when someone has $200K to spend on a Super Bowl spot, but guess which artists get first dibs on that kind of money? So if you’re not a superstar, you need to MAKE SURE the company you’re signing with is abreast of as many opportunities, large and small, as possible.

Don't let your publisher or label be lazy!

Organization

They’re not sure who wrote what, they don’t have useful systems in place to help them find the right music, and maybe they don’t even know who represents the other side of the sync placement. Yikes. This means you could miss an opportunity simply because the company doesn’t know some critical business facet. Some entities really have it together, and some can barely make it to work.

In the end, whichever route you decide to go just be aware of the potential caveats. Now there are more and more people offering services and opportunities to up-and-coming writers. If you do your homework, chances are you can land somewhere that will be a great fit!

As always please leave a comment with your own stories. I’m always looking to hear more about your experience and answer questions!

Filed Under: Advertising Music, Independent Music, Music, music business, music business development, music industry, Music Marketing Tagged With: contracts, exclusive contracts, labels, licensing, music business, publishers, sync

Exclusive vs. Non-Exclusive Music Licensing Contracts: Non-Exclusive Basics

October 19, 2012 by Andy

A lot of my friends are great musicians who really pour their heart and soul into their work and I am truly lucky. Why? Because having worked in the industry for so long for both production music and commercial music entities, from independent to major publishers, and from focusing on strict marketing and sales to careful copyright consideration, I have learned a lot and get to help them out.

Contracts are still contracts!One question has come up consistently over the years whenever artists come across a company like Pump Audio or Crucial Music. After reading through their sites an artist see the term “…represented on a non-exclusive basis…” and gets excited.

Score! Someone’s going to put my music on TV and I get to keep my all my rights!

But hold on – what does “non-exclusive” really mean? In this two part blog, we’ll take a look at some of the differences between exclusive and non-exclusive contracts and how they could potentially effect your copyright value and revenue as an artist.

Non-Exclusive Basics

  • You retain your rights.
  • You typically get royalties from the artist’s share of your performance royalty.
  • They typically keep the publisher’s share of the performance royalty.
  • They typically take 50% of the synchronization fee (65% in the case of Pump!)

Exclusive Basics

  • You retain your rights.
  • You typically get 100% of the artist’s share of your performance royalty.
  • The publisher’s share of performance royalty is negotiable.
  • They typically take a negotiated percentage of the synchronization fee.

Hmm, doesn’t look too different does it? Let’s dig deeper.

Non-Exclusive:

Alright, the big benefit of being non-exclusive is that you can literally get your music out there, to anyone. You can register with as many non-exclusive entities that you like, you can get 3rd party PR representation, and you can shop your music to agency producers and TV/Film supervisors yourself. This is definitely a great thing. It means you can literally put your song in multiple places and have multiple people getting your music out to lots of supervisors and agencies.

Get Your Music Out There!

This could mean that you get put up for a lot of opportunities, or in case your music is quite niche, that the few opportunities that come up your music is involved in.

But as you can probably tell by the way I’m writing there are some caveats to be aware of with a non-exclusive deal.

First, there are typically terms for these deals even though they’re non-exclusive. That means if you get offered an exclusive publishing deal but have signed a non-exclusive deal, some litigation may be involved to get you out of the non-exclusive contract so you can sign the exclusive one (if you want to).

Next, you MUST realize that these companies do NOT get top-dollar for the tracks that they license. A “low-budget” advertising sychronization fee, let’s just say, is around $15K. But, if the agency is looking for a pre-cleared track, chances are the most they’ll get is $3-4K, and that’s IF the fee is negotiated (in the case of Pump, the agency producer can ‘check-out’ online and fees are assigned at a set, flat-rate). This is BAD. It means that your music is only being put up for opportunities that will yield low dollars and probably have limited air-time (meaning your performance royalties are smaller too).

That said you may have 50 scratch tracks sitting around from 1994 and weirdly, people aren’t listening for that sweet Ace of Bass sound anymore. Or, you may be in a rock band but have a bunch of film trailer tracks that you did for fun that are just collected digital dust – upload away! In this case, it’s bonus money for songs you don’t really care about.

However if you’ve got your heart and soul project and you’ve just started shopping it around, or you don’t know where to start but would LOVE to get your music on TV, it may be best to beat the street a little bit before you turn to a non-exclusive service.

There’s one more thing to consider and it’s something I like to call “perceived copyright value.” This simply means that when someone thinks of your song they associate a price point with it automatically depending on certain factors.

For example, if I told you I have a really great song and all my friends tell me it would be perfect for a commercial, you might roll eyes or punch me in the face depending on how many times you’ve heard that.

But if I say “hey, I JUST released my new EP – it sounds awesome! I recorded in the same studio with the same engineers as Arcade Fire and it was produced by a guy who’s got 5 top fifty songs to his credit,” well, which one do you think sounds more expensive?

The point is this – if an ad agency hears “pre-cleared,” they know that means less-expensive. Sure, it also means “easy to license” and that’s important to them a lot of times, but what they won’t do is bother to remember who the artist is that created the track or put it on their iPod (I mean never say never, but in reality it’s tough enough to get them listening to new major publisher stuff on their iPod).

If you’ve been thinking about doing one of these deals, I encourage you to take a look at the FAQ on their site and be really certain you know what you’re giving for what you get.

You can read more about what an exclusive deal might entail and also evaluate some pros and cons here. By then, you should have a really good idea of where you’re going to focus your efforts when it comes time to shop that shiny new song around!

Filed Under: Independent Music, music business, music business development, music industry Tagged With: contracts, exclusive contracts, non-exclusive contracts

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