Canturbury Tales
Music Business Question 1. The music publishing industry at a glance would seem to be those who print sheet music, method books, lead sheets, and all of the texts or notated music that musicians (and those aspiring to be musicians) use. Years ago, this was what most music publishers did, but as the industry has evolved the process that become much more complex. Music is not just ink and paper, intellectual material and property to the individual who writes it. Therefore the song does not become “a song” when it is written down. This is not an easy concept to grasp because the song by itself has no physical makeup. A song could exist once it is played for the first time, and songs can even exist inside the mind of a songwriter. This concept is why the publishing business can be so complex; we are dealing with intellectual property. The heart of the music publishing business lies in the rights to the original music. After the music is successful enough to financially support itself the music is printed in mass quantities in a variety of ways. This could be everything from guitar tabs to choral arrangements for a junior high choir. The publisher’s main source of income is through record royalties, performance royalties received
ing. Companies like Hal Leonard, Inc. and Warner/Chappell are two of the largest print publishers. In these kind of contracts the printer acts as the licensee and bare the full cost of printing and distributing while the licensee pays the licensor a royalty on sales of up to twenty percent of the wholesale cost. In this situation the licensee acts as selling agent. The administration, acquisitions, print production, promotion, distribution and sales, and subpublishing all make up these full-line publishing firms industry. Some companies may specialize in a certain areas, but all are necessary to make money in the end. When we see a piece of printed music, or a CD by a famous artist, we can now see that getting that into our hands did not happen overnight, but through the hundreds of man hours put into making that artist successful we are able to share in the intellectual property thousands of songwriters all over the world. Question 2. In the following paragraphs I will discuss the types of music uses in reference to the appropriate music license. The commercial broadcast of non-dramatic music would include the use of music for radio stations, most television station, as well as broadcasting networks. The type of license required for the use of this kind of music is a performance license. The performance rights associations ASCAP, BMI and SESAC are responsible for the collection of these royalties. Radio and television stations pay royalties calculated by a per-song basis or a percentage of gross income. Other broadcasting of music that requires a performance license may include restaurants, clubs, and background music services. These types of licenses could be a one-year blanket license that is a one-time fee. The rate of the license is dependent on a few things such as: 1. The seating capacity of a venue. 2. Whether it charges admission. 3. The number of hours of entertainment provided. 4. The gross income of the facility. The owner of the rights to the song issues the license. ASCAP, BMI, and SESAC all have different songs that they are responsible for collecting royalties for. Most places obtaining licenses for commercial broadcast of non-dramatic music pay royalties to all three organizations. Nonbroadcast performance of non-dramatic music also requires a performance license. This type of music would be anything that is not broadcasted outside of the actual performance. An example of this would be a bar or club with live music. The music is provided to entertain customers so that they will stay and continue to buy food or drinks provided by the venue. The live music makes the venue money, so a license is required to allow the writer and publisher of the music it make money for the song that they own the rights to. The band performing the music is not responsible for paying for this performance license; the venue is responsible for this expense because they are the ones benefiting from the live music. The only case that a band would require a license is if they are producing the show and making the money by performing another artists music. Colleges usually pay a blanket license allowing them to have bands perform on their campus without purchasing a license each time. However, if the act is a national act a special license is required. Like commercial broadcast music, ASCAP, BMI, and SESAC are responsible for collecting these royalties and the owner of the rights to the music would issue the right. Phonorecords, audiocassettes, compact discs, videocassettes, and videodiscs sold for private use require a compulsory or “negotiated” mechanical license. A compulsory license is issued in a situation where the rights owner does not initially grant the permission for the song to be recorded. This license is more expensive than a negotiated mechanical license. The negotiated license is discussed between the rights owners and the person wanting to record the song for their own private use. This may be a very inexpensive licens
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Approximate Word count = 4980
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