Music Publishing Services For Advertising Agencies
Introduction
Unlike the UK film and TV industries, UK advertising agencies have not traditionally shared in music publishing revenues. Suppliers of bespoke commissioned scores (music production companies) and existing tracks (music publishers) have long enjoyed both upfront fees and back-end performance (PRS) royalties arising from the use of their music in commercials. Agencies have had neither a copyright interest nor income participation, and until the formation of Leap no-one sought to challenge the status quo.
Leap Music developed a different business model, drawing on Richard Kirstein’s experience within film & TV music publishing administration. This challenged existing restrictive practices and allowed agencies to work smarter on behalf of their advertiser clients.
Bespoke Commissioned Scores
UK agencies traditionally contract with suppliers under the PCAM / IPA model. Whilst the agency funds the creation of a new composition, the supplier (music production company) retains copyright, enjoys publisher's share of PRS royalties and charges further re-licensing fees for any extension of the initial term, territory & media (typically one year, UK, TV). Generally all re-licensing fees are governed by the PCAM rate card, and are applied as a percentage to the initial composition fee.
At Leap Music, we have long believed the PCAM / IPA model to be outdated and providing poor value for agencies and their clients. In an era when cost controllers and procurement executives are deeply involved in every production, agencies need a broader choice of suppliers and more flexible working practices. Leap offers an alternative option which we've successfully run at BBH since April 2003, and is eagerly being embraced by other UK agencies:
• Direct contract with composer (rather than via music production company)
• Composers from advertising, film, TV, record production & songwriting backgrounds
• Flexible commissioning agreement - broader initial synch licence
• Fully inclusive commissioning fee (inc. composition, production, musicians, licence)
• Share of PRS royalties from TV broadcasts (in return for spot plans)
• Lower re-licensing fees than PCAM model
For further details, contact Richard Kirstein or Ayla Owen
Existing Unpublished Tracks
Since BBH's seminal Levi's “Launderette” ad used “Heard It Through The Grapevine”, UK agencies have used well known songs in their spots. In almost every case, agencies have licensed these copyrights from music publishers whose vast catalogues contain many classics titles. Of-course there will always be commercials that need instantly recognisable songs, though for many campaigns there's an opportunity to try fresh new talent.
As publishers' synch departments have become more proactive, they continually market their newly signed acts to agencies. Publishers are fully aware that large upfront synch fees can help recoup advances paid to new signings. In addition, exposure through commercials can launch careers and generate substantial income streams for both publisher and talent. Traditionally, agencies have believed that publishers (and labels) were the sole source of new music, and hence they've never looked beyond these suppliers for fresh acts. When an advertising campaign has created a hit for a new band, agencies rarely, if ever, participate in royalties, despite paying an often large synch fee to the publisher (& label) for the licence.
Leap Model
Where well-known songs are not required, Leap can offer agencies an alternative model to source and secure existing unpublished tracks :
• Access to unpublished talent via artist managers & lawyers
• Detailed music brief focussed on required emotional response from target audience
• Detailed deal memo including very broad media rights
• Low upfront synch fees for publishing & master rights
• Assignment of publishing rights to Leap Music
• Share of PRS royalties from TV broadcasts (in return for spot plans)
• Lower re-licensing fees than traditional publishers
For further details, contact Richard Kirstein or Julz Baldwin