Sunday, September 18, 2011 • BeatsBySwiss.com
This is really important because a lot of people don't know the difference between Royalties from Sales and Mechanical Royalties so i thought this might help you too.
What up this is Swiss Boy
My last email was about Royalties from Sales. In this one you will learn about Mechanical Royalties and Licenses. This is really important because a lot of people don't know the difference between Royalties from Sales and Mechanical Royalties so I thought this might help you too.
Mechanical licenses are the rights granted by the copyright owner or publisher to reproduce songs for public distribution. Money paid by record companies to manufacture and sell records is called mechanical royalties. Mechanical royalties are paid to the publisher who pays the songwriter accordingly. Mechanical royalties are typically determined by multiplying the mechanical rate by the number of tracks on each record or CD that is sold.
Mechanical royalty payments are typically not reliant on the record label recouping their expenses from recording, producing or marketing the record like royalties from sales.
Compulsory Mechanical Licenses were introduced as part of the Copyright Act of 1909 and allow anyone to reproduce a previously recorded work as long the copyright holder is notified, provided monthly royalty statements and paid the royalty rate set by law, called a statutory rate or stat rate. What this means is that you can record a cover version of a song without explicit permission of the copyright holder as long as the song has already been recorded and distributed, you don't substantially change the song's lyrics or music, and you comply with the licensing and reporting requirements. As of January 1, 2006 the statutory rate is 9.10 cents for a composition five minutes or less in length, or 1.75 cents per minute, rounded up, for songs over 5 minutes, per copy.
Record companies often negotiate down mechanical royalties from the statutory rate, for example, 75% of statutory rate.
A record with 12 tracks on it and a negotiated mechanical rate of 75% of stat ($.0.06825) that sells 50,000 copies would generate $ 40,950 in mechanical royalties (12 tracks X $.06825 X 50,000 sold copies) that the record company would pay to the publisher.
The Harry Fox Agency is the primary mechanical rights administration organization in the United States that issues mechanical licenses, collect royalties, and provide reporting for almost 35,000 music publishers. They are paid a percentage of gross royalties collected for their services.
More information about the music business coming soon!
To buy Industry quality beats visit http://beatsbyswiss.com
A LOT OF BEATS WITH HOOKS ARE AVAILABLE ON THE PAGE SO IF YOU DON'T DO YOUR OWN HOOKS OR YOU LIKE TO HAVE A DIFFERENTE TYPE OF HOOKS FROM WHAT YOU USUALLY USE GET THEM FROM http://beatsbyswiss.com
Thanks for your support. - Swiss Boy
Tuesday, January 11, 2011 • BeatsBySwiss.com
Distributors are responsible for selling, positioning and marketing a record label's or artist's music with any outlet where music fans buy music including traditional retailers, online download services, online subscription based services, ringtone providers and mobile downloads.
Distributors are responsible for selling, positioning and marketing a record label's or artist's music with any outlet where music fans buy music including traditional retailers, online download services, online subscription based services, ringtone providers and mobile downloads. Most major music outlets, traditional and online, won't deal directly with record labels or artists and order exclusively through distributors. Distributors range in size from those owned by the big 4 record labels to independents to those that only distribute to online outlets. They typically charge the labels they distribute a percentage of price the retailers pay, 20% for example.
Inventory and billing management are keys to a distributor's success since retailers can return unsold inventory they purchase at any time. It is not uncommon for a retailer to return an order to the distributor prior to their invoice coming due then turnaround and place the same order they just returned. Since the distributor must accept any and all returns from retailers they typically require exclusive distribution agreements with the record labels they distribute. Retailers also typically want to deal with only one distributor on a CD release so they know who to order from and where send returns to as needed. Distributors must manage their inventory levels to make sure they can fulfill orders from retailers but not have too much inventory in stock that's not selling. They must coordinate shipments to and from both record labels and retailers. Many times distributors will also coordinate the manufacturing of the CD's for their labels since they can often times get better pricing due to the volume of CD's they can produce.
Retail Sales & Marketing
Distributors have sales people who call buyers at the retailers and get them to order inventory of their labels CD's and stock them in their stores. Retailers will often tie the amount of inventory they order to the amount of money the distributor is willing to pay in marketing programs and advertising with them. These marketing programs include special product placement within the retailer's stores, listening posts, giveaways and promotions, and often include print and online advertising. Distributors have a staff to coordinate the retail marketing programs with their labels, agree to marketing budgets, get ad artwork and send retailers the artist one sheet summaries of the release and promotional CD's to the buyers at the retailers. The costs of these marketing programs are charged back to the record labels and usually become a recoupable expense against the artist's royalties from sales .
Distributors must keep up with the constantly growing options for digital music and make sure their content is appropriately licensed and distributed by the wide array of digital music outlets available to music fans. Distributors who sell music through digital retailers and mobile providers must build and maintain an accurate database of each track and its related metadata (artist, album, track name, art, publisher and related information.) and create an ISRC code for each track in their catalog. The tracks and metadata must then be formatted to meet the format standards for each digital retailer and mobile provider before transmitting a file to them since there is not an industry standard that has been developed. Many distributors have developed web-based tools that allow each record label they distribute to upload their catalog and new releases directly to the distributor's database.
Today there are a growing number of companies who have bypassed the traditional retailers and focus all their efforts on digital distribution like the IODA Alliance.
CONTENT PROVIDED BY SWISS BOY @ BEATSBYSWISS.COM
For more articles,tips & more go to: