Making Your Own Music-Master License

Master License

Master License

When making your own music, master recordings are licensed out for motion pictures, television, shows, and even commercials. Record labels have historically credited the artist's accounts with about %50 of all the net profit receipts. Over the years, all the major labels have found a way to squeeze every penny from the film industry and put together complication records. To make these records in the music industry their is a fee of around %15 to %25 of the receipts, which comes off the top before it is distributed to the artist.

Complications

Anytime you record with other artists, this is called coupling. When you produce an album with various artists is called complications. This is a great way to generate big money profits off the album sales. This practice has been around for years.

Royalties

Royalties

Say there are ten songs on an album with complication, and you do one song out of ten on the album, you will get one-tenth of the royalties. This royalty is referred to as pro-rata. This just means you get a small portion of the royalty from the complication album.

Control

When you make your own music, control is a major factor. You never want to record with someone you don't really like. Again the control of your bargaining power in every facet depends on your status. There are three. New artist, mid level, and superstar. Once you get to a high level of mid level you have more bargaining power and control. I will get more in depth about masters licensing in the next post.

Music Making Software

Home Recording Software

Here is a great music recording software that has a great value for what it can do. You can record right at home!

Music Industry-New Technologies Part 2

Music Distributed Through Technology

Music Distribution

Here are more ways that the music is distributed to listeners. In the music industry their are several ways that you as a listener have access to music. Ring tones and ring backs are songs that play when your cell phone is busy. Instead of hearing a busy signal, you will hear a song. These songs are done in two different ways. One way is polyphonic, which is played by a synthesizer. Master tone is the actual master recording by the artist .A tone made polyphonic only the songwriter gets paid. A master tone the artists gets paid. Webcasting is another way. It means anything streamed on the internet. This is done by a subscription. Satellite radio like XM and Sirius are the big ones in satellite. You will have to listen to what ever they play. Each channel is a specific genere or artist. The band AC DC has there own channel. Podcasting is another way. It is a download program for interviews of artists and some songs, but limited. Si as an artist, you ask, what do you get paid for these electronic transmissions? When making your own music, it depends on your contract. If your royalty is %15 and $100 is made, you will get $15. For iTunes you will make pennies on the dollar for each download. Audio and video streaming are three ways you can get paid. Percentage of advertising, subscription fees, or advances for you being on audio or video streaming. Webcasting is collected by a company called Sound Exchange. A portion goes to the label and a portion goes directly to the artist. Podcasts are still a bit new however, you get a percentage of revenue.

Here is some great music creation software:

Home Recording Software

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

Music Industry-New Technologies

New Technologies And Electronic Transmissions

In the music industry, the next generation of the music being delivered will be electronically. This means that digital music will be sped over a wire, satellite, Wi-Fi, or some other service that has not yet been discovered yet. When making your own music, it is being put out there in several ways like listening on demand, burn in into a CD, captured it on your computer, or iPod. To all the record companies and labels, anything that isn't a CD is what is called an electronic transmission. This term is a music industry term for digital delivery and much more. In a contract the language will go a bit like this: "Any transmission to a consumer, whether sound alone or with other data, by and means now known or hereafter discovered, whether on demand or not, and whether or not a charge is made for the transmission." Includes radio, TV, and film.

New Technology Royalties

Tethered downloads. This means that the record company doesn't give you the consumer complete control over the download. You can downloads onto the computer, but can't copy it onto a CD. Or you can make a few copies, no more than three. They are encoded. Or you can play for a month and it self destructs. Services like Yahoo and Napster have subscriptions. As long as you pay monthly, you can listen to the songs you download. Untethered downloads means you can copy it, burn it, or do anything you wish with it. Next post, I will continue to list the new tech royalties.

Here is a home recording software for make music beats.

Making Your Own Music-Royalties U.S. Sales

Royalties For United States Sales

Today I will discuss first with your record sales in the United States. Here are the royalty breakdown when making your own music:

1. A CD sold in the United States;
2. At full price, wholesale price(PPD);
3. Anything through retail channels (record stores);
4. Company's normal distribution channels like wholesale distributor

Sales are complied 1 through 4 are know as United States Normal Retail Sales (USNRC). The royalty rate for these sales is usually defined in record deals as something like the U. S. basic rate.

Foreign Royalties

In the music industry, the royalties for sales outside the United States varies widely from company to company, and artist to artist. Companies usually gives a higher rate in territories where they have an ownership with the distributor. Canada has evolved into %85 of the United States rate with most companies. So if the U.S. rate is %10, an %85 rate means you get %8.5 for normal retail sales in Canada.

*Here are some recommended recording equipment:

Alesis iMultiMix 8USB

Tascam DP-02 Digital Portastudio - 8 Track

Audio-Technica AT2020 USB Condenser USB Microphone

Want to make music beats?

Home Recording Software

Making Your Own Music-Distributing Methods!

Distributing Methods

When making your own music and recording, I will discuss more about distribution. Distribution is the same whether it is rock music or if you make music beats as a DJ. All digital records are sold electronically. The major business is downloads of full masters on the internet like iTunes, thirty second song samples through cell phones like ring tones, and internet streaming. In the near future sales will be made with full length masters through cell phones. Even though digital sales is a bug buzz it is still only about %10 of total sales. So %90 is still CD's. Here is how records are distributed:

Wholesale Distribution

Record wholesalers are the major way of distribution. They buy from the manufacturing company and sell to retail stores. There are major and independent distributors.  One stops is a term that means records are purchased from major distributors and sold to mom and pop record stores. They buy in bulk and then add a markup to make a profit. Rackers are people that leave floor space from department stores like Wal-Mart and Target. Licensees distribute records. They sign a license agreement with the record company and manufacture and distribute the records.

Make Music Software

Here are a few great music making software where you can record from home:

Music Maker 17

Sony Creative Software ACID Music Studio 8.0 - 2011

Cakewalk Music Creator 5 Software

Dub Turbo

Sonic Pro

Making Your Own Music-Audit Rights!

Audit Rights With Your Record Label

This is very important to know as a recording artist. After your accounting clause in your contract, should be an audit clause that immediately follows. This means you have the right to send an accountant to verify every penny brought in by the record label on your behalf. In the music industry, I can not stress how vital this clause is. This is a way of assuring that you're getting a fair reporting of all the reporting money going in and out of your band. Make sure that you have this, because most artists get shafted and can lose on profits and take a hit on your royalties if you don't. If this clause is not in your contract, the label will take advantage of you and will nickel and dime you. Keep in mind that this is not free to do. This will cost you money to have an audit. Make sure that you require quarterly reports and file them for your own records. An audit cost can run $25,000 to $50,000. When making your own music, most of the record labels have a built in right to audit. Ask anyways. You can only audit once a year.

Recommended Recording Equipment:

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

Sony Creative Software ACID Music Studio 8.0 - 2011

Acoustica Mixcraft 5 Audio MIDI Music Recording Software V 5

Dub Turbo

Making Your Own Music And Special Packaging Costs

Special Packaging Costs

Most of the record companies believe that inner sleeves an special inserts add a little more album sales in the music industry. Since vinyl has gone, special inserts have become a non issue. CD's still have inserts. Say, you write thank yous for your parents, etc, this is a added page. You have to negotiate for extra panels for your CD. If you are at the superstar level, you can get more pages. If you are not at the superstar level and want extra pages, this provision will reduce your royalty by 5 to 10 cents per unit. Just be aware of this and save your money. Are special insert really needed? It's about the music anyway.

Here are some bargain recommended recording products:

Pro Tools Make Music Now Recording Studio


Tascam DP-02 Digital Portastudio - 8 Track


*Dub Turbo