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Apr 26, 2011
Posted by Mike in Video Production
3 Comments

Music Licensing – Why Do I Have to Pay?


You’ve been working with a video production company on an on-line video about your company’s services. The shoot went well, the video editing is well underway, but all of the sudden, they’re being sticklers about something they call music licensing… I mean, I bought the MP3 of the latest number 1 hit, just use it… no one will know.

Caveat

I am not an attorney, nor do I play one on TV. This should not be construed as legal advice. Please consult an attorney for advice for your specific circumstances.

You Want Music With That?

When I do an estimate for a video, I always ask if the potential client wants music in the video. It’s a seemingly simple question, but it leads to a number of complexities. Basically, if you want to use music in your video, you’ll need to license that piece of music. This will cost you money, and no, we can’t “just pretend we forgot” to pay for it.

Musicians, songwriters, composers – they all work for a living, and have likely become accustomed to living in some sort of shelter and eating on a regular basis… so they should be paid for the work they produce. Yes we can get into an argument over the relative “evils” of record labels and industry groups, but in the end, I’m not dealing with the latest song from Lady Ga-Ga, I’m dealing with a piece of music written by someone who’s not making pant-loads of money from the biggest selling whatever this month.

Here’s my thinking on it: I hate (hate, HATE) doing a video without some sort of soundbed, whether it’s a song performed on actual musical instruments or just plinked out on someone’s Casio synth; Music adds a layer of polish to a video that can not be achieved through other means. So whether you commission a full score for your video, or use a royalty-free piece: if your video uses music, pay for it.

Kinds of Rights

Your video producer should be able to explain these in more detail as they relate to your video, but Broadcast Music International (BMI) has a great overview of the types of Copyright Licensing on their web site.

Generally speaking there are two kinds of licenses you need for using a piece of music in your video:

  • A Mechanical License – This gives you the right to use a specific song from the publisher of that song. The money from this license is paid to the publisher, and a portion is paid to the song writer(s) through royalties.
  • A Synchronization License – this gives you the right to use a specific recording of a specific song performed by a specific artist. The money from this license is paid to the publisher and a portion is paid to the recording artist(s) through royalties.

So if you want to use Telephone by Lady Gaga & Beyonce in your sales video, the producer will have to research the publisher, contact them and negotiate the Mechanical and Synchronization rights, and bill you for their time, as well as the licensing fees. If you want to use your nephew Melvin’s Bouzouki rendition of Telephone, that just needs Mechanical rights.

But there are all of these videos on YouTube of people lip-syncing songs, they all pay for rights? No, they don’t, but there’s a big difference in using a song to help sell your products, and a 14-year-old goofing off in front of her web cam. (Again, I’m not an attorney, and I don’t make up the rules, I just try and follow them.)

Your Options

Part of the reason you’re hiring a professional video production company is to handle the details of all of this licensing stuff. Maybe that specific recording of that specific song isn’t as important as you first thought after seeing the licensing fees. There are a number of other options available:

  • Commissioning Music – Want something unique? Hire a composer/songwriter to write and perform a piece specifically for your video. It’s a fairly expensive way to go, but you can get exactly what you want musically, and keeps the composer well-fed.
  • Rights-Managed Music – This category of music is (as far as I can tell) relatively new. Composers & songwriters produce a piece of music, record it, and allow a third-party company to license it for various purposes, geographic areas, and lengths of time. The quality of the music is generally pretty good, and puts the cost of licensing “real” music within the budgetary reach of most projects.
  • Royalty-free Music – Don’t concentrate on the word “free”. Royalty-free music (also known as production music) is licensed over and over, and is usually sold as part of a library of music to video production companies. Royalty-free music has gotten a bad reputation ion the past as “fake” music because it is sometimes produced by a single person on a synthesizer specifically for bulk sales. I’ve used royalty-free music for a number of productions, and like much of the music on the radio these days, quality varies greatly. The advent of affordable, digital production has also increased the amount of high-quality royalty-free music available too.

So why can’t I just download an MP3 and use that? Well, that $0.99 you spent on the Lady Gaga/Beyonce recording of Telephone is actually just a license fee for you to listen to that song for your own enjoyment. (Read the End User License Agreement from iTunes for example.) It’s really no different than the old days when you would buy a CD/cassette/LP/8-track, you still only had the right to listen to any of it for your own enjoyment. Any reproduction or transmission required licensing.

So, in the end it comes down to: use a piece of music; pay the proverbial piper.

About Mike
Mike Conaty is President, CEO & Janitor of Brunswick Media Services LLC, a Web and Video Production company in New Brunswick, NJ. Mike’s marketing expertise lies in campaign planning, corporate branding, and account management for both the B2B and not-for-profit communities. In the video world, Mike specializes in the corporate and industrial arena, producing employee safety training videos, as well as corporate identity videos.
View all posts by Mike
  • http://twitter.com/billjoseph Bill Joseph

    Thanks, Mike!! This is one of the hardest thing to get clients to understand.

  • Anonymous

    It’s a murky soup of archaic dreck… you know a legal thing. :-) Always a tough slog through for everyone, but get it wrong, and you’ll really pay.

  • Yadgyu

    Music licensing is a waste of time.
    Most libraries will never license a song for you. The ones that do will usually pay no money upfront because they provide a blanket license. You end up getting paid backend royalties. These royalties are pathetically low for cable TV placements (cents on the dollar).
    I would advice anyone serious about making a living from licensing music to throw in the towel. The competition is huge and you do not stand a chance if you are over 40 years old. It may hurt to hear such advice, but it is true. Young composers make current sounding music and will work for free just for the excitement of hearing their music in the background of “Keeping Up With The Kardashians”.

    Anyone who has licensed music for more than 10 years can tell you that their earnings from royalties are going down and the upfront payments are all but non-existent. If you have a few thousand songs sitting on your hard drive, you stand half a chance of making a few thousand dollars a year. Anything less will net you enough money for a few items off of the McDonalds dollar menu every three months.