1. Music Publishing The New Math 50-50 Deal By Professor Ed Calle Miami-Dade College - School of Entertainment Design Technology The New Math 50-50 Deal By Professor Ed Calle Miami-Dade College - School of Entertainment Design Technology

2. The Writer  The writer composes music and/or lyrics.  Writers own the copyright until they sign it away.  The writer is paid for airplay of their compositions.  The writer composes music and/or lyrics.  Writers own the copyright until they sign it away.  The writer is paid for airplay of their compositions.

3. Performing Rights Organizations  ASCAP ASCAP  BMI BMI  SESAC SESAC  These organizations lobby the lawmakers on behalf or writers and publishers.  They collect and pay airplay money due to writers and publishers.  BMI & ASCAP are non-profit organizations.  ASCAP ASCAP  BMI BMI  SESAC SESAC  These organizations lobby the lawmakers on behalf or writers and publishers.  They collect and pay airplay money due to writers and publishers.  BMI & ASCAP are non-profit organizations.

4. Airplay Money  A pop song receiving airplay on commercial radio earns approximately 12 cents. (.12)  50% is paid to the writer(s) and 50% to the publisher(s).  2 writers would earn 3 cents each. (50% of 50%)  Songs driving the market may earn up to 4X’s the statutory rate or 48 cents per play.  A pop song receiving airplay on commercial radio earns approximately 12 cents. (.12)  50% is paid to the writer(s) and 50% to the publisher(s).  2 writers would earn 3 cents each. (50% of 50%)  Songs driving the market may earn up to 4X’s the statutory rate or 48 cents per play.

5. Bonus Rates for Airplay  A pop song receiving higher than average airplay will be paid at a bonus rate.  The rate can be as high as.48 cents or 4 times the standard airplay rate.  More details regarding bonus rates are available at www.bmi.com and www.ascap.com.www.bmi.com www.ascap.com.  A pop song receiving higher than average airplay will be paid at a bonus rate.  The rate can be as high as.48 cents or 4 times the standard airplay rate.  More details regarding bonus rates are available at www.bmi.com and www.ascap.com.www.bmi.com www.ascap.com.

6. Other Airplay  Money paid for other airplay varies depending on the format. Those formats include:  College radio  Internet  Television  Digital broadcasts  Cable  Public radio  Money paid for other airplay varies depending on the format. Those formats include:  College radio  Internet  Television  Digital broadcasts  Cable  Public radio

7. The Music Publisher  A publisher offers some or all of these services:  Administration  Acquisition  Promotion  Print Production  Distribution  Sales  Sub-publisher  Licensing  A publisher offers some or all of these services:  Administration  Acquisition  Promotion  Print Production  Distribution  Sales  Sub-publisher  Licensing

8. Publishing Administration  Business Affairs  Operations  Accounting  Copyrights  Licensing  Permissions  Business Affairs  Operations  Accounting  Copyrights  Licensing  Permissions

9. Publishing Acquisitions  Contract writers.  Purchase existing catalogs.  Company mergers and acquisitions.  Contract writers.  Purchase existing catalogs.  Company mergers and acquisitions.

10. Publishing Promotion  Place music via appropriate channels:  Recordings  Performances  Advertising  Movies  Television  Telephone ring tones  Video Games  Place music via appropriate channels:  Recordings  Performances  Advertising  Movies  Television  Telephone ring tones  Video Games

11. Publishing Promotion continued  Appropriate Channels  Artists  Producers  A&R  Musical Directors  Decision makers  Appropriate Channels  Artists  Producers  A&R  Musical Directors  Decision makers

12. Print Production  Create printed music, videos and folios for:  Amateur musicians  Schools  Churches  Professionals  Orchestras (Concert publishers)  Create printed music, videos and folios for:  Amateur musicians  Schools  Churches  Professionals  Orchestras (Concert publishers)

13. Distribution  This department ensures that the music is available to consumers via:  Rack jobbers  Wholesalers  Retailers  Direct Mail  Catalogs  Internet  This department ensures that the music is available to consumers via:  Rack jobbers  Wholesalers  Retailers  Direct Mail  Catalogs  Internet

14. Sub-Publishers  Domestic  U.S.  Canada  Foreign  Europe  South & Central America  Asia  R.O.W. (Rest of the World)  Domestic  U.S.  Canada  Foreign  Europe  South & Central America  Asia  R.O.W. (Rest of the World)

15. Licensing  Publishers will negotiate:  Synchronization licenses for use with film, television or other images.  Commercials.  Special promotions.  Any other use not covered by mechanical royalties.  The Harry Fox Agency is the largest music licenser in the world. The Harry Fox Agency  Publishers will negotiate:  Synchronization licenses for use with film, television or other images.  Commercials.  Special promotions.  Any other use not covered by mechanical royalties.  The Harry Fox Agency is the largest music licenser in the world. The Harry Fox Agency

16. The Song Manager  Publishers will:  Require writers to sign over the copyright in order to allow use of the song legally.  Issue a contract for a specific period of time. This period will also require a certain number of works to be created and “placed”.  Collect and pay money to writers as specified in the terms of the contract.  Publishers will:  Require writers to sign over the copyright in order to allow use of the song legally.  Issue a contract for a specific period of time. This period will also require a certain number of works to be created and “placed”.  Collect and pay money to writers as specified in the terms of the contract.

17. Publisher’s Money  Mechanical Royalties  New CDs  Remakes  Reissues  Covers  Licensing music for use in film, television, video games, telephones, commercials, etc.  Airplay (Publishers collect 50% of airplay money)  Printed music  Mechanical Royalties  New CDs  Remakes  Reissues  Covers  Licensing music for use in film, television, video games, telephones, commercials, etc.  Airplay (Publishers collect 50% of airplay money)  Printed music

18. Publisher & Writer  A song generates two streams of income:  Mechanical royalties  Airplay  The two revenue streams are not equal in earning potential.  By law, a writer is entitled to the writer’s share of the airplay money. That share is 50% of the total airplay money.  A song generates two streams of income:  Mechanical royalties  Airplay  The two revenue streams are not equal in earning potential.  By law, a writer is entitled to the writer’s share of the airplay money. That share is 50% of the total airplay money.

19. Co-Publishing  The publisher’s share of the money is negotiated between writer and publisher.  A writer owns 100% of the publishing share until such time as he/she enters into a contract with a publisher.  The standard contract, known as a co-publishing deal, is an even 50-50 split of the publishing earnings between writer and publisher.  The publisher’s share of the money is negotiated between writer and publisher.  A writer owns 100% of the publishing share until such time as he/she enters into a contract with a publisher.  The standard contract, known as a co-publishing deal, is an even 50-50 split of the publishing earnings between writer and publisher.

20. The New Math 50-50 Deal  “I take care of the business and you take care of the writing,” means:  The publisher keeps 100% of the publishing earnings.  By law, the publisher also receives 50% of the airplay money.  The writer earns a 50% share of the airplay royalties and absolutely no publishing money.  “I take care of the business and you take care of the writing,” means:  The publisher keeps 100% of the publishing earnings.  By law, the publisher also receives 50% of the airplay money.  The writer earns a 50% share of the airplay royalties and absolutely no publishing money.

21. Revenue Streams  Suppose the following: You compose 10 songs of length 5:00 or less which are recorded on a major artist’s CD. The record company prints 100,000 copies of the CD. One of the songs receives 100,00 plays on radio. A movie licenses the use of the song for $150,000. An advertising firm pays $75,000 for the use of the song in a commercial. All ten songs are subsequently recorded by other artists. The number of copies printed is 100,000. Print music, videos and other educational materials earn $75,000.  Suppose the following: You compose 10 songs of length 5:00 or less which are recorded on a major artist’s CD. The record company prints 100,000 copies of the CD. One of the songs receives 100,00 plays on radio. A movie licenses the use of the song for $150,000. An advertising firm pays $75,000 for the use of the song in a commercial. All ten songs are subsequently recorded by other artists. The number of copies printed is 100,000. Print music, videos and other educational materials earn $75,000.

22. Computed Totals  Mechanicals for 10 songs = 10 *.091 =.91  100,000 copies =.91 * 100,000 = $91,000  Airplay 100,000 *.12 = $12,000  Movie license = $150,000  Advertising = $75,000  Re-records = 100,000 *.091 = $91,000  Print music = $75,000  Mechanicals for 10 songs = 10 *.091 =.91  100,000 copies =.91 * 100,000 = $91,000  Airplay 100,000 *.12 = $12,000  Movie license = $150,000  Advertising = $75,000  Re-records = 100,000 *.091 = $91,000  Print music = $75,000

23. Co-Publishing Deal Earnings SourcePublisherWriter/Publisher Mechanicals$45,500 Airplay$6,000 Movie$75,000 Advertising$37,500 Re-records$45,500 Print Music$37,500 TOTALS$247,000

24. New Math 50-50 Deal Earnings SourcePublisherWriter/Publisher Mechanicals$91,000$0 Airplay$6,000 Movie$150,000$0 Advertising$75,000$0 Re-records$91,000$0 Print Music$75,000$0 TOTALS$488,000$6,000

25. Negotiating Strategies  Present as much material as you seem fit.  Look for the best possible deal.  If you are offered the Miami deal, try to negotiate as few songs at one time as possible.  If you must give up all publishing on your music in order to get in the door, minimize the number of songs affected.  Once you have negotiated a deal and you think you have been taken advantage of, hire a good lawyer and weigh your legal options.  Present as much material as you seem fit.  Look for the best possible deal.  If you are offered the Miami deal, try to negotiate as few songs at one time as possible.  If you must give up all publishing on your music in order to get in the door, minimize the number of songs affected.  Once you have negotiated a deal and you think you have been taken advantage of, hire a good lawyer and weigh your legal options.

26. Publishing Alternatives  File your copyrights.  Start your own publishing company.  Market your music to those in need.  Affiliate with ASCAP, BMI or SESAC. They will collect airplay royalties for the writers and publishers respectively.ASCAPBMI SESAC  Affiliate with Harry Fox to collect mechanical royalties.Harry Fox  As the publisher, you will be responsible for negotiating synchronization licenses.  File your copyrights.  Start your own publishing company.  Market your music to those in need.  Affiliate with ASCAP, BMI or SESAC. They will collect airplay royalties for the writers and publishers respectively.ASCAPBMI SESAC  Affiliate with Harry Fox to collect mechanical royalties.Harry Fox  As the publisher, you will be responsible for negotiating synchronization licenses.