Want to know how much you’ll be earning per stream under your new record deal? We have a new-and-improved calculator for you.
Legal powerhouse Manatt, Phelps and Phillips has updated its two-year-old tool for artists and songwriters — and the latest version that lets artists plug in their specific deal terms “so they can actually see what their bottom line looks like. It’s not just, ‘Here’s what the average artist gets,’ it’s, ‘Here’s what you get,’” says Manatt Entertainment leader Jordan Bromley. “You can see exactly what a stream is worth. Knowledge is power — use it when deciding how much your music royalties are worth to you.”
Try the new tool here and and below, and read more about why Bromley says his firm invested in its development.
How does this tool compare with others on the market?
It’s basically an application built on top of streaming data. We have this monthly update of the U.S. streaming economy that covers every element of the pie, and we’ve been able to extrapolate record and publishing payments per service and update it monthly. It’s accurate because it’s information the services provide directly. The cool thing is that it’s the most up-to-date and most accurate indicator out there. Every year we look around to see if there’s anything else that’s close, and we just haven’t been able to find anything nearly as precise, accurate and regularly updating. As we developed this, we talked to a lot of influential stakeholders who see a lot of this data to get their feedback, and we incorporated all that into what you’re now seeing.
How are royalty payments trending for artists?
Looking at a five-year window on that, royalties to artists and songwriters have been increasing. The owned-content distribution services that the majors are now offering — like Virgin, The Orchard and ADA — are becoming more and more attractive. We’re seeing this model becoming more available, which is helping increase even the topline labels’ ability and willingness to offer more of a higher net profit split than a regular PPD royalty that typically exists in the 18%-22% range. We’re seeing a lot more 50%-plus deals on net profits, or “you get 100% after we take a 15% distribution fee,” or 70%-30% splits on net profits with services.
Through experience, I’ve found you’ll get those services regardless if there’s a song that’s working. Labels really care about getting those songs, having market share and being in that cycle of hit-making. There’s a lot more flexibility to get the higher rate while still getting the service and resources you hope to get from a major label.
Do you think there’s merit to the argument that if the label has more skin in the game, they work harder?
I think it might affect how songs begin, but a lot of the time songs begin in viral moments anyway. There’s probably something to it, but from experience, when something is moving, people aren’t looking at the deal to make sure the royalty’s big enough to warrant feeding the fire.
Has this tool driven business to you or gained you clients?
My expertise in the streaming economy over the last 10 years has definitely helped me develop a footing in an artist advocacy practice. I can’t really say “because of this, then that,” but I think anyone in a career with an expertise — it must help in some fashion.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.billboard.com ’
