Help me understand sync, writers, pub share etc. please!!!

[NathanNasby]

Hey everyone. I am such a noob with the terminology. I look at contracts and think I know what I'm looking at, but now with more offers coming my way it would be nice to have someone make sure I know what I am talking about.

If this has been discussed I haven't found a really all inclusive thread that explains. If it has and you have the link please direct me so I can unravel the mysteries of the lingo ! Here is what I think I know, and what I'm wondering about.

Sync fee = This is what an end user pays for the right to be able to place an artists music to visual media.

So in a typical library deal where the sync is paid through the PRO and is split 50/50 that is talking about the payout for the song placing in film/tv.

Back End (no comments from the peanut gallery) = This is the revenue that is generated when a song is used on an ongoing basis in continual programming.

I assume this is also paid out through the PRO, and is for instances where you song might be playing in a show that is used after the initial sync fee is paid.

What I find confusing is; writer's and publisher's share. I don't understand how this is implemented. So when a song is signed by a library and they act as the publisher getting 100% of the publishers share. If I am the composer/writer, I get 100% of the publishers share. I assume that acting a publisher means that they are acting as the "Promoter" and since they procured a deal or placement they are getting the publishers share. What does that actually mean though. If Library A goes to a music supe and says here's a great song and they say cool we'll use it, is there a standard fee that is paid to the publisher? Does that also apply to the writers? What happens if I get a direct to supervisor forward and I get a call back. Would I be acting as the publisher and be entitled to the publishers share, or does the supervisor take that? If I am acting as the publisher, do I need to set up a publishing account with my PRO to make sure I am compensated for the publishing deals as well as the sync and writers?

I think that is where I find things confusing. Any info would be greatly appreciated. Cheers.

[andygabrys]

ah... almost there.

Perhaps a different way of looking at it would clear it up.

When a piece of music is used in some synchronization with a moving picture, it is traditional that there is an upfront licence fee, and depending on the use, there is some "long trail" or residual or royalty income that is paid to the owners of that piece of music every time it is actually used.

traditionally, a writer / composer would write a song, and an entity would realize it as a finished master. This often used to be a record company. So there was the writer, and the master owner (which is analogous to what a publisher is today). It gets complicated when you start talking about royalty advances and such and Donald Passman's Book "all you need to know about the music business" is a likely source for helping to paint the bigger picture.

So a license for use in motion pictures has two parts - the Sync license (paid to the writer) and the Master Use License (paid to the master owner or usually the publisher today). The license amounts are typically equal, but could be different sums if the record company had a lot of bargaining power etc.

Since so many people own their own masters, these two parts or SIDES have become collapsed into one and the same, and the total monies of the Sync / Master Use License are often split 50/50% between writer and publisher. Often the contract language dictates that the publisher receives the check directly from the licensing agent or ad agency, or TV producer etc. and then cuts the writer a check for 50% of the total minus various expenses.

You can retain the writers and publishers share if you market your music directly and personally to end users.
You can also sign away the publishers share to an entity that has connections in Film or TV and can get your music placed.

So that is up front licenses.

The back end or "long tail" Residual / Royalty is the part where the Performing Rights Organizations get involved.

ASCAP, BMI, SESAC, SOCAN, PRS etc. have agreements with all broadcasters and establishments where music is publicly performed (which includes live and canned performances such as restaurants and bars playing CDs).

All of these broadcasting entities pay yearly dues to the various PRO's and through a convoluted and perhaps not exact way of sampling which compositions actually get played plus an arguably more exact stream of cue sheets from broadcasters, and the recent addition of digital watermarking / fingerprinting and services that will track music digitally, these dues are split up in a pro-rated fashion to all music owners whose music was actually used after the PRO's subtract an administration fee (which I am lead o believe is somewhere around 8% or so for BMI).

Under your PRO registration, a song has two equal halves - the writers share, and the publishers share.

If you have chosen to market yourself, you keep all the money just as above. If you have signed with a publisher they will take their share of up front money plus the publishers share of Royalties. In each case royalties are paid directly to the writer and publisher respectively by the PRO's.

It can get confusing because not every use of music qualifies for royalties. A big example is in the US and Canada, a performance of a feature film in a theatre bears no royalty income for music owners, but doing the same in foreign countries does qualify the music owners for royalties.

HTH.

I am sure there will be many thoughts explaining how this works and I hope that my experience is similar to most others

[NathanNasby]

Wow, thanks Andy. That really helps! kinda clears things up, and thanks for referencing the book, "all you need to know about the music business".

Any other good books on the business end you or others could recommend?

Thanks again!

[RonKujawa]

Thanks for that detailed post, Andy. Succinct and easy to digest.

Ron

[ochaim]

Thanks for the detailed explanation, Andy!!

Can you explain the term "buyout"? Is that where you are paid upfront for exclusivity but you still get the writer's share? Or is your writer's share also sold with the exclusivity? Like a work for hire?

[remmet]

Wow, thanks Andy. That really helps! kinda clears things up, and thanks for referencing the book, "all you need to know about the music business".

Any other good books on the business end you or others could recommend?

Thanks again!

Nathan, another very good book on the subject is "The Musician's Guide to Licensing Music" by Darren Wilsey (with Daylle Deanna Schwartz).

Richard

[NathanNasby]

Thanks Richard! I will be sure to look into that book. It's so funny when I look back to when I was gigging and just doing WFH stuff. I wrote a lot of my own material still, but music was about playing the gig, and the business end was just about beating on doors and getting gigs. Getting into the licensing end has been a completely new. It would be a tough industry to succeed in if you weren't digging into the promotion, marketing and all around business end of this monster. I've never enjoyed music as much though since diving in with taxi and all of you. Lots to learn though, especially with more contracts and such coming my way now.

Really appreciate the feedback.

[AmandaJane]

Thank you Andy for that break down It confirms and cements my knowledge and there were a couple gems I hadn't realised before either

Ta Nathan for starting an excellent and very useful thread

[eeoo]

Owein, I believe a buyout is when the publisher pays you a certain amount upfront in exchange for them keeping 100% of any sync fees they receive. You would still retain your writers share of royalties.

Please correct me if I'm wrong anybody!

eo

[ochaim]

Got it, Ethan. Thanks!