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10 Random Thoughts On The Business Of Music Videos

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I don’t discuss music videos often enough. Here are 10 random thoughts. Feel free to add to it (or ask questions) in the comments:

1. If you’re going to monetize your music video (make it available for sale/download), you should consider getting an ISRC for it. Yes, videos can (and should) have an ISRC. This ISRC is separate from the ISRC of the track being performed in the video.

2. You’d be surprised to know this, but music videos still earn significant reach on broadcast and OTT (over the top) platforms. Check out YANGAROO DMDS for pitching to MTV, MTV U, BET, NuVo, CMT, and more. Your video needs to be broadcast quality WITH closed captions.

3. There are many websites where you can monetize and set permissions for your music videos, including social media and discovery sites like DailyMotion. Check out Vydia for managing the distribution of your videos across your socials.

4. If you haven’t joined a Multi-Channel Network to monetize music on YouTube, you should read up on them. Fullscreen and INDMUSIC are two of many MCNs that will help monetize your music in other people’s videos and increase the ad sale amounts of ads on your own channel. These are master side “master use royalties.”

5. Audiam will help you collect composition side “sync royalties” from YouTube. In doing so, they also claim to unlock “performance royalties” paid to you by your PRO.

6. Pitch your music videos for plays in retail stores. Mood Media, PlayNetwork, Inc., Shoplifter In-Store Radio Promotion, and several others can help get your music video playing inside retail shops and malls reaching millions of shoppers. I own Maven Promo, so you can always consider pitching to my small network of 130 retail stores.

7. Sometimes bands can’t afford a full production music video. Lyric videos are great promotional tools as an alternative to nothing at all. I actually place lyric videos on my network often. Here are some great resources to have lyric videos made.

8. If your song is explicit, make sure that you have a clean cut version of the music video. Don’t wait until you land an opportunity for placement or a feature to get it done. Your editor may not be available to cut the clean version in a timely manner. I deal with this every month.

9. The three copyrights associated with a music video: 1.) the copyright in the composition (requires a grant of synchronization right), 2.) the copyright in the sound recording (requires a master use right), and 3.) the copyright in the motion picture itself. If your artist doesn’t own and control all three copyrights, make sure to have paperwork drawn up with whomever owns and controls a particular copyright granting the artist the rights, before distributing.

10. I don’t have a 10th thought, but it would be weird to end at 9.

Ask Me Anything About The Music Business, With Dae Bogan

Ask Me Anything

Ask me your music business question and I’ll attempt to provide you with an answer or direct you to a resource with a better answer or guidance. I cannot provide specific legal advice, but I can discuss general music business practices. Join the conversation on Facebook, Twitter, Linkedin, or DaeBoganMusic.com. Simply drop your question in the comments section wherever you see the above image.

How To Legally Record And Sell A Cover Song In 3 Steps

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This post was originally written for and published on Dozmia’s blog.

If the popularity of user generated content (UGC) platforms, such as YouTube and SoundCloud, has taught us anything about the music industry in the Digital Age, it is that aspiring artists from anywhere can amass huge online audiences and earn global reach by putting out cover songs that spark a reaction.

Success stories like those of Justin Bieber, Tori Kelly, 5 Seconds of Summer, Charlie Puth, Shawn Mendes, and Ed Sheeran are no longer rare phenomena. Talented unsigned artists like Jade Novah and Austin Mahone have earned tens of millions of views and plays across their UGC accounts. Previously undiscovered talent have gone on to land brand sponsorships, live performances with major recording artists, appearances on TV, casting in commercials, and more– all without the backing of a major record label.

However, while recording and uploading cover songs to UGC platforms can be a great first step to building a fanbase, monetizing those songs on traditional digital music services can be a legal nightmare if not done correctly. Furthermore, knowing when, where, and how to capture all of the royalty streams that your cover recording earns will put you in a better position to reap all of the rewards from releasing a cover recording that takes off.

Here are three steps that you should take if you plan to legally record and release a cover song:

Step 1: Secure the proper licenses to reproduce and distribute the original composition.

The U.S. Copyright Act grants copyright owners six exclusive rights including the right to reproduce and the right to distribute their compositions in phonorecords. When you record a cover of an existing song, you are effectively using someone else’s copyrighted work and they must be compensated for the use when you distribute the recording in physical and/or digital media.

The law includes a provision that enables anyone to reproduce and distribute a composition by following the specific requirements set out in the compulsory license. These requirements basically state that you must notify the copyright owner of your intent to use their song and you must account to (provide reports and statements on usage) and pay statutory mechanical royalties to the copyright owner for each use.

The term “mechanical” refers to when songs were mechanically reproduced in phonorecords. The statutory mechanical royalty rates are set by the Copyright Royalty Board.

Currently, the statutory mechanical royalty rate for physical formats (CDs, cassettes, LPs) and permanent digital downloads (e.g. iTunes) is 9.1¢ for songs 5 Minutes or less or 1.75¢ per minute or fraction thereof for songs over 5 Minutes.

Harry Fox Agency (HFA), Loudr, and Easy Song Licensing are just three of the resources for securing a mechanical license.

HFA is a membership-based mechanical licensing agency owned by SESAC. HFA represents and issues mechanical licenses in the U.S. on behalf of their U.S. music publisher members. HFA’s website claims that they currently represent over 48,000 music publishers. This makes it easier for you to go to them for most of the top popular songs released in the U.S. HFA’s service for obtaining a mechanical license is called SongFile.

Through SongFile, you pay upfront for the number of physical or digital phonorecords that you project to sell. For example, if you will sell 1,000 CDs, then you’ll pay 9.1¢ x 1,000 = $91 per cover song, which will then be paid to the publisher(s) to compensate the songwriter(s). You can also secure a license for interactive streams. However, in the United States, some interactive streaming services already pays the mechanical interactive streaming rate, so you do not have to when releasing to these platforms in the United States. Spotify, for example, pays HFA for the mechanical license for songs used on their platform in the United States, so you do not have to worry about securing a mechanical license if you’re only releasing to Spotify.

The rates for interactive streams (e.g. Spotify) and limited downloads (e.g. offline mode) are determined by a formula that takes into account the service type, license type, whether or not it’s ad-supported, amounts paid to labels, and other factors. Spotify’s rate comes out to about $0.0007 per stream. Again, they pay this to HFA so you don’t have to!

Loudr and Easy Song Licensing are independent services that charge a small service fee (about $15 per song) to secure a mechanical license for any song that you’d like to cover. This is awesome because if you’re covering some obscure song from an indie band in Wyoming or an international songwriter from France, you wouldn’t be able to license the song through HFA’s SongFile, which only represents and licenses U.S. publishers.

When you’re getting a license through Loudr or Easy Song Licensing, do not select interactive streams. Like I mentioned above, Spotify is already paying this to HFA and other services are paying Music Reports, Inc. (MRI), which is a rights administrator that represents a number of digital music platforms. Outside of the U.S., digital services pay local collection societies, who then pay the publishers.

So, definitely secure a license if you’re releasing a cover song on a physical format. Definitely secure a license if you’re releasing a cover song as a digital download. If you’re releasing only to major interactive streaming platforms, then you may not have to secure a license because most of these companies pay HFA or MRI already.

Step 2: Get a unique code to distinguish your recording.

If you’re planning to do a cover of a popular song, chances are that many other artists have or will cover the same song. With multiple releases of the same song to the global music ecosystem, it is important to distinguish your recorded version of the original song from all others. This is done with a unique identifier called the International Standard Recording Code or ISRC for short.

The ISRC code is a unique 12-character alphanumeric code assigned to each version/mix of a recording (ie. QMZTA1700001). For example, if you have a live version and a studio version of your cover song, each will need its own ISRC. If you get a dance remix of your cover or do a stripped down acoustic version of your studio-produced cover, again each of these versions will require a unique ISRC.

When you distribute music digitally, almost all digital platforms require an ISRC for each recording. Your ISRC can and should also be embedded in the metadata of your recording file so that when your recordings are released as a digital download or on physical formats, the ISRC is attached to the recording.

Be very careful to only purchase ISRC codes from official ISRC Managers. ISRC Managers appointed by the US ISRC Agency, the Recording Industry Association of America (RIAA), are the only companies approved to assign ISRCs on behalf of the owner of a recording. These companies have guaranteed that they will abide by the Procedures for Assignment of ISRCs by ISRC Managers.

Other companies claiming to assign ISRCs on behalf of their clients are not authorized to do so and the ISRC’s they generate are invalid and risk collisions with codes issued by authorized registrants and ISRC Managers. This happens when fake ISRCs are issued or legitimate ISRCs are re-used. This results in erroneous metadata being disseminated across the digital music ecosystem, which can result in missing or misallocated royalties and disputes.

TuneRegistry is an all-in-one music rights and metadata management platform that’s also an approved ISRC Manager offering free and discounted ISRC codes included in its subscription plans. You can quickly and easily obtain ISRCs for each of your versions/mixes inside your account and immediately use the ISRC with any digital distributor to get your cover song distributed. You can view a complete list of approved ISRC Managers at http://www.usisrc.org/managers/index.html.

Step 3: Unlocking your royalties and getting paid.

The goal of virtually all aspiring artists is to have their music heard as wide and as far as possible. When songs are hits, earning national and even international reach can happen literally overnight. And even when there is slow momentum as buzz picks up across blogs and social sites, the right mention, the right placement on a playlist can break a song within a matter of weeks.

Whether or not your cover song blows up to international success, you may still earn and be due royalties for the exploitation of your cover song recording. Although you will not earn publishing royalties related to the underlying composition (remember, the original songwriter is the copyright owner and compulsory license enables you to record and distribute a cover), such as performance royalties that are paid out by ASCAP, BMI, and SESAC, you will own the master sound recording and will be able to collect master royalties.

Here are some of the income streams associated with the master sound recording and how you obtain the royalties:

  • Sales Income – This is pretty straightforward. You earn income when your recording is sold in physical format or permanent digital downloads. Sales are generally passed on to you through your distributor.
  • Interactive Streaming Royalties – When your recording is streamed on interactive platforms (e.g. Spotify), the service pays a streaming master use royalty to the distributor, who then pays you for the streams. The royalty rate is based on a formula that takes into account the type of use, the number of total streams, your share of streams, and territory.
  • Non-Interactive Streaming Royalties – Webcasters and digital services that broadcast recordings over the Internet (e.g. Pandora, iHeart Radio), cable (e.g. Music Choice), and satellite (e.g. SiriusXM) in radio-style programming where the end users/listeners have limited to no control over the selection of music pay a royalty for the digital performance of sound recordings to SoundExchange. SoundExchange then pays out 45% of the royalties to the featured performers on the recording, 50% to the copyright owner of the master recording, and 5% to a fund for background vocalists and session musicians maintained by AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund. It is important that you register your track title, the performers, copyright owner (which will be you if you’re independent and not signed to a label), and ISRC to SoundExchange. This helps them to identify you and match incoming usage reports and royalties from digital services to you as the income participant. After joining SoundExchange, you can easily keep on top of registering all of your tracks directly through your TuneRegistry account. This way, you’ll never forget to make sure that you’re raising your hand to capture your non-interactive streaming royalties.
  • Master Use for Sync Fees – If your cover song gets licensed to a TV show, a movie, a commercial, or any other audiovisual media, you would need to obtain a synchronization license from the publisher of the composition. While you own the recording of your cover song, the copyright owner owns the composition and still give permission for the composition to be used in audiovisual media (this is a separate license from the compulsory mechanical license). The producer of the content will need to pay the synch fee for the composition and pay a master use fee for the master use license of the sound recording. These negotiations take place directly between the producer of the content (or their representatives) and the owners of the copyrights (you for the master sound recording and the songwriter or publisher for the composition that you’ve covered).

Now that you’re an expert on legally recording and selling cover songs, share the knowledge with your musician friends! No artist should be afraid to record and release cover songs — unless you’re releasing to YouTube, because that’s a different beast! The good news is, many publishers have opted-in to an agreement between YouTube and the National Music Publisher’s Association to earn a revenue share from advertisements placed on videos that feature recordings that embody their compositions. However, getting a license for YouTube could be down through We Are The Hits.

[VIDEO] Independent Music Industry Conference Panel Live Video

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If you missed the inaugural Independent Music Industry Conference, produced by Mike Ziemer, producer of the So What Music Festival, you missed a very cool and informative boutique event. But, don’t worry! Below are the live videos from the Record Label panel and the Music + Technology panel, both moderated by me.

Record Label Panel

Music + Technology Panel

If you can’t view this video, click here.

20 Different Ways to Release an Album: From Beyonce to Frank Ocean to U2 & Beyond

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Having trouble developing a release strategy for your new album? Check out the release strategy of 20 different albums on this article “20 Different Ways to Release an Album: From Beyonce to Frank Ocean to U2 & Beyond” on Billboard: http://www.billboard.com/biz/articles/news/digital-and-mobile/7495436/20-different-ways-to-release-an-album-from-beyonce-to


Also, check out my article “10 Steps to Building a Single Release Campaign” on CD Baby DIY Musician’s Blog: 10 steps to building a single release campaign: https://www.indieonthemove.com/blog/2013/11/10-ways-to-raise-funds-for-your-next-music-project-without-selling-a-single-record


Also, check out my article “10 Ways To Raise Funds For Your Next Music Project (Without Selling A Single Record)” on Indie on the Move website: https://www.indieonthemove.com/blog/2013/11/10-ways-to-raise-funds-for-your-next-music-project-without-selling-a-single-record


And always remember to REGISTER BEFORE YOU RELEASE with TuneRegistry.

Hangout With Dae This Saturday On Google Hangouts

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Haven’t been able to make any of the music industry conferences where I speak (SXSW, International Music Festival Conference, Independent Music Conference, SAE Music Tech Expo, Indie Entertainment Expo, Digital Entertainment World, etc.)? Well, now is your chance to do so from home.
For the first time ever, I’ll participate in a Google Hangout to discuss independent music creators rights, self-publishing, self-releasing, metadata, marketing, and more.
Saturday, April 9th | 10am PST/1pm EST

Thinking About Launching A Music Startup? Enroll In UCLA Music Innovation Summer Institute

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What can I do with music and my career in a changing world?
Something different. Something new.

Join us this summer at our Music Innovation Summer Institute at UCLA Herb Alpert School of Music

  • Earn 8 units of UCLA credit while meeting innovators in music and technology.
  • Learn to apply your own skills with the changing world of music, Internet, production, and technology.
  • Look forward, not just back, in understanding how technology is changing how we create, collaborate, distribute, produce, enjoy live performance, and build new businesses.

Experiment. Make new contacts and build new communities. Find other like-minded students to launch new businesses and project with. We will explore digital disruption of existing models, what already is happening with/to music, and what may be happening over the next 3-10 years.

How: Register now at http://summer.ucla.edu/institutes/MusicInnovation

What: Two 4-unit Music Industry Program classes form the center of our Music Innovation Summer Institute:

  • Music Disruption, Music 2020 and Building New Futures — Dr. Gigi Johnson (bio)
  • Music Tech Innovation, Launching New Ventures — Dae Bogan (bio)

The Institute will include speakers, local site visits, receptions, and other programs with creative and industry leaders. The program also includes a career coaching program in partnership with iCadenza (bios) to help students think and plan their careers.

Who: We welcome undergraduates from not just music, but also computer science, marketing, pre-law, economics, music industry, journalism, film, TV, and any other field. We also welcome graduate students, high school seniors, and non-students who would like to dive deeply for 6 weeks.

Where: UCLA Herb Alpert School of Music, Los Angeles, California

When: Mondays-Thursdays, June 20-July 29, 2016. Registration is now live at this link and will continue until the class is full or May 1.

Cost: Cost varies by type of student. Program fees: UC undergraduate $2,925; non-UC student $3,469. Financial aid will be available for continuing UCLA students only. (FAFSA is due March 2, and Summer Aid documents are due in April.) Housing at UCLA also is available.

Additional questions? Please reach out to Gigi Johnson.

Artist Josh Garrels Invests in His Future, by Utilizing ‘Free’ as a Format via NoiseTrade

(This article was written by Chandler Coyle and published on The Coyle Report on May 13th, 2015)

Josh Garrels – © Sasha Arutynova

You’re an independent artist and are about to release your first album in almost four years. You’ve been running a pre-order on your website, iTunes, and Bandcamp during the weeks leading up to the release. On release day, in addition to making the album available via download stores and streaming services, you decide to give free downloads of the album away via NoiseTrade. Are you crazy? No, you are Josh Garrels and your new album Home just charted on Billboard despite also being available as a free download.

Giving away a new album on the day that it’s first made available has become for me, the ultimate form of ‘release,’” explains Garrels. “I pour my sweat and blood into the work and an album often takes me years to complete, but somehow, making it available for free creates a healthier relationship between myself, the work and the listener. In short, giving away my music over the years has proven to be life-giving practice.

Read More…

Dae’s Consulting Stack

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Many independent artists have to maintain full-time or part-time jobs to make ends meet while you’re pursuing your dreams. However, with the booming world of consulting and outsourcing, there may be other ways to pay your bills while you write and record new music. Have a skill? Become a consultant. Here are some helpful tools from me to you in the world of consulting. Read more: https://www.linkedin.com/pulse/daes-consulting-stack-dae-bogan

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