Trailers and royalties

[jonnybutter]

Hi all,

Was just wondering about how the biz side of a listing would work. Curious to see if anyone has experience or knowledge about it. Here is the listing (edited to include just pertinent stuff):

Please give them well-crafted Trailer Instrumentals with a big, epic Hollywood-inspired sound, emotional impact, and a full orchestra with sweeping strings, massive brass, and heart pounding percussion. Submissions should be structured like a typical film trailer, with three distinct acts...

This Library offers a NON-EXCLUSIVE, 50/50 split. You’ll keep 50% of any applicable sync fees and 100% of the Writer’s share. The Publisher will get 50% of applicable sync fees and 100% of the Publisher’s share on the version they pitch. You’ll keep 100% of the original copyright and master. You must own or control the Master and Copyright to submit to this pitch. Please submit one to three Instrumentals online or per CD. All submissions will be screened on a yes/no basis by TAXI and must be received no later than 11:59PM (PST), on Wednesday, January 20th, 2016. TAXI #U160120AT

So I understand that, unless the music was used on a tv show, there probably would be no royalties for US and Canadian since there are no royalties paid for US/Canada film work, though there may be via other countries. (Unless trailers are not considered 'film work'?) If this is true, then half of 'any applicable' sync fee is the *only* payment to the producer/writer (other than possible foreign royalties). And on top of that this is a non-exclusive library, so I have to assume that the writer gives up something there too - I mean in addition to not being able to pitch the same track to an exclusive library.

Anybody have an insight as to how a deal like this might work?

[stevebarden]

Trailers rarely pay backend royalties unless they're broadcast on TV. That's why the upfront payout for trailers can be tens of thousands of dollars.

Steve

[ComposerLDG]

Trailers rarely pay backend royalties unless they're broadcast on TV. That's why the upfront payout for trailers can be tens of thousands of dollars.

Steve

I didn't know that. Good information to have. Thanks!

[jonnybutter]

Hi Steve,

Thanks for chiming in.

So the upfront fee is indeed most likely the only fee. I've heard you could think of trailer houses kind of like ad agencies. Is that sort of right? Although this particular listing is a library.

Tens of thousands for trailer music? Do you mean total budget? I bet trailer music tracks can get expensive once they start licensing xx seconds of well known music (e.g. one of the songs by WAR that are in so many trailers and commercials). Or maybe really big releases just have big budgets regardless?

we shall see what we shall see I guess.

[Cruciform]

Hi Steve,

Thanks for chiming in.

So the upfront fee is indeed most likely the only fee. I've heard you could think of trailer houses kind of like ad agencies. Is that sort of right? Although this particular listing is a library.

Tens of thousands for trailer music? Do you mean total budget? I bet trailer music tracks can get expensive once they start licensing xx seconds of well known music (e.g. one of the songs by WAR that are in so many trailers and commercials). Or maybe really big releases just have big budgets regardless?

we shall see what we shall see I guess.

For a theatrical trailer the sync fee is the income. You can get small cinema royalties in some countries but it's not significant. The budget for a trailer, and the whole campaign (which can include multiple trailers plus multiple tv spots - not all using the same music) depends on the budget for the movie. Yes, trailer houses are ad agencies of a kind and trailers are major advertising. For a small indie film it might not pay much but a decent trailer spot can pay 15-30k. A really major spot with worldwide rights etc might cost 80k. Well known songs will typically cost even more. If a trailer plays on tv, you might get some royalties from that.

But the majority of income from trailer music still comes from other avenues - network and show promos, tv shows, DVD menus/featurettes, etc. So while we're aiming for the big syncs, we still spread our nets wide looking to catch as many income sources as possible. Major trailer label releases on the other hand are costly productions, using real choir, orchestras, all real musicians, Hollywood mix and master engineers and so on. They are only available for use in big budget campaigns and brand name advertising. Then their older music may become available for lower budget campaigns after a few years.

Trailer music is insanely competitive. You are up against the best producers in the world. Having said that, if you can build up the skills you can certainly get into the market. Zack Hemsey's "Mind Heist" used in the Inception trailer was made by him in his bedroom using samples. Jack Trammell's music (used everywhere) is all him with samples though he does own a recording studio so it is mixed and mastered in a professional setting.

[jonnybutter]

Thanks Rob. Very informative.