Production Music Library Songwriting Contracts

When a songwriter is offered a contract by a production music library it's a good thing. But the paperwork end of the business is not always something with which songwriters and musicians feel comfortable. They wonder: Is this a good deal? Am I getting ripped off? Should I give up control of my song?

In order to address these concerns, a songwriter will want to find out as much as they can about music contracts, which they can do through an attorney who specializes in entertainment, the internet, books on the industry and even the performance rights organizations, such as ASCAP. A good place to start is to understand how production music libraries make their money and what is typical for this segment of the music business.

What is a Production Music Library?
Music Libraries maintain a catalog of songs ready to be used in television and film projects. Music supervisors for the entertainment industry use songs from these libraries regularly to complete their projects that need background music or a song for specific scenes. For more information on Production Music Libraries, read my article, "How to Get Your Songs in the Movies".

How do Production Music Libraries Earn Money?

Music libraries earn money through 1) licensing and 2) performance royalty.

1. Licensing of a song - When a music supervisor finds a song they like for a movie or television project, they must first get the permission from the music library to use it, at which time they will negotiate a one-time fee for the song.

2. Performance Royalty - All songs performed on television earn performance royalty, whether it be in an episode of a television series, a video, a commercial or a movie. No revenues are earned from theater use in the United States, however, revenue is earned for movies that are played in some foreign theaters. Each time the movie or TV show is aired on television, the music library and songwriter earn performance royalties. Syndication is cause for celebration, as that performance revenue continues as long as the show runs and creates a nice income stream!

Music Library Agreements with Songwriters

Taxi is an organization that promotes songwriter's work to the music business. Their website has a video that explains why songwriters should be reasonable about the offer they get from a music library. Matt Hirt is a Taxi member who has had his music picked up through Taxi's promotional service. He gives an excellent down-to-earth explanation of what to expect in his Taxi interview video, "Earning Your Living with Film and TV Placements".

While many traditional publishers and songwriters might negotiate their split on a typical song deal, most music libraries have set contract terms you can accept or not. While a 50/50 split on everything might seem to be a reasonable expectation, remember that sometimes the best deal is one that gets your song earning you money.

Matt talks about whether an entertainment attorney is necessary before signing a contract, which isn't necessarily the case. Matt suggests that, if you use an attorney, use their service mainly to have the contract explained to you, rather than for advice on whether to accept it.

What is a Typical Production Music Library Deal?

The following are common components of a music library deal:

1. Most music libraries will want the copyright and exclusive control over the song.

2. The library may offer a songwriter 50% of any licensing fee, which means that the songwriter will only make this money if the song is used, but would receive this portion of the license fee every time the song is placed in a new project!

3. Alternatively, the library may offer a songwriter an up front "work for hire" payment, instead of a portion of each licensing fee, which means the songwriter will get paid for the song whether or not it is ever placed, but it will be on a one-time basis.

4.The library will usually offer 50/50 split on performance royalty, meaning they will keep the publisher share and the songwriter keeps 100% of the writer share. Some libraries will offer a share of the publisher's share, but this is rare. Until the song is used and aired on TV, nobody gets paid.

The most important advice I can give to songwriters who have never experienced an offer from a production music library is to be realistic. Receiving 50% of the revenues earned by your song in a music library's catalog is better than 100% of that big zero your song earns sitting on the sidelines.

If you agree to an upfront fee in lieu of licensing, you might be giving up future cash, but will bank money now. It's all a trade-off and nothing shady. And the reality is that the more money music libraries share in a song's earned revenues, the harder they will work to get it used, which results in more performance royalty revenue in your pocket!.

The music library's share of the revenue your song earns is their payment for maintaining a catalog, advertising it, giving your song exposure to their contacts, and negotiating the paperwork that is involved. If you think you can do all that yourself, then do it. If not, accept the deal and be happy when you get your performance royalty check!

In summary, when it comes to production music library deals, understand the offer, and if you don't like it, don't take it. But also, be realistic if you want to do business with a particular music library and earn money from your songs. If you pass up an offer, there are ten other songwriters who will take it.

After you sign a few songs with a production music library, you become more savvy on how the biz works, and will learn from the journey you take. You don't have to sign a song that you think has big-time potential; keep it for a publisher pitch! The key is to keep writing songs, and not become paralyzed about whether to accept a music library deal or not. If you make a bad deal, move on and find a better one next time. Look at it as songwriting 101, and not the end of your songwriting world!

Resources:
Taxi.com

Related reading about songwriting:
How to Copyright a Song
Characteristics of a Good Song
How to Get Your Song Published
How to Get Your Song in the Movies: Production Music Libraries
Songwriting Tips: Song Ideas