Re: Music Business Law
Producer- 5 types of frequent contract types
-Full Time- Works for a label, gets smaller amount of royalties, normally works in house
-Independent Contractor- Hired by the label, gets the full 3% royalties
-Producer and Artist working together or the Artist and Producer are the same person
All-in-deal- Artist hires the produce
Producer/Label Entrepreneur- This is where the Producer own the label; this would be an independent label. Makes money from Internet sales and sometimes sells the rights to a major label.
They usually make 2-4% of record sales and well know producers can make upwards of 5-6%. Sometimes they make a production fee. It may be recoupable.
They can be paid out of the recording budget which normally comes out of the Artist’s advance.
5 Phases of Record Production
-Pre Production Budgeting and Planning- This involves pricing for the studio (usually takes 10-20 hours pre song; around 300 hours for a finished record, which includes mixing and mastering), musicians, and other various costs. Poor performances, musicians, producer choices, engineer can’t get a good sound can drive up the costs. Producer is in charge of getting the master. Cds usually get a cd master but they can get a .wav or a .aif. The producer also usually gets letters of consent and also makes sure that Musicians contracts are clear. The producer also makes sure the mechanical licenses are given, lyrics sheets submitted, technical credits, statement that bills have been paid, and makes sure that W-4, I-9, union contracts and administrative paperwork are taken care of.
Complete Producer- Handles everything
Engineer Producer- Runs sessions. Usually good in technical aspect, but not in the business side.
Artist Producer- Is the same as the artist
Executive Producer- Are more in film. Rounds up money and resources.
Co-producer- Someone who shares the production responsibilities.
Independent Producers- Freelance, working on their own.
All-in-deal Producer’s Side-
-Producer Driven Acts- this is more popular in Rap, Hip-Hop, Pop.
-Gives the producer a chunk of money to produce an album or song. Whatever the producer doesn’t spend they usually get to keep. Normally ¼ of the entire recording budget goes to the producer.
-Producers get a set fee that is paid to them. Veteran producers can make up to $150,000 this payment may or may not be recoupable.
Speculation Deals- Requires a good amount of speculation. Producer usually makes 15% off the top from the advance. Producer also charges for demo work.