This is part 5 of a 7-part series of posts dealing with music licensing.
My last several posts have covered:
1. Basic Terms and Definitions
2. Publishing: Types of Deals, Part A
3. Publishing: Types of Deals, Part B
5. Administration, Part A
6. Administration, Part B
7. Royalties, Part A
8. Royalties, Part B
Last week I talked about the two ways you might get paid when your music is used in film, T.V. or advertising. I explained how performance royalties are calculated and the performing rights organizations that collect them.
To help you truly understand the pipeline of how these monies are paid, here are some infographics of the money flow from the MUSIC USER (in this example the network) to the MUSIC CREATOR.
The following two infographics represent two different scenarios of payment:
1) getting a placement directly, and
2) getting a placement through a music library or publisher
So let’s presume that you get a placement. Let’s say the total sync fee will be $1000.00 and the total payout thus far from your backend money (from your PRO) is $1000.00.
Here’s the breakdown:
Again let’s presume the sync. fee license paid is $1000.00 and the “backend” (collected after the fact by your PRO) fees are $500.00
So these are two scenarios. If there are more than 2 writers, then just do the math in the same way that I did in the above examples.
Hopefully this helps explain the way the money flows.
Questions? Leave a comment below.
Want more tips on songwriting for film and t.v.? Purchase my e-book, How To Explode Your Income By Licensing Your Songs here.