The deal came with another royalty production clause called Net Receipts, which I eventually maintained, including the Sound Exhange royalties. I basically have the compensation upgrade as a recoverable advance, which goes against points on the album or EP, based on the “Net Receipts” model and not the traditional SRLP model. Basically, the artist would keep books and records sales from his online distributor like TuneCore or Distrokid, and they repaid the money they paid me, and then they start paying me a record license fee from their distributor. I check artists` books based on written references to accuracy, etc. The production agreement includes either master quality recordings or demos. The advantage of finite masters is that they can be licensed to record companies on a territorial basis – or that the artist`s project can be sold directly. The producer could show up at an international trade show, album in hand, and get away with a series of licensing deals for important international markets. Under the production agreement, the recording fee is usually reimbursed on the artist`s license fee (as in a traditional hosting contract), but the royalties tend to be lower than those of an admission contract. The production company usually shares the 50:50 net profit with the artist. For example, if a major label pays a 20% royalty to the production company, the company and the artist are entitled to a 10% royalty.
Under a standard admission agreement, the 20% artist license fee, on the other hand, can be subject to a 4 percent reduction in producer license fees, so the artist has a more respectable 16 percent. A production agreement therefore allows the producer to increase his salary by 6% and apply this royalty to a greater number of sources of income than is the case in a standard production agreement. For example, a production agreement often covers part of the secondary exploitation rights (sync, audiovisual, interactive, compilation albums, etc.) as well as the publication rights for which the production company is linked to a publishing house. There are many other important clauses in a music producer agreement, but this is a good start. As always, don`t hesitate to ask us any questions. My door is always open. Lucy sounds reasonable, but we always have to consider the level of the producer (and your level of artist), the price paid per song, etc. But if you can deduct all your expenses in net`s calculation, it seems reasonable. When an artist is under contract with a production company, the duration of the contract can be measured by the time or delivery of a minimum number of recordings or both (for example. B a five-album contract that lasts no more than eight years). The production company is not obliged to publish the five albums.
Normally, they commit to an album, with the option to continue the deal, based on the success of a previous release. There should only be one group of “masters”. No recording and production masters. This sounds confusing and does not meet industry standards. Unless the producer created the beats and wants to use them with other artists – maybe that`s what he`s referring to. I think I`m going to need more information to give you the right advice Amber I think more and more producers are asking for a percentage of SoundExchange revenue for the songs they produce. The same applies to other so-called “direct” or “flat-rate” uses of masters (film/TV placements, etc.). This mainly reflects the modern realities of the music business, as the “points” are no longer worth what they used to be.