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Hi! Im new in the industry and got a royalty statement but i have no perception of what the norm is today, i would really appreciate some insight.
The library paid $5 upfront per track, only a portion got licensed. Every single licensed track earned the exact same: $2.48 per month. The library mostly uses a membership model. All tracks were licensed as “business-to-business web and streaming”. Business memberships are their most expensive membership. Since all tracks earned the exact same im guessing it was 1 client.The deal I have is;
– Exclusive
– 50/50 royalty split
– They have explicitly stated that i must keep tracks out of PROs, they dont register them either. I get no “backend” royalties, all royalties are sent directly from them to me.I dont fully undestand the membership models, if a client can pay a subscription and use the same song over and over isnt that per definition royalty free? If so whats the difference between a membership modelled library and a stock music library? I read the membership agreements and a track once placed doesnt need to be taken down when the membership ends so how do these models keep generating money once the clients membership ends and they still have the track in use?
I see a lot of you guys get $300+ upfront for a track, in what circumstance does that happen? Is that specific to custom briefs or for tracks the library is guaranteed to place?
Is my rate of $5 upfront + $2.48/month/track per client bad/good/normal?
Should i be concerned about the no PRO thing?That is truly a horrible deal, in my estimation. I’d like to know the name of the library so I can warn other composers away from them!
Any kind of upfront money is rare these days. A custom brief would be the most likely scenario.
I’m finding it a bit confusing to follow. $5/track upfront is pretty darn small. I assume you received the $1250. Did you also receive the $190? The bad news is the numbers are pathetic. The good news is you made SOME money on your tracks and many tracks earn $0 in their lifetime.
Contractually, do you even know if you can remove tracks, especially once they’ve been placed? Since they paid upfront fees, that might not even be possible.
It sounds like you are very prolific, given the number of tracks you were able to give them. If that’s so, you may want to move on, write tons more tracks, and shop them to a variety of libraries. Yes, it’s a very saturated market and it’s harder to find homes for your cues than it was maybe a few years ago.
As to the royalty free definition question – I’ve been away from the library business for a while but if I remember correctly the term “royalty free” means the licensee can use the track in multiple productions without paying a new fee. It is not related to royalties paid to the composer.
“if I remember correctly the term “royalty free” means the licensee can use the track in multiple productions without paying a new fee. It is not related to royalties paid to the composer.”
Yep!
Yep!
Yes, a one-time fee can be considered a royalty.
>if a song is royalty free and only requires a payment once then doesnt royalty free for a client also mean no royalties for me?<
No. In a broadcast situation you could collect royalties through a PRO like BMI or ASCAP.
Sounds like a low-tier way to monetize music. There are way better options in production music. If you want long-term earnings, run from royalty-free models like this and get into legit PRO-registered libraries with TV/Film Clients.
I have never before heard of one time fees being called royalties, i have always been under the impression that royalties are of a reccuring nature.
I get why you’d think royalties are always recurring, but that’s not quite the case. When a track airs on TV it generates a single performance royalty. Think of it like this: When my track is placed in “Keeping Up with the Kardashians ” I get a small amount royalties every time it airs. Because the show airs all around the world they trickle in from all over so in that sense it is recurring but it’s only because it keeps getting re-shown.
Some TV shows only air once, like a sports event so it will only generate a single perforance royalty.
The monies you are earning from this royalty free library are often referred to as micro-licenses , so every time one of their subscribers downloads it you get a cut of the revenue it generates. Obviously each track can be licensed multiple times so you may continue to earn from them over a period of time but it sounds like low amounts.
> At least that is already the case with my deal. Is that not the case for all royalty free songs?<
It is not the case for all royalty free songs. A “royalty free” song can absolutely be registered with a PRO. If your track is registered with a PRO and the licensee files a cue sheet, then you will see royalties.
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