Music Licensing

The articles below will be especially interesting to emerging artists interested in expanding their listener base and income.

Greed: The Diarrhea of the Music Industry

A financial comparison of America's corporate and music sectors

by Kenny Love

For the most part, the business and art sectors of our society often resemble fraternal twins, with the common denominators being their operational and marketing mechanics. And, until recently, that's about where the similarities ended.

However, it is ironic how suddenly these fraternal twins have become identical twins, almost overnight, through another common denominator ... greed.

A great many people, particularly those who invest in the stock market, are shocked, appalled and even terrified with the recent revelations of rampant white collar crime that has surfaced in some of America's most heralded corporations.

And, there appears to be no end in sight, with almost daily newscasts exposing more. Actually, it has always been there, only to a lesser degree and no proactively viable means for exposing it. And, the same can be said of the Music industry.

The overall aforementioned common denominator of greed is the obvious denigrating factor of which several corporate American executives have been caught with their grubby paws in their companies' financial cookie jar, all the way up to their elbows, no less, and taking million$ that rightly belong to their hardworking and trusted employees and stockholders.

By the same token, the greed factor in the music industry is ever present through the witnessing of sobbing major record labels that, for the first time in their historically industry controlling lives, are surprised at the overnight overturn of the industry whereby technology has brought the true meaning of independence into a new limelight.

And, as the majors feel powerless to stop it, in response, they are like rabid wolves that realize they are trapped and in danger of becoming chained. As a result, they bite and chomp at any sign of fresh flesh within their grasp.

The sad part about this particular situation, is that not nearly enough unsigned and independent musicians are business savvy enough to capitalize on the ongoing and impending downfall of the majors in order to realize their true financial potential.

This is because most musicians have been brainwashed for so long into believing the old status quo process of recording, pressing, then seeking a record deal, that they do not realize they are cutting their own financial throats by not proactively and aggressively promoting their own music independently.

The music industry of today, to both major record labels and unsigned artists alike, is like an octopus. So many arms moving simultaneously that neither party seems able to fully concentrate and focus on executing a viable plan. Alternatively, both are scramblers ... hitting here, missing there, or vice versa.

And, while I could not care less about whether or not greedy major record labels survive, it troubles me greatly that independent recording artists cannot seem to see the light, or more succinctly, harness this opportunity that is before them enough to guide their musical horses down the path to success.

If independent recording artists could understand, for even the briefest of moments, the magnanimous financial potential they would realize in self-marketing their own recordings, as opposed to signing with a major label, we would see a new Music industry such as has never been known.

The signs that this is a welcomed option are already there, as a recent Internet poll found that Internet radio had 4.8 million listeners during the month of July, up from 4.3 million listeners in June. Yet, Internet radio stations are being lassoed and hogtied at a rate that would make John Wayne jealous by the music industry's 'powers that be', all under the auspice of royalty agreements and protection of musicians.

Ironically, Internet radio is the last radio frontier for unsigned and independent recording artists, and it makes you wonder just whom is in whom's corner (or not). I have no problem whatsoever with artists earning Internet radio royalties and, as an artist myself, believe we rightfully should.

But, the Music industry is placing so much pressure on the streaming aspect of stations that many, if not most, are electing to cease their streaming capabilities altogether. Just visit a random sample of radio sites to see how many you can find that still stream today, compared to even six months ago, in response to the recent rulings. It's a crap shoot, to say the least.

And, what about music file sharing? This is another area where the greedy majors are having heart attacks and seizures over. And, while I, initially, had a problem with it, due to my ignorance of its potential, let me be another in a long line to now state the enormous potential of it, as long as some restrictions are applied.

Those restrictions can and should include the amount of music made available to the online public. And, that amount should be limited to single releases. Think of music file sharing as another promotional resource, much like sending music singles to radio. It's interesting to note how we have no problem with sending multiple copies to radio, but cringe at having one single file of our music shared online.

As independent artists-(many forcibly)-turned-business people, we simply must learn to think in a different realm regarding online technology, because so many potential fans can be reached through music file sharing whom would never learn of our music otherwise. At the very least, it is effortless viral marketing and promotion at work for our music.

But, back to the earning potential of musicians...

The Label Approach

Unsigned Artist's Fantasy: => ("If I can only get signed, my troubles are over, and my fortune is assured.")

Realistic Points of Note:

1. Even if an artist is unfortunate enough to get signed, the label is not required to produce him.
2. If an artist is produced, the label is not required to release the recording.
3. If the recording is released, the label is not required to promote it.
4. Just because a major promotes a release label, does not guarantee its success.
5. If you are even "unlucky" enough to reach the 4th step, with its above result, where do you believe you will be shortly after your release's failure? If this does occur, you should consider yourself "lucky."

The Indie Route

1. As opposed to my ego driven desire to send a promo copy to commercial radio stations (which likely aren't going to play it anyway, due to the possibility that they are members of Clear Channel or other greedy corporate radio networks), I opt to send it out to college radio stations that not only will play it, but are begging to receive independent product.
2. Once a college radio station notifies me that it is going to spin my music, I contact the college's book store, music store, and any surrounding independent music stores that might be interested in carrying a few copies of my product for sale on a consignment basis.
3. Once I have a "first spin" date from a station, I then forward a promotional copy to the corresponding college newspaper, citing my music is airing on their station. As a result, it is almost a given that the paper will review it and probably interview me as well. And, if I have been fortunate in getting the college book or music stores to carry my music, I will also include their names and locations in my press release or interview with the college paper as well so people know where to buy my music.
4. When I receive a review or interview in the college paper, I request a copy of the review. I then send a copy to the college station so that it can serve to extend the airplay. At the same time, I send copies to the campus book store, music store and any other music stores carrying my music that will inform them that my music is being supported by the area media and creating sales for them.
5. Once each week, or every two weeks, I check back with the book or music stores to see how my music is selling. If copies have sold, I request payment for copies sold, then forward more product to the stores. Most likely, if copies are selling, the store will call me ahead of time for more copies. At this point, I have created demand for my music in this area and request payment for copies sold, prior to sending more product.
6. Live Performance: While you can continue to work gigs in your local area, you should also use this time to keep track of airplay in order to set up a tour in the radio areas in a few months in order to capitalize on the media support.
7. Video: I also hook up with a film student at an area college and discuss the possibility of getting a simple video produced of my first single. No need to do a video costing hundreds of thousand of dollars due to the fact that my video is only for local and regional music video shows, and not the national networks.
   
   I would then make copies of my video and send to local and regional independently produced cable music video shows, as these shows desperately seek music videos.
   
   Colleges also have the latest high-tech video equipment, yet, most independent recording artists are completely unaware of this, or never consider this promotional avenue. Additionally, you will pay only a few dollars (if that) to have your video produced, yet, experience incredible results by having one. Additionally, today's nightclubs often run videos and this is another great outlet for you.

There are a quite a few more details to each of these steps, however, I have attempted to show the overall process in action, the results you can expect and how you can make almost instant (and far more) money by going the independent route, as opposed to the major label route. Now, doesn't its financial potential look a bit more realistic to grasp?

And, hopefully, you have also filed your music with either BMI, ASCAP or SESAC so that you can receive royalties from college radio airplay. Now, with these aspects combined, can you even see how you can *NOT* make money on your own? I think not.

In today's music industry, every single artist should be marketing his music in this manner. Yet, again, with the mass amount of mis-information continuously presented in music books with unworkable theories (even more greed), and written by people who have very little (if any) true experience in the music industry, recording artists are far more perplexed than ever.

As recording artists, we should do our part to eliminate the unfortunate greed that purveys at the corporate level within our industry. And, you can begin to do so, while significantly enhancing your success, almost overnight, by beginning with the above six steps. It's, practically, a given that these realistic approaches will work for you.

Editor's Note: Kenny Love has an extensive background in both the Music and Writing industries. Learn about the new services that he is providing to unsigned and independent recording artists in response to today's shaken and fractionalized Music industry by sending an email request to klmubiz@getresponse.com.

Photo © 2002 Suzanne Goodwin

More Music Licensing

by Scooter Johnson

So you have a band, a CD, a practice space, a so-so van, a couple of gigs coming up and an internet connection - what next? Convergence. A dirty word for corporations but a promising term for bands striving to go that extra mile for exposure and financial independence. The internet is proving itself to be beneficial to the newest bands and others who recognize that they have to reach far beyond the city limits to make a go of music as a career.

Your two immediate online needs are a URL or domain name that is representative of band, preferably www.yourbandname.com with a main email address of info@yourbandname.com that is checked regularly (www.internic.net worldwide or http://www.cira.ca in Canada, www.yahoo.com). With thousands upon thousands of bands online, doing searches for indie bands who have lost themselves at the end of a very long URL - can consider themselves truly lost. Don't make people fight to find you! There are many sites that allow you set-up your presence for free or for a monthly fee that includes your own domain name, an email service that allows group emails (ie. regular newsletter or gig/touring announcements), merchandise sales with e-commerce capabilities (credit card processing and shipping) and a walk through of all the steps involved in building your pages (try www.freedomtogroove.com).

After your website our first foray into online money-making was joining mp3.com. It was relatively easy to upload our music but we're not making any money off it and haven't for over a year as the cost to be a 'Premium' member per month exceeded what we were making off plays. It was enough to put back into the band for expenses, posters, photocopying press kits, printer cartridges, postage, recording, gas money, CD dubbing costs etc.

Curious on how to market your site, join mailing lists, book a tour, contact an A&R rep and get the best deal on pressing CD? Check out many of the dozens of websites put together by your peers (www.indie-music.com is excellent) that contain many articles, links, resources and directory listings. What you probably will not find is information on music licensing. Licensing? This is the term applied to the process of placing music on visual creative projects, such as film soundtracks (film, video, digital), television programs and advertising campaigns.

As more and more music is being made available online for different uses it is natural for production people to turn to the internet to find music. Why? Because you can buy anything on the internet! Savvy bands are spending time on film bulletin boards offering up their music for soundtrack use, indie labels are offering licensing options on their websites and composers are banding together and starting their own online write-for-hire agencies. If you or your bandmates don't have the time, effort or expertise to find soundtrack opportunities and successfully pitch your music there are avenues for you.

Who to trust?

I'm on movie sets a lot and I can tell you how hard it is to approach the music supervisor or the producer with CD. They may love it or I might lose my job. Not wanting to jeopardize my finances I've found a few online companies that specialize in indie music licensing and are non-exclusive (which means you can join as many as you want - no exclusive memberships). Before signing with any company remember you are entering into a business relationship that involves your work and payment for use of that work.

Contracts?

The licensing company should have a legal contract that requires the signatures of the owners or the authors/composers of the music sent in. If the company is legit they will want to protect themselves from fraud artists that will send in other peoples music and profit from it. Also there is the final license contract with the filmmakers or whomever to peruse - is it for a Master/Sync license? or just a Sync license? (www.ascap.com, www.bmi.com or www.socan.com can define these terms if you are not familiar with the industry jargon).

Fees?

The contract should also state very clearly the fees (monthly? yearly? by the byte?) involved and how future licensing income will be split between you and them and how often you will be paid.

Pre-Cleared or Restricted?

Also, ask about whether the tracks are required to be pre-cleared or if you can request restrictions. Some companies have a standard restriction that reads something like 'this track cannot be used on scenes depicting racism, pornography, use of tobacco, alcohol or drugs'. Requesting a restriction will obviously limit the amount of interest your music garners and ultimately the pay-out. Personally I don't care if a European sausage company wants to use my music on a television commercial - I'm an indie musician who can barely pay the rent, who is going to blame me for taking the money? I'll take that money and invest it in my bands future.

Where to start?

Start where you begin all your other research - on your favorite search engine (www.google.com is huge). If you want to go the total DIY personal route based on your location, use your city name and keywords like 'film production', 'indie movies', 'production companies', 'music wanted', etc. Most cities and provinces have film associations and unions that keep track of local shoots and list them on their websites with contact information. Be prepared to be your own sales agent - you will have to send each of the interested parties a pitch package (some require two - one for the director and one for the music supervisor), diligently follow-up, negotiate your terms and if needed, hire a lawyer to proof your contract.

If you are willing to let go of a lot of control, a full-service online licensing agency like Realia Music Inc. (www.realiamusic.com) may be worth looking into. One of the larger agencies online, their online catalogue consists of indie music from around the world and it's pre-cleared and priced by a sliding scale that caps at $5,000/world-wide usage. They have restrictions available but only a special case basis (pre-existing contracts between musicians and other parties - I asked) and provide a one-stop service for people who have limited budgets, tight schedules and credit cards. They have a one-time $5 membership fee and a $1/song submission fee, 50/50 license split and a $2/song shipping fee for songs licensed. Your songs are represented for as long as you wish and if you get an exclusive deal with a publishing company or label, they promise they will remove your songs within 24 hours.

If you have a good idea of what your music is worth and prefer to wrangle your deals yourself try SongCatalog Inc. (www.songcatalog.com). Their system provides a virtual middleman for your negotiations. You submit as many tracks as you wish for placement in their online 'Active List' or in the 'Vault' and pay per track. Fees are billed monthly and start at $4.95 for up to 25 audio files stored in the 'Vault' and $9.95 for up to 25 songs featured on the 'Exchange' (site search engine) and increase by smaller increments every 50/100/200 songs registered. There are different levels of search capabilities that have a separate fee rate but you can check out there website for more details. People who wish to license music register at no cost, browse the catalogue and when a suitable track is located, they send an email - through the website - to the owner who then responds. Dialogue and negotiations ensue and you are ultimately responsible for finalizing your deal.

I would advise to check out the smaller companies, they appear to have more staying power than the large online music companies (licensemusic.com - one of the first and definitely the largest - shut down business abruptly months ago and is currently being auctioned off on the internet through a bankruptcy trustee). Many have forayed into licensing but the complicated traditional licensing system (long protracted negotiations, complicated territorial and usage structures, clearances, exorbitant fees, favored nations, and script/scene approval) has not translated well online. There was no immediacy, no click through satisfaction that everyone has come to expect from the web. Once the costs of software development, technical support, hosting fees and high-priced management were factored in the license fees were unaffordable and potential buyers were back in the nightclubs chatting up bands after their sets.

Online there is a market for indie music even if the band has broken up, doesn't tour, is brand new or not commercially friendly, and it requires hardly any work on behalf of the band. You fill in an application, get the appropriate signatures, mail it in and wait for the money to arrive. It is the agency's business to market their catalogue, customer services and bring the buyers in.

With record labels setting their standards higher and higher for new signings, showing up with a portfolio of licensed tracks in your package just might be the wedge you need to get in the door. It really doesn't matter where the track was used or for what product, the fact that your music can be sold for hard cash is the attractive quality they are looking for.

Always remember to be realistic with your expectations and tell everybody that you have a 'licensing agency' (it does sound impressive and looks even better on your bio). There are hundreds of thousands of bands in the world with at least one album under their belts. That's a lot of competition for the same dollar. It's also unlikely that directors Steven Spielberg or Kevin Smith are cruising these sites for music for their next big project - they have budgets that afford them just about any song they want. As an indie musician with an indie agency, your music will be marketed to projects without a great deal of exposure attached to them. Focus will usually be on the catalogue not the individual bands, there are fees and it is a relatively new industry - it may take years for it to take off and compete with traditional process.

But don't despair, it only takes one new digital filmmaker with a vision and a few thousand dollars to help pay off the band van or press those extra 500 cd's. It's a cheap and viable new way to get your music heard by a larger and potentially lucrative audience - and that's what you want. Isn't it?

(all fees referenced immediately above are in Canadian dollars)

Bio: Scooter Johnson started his illustrious career in the entertainment industry by studying the cello in elementary school, soon dropping the cello in favour of the far more romantic (and simpler) instrument - the gut-bucket bass. As the premier "bucket-master" in Canada he spent 5 years touring the country with his Hillbilly band The Hard Rock Miners and has created 5 internationally distributed albums with his ssychobilly band The Deadcats. Living in Vancouver (Hollywood North) also afforded him the opportunity to engage in the business of acting. A regular (background performer) on the Chris Isaak show and having worked in films and TV with such luminaries as "Sly Stallone", Greg "BJ and the Bear" Evigan, Isabella Rosellini, and musicians Paul Stanley, Thomas Dolby, Stuart Copeland, and Sheila E (amongst many others); his search for fame and immortality has almost been concluded and it is time to pass on his knowledge to the next generation of seekers after the flame.