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© 2015 Resilient Music LLP
Music Rights Update
Helping advertisers keep up to speed with the music rights landscape
Presented by Richard KirsteinFounding Partner, Resilient Music LLP
© 2015 Resilient Music LLP
• Introduction to Resilient
• Why no standard music rate card?
• Why is Music so complex?
• Who do we need to pay?
• Cost Drivers & Management
• Risk & Management
• 4 Take-Aways
© 2015 Resilient Music LLP
What does Resilient do?
We help advertisers navigate the uncertain world of Music Rights
© 2015 Resilient Music LLP
© 2015 Resilient Music LLP
Music Buying:Why isn’t there a
standard rate card?
© 2015 Resilient Music LLP
Commercial CatalogueProduction Library Bespoke Score
HIGH COMPLEXITY
Licence-basedMultiple Rights Owners
Prior ConsentHighly Variable Cost
High Risk
LOW COMPLEXITY
Licence-basedSingle Rights Owner
Pre-ClearedPredictable Cost
Low Risk
MID COMPLEXITY
Assignment-basedSingle Rights Owner
IP TransferPredictable Cost
Low to Medium Risk
Commoditised Free MarketWork For Hire
© 2015 Resilient Music LLP
Why is music so complex?
© 2015 Resilient Music LLP
Songwriters“Publishing Rights”
Artist“Master Rights”
Max Martin
Taylor Swift
Shellback
Taylor Swift
33.34% Share
33.33% Share
33.33% Share
Music Publisher
Music Publisher
Music Publisher
USA Record Label
World ex. USARecord Label
© 2015 Resilient Music LLP
Who do we need to pay?
© 2015 Resilient Music LLP
Synchronisation Right
Song licensed by music publishers
Recording licensed by record label
Synchronisation Right
Songwriters Featured Artist
Paid by Brand or Agency Paid by Brand or Agency
Non-featured Artist
Synchronisation Right
Recording licensed by Performers Union
© 2015 Resilient Music LLP
Cost DriversWhat’s changing in the licence fee landscape?
© 2015 Resilient Music LLP
Usage
High
High
Lice
nce
Fee
s
Low
Low
1 Yr
UK only
World
Broadcast / ATLOn-line
2015
Experiential
Internal
In-store
2 Yrs
On-line2013
© 2015 Resilient Music LLP
Online Geo-lockingOnline component of multichannel campaign
2013 Default Online LicenceWorldwide
2015 Default Online LicenceLocked to ATL markets
© 2015 Resilient Music LLP
Cost ManagementPreventative Measures
© 2015 Resilient Music LLP
Fame
High
High
Lice
nce
Fee
s
Low
Low
Price is Relative ….It’s not just about the artist & recording
© 2015 Resilient Music LLP
Direct CompetitorsSingle Category
200%
% U
plif
t o
n n
on
-exc
lusi
ve li
cen
ce f
ee
… and exclusivity costs even more!(during Licence Term)
Indirect CompetitorsMultiple Categories
All Brands
100%
30%
© 2015 Resilient Music LLP
Urgency
High
HighLow
Low
Lice
nce
Fee
s
In C
on
tro
l
Pan
ic
Track Contenders
Ch
oic
eOn
e A
gen
cy R
eco
mm
end
atio
n
Time
High
Low
Lice
nce
Fee
s
Competition
HighLow
© 2015 Resilient Music LLP
Pre-agreed feesfor extra usage
High
Lice
nce
Fee
s
Low
Licence Options : Your quick win
OptionsIncluded in
Original Licence
OptionsNOT
Included in Original Licence
Renegotiated feesfor extra usage
© 2015 Resilient Music LLP
Business Requirement
Budget & Usage
Commercial Terms Brief
Music Sourcing Tender
Music Rights Owners
Track ShortlistHero Tracks & Back-ups
Track Submissions
Creative Requirement
Emotional Objective
Music Brief
Why wouldn’t you use competitive tendering?
© 2015 Resilient Music LLP
Simultaneous Shortlist Research
Negotiate from Position of Strength
Secure Multiple Approvals
Final Choice
Best Value Outcome
Improve Your Bargaining Position
© 2015 Resilient Music LLP
Final Campaign Execution
Many tracks
One track
Creative Development
Pre-Production
Production
Post-Production
ScriptApproval
CampaignLaunch
Start Earlier
© 2015 Resilient Music LLP
Starting earlier reduces costs … this is why!
License Request : Outbound Process
UK Record Label
Ex UK Publisher(s) Manager(s)
Manager
Songwriter(s)
Artist
From 3-5 days to 1-2 weeks
Brand(or agency)
Ex UK Record Label
Approval or Denial : Inbound Process
UK Record Label
Ex UK Publisher(s)Manager(s)
Manager
Songwriter(s)
Artist
From 3-5 days to 1-2 weeks
Brand(or agency)
Ex UK Record Label
UK Publisher(s)
UK Publisher(s)
© 2015 Resilient Music LLP
RiskWhat’s changing in the
rights landscape?
© 2015 Resilient Music LLP
Greater Vigilanceby rights owners
© 2015 Resilient Music LLP
Stronger Enforcement
© 2015 Resilient Music LLP
Take Down : 1 Video
Record LabelsMusic Publishers
© 2015 Resilient Music LLP
Three Strikes RuleTake Down : Whole Channel
© 2015 Resilient Music LLP
Risk ManagementPreventative Measures
© 2015 Resilient Music LLP
No Licence : Copyright Infringement
Use outside licence :Breach of Licence
Align
Problem
Solution
© 2015 Resilient Music LLP
Copy Composition : Copyright Infringement
Copy Recording :Passing Off
Prohibit Intent
Written Briefs
Problem
Solution
© 2015 Resilient Music LLP
Case Studies
© 2015 Resilient Music LLP
Peroni Nastro AzzurroStorie Di Stile
© 2015 Resilient Music LLP
Composer“Publishing Rights”
Artist“Master Rights”
100% Share
Record LabelMusic Publisher
EnnioMorricone
EnnioMorricone
“Poverty” “Poverty”
DISCORD
© 2015 Resilient Music LLP
Songwriters“Publishing Rights”
Artist“Master Rights”
Burt BacharachComposer
Record LabelMusic Publisher
50% Share
Music Publisher
50% ShareHal David
Lyricist
SandieShaw
Featured Artist
Non-Featured Artists
1964 UK Studio Recording41 Session Musicians
Licensed by Musicians Union
“Always Something There To Remind Me” “Always Something There To Remind Me”
© 2015 Resilient Music LLP
Jaguar XFHow Alive Are You?
TVC Band Promo
© 2015 Resilient Music LLP
Songwriter“Publishing Rights”
Artist“Master Rights”
100% Share
Record Label
Music Publisher
Scott Davis
The Heavy
Billy Strange
NinjatuneMaster Sync LicenceArtist Waiver
“A Little Less Conversation” “A Little Less Conversation”
The HeavyRe-record Agreement
© 2015 Resilient Music LLP
4 Take-Awaysto action for next campaign
© 2015 Resilient Music LLP
1. Start earlier with music
4 Take-Aways
2. Clarify usage & don’t change it
4. Have back-up tracks & licence options
3. Establish all the rights owners
