Survey of The Music Industry Week 3 Flashcards
Royalties;
payments made to the owner of a copyrighted song or recording in exchange for the right to use it.
Record Producer
The role of director
Producer in the motion picture field
Producers Royalty
Recording costs are recouped (regained) at the artist’s net rate
Until recording costs are recouped, the producer gets no royalties at all
Once recording costs are recouped, the producer gets paid on all monies
New Producers:
Anywhere from zero to $7,500 per recording. If the producer is doing an entire album, advances are anywhere from zero to about $30,000 per album.
Letter of Direction
which is a letter from the artist to the company that takes way too much legalese to say, “Please pay my producer (and deduct it from me).”
The fraction
For example, if the artist’s all-in rate is 12% and the producer gets 3%, the producer would get three-twelfths (one-fourth, or 25%) of the artist’s receipts. This percentage is often referred to in contracts as the fraction.
Recording Funds:
The higher the recording costs, the worse for the artist
Electronic Transmission:
Not physical form of media
DSP
Digital Service Provider
Spotify, Apple music, etc.
DPD
Digital Phonorecord delivery
A transmission to the consumer that allows the buyer to download music for later use
EULA
EndUser License Agreement
At the bottom of agreements in small font, it says that the downloads are only for your personal, noncommercial use.
Tethered downloads
Provider doesn’t give you control of downloads
Will probably cost more
Synchronization and Transcription Licenses
License to use a recording in time synchronization with visual images
Monetized
If an app is monetized, meaning it generates money after the initial download there may be a revenue share on top of the fee, running anywhere from 15% to 35%.
Intra-company rate
A royalty that the foreign distributor pays the U.S. company for distributing a record
ARPU
Average rate per user
Pro ration
Your royalty is in proportion to the number of cuts on the album
Master
Final recording of a song in a studio
A recording of one particular (even a demo can be one) song
Royalty computation
Royalties are the sums paid to rights-holders when their creations are sold, distributed, embedded in other media or monetized in any other way.
Basic Royalty Computation
1) Artist royalty is a percentage of wholesale price or PPD (published price to dealers)
A point = 1 royalty percentage
MSRP (Manufacturer suggested retail price)
Businesses can suggest to discount it
Advances/Recoupment
An advance is a pre-payment on royalties to an artist
In the red
Money that is unrecouped is a deficit (when an amount of money is too small) (or in the red)
In the black
Once an artist recoups they are in the black
