HOME VIDEO
Since the VCR market has become enormous throughout the world, the sale of videos represents a significant source of revenue for the music publisher and songwriter. Home-video licensing is normally handled in one of three ways:
1. In the per-video royalty approach, the royalty paid is based on a set rate (usually from 8¢ to 15¢ per song) for each video sold. For example, if 100,000 cassettes are sold and a particular song has a 10¢ royalty, the payment will be $10,000.
2. Most video distributors demand that publishers accept a one-time buy-out fee for all video rights, regardless of how many videos might be sold (a fact of life in today's movie and TV-series episode market which must be faced and negotiated accordingly).
3. Under the roll-over advance formula, the producer or video distributor pays a certain advance for a specified number of videos, with additional predetermined sums paid as certain sales plateaus are achieved (for example, $8,000 for the first 100,000 units and an additional $8,000 for each additional 100,000 units sold).
Next: Commercials
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. |
