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10 Income Streams For A Music Producer

A breakdown of income you could earn by producing one hit (or at least, viral) record.

Production Icome

1. Production fee for your creative input in producing the track.
2. Recording Engineer fee for performing recording engineer duties in the studio.
3. Mixing Engineer fee for mixing the track.
4. Mastering Engineer fee for mastering the track.

(1-4 could be embodied all in one fee, or you could line item it in your contract and/or invoice.)

Master Income

5. Income share in the master sales, downloads, streams, often referred to as “points on the record.”
6. If you add background vocals and/or live instrumentation to the production, while you may not earn a session musician fee, you are still entitled to receive all or a portion of the non-featured performer share of statutory master royalties for US non-interactive streams, or so-called “digital radio royalties.” To get this, make sure that you are credited not only as a Producer but also as a background vocalist or musician for whatever instrument you played. These royalties in the US are paid out by the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund. These funds do not reduce the featured artist’s neighboring rights (US = digital radio) income. It is completely separate from the featured performer share of income and non-negotiable by that featured performer. If you don’t claim it, you still earn it but you leave it on the table!
7. Thanks to the passing of the Music Modernization Act, which became law on October 11th, 2018, and the inclusion of the Allocation for Music Producers Act (AMP Act), studio professionals such as producers and engineers have a legal and permanent right to directly collect non-interactive, digital royalties agreed through a letter of direction with the featured artist from SoundExchange. Join the Creative Affiliates Program at SoundExchange and submit your letters of direction.
8. A producer’s share of international neighboring rights royalties in several territories where recordings that you produce are performed on broadcast radio and TV.

Publishing Income

9. If you composed the melody or co-authored the lyrics, you should be considered a Writer on the musical work and be entitled to receive writer-share of publishing income (performance royalties, mechanical royalties, synchronization royalties).
10. If you composed the melody or co-authored the lyrics, as a Writer on the musical work, you are entitled to receive or assign the publisher-share of publishing income (performance royalties, mechanical royalties, synchronization royalties).

In conclusion, if you’re a music producer, make sure that you understand all of the income streams associated with the work that you put in on a recording AND your legal entitlements under copyright law and music publishing industry customs. Also, join the Recording Academy / GRAMMYs Producers & Engineers Wing.

Want to learn more? Download my FREE ebook “The DIY Musician’s Starter Guide To Being Your Own Label And Publisher.”

2021 Prediction: The United States Music Publishing Market Continues To Grow And Fragment, Creating More Silos For Unpaid “Black Box” Royalties — DIY Musicians Hit The Hardest

As the U.S. music publishing industry grows (in terms of revenue, volume of copyrights, and number of income participants), the rights administration and licensing sector becomes ever-more fragmented; giving way to cracks in its foundation through which royalties fall into the so-called “black box” — the industry name for the unmatched and unpaid royalties earned against unidentified works or unidentified or unreachable income participants that accrue in escrow only to be later forfeited and disbursed to entities to which the funds do not belong; primarily major music conglomerates and those acquiring catalogs of copyrights to expand their market share position.

Black Box Royalties Myths, Common Misconceptions Debunked at Music Biz 2018

united states music publishing market music licensing rights administration royalty ecosystem

A picture of a white board illustrating the growth and fragmentation of the US Music Publishing Market, specifically the music licensing and royalty ecosystem, drawn during Dae Bogan’s lecture in his class, “Music Industry Entrepreneurship and Innovation” at the UCLA Herb Alpert School of Music, Winter Quarter 2019

In 1909, when the first federal copyright law that protected music creators and rights-holders was enacted, there were no massive music rights organizations as we’ve come to know them today. Although unions had existed — the American Federation of Musicians was founded 13 years earlier in 1896, but focused more on work conditions than collective bargaining, as it does today — ASCAP was formed in 1914 to license the performing rights of composers, authors, and publishers.

Fast forward to 2021 when the newly formed Mechanical Licensing Collective will issue its first blanket digital streaming mechanical license to the likes of Spotify, Google, and Apple. There will be over a dozen music rights and royalty collection organizations issuing thousands of licenses, administering millions of pieces of copyrights, and processing billions of micro-penny transactions.

Here Are 10 Ways That The Music Licensing Collective (MLC) Can Set The Bar As A Collective Licensing Organization In The 21st Century

The music licensing and royalty ecosystem in 1909: Individual music composers, aristocrats who financed or commissioned works, and sheet music publishers.

The music licensing and royalty ecosystem in 2021: Traditional non-profit and private music rights organizations (ASCAP, BMI, SESAC, Global Music Rights, PRO Music Rights, SoundExchange, Mechanical Licensing Collective), royalty funds (AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund, Alliance for Artists and Record Labels, Film Musician’s Secondary Market Fund, Sound Recording Special Payments Fund), unions engaged in collective bargaining (SAG-AFTRA, American Federation of Musicians), licensing clearing houses and agents (e.g. Music Reports, Harry Fox Agency).

If I wrote a popular commercial song that is exploited to the fullest extent — released on a commercial recording; performed live in concert; licensed for use in film or television; placed in a commercial; earns viral success on user generated content platforms and social music apps; covered many times; embodied in a music video; lyrics printed and sold on merchandise; used for a live broadcast sporting event; added to Spotify and Apple playlists where it takes off; picked up on terrestrial, Internet, satellite, and cable radio; etc. — I would need to ensure that my work is registered at all of the places where the royalties earned from the uses I’ve described are paid; the music licensing and royalty ecosystem. If I do not, then my royalties will leak into the black box.

The black box is estimated at over $2 billion — and growing — of which much of it is due to independent music creators, small music rights-holders, and the estates of deceased authors and performers who do not have the access, power, know-how or market share to navigate the web of black boxes; for which there are many.

Songwriters Are Owed Nearly $2B In Unclaimed Royalties!!! — Maybe More — I’ve Been Saying This For Some Time Now (Against Pushback), But Finally The Press Has Confirmed It

When entities charged with maintaining these black boxes distribute the funds in market share distributions, the major labels and publishers win and the independent and DIY creators lose. It is unfair and unethical. But what are we going to do about it?

Some artists, knowing that they do not know exactly how this all works, have found creative business ways to “make up” for potential lost royalties. But for the rest — the majority — of DIY musicians, they’re generally left out of the discussion and left to fend for themselves, even when they think they’re doing everything right.

What Can The Socioeconomic Context Of The Culture From Which Hip-Hop Is Derived Tell Us About How The Biggest Genre In The World Gets The Shitty End Of The Royalty Stick?

As the industry charges forward with new energy fueled by the growth of music streaming, we have to consider how the continued fragmentation of the music licensing ecosystem affects the most vulnerable — DIY musicians. Major labels have direct deals with DSPs and digital services that pay them advances and account to and pay them royalties. DIY musicians rely on music rights organizations, who are often disproportionately influenced by the majors, to handle these things for them.

Do So-called Music Advocacy Groups Avoid Deeper Discussions On Black Box Royalties To Appease Their Major Members?

I founded TuneRegistry to help DIY musicians be their own advocate, to demystify the music licensing and royalty ecosystem by aggregating the fragmented world of rights administration into one economical platform. To this end, our team has helped hundreds of small to medium-sized music rights-holders and DIY musicians unlock thousands of dollars in new found royalties and to register their works to ensure that they are identified and accounted to in the future. Not all music rights organization have joined our network, but we will continue to advocate and fight for the rights and entitlements of DIY music creators as long as we can.

Dae Bogan To Provide Mentorship To Music Makers And Tech Founders At The Rattle Los Angeles

RattleCCPitch2018 from The Rattle on Vimeo.

 

I’m excited to announce that I will be providing mentorship to music makers and tech founders at The Rattle when it launches in Spring 2019 in Chinatown, Los Angeles

WHAT IS THE RATTLE?

The Rattle is a members-only studio space and music incubator shared by a collective of independent artists, producers, tech makers, film makers, startups and people hacking careers in music.

 
WHAT DO MEMBERS RECEIVE?

As well as shared music studios, venue, writing rooms, film locations and a coworking space, Rattle members can enjoy top tier mentorship, production support and advice, tech incubation, workshops, events and concerts.

 
PRELAUNCH SIGNUP

The Rattle LA prelaunch signup page & form is LIVE, there is no financial commitment at this time – but as we have just opened the virtual doors to our LA community – I encourage anyone/everyone interested in joining the Rattle to sign up right away.

 
The first 50 superhumans to put their names down, lock in their spot at the founding member rate of $350 per month vs $500. (Includes full membership and 45htrs of monthly studio time)
 
 

A Curated List Of My Thoughts On The Music Modernization Act (And Related Topics)

music-modernization-act

I am a very vocal music creators’ rights advocate and copyright purist. Often, I have the opportunity to share my *opinions* on topics within and circling the music industry that impact the ways in which music creators — especially DIY musicians — navigate and thrive in the United States.

Over the last ten months I have been especially vocal about the Music Modernization Act. I’ve been quoted in Billboard, Rolling Stone, Pitchfork and Digital Media News. I’ve been invited to panel discussions at music industry conferences and keynotes at universities. And I have written several think pieces (and rants) on the bill, which is now law, and related issues.

Still, I am asked what my thoughts are on the MMA.

I’ll summarize my thoughts by saying that I believe the intent of the MMA is good and admirable on its surface — that is, to improve the way rightsholders are accounted to and paid for the use of their music. I believe there is some good stuff in the MMA; particularly, the entirety of Title 2 (The CLASSICS Act) and Title 3 (The AMP Act). However, I feel that there is still work to be done. I also feel that some compromises, at the expense of DIY music creators, were made too easily (this is partially based on private discussions that I’ve had with individuals with privileged knowledge of the negotiations and dealings that took place during the drafting and subsequent amending of the MMA). That being said, I also believe that the soon to be formed Mechanical Licensing Collective has the opportunity to prove to songwriters that this law was truly about them.

Only time will tell.

Here’s a 2018 curated list of my “thoughts” on the Music Modernization Act (and related topics):

  • (Oct 16, 2018) Here Are 10 Ways That The Music Licensing Collective (MLC) Can Set The Bar As A Collective Licensing Organization In The 21st Century – https://bit.ly/2RW9kW2
  • (Sep 14th, 2018 in Pitchfork) Why So Many Hip-Hop Producers Are Putting Business Before Beats – https://bit.ly/2PEsi1x
  • (Aug 19th, 2018) Another Music Modernization Act Opinion Piece – https://bit.ly/2NLp9LC
  • (Aug 15th, 2018 in Rolling Stone) Why More Pop Songwriters Are Stepping Into the Spotlight – https://bit.ly/2ClAuAc
  • (Jul 24th, 2018) Songwriters Are Owed Nearly $2B In Unclaimed Royalties!!! — Maybe More — I’ve Been Saying This For Some Time Now (Against Pushback), But Finally The Press Has Confirmed It – https://bit.ly/2CMR6Sp
  • (May 15th, 2018 in Billboard) Black Box Royalties Myths, Common Misconceptions Debunked at Music Biz 2018 – https://bit.ly/2q4dhLD
  • (May 7th, 2018 in Digital Music News) Is the Music Modernization Act Enabling ‘Legal Theft’ Against Smaller Artists? – https://bit.ly/2IugrCS
  • (Apr 25th, 2018) 5 Ways The Music Modernization Act Could Be Fairer To ALL Music Creators – https://bit.ly/2Jzn1tb
  • (Apr 20th, 2018) I Was Interviewed By The Congressional Budget Office Regarding The Music Modernization Act, And Now I’m Even More Concerned For DIY Musicians – https://bit.ly/2AdwpN0
  • (Jan 17th, 2018) – My Thoughts On The MMA In Light Of The CRB Mechanical License Rate Decision – https://bit.ly/2P6bT98

Where do you stand on the MMA?

Here Are 10 Ways That The Music Licensing Collective (MLC) Can Set The Bar As A Collective Licensing Organization In The 21st Century

music licensing collective dae bogan

If you work in the music industry and own a radio, TV, smartphone, or computer then you’ve probably already heard that the The Orrin G. Hatch–Bob Goodlatte Music Modernization Act (MMA) has been signed into law. At this point, every major music rights organization has published their praise of the legislation, which will create a blanket streaming mechanical license for Spotify, Apple, Amazon, Google, Tidal, and other on-demand music streaming companies; bring pre-1972 sound recordings under federal copyright protection and open up a flow of royalties from digital services to the artists (or their estates) and copyright owners of those recordings; and codify an allocation of digital radio royalties to music producers.

Title 1 of the MMA, also called Music Modernization Act, sets out  provisions and guidance for the formation of a collective mechanical licensing body to be called the Mechanical Licensing Collective (MLC). The MLC will administer a safe harbor blanket license for the streaming of musical works, collect licensee fees from licensees, prepare and remit statements of earnings to songwriters and music publishers, and make royalty payments to the same.

The MLC will join the ranks of SoundExchange, ASCAP, BMI, and SESAC in the sense that it will become a powerful representative of the collective rights of thousands of music creators and rights-holders in the United States. However, unlike its counterparts, the MLC will be born in the 21st century. And as a 21st century collective licensing organization, the MLC has the unique opportunity to implement, at inception, 21st century business practices utilizing 21st century best practices and technologies.

Here are 10 ways that the Mechanical Licensing Collective can set the bar as a 21st century collective licensing organization:
 
1.) Provide its members with a data BI (business intelligence) dashboard to better visualize their mechanical royalties data and dive deeper into their statements. The dashboard could enable forecasting based on projected streaming activity (maybe offer scenario planning, which makes it possible to attract loans against future royalties). They could ingest data from a service like BuzzAngle to offer estimated royalty accrual in real-time so that members who are artists can see the net effect of playlist streaming campaigns on their bottom line and choose to invest more into campaigns in virtual real-time.
 
2.) Maintain a public and accessible unclaimed royalties database. Deploy artificial intelligence to evaluate unmatched usage reports as opposed to relying solely on exact name and ISWC matches. And expand the statute of limitations on unclaimed royalties to 10 years
 
3.) Require DSPs who take advantage of the safe harbor streaming mechanical license to recommend (and provide guidance) to aggregators and labels to provide composition ownership information in their metadata when uploading releases to the DSP. This can be done with custom parameters in DDEX ERN or via the new DDEX MWN (Musical Works Ownership) message schema.
 
4.) Work with the U.S. Copyright Office to create an integrated musical works registrations process so that works are simultaneously registered with the MLC and LOC.
 
5.) Expand the statute of limitation period on unclaimed royalties to 10 years and hold funds in an interest-bearing escrow account from which 25% of the interest flows to the general fund of the MLC and 75% of the interest is paid to the payee, along with the balance of unpaid royalties, once the payee has come forward or have been found.
 
6.) Commission an annual audit and publish the findings to members.
 
7.) Use blockchain, where applicable.
 
8.) Remit statements and payments monthly when a member opts to receive direct deposits and electronic statements.
 
9.) Display assessed administration fees on royalty statements.
 
10.) Do not implement high usage weights or bonuses.

Why So Many Hip-Hop Producers Are Putting Business Before Beats

I shared my thoughts on music business for Hip-Hop producers in this piece by Cherie Hu for Pitchfork:

“The way many of these companies are trying to match and verify their data? Hundreds of emails,” says Dae Bogan, founder and CEO of TuneRegistry, a rights management platform for indie artists. “Many labels are still using old software and systems to manage their digital catalog, and their rights department is different from the one responsible for metadata, which is different from the one responsible for collecting royalties. There’s a lot of bureaucracy involved.”

Read the full piece here.

Why More Pop Songwriters Are Stepping Into the Spotlight

I shared my thoughts on the status of income-earning for songwriters in today’s streaming landscape in this piece by Elias Leight for Rolling Stone:

“But regardless of whether you’re an upper-echelon songwriter living large or a middle-class one struggling to pay rent, the new system encourages writers to ‘think creatively about how to get more income streams,’ says Dae Bogan, Founder and CEO of the music-rights administration platform TuneRegistry.

If songwriters are indeed feeling the crunch, pushing for artist credit when possible is a natural response – it gives them access to money on the master’s side of recordings. Historically, “we get paid on publishing, the the words, the lyrics, the melody, the staff music written on a page,” explains Watt. “The master is the physical recording: Justin Bieber’s voice and DJ Snake’s production on ‘Let Me Love You.’ The master is where the money is. When a song is sold to a label, they buy the master. If the label gives that to an act, they make sure they own part of that master, otherwise in the streaming world, they’re not making any money.”

Now, Bogan says, “songwriters can say, I write hits; this is gonna be a hit for you; I want a piece of the master’s side.” That’s especially true if hit writers are in a position of leverage relative to the singer – “if it’s a young artist or an artist who’s been stagnant.”

This is in some sense a form of poetic justice for writers. “I used to manage songwriters, and we’d write for a number of artists who would demand that they get 10 percent of the publishing even though they didn’t write a single lyric,” Bogan says. “For decades, artists would dip into publishing to diversify their income stream. So now it’s like, let’s take that model and flip it on its head.”

Read the full article: https://www.rollingstone.com/music/music-features/benny-blanco-eastside-pop-songwriter-credit-711061/

Songwriters Are Owed Nearly $2B In Unclaimed Royalties!!! — Maybe More — I’ve Been Saying This For Some Time Now (Against Pushback), But Finally The Press Has Confirmed It

Over the last few years, I’ve been researching and sounding the alarm on the growing problem of unclaimed music royalties or so-called “black box” royalties.

I’ve estimated the value of the collective black box to be nearly or above $2B. I’ve presented research, have written extensively and have spoken publicly about this problem, which disproportionately affect independent and legacy songwriters.

Despite my fanfare, industry insiders and stakeholders have shrugged or have blatantly called my estimates a gross overstatement and have held that unclaimed royalties are at best a few hundreds of thousands of dollars and mostly owed to “long-tail artists” who do not quite understand how the music industry works. This is a very myopic, company-focused view. These talking heads tend to speak from their position of administering one right for some music licensees. My estimates are looking at multiple rights administered by multiple entities, which would make the collective black box exponentially greater than the escrow account of a single entity.

Also Read: State of Unclaimed U.S. Music Royalties and Licenses

Yesterday, Variety published an article on the Music Modernization Act where a very important fact was tucked away on a single sentence in a paragraph near the end of the piece:

The DSPs are holding some $1.5 billion in unmatched mechanical royalties. If the MMA passes, that money would be passed through to the MLC which would match it to the songwriters and publishers. [bold and underline added for emphasis]

via Variety

https://variety.com/2018/music/news/music-modernization-act-blackstone-sesac-congress-senate-1202881536/

$1.5B of royalties (I still believe this number is higher) is sitting in, probably, interest-bearing escrow accounts while songwriters and small-to-medium sized music rights holders struggle to understand how and why.

Last year I founded RoyaltyClaim, the world’s first search engine of unclaimed music royalties and licenses, which has recently been acquired by Made In Memphis Entertainment. We’ve helped DIY musicians and rights-holders identify thousands of unclaimed entitlements in just a few months, with one paricular music producer uncovering nearly $150k in unclaimed royalties due to him.

The problem is huge. The system is not transparent. And the people in charge could do a better job communicating these things to rights-holders.

Also Read: I’m Working On A Side Project Addressing ‘Black Box’ Royalties

I’ve been on many panels at music industry conferences where I’ve maintained my position that DIY musicians and small-to-medium sized rights-holders are owed hundreds of millions of dollars, if not several billion, and often my co-panelists have taken a position that my claims are sensational and overstated.

I disagree.

When those on the panel talk about black box we are talking about the aggregate of unclaimed royalties that occur because of any number of factors,’ and not just limited to one service or one collection society, explained moderator Dae Bogan, CEO of TuneRegistry.”

via Billboard

Source: https://www.billboard.com/articles/business/8456271/black-box-royalties-myths-panel-music-biz-2018

Read the Variety article here.

Check out my commentary on black box royalties here.

Dae Bogan To Join Panel On The Future Of Rights Technology At A2IM Indie Week In New York

a2im indie week dae bogan speaker

Dae Bogan will join Shanna Jade (Director of Brand Strategy, Stem) and Rob Weitzner (Head of North America, The state51 Music Group) on the panel “Future of Rights Technology” on Wednesday, June 20th at A2IM (American Association of Independent Music) Indie Week conference taking place at the Clemente Soto Velez Cultural and Educational Center in New York. The panel will be moderated by Anna Siegal, SVP FUGA North America.

For more details, visit https://a2im.org/event/a2im-indie-week-2018/

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