Tag Archives: marketing

Why Music Rights Are Valuable

We receive inquiries every day from people, agencies and companies about how to get or buy music rights. Often times these inquiries are from folks who want to legally acquire music rights but have no experience or any notion of what the costs to acquire music rights should be. MEGA was organized to solve exactly this type of problem. Representing buyers and acquiring music rights at the lowest possible costs.

The interesting challenge and question at the top of mind for most new businesses, platforms or brands keen to use great music is: beyond how much does it cost? why are the costs for hit music thousands of dollars? especially if “we” only want to use the music in one city or for a few seconds.

The answers to these great questions are complex but here is a guide to understanding them.

First as we’ve stated in other posts, it does not matter to rights holders how much of a song you want to use. In fact, as we all know, great songs, hit songs, are instantly recognizable by millions of fans and a single chorus, verse, or sometimes a music riff will convey an enormous emotional message, instantly. Think why. These songs have been heard hundreds, if not thousands of times, by fans to the point where they can recite the lyrics or sing the melody on demand. They are embedded in their psyche. A music cue like that, in a spot pulls consumers in, engages them immediately and shows that you are part of the cultural fabric of their lives. It makes your brand or service relevant. We think it’s really valuable especially when considering the alternative: “muzak”, meaning public domain music that does not engage an audience. Of course, rational economics must prevail in all cases. What is your overall media budget? How does that compare to your spot production resources. These are very important considerations.

We also get asked what a reasonable budget is to get music rights for only a small geographic territory. Again, what is important is to measure the overall media budget or increasingly, how you can use that spot on social media: your website, Facebook, Instagram and Twitter platforms where you don’t pay for the media: you earn people’s attention and engagement by providing valuable information and or entertainment. And if you produce a really creative commercial or piece of video content and it goes viral: you can reap enormous rewards to the value or your brand or service. Great music is part of the rocket fuel that can help you achieve these modern media opportunities.

If you’ve only hundreds of dollars to invest you will not acquire rights to important songs no matter how small the use. But if you’ve reasonable budgets and each song is different; much like every home value is different, you can and should attempt to get the rights to great music. Great music is valuable.

We’re here to help and we’ve successfully accomplished buying music rights thousands of times.

Check out all the free information regarding how to get music rights on our website @ www.megalv.com

How to Buy Music Rights

You grew up loving music. It helped define your first date, your first kiss, your worst day, your best day; the friendships you value and your passion to work out. You can define the defining moments in your life by the music soundtrack you love. So you know music is very powerful. Songs draws attention, tell compelling stories, just like great branded content, advertising and marketing accomplishes. And now you have your own business. Or, you control or work in the marketing department.  And you want to buy music for a YouTube video, or to place on Facebook, or other social media accompanying visuals that promote your business. Maybe you even want to advertise on Pandora, or Spotify, or a local radio station. Perhaps, as our recent client Gatorade just did, you want a global television spot, with just the right music, to highlight your brand’s support for a large event like World Cup. So how do you start to think about how to buy music for a large or very small brand?

It starts here.

Think about the song that best helps you tell the story of your product or service. You’ve got an ad idea in mind. It’ll have visuals. And those visuals will tell a story; so the music you select should compliment those visuals, reinforce them and the “sound” of the music should directly target your intended audience and drive the cadence of the video you likely will be composing. Think hard. Ask people’s opinion around you; it could be that you have an agency recommending a certain song to go with a certain campaign which is great. But do a gut check; ask trusted customers and colleagues who understand your marketing campaign goals and the value proposition that your company is building to get alignment on the song and music you are considering. It’s really important. Great music can propel a campaign virally and make people want to see it over and over again.  Think about how many times you can listen to the same song vs. how many times you watch the same movie. Music is a powerful tool and needs the real understanding to get it right in a marketing campaign.

Can’t decide on a song? Need help? MEGA can help you find a song that will work for your business. We do it for the biggest brands, often in collaboration with their agencies and yes, also for new and emerging companies who cannot yet afford an ad agency. But we  respect your selections and oftentimes, no one knows better than you; the person in charge of building a brand, what particular song  will drive your business to even greater success.

No doubt, unless you are a musician, or your best friends have a great band, you’ll need or want to buy the version of the song that you know and love. Therefore, you’ll need two licenses: what’s called a “master recording license” and a publishing” (often referred to as a sync license)

Think of a master license as intellectual property that is created when musicians and producers go into the studio and create a “master” recording of a song. Very different from publishing, which refers to the actual songwriting; the union of the musical notes to the lyrics; hence the term “sync license” which is synonymous with “publishing”

You can and some clients do actually buy the publishing rights only and then create a version that becomes their ‘original’ master recording. For example only, if you ever hear a Beatles song used in advertising, it’ll always be a recreated master; the Beatles will not allow their original masters to be used in advertising. MEGA created a really cool version of “Paperback Writer” with the legendary Nile Rodgers producing the B-52’s. You can hear it here: https://www.youtube.com/watch?v=qCdHW9tULHM

The song was produced for the Buick Brand with McCann Erickson as the ad agency. Of course the ad was only licensed for a particular one year term so it’s not on YT anymore; but the song lives on in popular culture!

Master licenses and publishing licenses for a song are negotiated on a most favored nation basis; often called an “MFN” meaning; each side, master and publishing receives the same amount.

You will also need to consider, very carefully, the exact needs you have for the use of the song tied to your ad or campaign. Will it run on your website, how about on your social media  sites? What about YouTube, radio; terrestrial (old school FM) and or digital like Spotify or Pandora? And of course there’s television, mobile, or you might also be thinking of using it at trade shows, or running it in movie theaters…..so much to consider but ever so important because the cost of music rights are negotiated based on: intended uses, geographical territories and finally the time (or term) you need the song rights. You are in effect, borrowing the song, renting it if you like, for a particular brand, for certain territories (which can be global) for a length of time. This changes when buying rights to films or TV shows. But for this article, I’ll focus on buying music for advertising a brand or service. You can also build in options to extend the use; say if your campaign blows up successfully or you get more marketing dollars from HQ or you want to add cities, states or countries to expand a campaign focus. It’s all down to how you negotiate and purchase the rights you need and doing so upfront will always save you money.

When considering your requirements be prudent and careful. So many times we see clients who do not think about their requirements as meeting vs. exceeding their real marketing needs and therefore wind up with music rights they pay for and never actually use. Not smart!

You can also negotiate for some exclusivity of the song use during the term you intend to use it. It may be by category, for example only; all beverages, or automobiles, or you can actually negotiate an exclusive use so that no other brand can use the song in a campaign while you are using it. But all of these issues play into the art of negotiation and ultimately cost.

Now, understanding you believe you have the right song in mind and have developed the use case for the song carefully, you’ll need to negotiate the rights to the song or songs you want. There is no universal price list. You need to know the history of each song use, unless of course its brand new which poses even more negotiating opportunities because your campaign can help promote the song! But history is important. Was it used prior by other brands? when and by whom and where.

For us, at MEGA, there are two words we never utter when buying music rights and those two words are “how much”. Sounds silly? Not so much. Those two words uttered at any time in negotiating rights will cost you thousands or hundreds of thousands of dollars.

You have to set your own budgets. Be realistic. And know when and where you may have to move on to another song if the pricing you feel works for your campaign is not what the rights holders have in mind. Yes, there are experts on the ownership side of licensing songs. All they do every day all year-long is try to extract the largest fees they can from people just like you. Truthfully, the most valuable folks in these positions do much more. They search out opportunities for new music and often are very creative about pitching songs for TV shows, films and advertising. But don’t let that mask their number one job; to maximise the amount they earn for the songs they control.

We view negotiating and buying music rights as a serious business trade, where expertise can help you optimise your marketing campaign and significantly lower the costs of buying music rights. If you’ve any questions feel free to write me at danny@megalv.com or visit our website and learn even more.