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The 12 Most Important Points In Every Recording Contract
In the Music Industry, 1 word in a 50,000-word agreement can mean
the difference between success or failure - financial security or
bankruptcy. Therefore it is absolutely essential that the Artist and
their representatives understand the basic provisions of the
recording contract and what the document actually means in terms of
"real" money.
Standard industry record contracts are filled with hidden meanings
and pitfalls that will determine the amount of money you will earn
from the sale of CD's, tapes, digital downloads, streams, and
videos, as well as whether you really have a chance as a recording
artist. There are, of course, many important variations
that can be negotiated - both from the artist's and the record
company' point of view.
Before signing a record contract, every performer must know the
answers to the following questions, since they will have a
substantial effect not only on the direction of his or her career
and the amount of money that is earned but also whether or not an
artist will ever be on the charts to win a Grammy.
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1.) |
Time
limit:
How long will the contract last? |
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2.)
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Options:
How many times may the contract be renewed, for how long, and
by whom? |
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3.)
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Recordings and Releases:
How many sides will a performer record, and does
the record company have to release the finished recordings
commercially? |
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4.)
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Royalty Clauses:
How much money does an artist receive from the sale of
singles, albums, cassettes, CD's, downloads and videos? |
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5.)
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Reduced
Royalty Clauses:
How much does an artist receive for sales in
foreign countries, record club or television album
collections, radio station promotional copies, and low priced
budget albums and new technology? |
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6.)
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Record
Company Deductions from a Performer's Royalties:
What expenses do record companies deduct from a
Performer's earnings? |
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7.)
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Escalating Royalty Clauses:
Are there ways to guarantee that as an artist becomes more
successful, royalties will automatically be increased? |
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8.)
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Costs of Packaging a CD,
Tape or Other Recording:
How much money do record companies deduct from
an artist's royalties for the cost of album covers, special
inserts, download services, and tape, CD, MD or video
containers? |
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9.)
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Free or
Discount Recordings:
How many recordings can a company give away for free or at a
discount without paying royalties to the artists? |
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10.)
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Returns
and Reserve Accounts:
Since an Artist is not paid for tapes, CD's and
other recordings that are returned for credit, how much money
can be with held from royalties in anticipation of such
returns? |
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11.)
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Advances:
When do record companies give cash advances to artists? What
criteria do they use? |
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12.)
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The Recording Artist as a Songwriter:
Do record companies pay lower songwriter
royalties to artists who perform their own songs? Can a
million-seller or successful "best hits" album mean financial
disaster to a writer/performer if other songwriters on the
album don't agree to reduce their writer and publisher
royalties? |
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Negotiating the right answers to these questions is critical if an
Artist is to make money and be successful in the Music Industry.
©
2003 Jeff Brabec, Todd Brabec
This article is based on information contained in the new, revised
paperback edition of the book "Music, Money, And Success: The
Insider's Guide To Making Money In The Music Industry" written by
Jeffrey Brabec and Todd Brabec.
You can purchase this and other books at a 10% discount at the
SHOP section of
this site.
Todd Brabec is Executive VP and Director of Membership for the
American Society of Composers, Authors and Publishers (ASCAP)
Jeff Brabec is VP of Business Affairs for the Chrysalis Music Group.
Both brothers are former recording artists, writers and
entertainment lawyers: and are adjunct professors at the USC
Thornton School of Music, Music Industry Department. |
