Music publishing agreements series; (part 5) recent South African publishing success stories (continued)

Library music

The term “library music” (also sometimes referred to as “production music” and “mood music”) refers to music that has specifically been written and produced for use on audio-visual productions, on a non-exclusive basis. Once the user purchases the library music [often on CD format], he may use it freely on his production, but so may any other producers who purchase it.

Library or production music is usually created by companies that specialise in this type of product, and are often linked to one of the major publishers. Composers are commissioned to write music for specific audiovisual moods, scenes or types of use such as ‘suspense’, ‘love’, ‘car-chases’, ‘tranquillity’, ‘travel’ and so-on.

The library music company will pay for the composition and recording of the work (usually using session musicians) and will own the copyright in the composition and recording. A film producer, corporate video company, advertising agency or any other production house can then use this music in return for certain set fees. Because the rights in the music have already been cleared, library music is convenient and easy for the producer to use.

Generally, compensation to the composer of library music is around 50% of the fees received, although this can vary quite dramatically, and the question of public performance royalties for flightings is subject to negotiation. For a higher up-front fee, the composer will often sign these rights away.

In South Africa, Sheer Publishing offers several libraries, including Sound for Prod, Smashtrax, Adrenalin, Adonys, Arcadia and DL Music, while Sony/ATV provides the well-known Extreme Music Library amongst others. Most large publishers have signed rights to international music libraries and sell them locally.

One of South Africa’s top production music library agents is Synchro Music Management, based in Johannesburg, and run by the highly-respected Louise Bulley. Synchro started in 1996, has been a specialist provider of international library music, but has recently also started signing South African composers in an attempt to increase the amount of South African music accessed by library music users in our market.

The company administers no fewer than 28 music libraries, and generally distributes them to users on external drives. It adheres to NORM, SAMRO and CAPASSO production music licensing rates and, very importantly provides an on-line cue sheet submission service, making it administratively easier for users to record their music usages. The company is also very diligent in co-ordinating music searches with the particular atmospheric needs that a user might have on a particular production.

Production or library music is, believe it or not, the largest part of NORM’s (and thus CAPASSO’s) mechanical revenue, due to the fact that ELS still handles most commercial mechanical releases.

Gallery art installations, exhibitions and other non-music events

This is an interesting new use of licensed music sourced from publishers, and it is good to see them diversifying the use South African music in this way. For example, the art exhibition “Refusal of Time” by well-known artist William Kentridge, sourced from Sheer Publishing.

Online (Digital) provider agreements

This is obviously one of the most important current functions of publishers, and undoubtedly forms the strategic core of plans for future growth, especially for the major publishing houses. For many years, the three/two South African mechanical rights societies were ineffective in this environment, because, quite frankly, service providers did not know what they were buying. CAPASSO is important in rectifying this.

So too are the publishers. Sony/ATV, Warner Chappell and Universal, in particular, have pushed hard to legitimise online music sales and streaming in South Africa. They have been closely involved in discussions with Simfy and iTunes Music, in particular. One of the leaders in this field has been Universal Music Publishing South Africa, which has brokered major deals with mobile providers and was, no doubt, one of the driving forces (through NORM) in squeezing the extra 1% out of Apple to acquire a mechanical download rate of 9% for iTunes South Africa. (It was believed for some time that the extra 1% was to account for the streamed content on iTunes, but this is not so. In fact, the 9% was simply a rate accepted as reasonable by iTunes because Apple is an international company that has been down this road in other countries, understands the value of copyright and pays accordingly. The publishers refer to this type of user as a “curator.” The iTunes deal, negotiated by NORM, has sub-Saharan applicability and is good for everyone).

It is good to see the major publishers pushing South African composers, and the demand for their music on the internet, far more than ever before. Kudos in this respect must go to Sony/ATV’s Managing Director, Jay Savage, who has signed many respected South African composers including Abdullah Ibrahim, The Black Hotels, Lonehill Estate and Ninja from “Die Antwoord” (in Ninja’s words, “Jay’s the guy who first told me 17 years ago that I was good”). The same can be said of Universal and Sheer. The majors have also been very involved in lobbying for internet streaming services to be included in our Copyright Act’s definitions of “public performance,” and will continue to fight this fight.

Universal’s management is particularly forward-thinking, having been a major driving force behind the formation of CAPASSO and the drive into Africa. Universal has been reported as viewing the future of publishing to be “Location based services on mobile devices.”

Video game synchronisation

The correct term for this medium is in fact “computer game,” but that is just semantics. This is a field of growing importance. While the huge international gaming companies like Electronic Arts (EA) are based in America, South Africa has its own young but burgeoning industry. The mechanics of these licenses are no different to film synchronisation, but the difference here is the sheer volume of units that game manufacturers shift today. Synch fees should therefore be pitched appropriately. Publishers are starting to push local composers’ music for inclusion into this important and growing sector.

Core traditional functions

Of course, the core traditional music industry functions will continue to be the main business of publishers. They are contained in this series, and include: maximising recording opportunities for CD and online release of the composer’s works (by pursuing the A&R divisions of record labels), licensing the compositions wherever possible, chasing the labels, online providers and collection societies for mechanical royalties, pushing for airplay (and the resulting performance royalties) and general exploitation of copyrights in compositions.

Next article post we will then start to answer the questions posed in earlier posts of the series.