Join Richard Stim for an in-depth discussion in this video Marketing provisions, part of Music Law: Recording, Management, Rights, and Performance Contracts.
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- The main reason most artists sign with a label…is for the Marketing muscle.…Oddly, the label's marketing obligations…are hard to locate in most recording agreements.…Aside from an assurance that it will use reasonable efforts…or some some similarly vague statement…to manufacture, distribute and market the recordings,…the label rarely provides any straight-forward…marketing guarantees, financial or otherwise.…At best, a label may supply advances…for videos or tour support.…
For example, a record contract may include…a guaranteed advance for one video for each album,…the costs of which are often 50 percent recoupable.…Although videos are enormously popular,…YouTube is the number one source for music listening.…Historically, they have not earned money,…though this may be changing…as video hosting sites monetize plays.…Until there is substantial video revenue,…an artist will have to pay back…the advance from record sales.…
Even when a video is sold directly to consumers,…the record contract is likely to provide…for a reduced royalty rate, that is, a royalty rate lower…
For example, when it comes to record contracts, it's important to know how advances and royalties work, how to maintain creative control, and what happens when a member leaves a band. Rich also tackles management contracts, describing what managers can do for you—and what to do when you need to let them go. Next, he explores the basic terms, riders, and payment options in performance contracts. Then learn about releases, artwork permissions, publishing and producer agreements, and other types of legal arrangements. Rich wraps up the course with a discussion of oral agreements, attorney fees and roles, and five basic rules worth remembering for every music contract.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Why bother with a contract?
- Understanding terms, options, royalties, and deductions
- Making provisions for marketing
- Including warranties and indemnity clauses
- Hiring a manager
- Understanding performance contracts
- Getting permission to use samples
- Creating a band partnership
- Record keeping
- Going through mediation or arbitration