When looking for a cheap music business contract, there are a few things you should look for. Typically, a label will require the non-controlled writers and sample rights holders to agree to a controlled rate. While this is usually at the label’s expense, it is a good idea to include a nickel-and-dime clause, which allows a label to avoid paying royalties on “interludes,” multiple versions of the same song, and multiple uses of a single. These clauses will also let the label make unlimited uses of the songs in marketing materials and other material.
LVRN offers cheap music business contracts
Walker’s deal demonstrates the “renaissance” of the music business. LVRN offered similar contracts to other artists. The LVRN contract is a good example of how artists can get rich in a music business that’s historically undercompensated. Those contracts are also a sign of a new paradigm in the music business. But what is a “renaissance?”
LVRN is an independent company but also part of a joint venture with Interscope. A JV is often co-owned and partly-funded by a parent company and can be very disadvantageous for artists. Labels, on the other hand, are unlikely to protect artists from other companies controlled by the same parent company. LVRN’s music business contracts are cheap, but they aren’t free of risk.
A recent report from Rolling Stone detailed the terms of a record deal for singer/songwriter Summer Walker. The contract was less than half the standard rate in the industry, and included an $85,000 advance for her music. It also stipulated that she relinquished her masters. Additionally, the deal required Summer Walker to give up masters rights and non-musical earnings. It is a shame that this kind of deal hasn’t happened for many artists.
GEMA offers an all-in contract
GEMA is a German collecting society that collects royalties for musicians. The GEMA offers an all-in music business contract. These contracts are crucial for record labels, who market and manufacture releases and are therefore required to offer certain information about their marketing budget and the percentage of royalties they will receive. The GEMA also has a monopoly on collecting royalties for music in Germany. If you’re interested in working with GEMA, download their free sample agreement to get an idea of what to expect.
GEMA is an alternative to major labels
A new paradigm in the music industry is forcing record labels to rethink the way they do business. While baby-boomers and Generation X have distinctly different core values, younger generations are more interested in access and sharing than the ‘old-world’ system. While record labels are still adapting to this new reality, there are some changes artists should be aware of before signing with a major label.
GEMA, or Global Entertainment and Media Alliance, is a French indie label that is directly registered with the PPL and SoundExchange in the UK. Because Group is also owned by Sony Music Entertainment, a major record label. Both majors understand that they need all of their recording artists on board to maximize profits. The GEMA is a better alternative to major labels for cheap music business contracts.
Controlled composition clause
The “controlled composition clause” in a cheap music business contract refers to a clause in the recording contract that limits the mechanical royalties that a performing artist can earn on songs he or she wrote or owns. A recording artist and record company typically agree on a low royalty rate for songs written by the artist, and a cap on the mechanical royalties per album sold. A major label artist may agree to pay all writers a discounted rate.
In addition, BMG has announced it will eliminate the standard U.S. record-label deduction that cuts into the income of songwriters, composers, and lyricists. BMG and record labels have been vocal about initiatives to support the artists, and this policy is an attempt to protect them from being subjected to unfair terms in deals. Some artists and labels may wish to negotiate a cheaper version of these contracts, but many are unsure whether this would be the best option.
In the United States, record labels have historically been reluctant to pay the full rate for a song. Many of them contract with artists and pay 75% of the rate. In the UK, the record company is required to license any “controlled compositions” if it intends to resell them. This policy is a win-win for both parties. Unlike other countries, the United States has not been as aggressive as the UK when it comes to protecting authors.
Key-man clause
A key-man clause is an essential component of any music business contract. It protects the label from losing an artist if a key member of the band leaves. The key-man clause should be listed by name in the contract. It should also be mentioned that the artist cannot leave the management company unless he wants to. A good music attorney will ensure that the artist is able to follow the key man if he leaves.
In most cheap music business contracts, there is no “key-man” clause. It is not an easy clause to obtain. It allows artists to leave a label if one or more key figures leaves. To obtain this clause, the label will need to give the artist two (2) complete two-track stereo tapes that are fully edited, mixed, and leadered, and must have all the necessary approvals to be released.
Record companies may be suspicious of artists’ wishes. Although record company executives are not inherently evil, they do need to manage their companies in a way that benefits them. For example, a record label will try to minimize the impact of losing the original cellist of a band. This is not always the case, however. This clause can create a culture of fear and resentment among musicians. However, it is important to understand the implications of a key-man clause before signing an agreement.
Minimum marketing commitment
While record labels are often more than happy to sign records without releasing them, a minimum marketing commitment can be the difference between a successful release and a failed release. You may not realize it, but record labels are required to release at least one record before they’re willing to consider it for a second deal. Fortunately, most labels will give you a guarantee on paper for your marketing efforts. So what should you look for in a cheap music business contract?
The minimum marketing commitment is typically a percentage of the total royalties. This is a way for the record label to ensure that it is actively marketing your album as well. The royalty rate will vary depending on the popularity of your artist, but a seasoned pro may earn 18 percent or even more. In a nutshell, the minimum marketing commitment will force the record label to put out more money to promote your album.
