Blanket Licenses

[Frankie]

Hi guys,

I’m relatively new to the library scene – so don’t flame me for asking 🙂

But, how come no one seems upset about blanket licenses? Example, composers working their butts off and getting 50 placements (some that they probably didn’t even get paid for – SCRIPPS network) with mediocre royalties while the libraries pull in huge numbers of blanket license monies per year.

Wouldn’t it make sense to at least distribute a small portion of blanket licenses to the composers who had music placed within that year? I cannot see the tv market being sustainable for a composer if he’s sending his tracks to libraries like that.

Interested in hearing your opinions

[Art Munson]

Nobody likes it but it’s a sad fact of the state of affairs that’s been going on for years. One company (SK) was paying a small portion of blanket licenses to composers. Not sure they still do.

[Frankie]

In my humble opinion, these TV libraries could at least do some type of “dividend” payout or a “bonus” for composers who had music placed throughout the year (differing amounts depending on how many placements each artist obtained – similar to the way PROs do things). I would like to think that’s the future of this business, but I’m probably being naive in thinking so.

I see libraries send out email newsletters/updates regarding their new network clients on board (SK being one of them), and although that’s great and it means more potential placements for composers, I wonder how much money they are pulling in while even their top composers get a meager royalty amount. Obviously the library deserves more cut of the pie, but I’m thinking that cut is astronomically large…

[Advice]

We have to separate the blanket thing from the Scripps direct licensing thing because, though they overlap, there are differences.

Blanket deals have been around for a long time. The production company pays one price to the library for full access to their catalog. Unfortunately many libraries such as S* and J* generally do not share any portion of those fees with the writers. I honestly don’t know if their business models could support sharing any of those fees. However, in most cases, you collect PRO money on the back end and depending on the placement, there could be OK revenue.

Then there is direct licensing whereby things are completely out of the PRO system. (Scripps channels such as Travel, Food Network, etc.) These can be blanket or non-blanket deals. One fee covers all on the front end, no back end. Libraries that do blankets generally share a pro-rated portion of the direct-license blanket fees with writers. However, so far for me, these payments have been very tiny and no where near what I would have made in the PRO system even with no front end there.

Just want to separate terms… Blanket and Direct Licensing are not necessarily synonymous.

I welcome corrections if I misstated anything.

[Advice]

I honestly don’t know if their business models could support sharing any of those fees.

I quoted myself in anticipation of some folks possibly jumping down my throat for that statement. What I’m saying is **I really don’t know**. Some think these folks are greedy and rolling in dough by not sharing a portion of blanket fees with composers. The libraries might say that if they had to share the fees, they couldn’t make enough profit to be in business and everyone would lose.

[woodsdenis]

The libraries might say that if they had to share the fees, they couldn’t make enough profit to be in business and everyone would lose.

I think thats exactly what they would say ! The economics of it library to library no one knows.

[Kiwi]

I find the way many libraries implement blanket deals to be very troubling. But, as it’s been stated, it’s been going on for a while. Over the last few months I found out that one of the large cable networks has signed an exclusive deal with one of the libraries mentioned in this thread. Over the past several years I’ve been writing directly for a few of the shows on that network and getting paid decent upfront fees. No more. The irony is that the network will still pay upfront but none of that money will reach the people who created the music. A real shame, but I’m sure it all comes down to very simple economics. They don’t get custom work but they get a large selection that’s “close enough” and it’s probably a good bit cheaper by the track. Oh well, but it is about an eighth of my income that I’ll have to figure out how to replace this year.

I do work with a couple of libraries that share blanket deals and I just got a check yesterday from a library that honors their top downloads from blanket deals so there are still some that look after their composers. I have tremendous respect for those that do that.

Another thing I’ve noticed over the few years that I’ve been doing this is that music that I get an upfront fee for almost always gets better, more, and longer placements so the back end is better for those tracks. It makes sense, they pay for it so they feel obligated to get some use out of it…

I’m not a pessimistic person but I have to say that as “crowd sourcing” becomes the norm it’s not looking so rosy for professionalism in this business. I could imagine a scenario where there’s a thinning of the ranks of composers as more and more realize how short the money is getting and how supply heavy the industry is. The thrill of having music on tv just doesn’t cut it at the checkout at the grocery store.

Advance and adapt is my plan. We’ll see what shape that takes.

[Advice]

Over the last few months I found out that one of the large cable networks has signed an exclusive deal with one of the libraries mentioned in this thread.

Kiwi
Does that mean the library is the exclusive (only) provider of music to the network or that the tracks in the library must be signed exclusively?

[Kiwi]

What I meant is that the library is the only provider to that network…

But, I went back and looked at the announcement and the word “exclusive” isn’t there although the tone of the announcement coupled with what I’ve seen on my end would lead me to believe that it is an exclusive or nearly exclusive arrangement.

So… please pardon me for not checking the exact wording before posting but, like I say, regardless of the wording it does appear to represent a definite shift in the marketplace.

[MichaelL]

I’m not a pessimistic person but I have to say that as “crowd sourcing” becomes the norm it’s not looking so rosy for professionalism in this business. I could imagine a scenario where there’s a thinning of the ranks of composers as more and more realize how short the money is getting and how supply heavy the industry is.

The question is: who will drop out, the well-equipped pros who spend 10 to 12 hours per day, 6 or 7 days per week, creating a volume of work, or the hobbyists, who decide they’d rather spend more time with their family and friends, instead of working at music as a second job, with little reward?

Either way, the effect of reducing the supply would be good for the industry.

[Kiwi]

The question is: who will drop out, the well-equipped pros who spend 10 to 12 hours per day, 6 or 7 days per week, creating a volume of work, or the hobbyists, who decide they’d rather spend more time with their family and friends, instead of working at music as a second job, with little reward?

Hard to say… From my experience the pros I know aren’t so easily categorized. For example, I’m a pro in that I make a living in music production but composition is only a part of that and library is only a part of that part…

I’ve got a couple of buddies that are fly-around-the-world-in-a-jet-plane successful at licensing music they’ve written but even they don’t have all their eggs in one basket. Both of them also produce, play gigs, teach, etc.

So, I think people like I’m describing will just keep on reevaluating, reassessing and reallocating like we always have. I don’t know any other way to survive these days as a musician. This isn’t the only part of the biz that is tightening.

As far as amateurs, the libraries have a real advantage in that time is on their side. In most cases it takes 3 to 5 years from the point of signing the first library tracks to the point of realizing how little money is likely to come from it. In between those times the newcomer is supplying lots of new music. By the time disillusionment sets in there’s a long line of other newbies ready with thousands more tracks.

Unless there is a reaction from end users or an organization of labor on the part of composers I don’t see this changing any time soon.

[MichaelL]

I think you’re right on both counts Kiwi. The music pros will have multiple revenue streams, because we always have.

And, yes, there will always be a crop of starry-eyed newbies.

[Desire_Inspires]

I am never going to quit making music for libraries. The PROs will continue to generate money and I will be there to get my share. As a hobbyist, I can increase or decrease my output at will. Any money is a bonus for me.

I have way too much fun to quit.

[Steve]

I could imagine a scenario where there’s a thinning of the ranks of composers as more and more realize how short the money is getting and how supply heavy the industry is.

It’s certainly supply heavy, but much of that supply is not of high quality due to the proliferation of cheap/free recording software and non-trained “musicians” acting like trained musicians. In my primary genre (hip hop) it is rampant. A reduction of supply would definitely help but there’s no way to do that. We have to hope that people know quality when they hear it. If they don’t, we should be working with them. “Advance and adapt” is always the way to go in my opinion. I feel like no one knows this better than professional composers/musicians.

Kiwi said:

Unless there is a reaction from end users or an organization of labor on the part of composers I don’t see this changing any time soon.

There is – the American Federation of Musicians. I was once a member but dropped out long ago after I became frustrated at how my local was focused on session players and not the touring sideman. They’d have to convince me to pay dues again and I’m not sure that can be done, but I’d love to hear them tell me what they do for composers.

[Steve]

We have to hope that people know quality when they hear it. If they don’t, we shouldn’t be working with them.

[Author]

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