By Jeffrey Brabec and Todd Brabec
PART ONE
Whether the score is dramatic, soothing, romantic, comedic or foreboding, it is an integral part of the fabric of any motion picture.
INTRODUCTION
Music in the movies is an essential element of thefilmmaking process and is one of the main factors thathelps to determine box office success or failure. Thinkof a motion picture without music - whether it's anorchestral or synthesizer score, a brand new hit songor a long time standard - and you'll begin to realizethe value and contribution of music and lyrics to film.And whether you're a producer, a director, an agent,a composer, a songwriter, a studio executive, a musicsupervisor, a business affairs executive, or anyoneinvolved in film, or who wants to get involved.
THE FILM BUSINESS
Most feature films are produced either by the majorHollywood studios or by hundreds of U.S. and foreignindependent production companies. The independents rangefrom major companies just below the rank of the well-financed,all-purpose studios, to medium and small continuingcompanies, to firms that fold up their tents after justone production.
...there are manythousands of films produced each year worldwidewhich do well, make money, and create income opportunitiesfor composers and songwriters...
Filmmaking costs have skyrocketed in recent years.The average cost to produce, market and advertise afilm in today's industry is in excess of $75 millionversus a 1980 figure of $16 million. Out of necessity,films are now financed in a variety of complex waysincluding major studio backing, joint ventures, outsideprivate or public investors, limited partnerships andpre-sales of ancillary and distribution rights, amongothers. Regardless of how a film is financed, though,all parties involved normally have a good idea of theprincipal revenue-producing areas from which their investmentwill be recouped and, they hope, a profit made. Theyusually are also familiar with the various stages ofproduction which ultimately lead to the release of afinished motion picture.
Though the stakes are high, the returns for a blockbusterhit can be monumental. In 1976 only one film had generatedover $100 million in U.S. and Canadian box office receipts;by 2000, close to 200 films had reached the $100 millionmark. Considering also that foreign markets can equalor surpass the U.S. and Canadian gross (the film Titanicgrossed over $1.8 billion worldwide, with Star Wars:Episode I-The Phantom Menace at $920 million), theprofit potential for a hit can be astronomical despitethe high cost of producing a film as well as the oddsagainst box office success. Blockbusters aside though,there are many thousands of films produced each yearworldwide which do well, make money, and create incomeopportunities for composers and songwriters, both inthe initial year of release and for many years afterward.
THE MARKET
The initial market for any film is the exhibition inU.S. and foreign motion picture theaters. Films arethen released as DVDs, video cassettes and laserdiscsfor purchase and rental, with subsequent sales to pay-per-view,to pay cable services (HBO, Showtime, Disney, The MovieChannel, etc.), to the television networks (ABC, CBS,NBC, FOX, etc.), to local television stations or basicnon-pay cable services (USA Network, Lifetime, etc.)and to foreign television and cable stations. Soundtrackalbums and singles are also often released with manyof them becoming major chart hits, in turn creatingadditional income from such ancillary sources as U.S.and foreign performance income from radio, television,cable and theater performances, worldwide mechanicalroyalties from tape and CD sales, download and streamingroyalties and commercial advertising fees, among manyother sources.
TYPES OF MOTION PICTURE MUSIC
Motion picture music falls into three basic categories:underscore (James Horner's score to Titanic,John Williams' score to E.T.,or Randy Newman'sscore to Toy Story 2); the pre-existing songor song and original master recording (Bruce Springsteen's"Hungry Heart" for The Perfect Storm,Steve Miller's "Fly Like An Eagle" for SpaceJam, the Guess Who's "American Woman"in American Beauty); and the song written specificallyfor the film (Diane Warren's "I Don't Want To MissA Thing" for Armageddon, Phil Collins' "You'llBe In My Heart" for Tarzan and Harold Arlen'sand E.Y. Harburg's "Over The Rainbow" forThe Wizard Of Oz.)
Each of these three distinct types of music in filminvolve very different negotiations, contracts and considerationsand produce very different backend royalties once thefilm is released.
THE PRE-EXISTING HIT SONG USED IN A FILM
Most successful motionpictures use hit songs to create a period flavor,establish a mood...
Most successful motion pictures use hit songs to createa period flavor, establish a mood, give an actor a chanceto sing, make people laugh, make people cry, elicitemotions, and create interest in the movie through successfulsoundtrack albums and hit singles. A film producer whowants to use an existing song in a motion picture mustsecure the permission of the music publisher to usethe composition in the film. Once an agreement is reachedas to a fee, the producer will sign what is known asa synchronization or broad rights license, which willgive the studio the right to distribute the film theatrically,sell it to television, use the song in motion picturetheater trailers or television and radio promos, andsell videos. The synchronization fee received by themusic publisher is shared by contract with the songwriter.
Determining How Much To Charge For A Song.
When the call comes in from the music supervisor ofa motion picture, there are a number of factors thatmust be considered in determining how much to chargefor the inclusion of a song in a film, including:
- How the song is used (i.e. vocal performance by an actor on camera, instrumental background, vocal background)
- The overall budget for the film, as well as the music budget
- The type of film (i.e. major studio, independent, foreign, student, web)
- The stature of song being used (i.e. current hit, new song, famous standard, rock n' roll classic)
- The duration of the use (i.e. one minute, four minutes, 10 seconds) and whether there are multiple uses of the song
- The term of the license (i.e. two years, 10 years, life of copyright, perpetual)
- The territory of the license (i.e. the world, the universe, specific foreign countries)
- Whether there is a guarantee that the song will be used on the film's soundtrack album
- Whether the producer also wants to use the original hit recording of a song, rather than re-recording a new version for use in the film
- Whether the motion picture uses the song as its musical theme as well as its title
Actual Fees Paid For Existing Songs.
Thereare no hard and fast rules in this area as the feesare negotiated in the context of each individualfilm...
The synchronization fees charged by music publishersfor major studio films are usually between $15,000 and$60,000 (with the majority ranging from $20,000 to $45,000)but can be lower if the music budget is small or higherif the song is used several times in the motion picture,if the use is under the opening or closing credits,if the song is a major hit, or if it is vital to theplot or particular scene of the motion picture. Thereare no hard and fast rules in this area as the feesare negotiated in the context of each individual film;the same song may be licensed at very different ratesfor different projects (i.e. major studio release, independentfilm, foreign film, film festival license only, webproduction, or student film).
It should also be mentioned that record companies normallycharge between $15,000 and $70,000 for the use of existingmaster recordings in a major studio film but, dependingon the stature of the artist, the length of the use,the music budget and how the recording is being used,these fees can be greater or less.
Opening And Closing Credits.
Because the songs used over the opening credits ofa motion picture many times reflect the theme or ambianceof the film, they are many times more important to thefilm than other songs used for background. The sameis often true for use of a song over the end credits,although it is becoming more common for many songs tobe run during the closing credits in order to completethe requirements for a soundtrack album. The fees chargedby publishers are almost always higher than other usesof music in a film and usually range from between $30,000to $65,000 for synchronization and video rights, buteach negotiation and final price depends upon many ofthe factors mentioned earlier (i.e. budget of the film,music budget, importance of the song, whether thereare replacement songs available, etc.). If the titleof one of these opening credit songs is also used asthe title of the film (but the film's plot is not basedon the story line of the song) the fees are increasedfurther (i.e. from $75,000 to over $500,000).
Trailers and Advertisem*nts.
As previously indicated, the synchronization licenseusually grants the producer the right to use all musicin the film in theatrical trailers (previews of upcomingfilms which are shown in movie theaters) as well asin television and radio promos. An extra fee is chargedfor promos which use the song out of context (i.e. whenthe song is used throughout the entire commercial overmany scenes, as opposed to just in the scene in whichit actually occurs).
Deferred Payments.
On occasion, producers of documentaries, lower budgetfilms or films which have substantially exceeded theirproduction budgets at the time music is being selectedwill ask a publisher to reduce its up-front synch feefor a song and, in return, guarantee an additional paymentor payments at some time in the future if the motionpicture turns a profit or exceeds certain agreed-upongross or net dollar plateaus.
...mostpublishers recognize the importance of assistingyoung filmmakers, since they are an integral partof the future of the entertainment industry.
Student-Produced Films.
Because student-produced films have limited chancesfor commercial success and small budgets, many musicpublishers will license their songs for substantiallyreduced fees. In such cases, most publishers recognizethe importance of assisting young filmmakers, sincethey are an integral part of the future of the entertainmentindustry. Songs will sometimes be given to these youngproducers via a limited license for free or for a nominalcost so that their projects will be realized and theircareers advanced. Most publishers, however, will providethat if the project has any type of commercial successor secures more than just film festival or art housedistribution, an additional fee or fees will be paid;a proviso which not only helps young producers get theirprojects off the ground but also ensures adequate compensationto the publisher and songwriter for their generosityif the film realizes national distribution or achievessome kind of financial success.
Multiple Uses Of A Song.
If a producer uses a song more than once in a motionpicture (i.e. over the opening credits and in two scenesof the film), the fees charged by music publishers willbe higher than if the song is only used once. The importanceof the song to the plot development or movement of thefilm (i.e. if it becomes a signature song for an importantcharacter) can also be a factor that raises the price.
Lyric Changes.
Occasionally a film producer will request permissionfor a lyric change in a song which will either be re-recordedfor the film or sung by one of the characters in themotion picture. When such a request is received, a musicpublisher should ask for a copy of the new lyrics, aplot summary of the film, and a scene description includingscript pages so that it knows exactly how the song willbe used before making a decision. A publisher may havecertain restrictions in its agreement with the songwriter(i.e. all changes in the English lyrics to a compositionmust be with the approval of the writer), that requireadditional consents from the songwriter or his or herestate.
Duration Of License.
The term of the license is virtually always for theentire copyright life of the song unless the film isa documentary or other noncommercial film intended foronly limited theatrical release.
Rights Granted To The Film Producer.
The motion picture synchronization fee paid to themusic publisher (which is shared with the songwriter)for the use of a song includes the right to distributethe film to network, local, syndicated, pay-per-view,pay, satellite, cable and subscription television stations;the right to show the film in motion picture theatersin the United States; and the right to include the songin trailers, previews and advertisem*nts of the motionpicture.
Foreign theatrical distribution rights (i.e. the rightto show a film in motion picture theaters outside theUnited States) are also given to the producer, but suchrights are subject to the payment of performance feesby theaters to the various performance rights organizationsin countries outside the United States.
Territory.
The territory of the license is normally the universeor world but, in the case of certain television miniseries,made-for-TV movies, and weekly series that are broadcaston television in the United States and shown as a featurein foreign theaters, the territory may be for the universeor world excluding the United States.
...a"film festival" license may give the producerthe right within 18 months after the initial showingof the film to extend the territory and the durationof the license for an additional fee..
Limited Theatrical Distribution.
Depending on the nature of the film (normally in thecase of documentaries or art films which do not havemass market appeal), the license may be for a limitedduration and apply to the distribution of a film ona limited theater engagement or "film festival"basis. Fees for this type of license are less than thosecharged for commercial theatrical features with widedistribution. In many cases, the producer will alsohave the option to theatrically distribute the filmon a broader basis for an additional fee and put iton home video for another prenegotiated fee - importantrights if a film is well received or receives an awardfrom an important film festival competition and goesinto national distribution. For example, a "filmfestival" license may give the producer the rightwithin 18 months after the initial showing of the filmto extend the territory and the duration of the licensefor an additional fee.
New Multimedia Uses.
The grant of rights clauses with respect to new mediaare somewhat negotiable, with some film companies providingfor a good-faith negotiation provision as to "notcurrently in existence new technologies" or "newtechnologies not currently widely available;" othercompanies being amenable to an increased fee for theaddition of new technology uses; some companies addinga set, non-negotiated dollar amount to the license fee,which will cover new technology uses; and still othercompanies negotiating the inclusion or non-inclusionof such language and the corresponding fees on a case-by-casebasis.
Soundtrack Album Guarantees.
On occasion, a music publisher will reduce the motionpicture synchronization fee for a song if the producerguarantees that the song will be on a soundtrack albumreleased by a major label. Sometimes there are evenguarantees of an "A" side single release,but these usually occur only when a successful recordingartist on a major label records the song for the film.In this case, the publisher may give two price quotes;a higher figure if the song does not make the soundtrackalbum or if an album is not released and, because ofthe possibility of additional ancillary album income,a lower quote if the soundtrack provision actually takeseffect. For example, if a publisher gives a $25,000quote for the use of a song in a film, it also mightagree to reduce the price to $22,000 if there is a guaranteeof a nationally distributed soundtrack album and mayeven further reduce the fee if the song becomes an "A"side single from the album.
PartTwo reveals what you need to know about gettingyour songs into movies and making the right deal. Thereis nothing worse than to see a film open to rave reviewswith a hit soundtrack and an Oscar nomination and knowthat your song could have been in it... but wasn't...
Part 1 | Part 2 | Part 3 | Part 4
FAQ: How To Acquire Music For Film |
© 2007 Todd Brabec, Jeff Brabec
For more information, check out the book Music, Money and Success: The Insider's Guide To Making Money In The Music Business (Schirmer Trade Books/Music Sales/502 pages) available for sale at Amazon.com, Barnes & Noble, Borders, Music Sales Group and www.musicandmoney.com.
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