Broadway Musicals

One of the most lucrative markets for a song can be its use in a Broadway show, since, if the play is a hit, the income from live theatrical performances, soundtrack albums, singles, film rights, touring productions, home video, sheet music, and stock and amateur production rights can mean hundreds of thousands of dollars to the songwriter and publisher. Perennials like Cats, A Chorus Line, West Side Story, and Phantom of the Opera have generated huge revenues over the years. On the other hand, considering that the vast majority of musicals presented on Broadway lose most if not all of the money invested and that getting a song into a Broadway play is extremely difficult, this is an area with which most writers and publishers, unless they're involved with songs actually created for the play, will have little or no contact.

Combined music and lyric royalties for the Broadway run and first-class national touring productions usually range between a 3% pre-recoupment of costs royalty and a 4% post-recoupment pro-rated share of the box-office receipts if a percentage royalty is negotiated (which can mean from $200,000 to more than $10 million per year for all songs in a hit show) or a fixed dollar amount per week (from $250 to $1,000, regardless of the success of the musical) if a non-percentage royalty is agreed to. Another common formula being used on Broadway is the royalty pool arrangement where all royalty participants (for example, music and lyric writers, director, choreographer, etc.) share in a certain percentage of the weekly income from the musical.

© 2007 Todd Brabec, Jeff Brabec
For more information, check out the book Music, Money and Success: The Insider's Guide To Making Money In The Music Business (Schirmer Trade Books/Music Sales/502 pages) available for sale at Amazon.com, Barnes & Noble, Borders, Music Sales Group and www.musicandmoney.com.


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