CD, TAPES AND RECORD SALES
A major source of income for many songwriters and music publishers are the mechanical royalties due from the sale of CDs, tapes, records, and downloads containing musical compositions.
Under the U.S. mechanical rate (known as the statutory rate) in effect in 2002-03 (8¢ per song, but see the next page for further explanation) a million-selling single would be worth a total of $80,000 in combined royalties to the publisher and writer.
For an album, the above royalties would be multiplied by the number of songs on the album. For example, if 10 songs were included on an album and each received an 8¢ royalty, a total of 80¢ in mechanical royalties would be generated from the sale of each album. Thus, if the album sells between 1,000,000 and 10,000,000 copies, the combined writer and publisher royalties for the album would range from $800,000 to $8,000,000. Mechanical royalties are paid by the record company to the music publisher or its representative (frequently The Harry Fox Agency), who then shares them with the writer. Simple, right? Wrong... (better read on!)
Next: Controlled Composition Clauses
Copyright © 2002 by Todd Brabec, Jeffrey Brabec. All Rights Reserved. Note: The figures and comments contained in this article are based upon the authors' experiences over the years with many specific situations. Ranges of fees, as well as comments, do vary based upon individual negotiations and situations. |
