Rock Stars vs. the Suits”
The modern history of popular music is rife with stories of multi-platinum artists going broke. There are many reasons why. In many cases, the musician being a creative is dependent on real or perceived experts to help them manage their income and more importantly save and invest wisely. Having been employed in the music industry for six years, more times than I can count an artist claimed their artistry is what matters, not money or saving. In a way I strongly agree with that point of view, money is not a ticket to happiness or success. Success is personal. For one person to say, success is selling a million records another may say it is touring the world. In either instance notice success is not about a profitable tour or making “x” percent of record sales. Therefore, this writer’s appreciation for art and artists is at a high level.
To simply believe as an artist, one is supposed to think ill of “wall street types” or “suits” is naïve at best. Being blessed to have a strong creative mind, share it with others AND make a comfortable living is a beautiful thing. An “us versus them” mentality is a sure way to be taken advantage of. The history of popular music is a modern history, less than 100 years old. In that short time, we have an extensive list of mega selling artists reaching the perceived heights of celebrity to have it all crash around them. In this writer’s opinion there are two main causes:
The talent allowing people in their inner circle who take advantage of their trust. In these cases, it is difficult to assess who will work for you, not against you for selfish, even criminal purposes. I recall being told a story (by the guitar player) about a fairly successful hard rock band in the mid 80’s who experienced a terrible crime by a friend who became a business associate. Over a few years he embezzled large sums of money out of the country (and left the country), and got away with it. A sad tale. Anyone reasonably may claim, “see, it’s those corporate pukes stealing from us”. Not so fast. We are all responsible to check people continuously to make certain they are acting in our best interest. In no way is this something to take lightly. If others you entrust are paying your bills and representing you or your brand in anyway, it’s vitally important to know what they are up to. NEVER accept an answer similar to, “I got it handled, it’s nothing you need to concern yourself with”. It may be an honorable answer, however taking time to simply remember, this person works FOR you, not WITH you. You are the boss.
One may say, “see they are bunch of takers, liars and thieves”. That may be true however; reflect on the first sentence again in the last paragraph, many of us artistic people (musicians, painters, writers, the list goes on), “allow” these people into their circle. If someone makes claims they are the “be all” and can make your bank account swell to proportions of biblical flood stories, run, run fast in the opposite direction!
Be vigilant about knowing who is in your inner circle and equally important who they work with on your behalf.
The second common cause is a bad record and/or publishing deal. Again, we go back to art vs. money conversation. One may think, if I don’t sign with Gargantua Global Records, I’m doomed. What do Madonna, The Beatles and Ed Sheeran all have in common (other than global success), they were all rejected by record labels. Just because an A+R executive raves about your look, or your arrangement of a popular song or your originality, it doesn’t mean you will get a record deal. There may be multiple clauses in a production deal or a record deal taking some or all of an artist’s publishing (amongst other potential revenue generators). If a contract requires an artist give up their publishing rights, it is this writer’s belief it will not be a wise decision. Of course, the producer, record exec, A+R person will likely say that for all they are doing for you, it is a fair contractual request. Once publishing is signed away partially or wholly, one’s ability to make a living as an artist is now dependent on performance and merchandise. Unless you are 100% certain you are going to sell out concert halls or become a brand aside from music, the likelihood long term income without publishing is a major gamble.
The advent of websites, streaming audio and digital music sales has made a profound impact on the traditional record label business. It is important to consider, just because the delivery of music has changed does not mean the contract is going to be better for you. It does mean there are newer ways for someone to take from you what is naturally yours (e.g. publishing rights) without an explanation. Again, run and run fast if someone claims this is a “standard deal”. What does that mean?! A standard deal, sounds like a line from a snake oil salesman from the Victorian era.
“My song is on the Radio and I’m Still Broke”
Music is central to our lives. It is a rare day we don’t hear music piped through speakers in a store, an office or in the car. Imagine films without a soundtrack, it may not be noticed immediately but likely one would sense something amiss. Most of us have a playlist on our computers, phones or we stream curated channels from one of the many streaming music services. It can lift our moods, remind us of good times, sad memories and is a source of bonding with people we may not think we have any interests in common. The point is music is everywhere, ubiquitous.
It is fair to say if music means so much to us, a songwriter is allowed to not only earn a proper living from their artistry, he or she is entitled to protect it. One of the best books I read in college, “All You Need to Know About the Music Industry” by Don Passman is an excellent primer for anyone in the music industry, creatives, technicians and record label staff. The chapter about publishing, starts bluntly, “publishing is the cash cow of the music industry”. Hefty claim yet true. Performers don’t necessarily own the song they play let alone have the right to profit without the publishing owner making a profit as well. Note the distinction, “owner” of the publishing rights. Modern popular music is rife with tales of songwriters being persuaded to relinquish some or all of their publishing rights for a record deal or some other incentive.
Song rights owners (there might be multiple songwriters credited) collect royalties in two “pies” (think pie chart, divided by percentage of ownership) one for sales of the recording: physical album sales (vinyl, CDs, and cassettes), digital downloads, ringtones and streaming services as well as negotiating use of songs for soundtracks. These rights are known as mechanical rights. Licensing and royalties are tracked through a licensing agent, for example Harry Fox Agency.
The other royalty “pie” is performance rights. There are multiple organizations throughout the world. In the United States, there are two prominent players, ASCAP and BMI. The royalty schedule is much more complex. Under the performance royalty “banner” includes live performance (by another performer), radio, television, streaming, the list goes on. For a better understanding of the royalty rates for performance consult with an attorney specializing in performing rights or contact one of the performing rights organizations directly. Their websites are brimming with information for your benefit.
As a former music industry professional and music lover, I have met many talented musicians. On Occasion I inquire if they license their music, the answer surprisingly too often is “I haven’t done that yet”, “I’m thinking about doing it”, or “I don’t have a record deal yet” is understandable. If you are a songwriter it is a necessity to educate yourself about publishing. Think of songwriting and publishing like peanut butter and jelly, they just go together.
