record business deals mbus final

ppd deal

artist gets paid a % of published price to dealers (wholesale price), label owns master. 14-16 for new artists or 20-25 for new artists. 360 deal. Most common label deal.

slrp deal

artist gets paid % of suggested list retail price. Label owns master can get 12-18% royalties. 360 deal. Old school and not common.

profit split deal

expenses deducted from revenue. Label and artist split profit from net. Either party owns master. Very unlikely for 360 deal. Expenses paid out of gross.

label services deal

 company charges a % to provide services and artist gets the rest. Artist owns master. Artist gets 70-75% after expenses. No 360.

p and d deal

Distributor takes 20-25 artist gets the rest. No 360 deal. Either can own master. Label pays miscellaneous expenses. pressing and distribution deal.

360 deal

label receives a % of all of artists entertainment related income streams beyond recordings

ancillary participation

a 360 deal

active 360

label has control over all areas of the artists career

passive 360

label receives their % but does not have a say in how the artist conducts their business affairs

artist royalties

paid by label to artist for sales and streams of a recording

performance royalties

paid by PRO to songwriter and publisher for public performance of a composition

mechanical royalties

paid by label to the publisher and publisher pays writer for sales of a recording of a composition

streaming mechanical

paid by DSP to MLC to publisher, publisher pays songwriter for streaming of composition

producer royalties

paid by label to producer from the artists royalty account for sales and streams of a recording

sound recording
(non interactive)

paid by sound exchange to artist, session musicians, and label. Paid for non interactive streams of a song

sound recording (interactive)

paid by DSP to label who pays artist.  Paid for interactive stream of a recording

international royalty rate for canada

85%

international royalty rate for major territories

70-75%

ROW royalty rate

50-67%

major distribution

distribution from major labels such as warner, sony, UMG

major owned indies

largest independent distributors owned by majors ADA & the orchard

independents

no major affiliation with other labels for distribution

rack jobbers

operate music departments of retailers like target

digital aggregators

supply digital music outlets EX distrokid

ISRC

A code assigned to every song that is released to ensure payment of royalties. international standard recording code

meta data

info embedded in a digital recording that tells name of song, isrc, album, and artist

breakage

difference between the advance paid to a label by DSP and the amount the label earned in streaming royalties in a certain period.

lean in

DSP term for user looking for new music

lean back

users adding music to their own playlists and listening to it repeatedly

spotify

pays .004 per stream

apple

pays 2x spotify

tidal

highest royalty rate

youtube

lowest royalty rate

gold record

500,000 sales or TEA

platinum record

1,000,000 sales or TEA

diamond record

10,000,000 sales or TEA

artist 100

combines hot 100, 200 album chart, and social 50 chart

hot 100

singles chart based on sales and streaming

billboard 200

album chart

social 50

ranks artists by social media activity

next big sound

provides analytics for online music

SEA

stream equivalent album, 1250x streams is 1 album

TEA

track equivalent album, 10x download is 1 album

album cycle

18-36 months after release date

catalog

more than 18 months old and fallen below 100 on billboard 200

active roster catalog

catalog by artist still releasing music on a label

term

length of deal. Typically number of albums not years

masters

recordings. Can be multi tracks or mixes

re recording restriction

clause stating a time period during which an artist can not release any new recordings of songs already recorded for the label.

base rate

basis for which a royalty is calculated

penny rate

actual monetary amount an artist gets paid in royalties per transaction

advance

label pays artist advance payment for future royalties

recoupment

artist doesnt receive royalties until advance is recouped

non returnable

if advance is not recouped, artist does not have to repay label

cross collateralization

on a multi album deal all advances must be recouped before royalties are paid. Producer points not cross collateralized.

escalations (bump)

increase in royalties triggered by a threshold of sales or streams

prospective royalties

once the threshold is crossed artist earns 1% more in royalties from sales that occur after the threshold is passed.

retroactive royalties

1% increase after threshold is passed for sales that occur after that point and is applied to sales going back to the beginning.

controlled compositions

any song written by the recording artist. Some deals pay lower for controlled comps

License deal

Artist, producer, or production company owns masters and licenses them to a label for a specific length of time