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Yeah, I read about this. There are quite a few articles about it on https://www.musicbusinessworldwide.com.
It shows the value of ownership, especially in the case of iconic hit songs.These funds have bought into catalogues of very very top writers.
According to an interview on mbw investors are offering multiples of 15 – 20. Seems like they are very positive on future income from streaming and all sorts of media usage, which they’ll probably try to actively maximize, like a publishing company.
@ Alan: Thank you for the numbers, very informative. Could you put this into perspective compared to the potential payouts from Network or Cable airings per household view?
@Music1234 hit me up if you want, I’m a GEMA member from GermanyOn more thing 🙂
In my opinion, the PROs can be sort of seen as a “composers union”, fighting for their rights and making sure composers/songwriters are being paid.
So I would highly recommend to support your local PRO (or move to ASCAP/BMI… in your case).
Hi mmuser,
this might vary from country to country a bit, but generally the “broadcasters” pay the PROs, when music is performed publicly.
So, many broadcasters (TV networks, radio, VoD,…, concert venues…) have deals in place with their countries PRO.
So, e.g. an ad agency produces a TV spot/commercial for a client and buys a PRO registered music license from a library for that spot, it’s all good.
But – if advertising agency produces spot/commercial for a client which will be shown at trade fares or PoS, and they license PRO music, the client (in this case he is the “broadcaster”) has to pay the PRO when he plays the spot publicly. In my limited experience the involved parties try to avoid this scenario. Not only because of the additional cost, but because of the uncertainty (“how much will it cost additionally”) and the hassle to deal with the PRO.
Imagine the ad agency telling the client: “So this is how much the spot is going to cost you, but there will be additional costs for the music depending on how often/where/… you play it, we can’t really say how much it’s going to be though…” – might not sound very professional.Other examples (regarding GEMA/Germany) of buyers who might prefer Non PRO music: video gaming, amusement parks, music in phone hotline while you wait, hotels,…
youtube used to be an uncertain situation in Germany, but now there is a deal in place with GEMA.
Hope my info is correct, some of it is a few years old, feel free to correct.
The good coin is in edgy/indie-ish catchy pop electronica where advertisers can’t afford a particular artist but still want something that sounds fresh. Not a sound a like or even similiar just something that brands their product or show differently than the standard biege track offerings. And this all falls under the catagory of ‘quality’. To produce an edgy track that is both useful and has some shelf life.
Writing fresh and original yet mainstream/catchy material is not easy to pull off… at least for me it’s not:-)
@Barry: Is it possible to reach you with a PM?I’m sure that you’ve heard it many times, starting as a trailer cue, and then licensed for many other commercials.
Is it Two Steps from Hell – “Heart of Courage”?
There were a few words missing in the last paragraph of my post, and I couldn’t edit it, so here it is again:
So again (sorry for the long post:-) – in Germany the broadcaster (or those “performing” music in general), only have to pay royalties to PROs, if the music is represented by a PRO. Again, if they use Audiojungle music – no PRO royalties have to be paid.
Hope that helps.
Chuck Mott
As far as I know music sold for broadcast is required by law to pay royalties. Anyone buying music for that purpose should know that .Chuck, at least for Germany this is definitely false.
If music by a composer, whose repertoire is being represented by the German PRO GEMA is performed in public, then performance royalties have to be paid by the performer.
So for television, the broadcaster (TV station) has to pay performance royalties to the PRO, if it airs a movie in which music by a composer (PRO member) is being used.
If a company airs a corporate video at a trade show – same thing – if they use music by a composer who is a GEMA member, the company has to pay performance royalties to GEMA.
If they use Audiojungle music – no royalties have to paid.
The big TV/radio stations pay a substantial fee to the GEMA for being to allowed to use music by PRO composers.
What is happening at the moment is that more and more low-price international libraries knock at the door, who do not require performance payments, because their composers/music are not represented by any PRO.
If their music/search engines/service is good enough and cost less money, the broadcasters will push for more use of their music and negotiate new (i.e.lower) contracts with the PRO, and the overall cake will shrink.
So again (sorry for the long post:-) – in Germany the broadcaster (or those “performing” music in general), only have to royalties to PROs, if the music is represented by a PRO. Again, if they use Audiojungle music – no PRO royalties have to paid.
Hope that helps.
Hey David, I just came across this interesting thread.
Did you make a decision yet?
Were you able to keep a % of potential license fees in addition to some upfront money?
I hope it worked out well for you…