Exclusive Listing Buy Out?

[TheElement]

Little confused over this term "Buy Out". It sounds like a regular exclusive but wouldn't the term "Buy Out" imply you lose everything including your writer's share? Thanks for any insight!

CONTEMPORARY ELECTRONIC DANCE (EDM) INSTRUMENTAL CUES are needed by an A-List Film/TV Music Publishing Company with a really long and very impressive list of great placements. Please give them Mid-to-Up-Tempo Instrumental Cues in the stylistic wheelhouse as acts like Deadmau5, Kaskade, Eric Prydz, etc., etc., etc. Please listen to the references to get a general idea of what they’re looking for: “Ghosts N Stuff” by Deadmau5: https://www.youtube.com/watch?v=QV8eiSA4vqc “4 AM” by Kaskade: https://www.youtube.com/watch?v=Xl9lQonO_RQ “Pjanoo” by Eric Prydz: https://www.youtube.com/watch?v=llfNRGQ7Tlg Although the references have vocals, please give them only Instrumentals for this pitch. Please submit well-crafted, current sounding Electronic Dance Music Instrumental Cues with all the hallmarks typified by the genre -- exciting builds, engaging rhythms, melodic hooks, and a central melodic theme and payoff that’s big enough to ignite the dance floor! Layering Instruments in (and out!) as your Cue develops and progresses will help it from sounding too repetitive. Build it up, drop it down, build it back up, and bammo! You know the drill. Short intros, Easy edit points, and Non-faded, buttoned/stinger endings will work best for this pitch. Your Cues should be at least 2 to 3 minutes in length. Do not copy or rip off the referenced artists or music in any way, shape, or form. Use them only as a general guide for tempo, texture, tone, and vibe. Also, please avoid any material with unauthorized samples of other artists’ music, sounds, or any other form of media. Broadcast Quality is needed (great sounding home recordings are fine). This company offers an EXCLUSIVE, 50/50 Buy Out Deal of $200 per track. You’ll get the upfront payout ($200), plus 100% of the Writer’s Share. You’ll also get paid performance income on the back end from your PRO. The Publisher will get 100% of the Publisher’s Share. Since this is an EXCLUSIVE deal, please be sure the material you pitch for this opportunity is NOT already signed to any other Libraries or Catalogs. You must own or control the Master and Copyright to pitch for this. All submissions will be screened on a Yes/No basis. No full critiques. Please submit 1 to 3 Instrumentals online or per CD, no later than 11:59PM (PDT), on Monday, September 28th, 2015. TAXI #D150928ED

Submit to this listing TAXI # D150928ED

[shorttonpro]

In this case it seems to refer to a buy out of the MASTER RECORDING as well as the PUB. It states you get to keep 100% of the writer's share plus collect on the back-end. Pretty good deal considering most exclusives don't offer any upfront money.

One thing that isn't noted in the listing but I'm sure is noted in the contract, is how the licenses are divided between master and song, which could have an effect on your bottom line. I haven't had the opportunity to work with buy-outs, so hopefully someone else can chime in.

For example, a piece of music is to be licensed for $1,000.

In some situations, half of this is allocated to the license the master recording, and half is allocated to license the song/publishing. In this case:
500=Master recording license to the library
250=Writer's share of the publishing
250=Publishers share of the song

Or, does one receive 50% of gross receipts which includes the publishing and master together?
500=Writer's share of publishing + creation of master
500=Publishing share of song + ownership of master

[TheElement]

Thanks Scott. so that might not have been a typo. I thought most exclusives gave upfront payouts.

[mojobone]

Thanks Scott. so that might not have been a typo. I thought most exclusives gave upfront payouts.

Sadly, no.They just used to , before the recent explosion of channels, shows and content. A buyout is generally a good thing, and could earn some front end even nowadays, depending on the writer/producer's stature, the usage and how bad they want it. If someone offers a buyout it usually means they see a payoff, in the near future, though nothing's guaranteed and I am not a lawyer. [note lack of winkie emoji]
Three things you lose...er, trade off in a buyout deal that are maybe important to you are firstly, the publisher's share, which is half, if you can get it enforced, but that's another thread; anyways, half of something is nearly always better than all of nothing, unless we're talking about jail time.

The second thing, you lose control over how your title is exploited; you need to be fairly certain that your song doesn't have any potential for being belted out at...Klan rallies, a Lindsay Graham fundraiser, a baby seal clubbing or an appeal to get Will Ferrell out of federal prison for impersonating a MLB player. It is entirely possible that you'll make money you wouldn't wanna tell your meemaw about, to put it mildly. <but you''ll make>

Thirdly, and this is maybe not an issue for you, but if you were to at some later point, sell your soul to the Devil in exchange for prodigious musical talent, you will have no way to quash this early proof of your perfidy/lameness.

Some upsides worth noting are A: you'll get paid, and B: prodigious musical talent, should you happen to meet the Devil.

[TheElement]

Thanks Mojo for the info.

Ok dont plan on selling soul to devil for talent.

I guess got to read the fine print in the agreement. I could see upfront payment of $200 per track for exclusive. Can't see $200 buy out and losing everything being worth it. I dont need money that bad.

[Casey H]

If I understand correctly, in a deal like this:

You get $200 up front.
They own the copyright forever.
You get no additional share of sync fees.
You get your standard 50% writer's share of PRO.

It can be a good deal because, at the minimum, you earn $200. Many tracks you write will never earn that much in a lifetime. And if it is placed, the back end can be nice. Libraries who pay up front are highly motivated to place your track because they invested money in it.

The down side is similar to that with any exclusive in perpetuity deal in that you have to be OK with letting go of your track forever. If that's not a concern to you, lotsa up sides.

HTH
Casey

[TheElement]

If I understand correctly, in a deal like this:

You get $200 up front.
They own the copyright forever.
You get no additional share of sync fees.
You get your standard 50% writer's share of PRO.

It can be a good deal because, at the minimum, you earn $200. Many tracks you write will never earn that much in a lifetime. And if it is placed, the back end can be nice. Libraries who pay up front are highly motivated to place your track because they invested money in it.

The down side is similar to that with any exclusive in perpetuity deal in that you have to be OK with letting go of your track forever. If that's not a concern to you, lotsa up sides.

HTH
Casey

wow. $200 in lifetime per track now I'm depressed. but I guess thats why you need like 1,000 tracks or even more.

So that $750 I made the other day was a good payout then..

[Casey H]

Talking averages and probabilities... Some tracks will never be placed, some will make less than $200 back end only, others will make MUCH more than that in sync + backend, even if sync is $0. So a $200 bird in hand is not bad. Of course, if you thought you had a killer track that was worthy of a $1000+ sync deal, you might not take this deal.

[TheElement]

Talking averages... Some tracks will never be placed, some will make less than $200 back end only, others will make MUCH more than that in sync + backend, even if sync is $0. So a $200 bird in hand is not bad. Of course, if you thought you had a killer track that was worthy of a $1000 sync deal, you might not take this deal.

True. I guess I will find out. still so new to this biz. however $200 I can make more in my pool biz in 1 hr. so I guess money won't be a motivating factor.

[mojobone]

Unless you quit now, it's virtually assured that you will be underpaid for some placement at some point; there is also a slightly less substantial risk that your buyout will be used as the theme for the next "I Love Lucy". The hope is that these things will even out over the long haul, hence the mantra, "Write, submit, forget; repeat."