Music Sync Licensing
A music synchronization license, also known as a sync license, is a music license granted by the owner or composer of a particular piece of work. The license allows the licensee, or purchaser, the right to use the music in a visual piece, such as a movie, video game or commercial.
The rights of the music typically belongs to the publishing house (music publishing company) that represents the owner. The copyright is divided into two parts:
- Master Sound Recording: This is the actual studio recording and is usually owned by a record label
- Composition: This is the music notes, lyrics and melody written by the composer and songwriter, usually owned by the publisher.
Music Production Libraries Two Income Streams:
1. License or synchronization fees
These are the fees paid upfront to the library for permission to synchronize its music to a piece of film, video or audio. These fees can range from a few dollars for an internet usage, to thousands for a network commercial usage. Some libraries, especially in the UK and Europe, split these fees with the composer of the music. In the US, it is more common for a composer to be paid a work-for-hire fee upfront by the library for composing the music, thus waiving his/her share of any future license fees. In the United Kingdom, license fees for production music are nationally standardized and set by the MCPS. In the US and elsewhere, libraries are free to determine their own license fees.
2. Performance income (or performance royalties)
Performances income is generated when music is publicly performed - for example, on television or radio. The producer of the show or film that has licensed the music does not pay these fees. Instead, large fees are paid annually by broadcasters (such as television networks and radio stations) to performing rights organizations such as ASCAP, BMI, and SESAC in the US and the PRS in the UK, who then distribute income among their members. To ensure it is distributed fairly and accurately, most broadcasters are required to keep note of what music they have broadcast and for how long. This information is then used by the performance societies to allocate income to their members. Typically, a library will receive 50 percent of the performance income (this is known as the publisher's share), with the composer receiving the remaining 50 percent. Like license fees, performance income is highly variable and dependent on the nature of the usage; a local radio usage will yield a very modest income - perhaps a few dollars each time it is played, whereas repeated use in a primetime network television show can generate many thousands of dollars.
Negotiations And Fees for a Sync License
When a director or producer wants to use a particular song in his work, he must contact the owner of that piece. The owner typically offers the music at a particular fee for one-time use. The cost will be dependent on the prominence of the piece, how it will be used, how long the song will be used in the piece and whether or not the piece will be used in its original form or covered by another artist. Depending on the song, the cost can range from a small fee for a relatively unknown piece to hundreds of thousands of dollars for a well-known song.
How to Make Money By Offering Sync Licenses
Many artists think about their income in terms of record sales, downloads or shows. But sync licensing is a valuable source of business. Everything from commercials to YouTube videos need music, and sync licenses can be a lucrative way to earn money. By offering music for sale in visual mediums, you can earn additional income from the work you have already created. It requires little effort from you; it is simply repackaging work you created for new uses.
Benefits of Sync Licensing
For independent artists or up and coming professionals, sync licensing can be a major source of revenue and an effective way to find new fans. When your music is included on a popular video, it will be heard by people who may have never heard of you before. When they hear it, they may love it, share it with their friends or purchase your material. It can be a great way to build a following and get exposed to a larger audience.
If you've had a song or a record out for a while, a sync license can help breath new life into it. A video, television show or commercial can bring new attention to an older piece, bringing in new royalty payments and bringing fresh attention to it.
While most artists focus their business plans on selling CDs, downloads and booking live shows, musicians have the potential for income streams without actively doing work. Sync licenses create opportunities for artists to earn passive income through continued royalties or usage fees. With sync licenses, songs can be used on visual platforms, reaching new audiences and potential new fans. From single-use deals for a small YouTube video to major contracts with nationwide retailers, sync licenses can provide additional revenue!