I've spent the last several years diving deep into the world of music licensing, and I've seen firsthand how it can transform a musician's career. But today, I want to talk about a different side of the music industry that often gets overlooked. While music streaming platforms like Spotify, Apple Music, and Amazon Music have revolutionized how we consume music, they have also created significant challenges for independent artists. The reality is, music streaming is killing independent artists, and it’s time we face this ugly truth.

The Rise of Music Streaming
Streaming services have taken over the music industry, with platforms like Spotify leading the charge. These platforms offer millions of songs for a nominal monthly fee, making music more accessible than ever. For listeners, this is a dream come true. But for the artists creating this music, it's a different story. The convenience and accessibility of streaming come at a high cost for those trying to make a living from their art.

The Harsh Reality of Streaming Royalties
Let's talk numbers. Spotify pays out approximately $0.003 to $0.005 per stream. To put this into perspective, an artist needs around 250,000 streams just to make $1,000. Even more alarming, it would take roughly 314,167 streams per month for an artist to earn the US federal minimum wage of $1,256.67. For independent artists who don’t have the marketing muscle of major labels, reaching these numbers is often a pipe dream. They find themselves working tirelessly to create and promote their music, only to see minimal financial return. This model is not just unsustainable; it’s exploitative.

Case Studies

Zoe Keating
Zoe Keating is a cellist and composer who has been very transparent about her streaming income. She has shared her earnings from various platforms to highlight the financial struggles that artists face.

Streaming Revenue Breakdown
Keating disclosed that from over 1.5 million streams on Spotify, she earned approximately $12,000. Let's break down the math. Spotify pays between $0.003 and $0.005 per stream. At an average payout of $0.004 per stream, 1.5 million streams would generate around $6,000. However, streaming payouts can vary due to several factors including the listener’s country, the type of account (premium vs. free), and the specific deal an artist has with their distributor or label. When you combine earnings from other platforms like Apple Music and Amazon Music, her total income from 1.5 million streams summed up to around $12,000.

The Financial Reality
Production costs for professional recording, mixing, and mastering can run into thousands of dollars per album. Marketing, PR campaigns, and music videos add significant expenses. For many artists, music is their full-time job, and $12,000 a year from streaming alone is far from sufficient to cover basic living expenses.

Penny and Sparrow
Penny and Sparrow is an American folk band that has shared insights into their financial struggles despite achieving streaming success.

Streaming Revenue Breakdown 
While exact figures for Penny and Sparrow's streaming earnings are not publicly detailed, let’s consider a hypothetical scenario. Suppose the band accumulates 5 million streams in a year. Using the average Spotify payout of $0.004 per stream, 5 million streams would generate around $20,000. This is a gross figure before accounting for any distribution cuts or additional fees. Despite millions of streams, their net income from streaming is insufficient to sustain their careers without supplementary income.

The Financial Reality
Bands often split revenue among multiple members, meaning $20,000 divided among, say, two members equals $10,000 each, which is even less sustainable. Touring, merchandise production, equipment maintenance, and other operational costs further diminish the take-home pay.

Broader Context
Both Zoe Keating and Penny and Sparrow's experiences reflect a broader issue within the music industry: the disconnect between streaming success and financial viability for independent artists. The low per-stream payouts are insufficient to cover the high costs associated with producing and promoting music, let alone providing a sustainable income.

The Unsustainable Model
The current streaming model is unsustainable for most independent artists. It heavily favors major label artists who can accumulate millions of streams and have the financial backing to survive on thin margins. Independent artists, on the other hand, find themselves trapped in a cycle of producing more content for less pay. This model not only undermines the value of music but also discourages creativity and diversity in the industry.

The Need for Fair Compensation
It’s clear that the music industry needs a major overhaul. Streaming platforms must implement fairer compensation models that ensure artists are paid adequately for their work. One potential solution is to adopt a user-centric payment system, where subscription fees are distributed based on the actual listening habits of users, rather than the current pro-rata model. Under the current pro-rata model, all subscription fees are pooled together and then divided based on the total number of streams. This means that a small number of superstars dominate the revenue, while the vast majority of artists receive only crumbs. A user-centric model would allocate a subscriber's fee directly to the artists they listen to, providing a more equitable distribution of revenue.

The Role of Fans and Artists
As musicians and music lovers, we have the power to demand change. Support artists by purchasing their music directly, attending live shows, and advocating for fairer streaming practices. Platforms like Bandcamp allow fans to buy music directly from artists, ensuring they receive a fair share of the revenue.

For independent artists, exploring alternative revenue streams is crucial. Diversifying your income sources can significantly reduce your reliance on streaming revenue and help you build a more sustainable career. One of the most effective ways to achieve this is through music licensing. Licensing your music for TV, film, and commercials can provide a steady and lucrative income stream. Unlike the unpredictable and often minimal earnings from streaming, licensing deals typically offer upfront payments and royalties that can add up over time.

Why Music Licensing is a Great Way to Make Money
Music licensing opens up a world of opportunities. It not only provides a direct revenue stream but also boosts your exposure by placing your music in various media formats that reach diverse audiences. The financial benefits of licensing are compelling—whether it's a sync deal for a TV show, a commercial jingle, or background music for a film, each placement can bring significant earnings. Moreover, licensing deals often come with royalties that continue to pay out long after the initial deal is made.

By tapping into music licensing, you can create multiple revenue streams that offer more stability and predictability than streaming alone. This approach not only enhances your financial health but also allows you to focus more on your creative pursuits without constantly worrying about your next paycheck.

Conclusion
The convenience of music streaming comes at a high cost for independent artists. It’s time we acknowledge the ugly truth and work towards a fairer system that supports the creators we love. If you’re an artist struggling with the realities of streaming, there’s hope. Explore other avenues like music licensing to ensure you get the compensation you deserve.

Navigating the music licensing landscape can be daunting for songwriters and composers. With various contracts and agreements to consider, it's essential to understand what each one entails and how it can impact your career. This guide breaks down the key types of contracts you'll encounter in the music licensing business, helping you make informed decisions and protect your creative work.

1. Synchronization License Agreement

Overview: A Synchronization License Agreement grants a licensee (e.g., a film producer or TV network) the right to synchronize a piece of music with visual media.

Key Points:

• Non-exclusive, non-transferable license.
• Covers use in film, TV, commercials, video games, internet, and streaming.
• Typically includes a one-time fee for the duration of the project’s distribution.
• 
  
  

Use Case: When your music is used as a soundtrack for a movie scene.

2. Master Use License Agreement

Overview: This agreement allows the licensee to use a specific sound recording (master) in synchronization with visual media. It often works alongside a synchronization license.

Key Points:

• Non-exclusive, non-transferable license.
• Covers specific sound recordings.
• Includes a one-time fee for the duration of the project’s distribution.
  
  

Use Case: When a specific recording of your song is used in a TV commercial.

3. Composer Agreement

Overview: This contract is between a composer and a production company, where the composer is hired to create original music for a specific project.

Key Points:

• Original music creation for a project.
• Specifies delivery deadlines and music specifications.
• Includes a work-for-hire provision, transferring all rights to the production company.
  
  

Use Case: When you’re commissioned to score a film or a video game.

4. Music Supervisor Agreement

Overview: This agreement outlines the terms and conditions under which a music supervisor is hired to select and secure music for a production.

Key Points:

• Responsibilities include selecting and securing music rights.
• Involves negotiating fees and obtaining necessary licenses.
• Typically includes a service fee and expense reimbursement.
  
  

Use Case: When a production company hires you to oversee all music-related aspects of a project.

5. Administration Agreement

Overview: This contract is between a music publisher and a songwriter or composer, where the publisher administers the licensing of the compositions, often including sync licensing.

Key Points:

• Publisher administers and licenses compositions.
• Split of income between publisher and songwriter.
• Retains songwriter’s ownership of compositions.
  
  

Use Case: When you want a publisher to handle the administrative side of licensing your music.

6. Co-Publishing Agreement

Overview: Similar to an administration agreement, but the publisher and the songwriter/composer share ownership of the compositions.

Key Points:

• Shared ownership between publisher and songwriter.
• Publisher administers and licenses compositions.
• Split of income and ownership details specified.
  
  

Use Case: When you want to share both ownership and income with a publisher.

7. Library Music License Agreement

Overview: This contract is used when a production company licenses music from a music library, which houses pre-cleared tracks ready for sync licensing.

Key Points:

• Non-exclusive license for pre-cleared music.
• Covers use in various media.
• Typically involves a one-time fee.
  
  

Use Case: When your pre-cleared tracks are licensed from a music library for a documentary.

8. Exclusive Songwriter Agreement

Overview: This contract is between a songwriter and a publisher, where the songwriter grants the publisher exclusive rights to administer and license their compositions, including for sync.

Key Points:

• Exclusive administration and licensing rights.
• Publisher collects all income and pays a share to the songwriter.
• Songwriter retains ownership of compositions.
  
  

Use Case: When you want a single publisher to exclusively manage all licensing and income collection for your music.

9. Work-for-Hire Agreement

Overview: This agreement is used when a composer or songwriter is hired to create music for a project, and all rights to the music are transferred to the hiring party.

Key Points:

• All rights to the created music are transferred.
• Includes specifications and deadlines for music delivery.
• Typically involves a flat fee for services rendered.
  
  

Use Case: When you’re hired to create custom music for an advertisement and transfer all rights to the client.

10. Music Clearance Agreement

Overview: This agreement is used when a production company hires a music clearance specialist to secure the necessary rights for all music used in a project.

Key Points:

• Specialist secures synchronization and master use licenses.
• Specialist negotiates fees and terms with rights holders.
• Includes a service fee and expense reimbursement.
  
  

Use Case: When a production company hires you to handle all music clearance tasks for a feature film.

11. Sub-Publishing Agreement

Overview: This contract is between two publishers where one publisher (the sub-publisher) is given the rights to represent and license the music in a specific territory.

Key Points:

• Exclusive rights to represent and license in a specified territory.
• Split of income between publisher and sub-publisher.
• Involves performance royalties and administration.
  
  

Use Case: When you collaborate with a foreign publisher to license your music in international markets.

12. Exclusive Publishing Agreement

Overview: This agreement is between a songwriter/composer and a publisher, where the publisher gets exclusive rights to administer and license the compositions in perpetuity.

Key Points:

• Exclusive administration and licensing rights.
• Publisher collects all income and pays a share to the songwriter.
• Term is in perpetuity.
  
  

Use Case: When you want a publisher to manage all licensing and income collection for your music indefinitely.

13. Non-Exclusive Publishing Agreement

Overview: This agreement is between a songwriter/composer and a publisher, where the publisher gets non-exclusive rights to administer and license the compositions.

Key Points:

• Non-exclusive administration and licensing rights.
• Split of income between publisher and songwriter.
• Songwriter retains ownership and can license compositions to others.
  
  

Use Case: When you want flexibility to work with multiple publishers while retaining ownership of your music.

Conclusion

Understanding these contracts is crucial for songwriters and composers entering the music licensing business. Each agreement serves a specific purpose and comes with its own set of terms and conditions. By familiarizing yourself with these contracts, you can better protect your work, maximize your income, and navigate the complexities of the music licensing industry.

For those looking to simplify this process, we offer a comprehensive bundle of all these sample contracts, plus four more, tailored specifically for songwriters and composers.

Ensure you're prepared and protected with the right legal agreements for your music licensing endeavors.  Save 75% on the full cost of "Ultimate Music Licensing Contract Bundle" until Sunday only.

Learn more here.

In the not-so-distant past, marketing music involved printing flyers, making countless phone calls, and hoping your demo tape didn't get lost in the mail.

Fast forward to today, and the landscape has dramatically changed. Enter AI—the not-so-secret weapon that can help musicians market their music more effectively than ever before.

Let's dive into the world of AI and how it can be your best bandmate in the quest for musical success.

The AI Revolution in Music Marketing
Artificial Intelligence (AI) has revolutionized various industries, and music marketing is no exception. From analyzing data to predicting trends, AI offers tools that can make marketing more efficient and targeted. But let's be real—AI won't write your next hit song (yet), but it can help ensure more people hear it.

Here’s how:

Personalized Marketing Campaigns
AI excels at analyzing data and identifying patterns. For musicians, this means AI can help create personalized marketing campaigns tailored to specific audiences. Platforms like Spotify and Apple Music use AI to recommend music to users based on their listening habits. As an artist, you can tap into these platforms' advertising tools to reach listeners who are most likely to enjoy your music.

Pro Tip: Use AI-powered tools like ToneDen Music to create targeted ads that resonate with your audience.

Social Media Management
Managing social media can feel like a full-time job, but AI can help lighten the load. AI-powered social media management tools like Hootsuite and Buffer analyze engagement metrics to optimize posting times and content. They even suggest hashtags and trends to increase visibility.
Think of AI as your virtual band manager who doesn’t take a cut of your earnings and never complains about your late-night studio sessions.

Automated Content Creation
Ever feel like there aren't enough hours in the day to create all the content you need? AI can help with that too. Tools like Lumen5 and Promo.com can turn your music, photos, and text into engaging videos in minutes. These platforms use AI to match visuals with the mood and tempo of your music, making content creation faster and more efficient.

Audience Engagement
AI chatbots are becoming increasingly sophisticated and can be used to engage with your audience 24/7. Platforms like ManyChat and Chatfuel allow you to set up automated responses to common questions, freeing you up to focus on creating music. These bots can also collect valuable data on your fans, helping you understand their preferences and behaviors.

Music Analytics
Understanding your audience is crucial for effective marketing. AI-driven analytics tools like Chartmetric provide in-depth insights into who is listening to your music, where they are located, and how they are discovering your tracks. This data can inform your marketing strategies and help you make data-driven decisions.

Pro Tip: Use these insights to plan your next tour or to decide which cities to target with your ads.

AI Music Assistants
For those who want to take it a step further, AI music assistants like LANDR and eMastered can help with mastering your tracks, ensuring they sound professional. These tools use AI to analyze your music and apply the right adjustments to make it sound its best. A polished track is more likely to get picked up by playlists and radio stations, giving you a better shot at reaching a wider audience.

Predictive Analytics
Predictive analytics is like having a crystal ball for your music career. Tools like IBM Watson and Google AI can analyze trends and predict what types of music will be popular in the future. This can help you stay ahead of the curve and create music that resonates with future trends.

Conclusion
AI is not just a buzzword; it’s a powerful tool that can help musicians market their music more effectively. By leveraging AI for personalized marketing, social media management, automated content creation, audience engagement, music analytics, and predictive insights, you can take your music career to the next level.

So, whether you're an indie artist hustling to get your music heard or an established musician looking to streamline your marketing efforts, AI can be your new best friend. And remember, while AI can do a lot, it’s your creativity and passion that will truly set you apart.

I work with a lot of musicians, one on one, coaching them on how to successfully navigate sync licensing in 2024.  I love working with musicians, and by working with them one on one, I’m able to really give musicians very specific advice, tailored to their specific situations.

I’ve been helping musicians license their music in tv and films for 15 years now.  I’ve worked with a lot of musicians, from all over the world.  A lot of musicians I work with seem to have very similar challenges and similar obstacles, when it comes to figuring out how to successfully get started in sync licensing.

Paralysis By Analysis
One of the things I’ve noticed over the years, from working with so many different musicians, is that a lot of musicians seem to suffer from what I call “paralysis by analysis”.  Which is to say, a lot of musicians seem to have a pretty good overall idea of how the music licensing business works, but they’re often not quite sure how to get started and the exact steps to take. This is where I come in.

Whenever possible, I like to break things down to their simplest components.  Although there are a lot of micro steps involved in successfully licensing music, the overall process of getting your music licensed can be broken down into three main steps.  Whenever you’re not moving forward as fast as you’d like to, look at where you are in terms of the following three areas, in order to figure out what to do next.

Three Pillars Of Music Licensing
I’ve discussed this concept before, in previous blog posts and videos, but it’s good to review this concept from time to time. 

Music Licensing really isn’t that complicated.  There are essentially three different things you need to do, or three different “pillars”, as I call them, that you need to be aware of, when it comes to getting your music licensed.

They are:

1. The Music You Make
2. The Production Of Your Music
3. The Marketing Of Your Music

Let’s break each pillar down a bit more:

The music you make:   It obviously all starts with your music.  First and foremost, you need to have “great” marketable music.  This obviously is somewhat subjective and there’s an extremely wide range of music that gets licensed in tv and films, in terms of genres.  There’s a market for pretty much everything when it comes to sync licensing.

To see how wide of a range there is when it comes to sync licensing, start paying attention to the music used in the background of tv shows, ads, films and so on.  You’ll see that there’s a bit of everything that gets licensed.  It depends on the scene, the premise of the show or film, and the taste of the music supervisor selecting the music.  This is why it’s a little hard to teach people how to write for sync, it’s by no means an exact science.

There are of course, some types of songs that get used more frequently than others, in terms of both subject matter and genre, but it’s really all over the map and is very dependent on the specifics of the particular project licensing music. Which is why if you’re trying to write for sync licensing, it’s best to stick to themes that are universal (love, relationships, overcoming obstacles, etc).

The Production Of Your Music:   Music production is obviously a huge topic.  We have multiple courses in our premium site, from two hours to eight hours each, that dive into the nuances of music production in the context of music licensing.  But for the sake of this article, suffice it to say your music needs to be well produced. 

Once you have a catalog of around ten solid tracks or so (the more the better), your next step is to fully produce, mix and master them.  In the context of sync licensing, your tracks need to be fully produced and ready to be licensed.  Like with songwriting and composition, this isn’t an exact science either.  There are many different styles of music production and different producers have different production techniques and different approaches to music production.  But again, simply listen to the type of music that is being licensed, to get a sense for the production quality required to license music into various projects.

The Marketing Of Your Music:   This is where the rubber really meets the road.  Nothing will ever happen if you don’t get your music to the right people.  This seems to be where most artists I work with really get hung up.  Artists are often simply not sure where to start when it comes to getting their music into the hands of industry decision makers.

There isn’t really one right way to go about pitching your music and connecting with people in the industry.  But you do have to start somewhere.   This is an area I tend to help artists with the most. 

Here are a few things to consider before pitching your tracks blindly:

1. What kind of music do you make – Just as there are a lot of different styles of music that get licensed, there are a lot of different types of companies that license music.  There are production music libraries, music publishers, boutique licensing agencies that specialize in very specific genres and so on.  Be sure to do your due diligence when it comes to pitching your tracks.  Make sure you are pitching your tracks to relevant companies that actually work with the kind of music you make and license music in the types of projects you envision your music being licensed into, which leads to the next point…
   
   
2. Where do you see your music being licensed?  Where do you want to license your music?  Where do you actually envision your tracks being licensed?  What are your specific goals in the context of sync licensing?  There is an extremely wide variety of types of sync licensing placements.  From “blanket licensing” deals that pay as little as a few cents per stream, to music that is licensed in commercials that can make as much as 50k per placement. 
   
   It really pays to do your due diligence and actually know what market you are pursuing.  Are you making “production music” and trying to generate revenue by creating a lot of tracks, that collectively add up to a significant revenue stream?  Or are you aspiring to do something like “trailer music”, a niche within the music licensing niche that is much more specialized, but also much more lucrative.  Be sure to submit your music to the types of companies that actually sync music in the types of projects you are interested in.

 
A few thoughts on pitching.  Finally, here are a few thoughts on actually pitching your music. 

-Don’t just blindly pitch your tracks.  This much should already be clear.  Research places to pitch your tracks that make sense, based on the kind of music you make and the types of placements you’re pursuing.

When you reach out, be concise and clear in your message.  I usually limit my initial message to new companies to one or two paragraphs.  Don’t inundate people with a wall of text they have to sort through when reaching out.  Let them know who you are, any relevant credits you have, and why you’re reaching out.

If they work with artists that are similar stylistically to you, let them know that.  If they place music in a tv show you think your music would be a good fit for, let them know that.  Try to make some sort of connection with them beyond simply saying “Hi, I make great music.  Please listen and let me know if you’re interested in working together”.

Put yourself in their shoes.  They’re most likely busy and getting a lot of submissions.  Let them know why they should listen to your and why you think you might be a good fit.

To sum up.  I’ve been working in this business a long time and although different aspects of music licensing have changed, the basics of music licensing have stayed the same:  Make great music, produce it well, and market it well.  Wash.  Rinse. Repeat.