Synchronization | Musical Advantages

Understanding sync

Our brief guide to the world of music syncing!

Music licensing is very much a part of every music arrangement. Every reproduction, distribution, public performance, or sync is subject to a licensing agreement to pull through. DSPs negotiate licenses with record companies and publishers to enable music streaming on platforms. Radios get a blank license from their local PROs. Every business that uses music to benefit has to get a license.

In that sense, music licensing is very much part of the music industry and the music business. And as such, different types of licenses exist for various purposes. Sync licenses are one of such licensing types, but they have a different story behind them.

“Sync” is an agreement between the copyright owner of a piece of music and the party requesting to utilize that music, which permits the synchronization of the copyrighted music to any other sort of content (mainly visual content, although certain types of audio-usage require sync licenses as well). "Synchronization licensing" is an umbrella term for composition sync and master use licensing for sound recordings.

Synchronization licenses are highly dynamic. For example, when a piece of music is randomly aired on the radio, a blanket license is sufficient. An exception is made for radio use, in which case a sync license and public performance royalties are paid to the right holders and a fee for using the song as a theme or opening song.

Similarly, if a song is featured in a live TV broadcast or event, it will only be owed the standard public performance royalties, known as "Ephemeral Use." There will, however, be a Sync fee for rebroadcasting the same show or event because the music is an essential part of the taped material.

A sync and a non-sync usage of music are distinct only because of the nature and goal of use, not because of the media.

It is a powerful and appealing opportunity for music rights holders to engage in syncing. Because of the double whammy of compensation for the compositions and sound recording masters, every song that gets a synchronization deal must be reimbursed twice. As a result, if there is an overall sync cost, it usually is split in two.

As shown in the preceding examples, synchronization agreements still result in public performance fees. As such, a song's public performance royalties might be a considerable sum when used several times in a single piece of content.

Additionally, sync deals may significantly influence the rights holder more than the monetary rewards discussed above. The music utilized in movies has sometimes become an enormous phenomenon, allowing artists to finally get the break they've been waiting for.

A successful sync agreement consists of what parties?

1. Sync Users: There are several types of sync users, each with a specific purpose. Music is used in a variety of mediums, including movies, trailers, television shows, video games, and even small-scale YouTube creators. Most sync deals for larger usage merely require that the song be as closely aligned with the visual content as feasible and that it be secured within budget and on time for use.

Due to tight budgets, temporary placeholder songs are sometimes employed to find music that sounds comparable. Full license agreements are uncommon among smaller creators. They look to platforms that offer micro-licensing options to get their hands on them.

2. Music Supervisors: A music supervisor's job is to find a song that suits the project's needs and budget while obtaining a license to use the song in commercials. Production companies and independent agencies employ them, but they work very closely with the creative team to refine the loose creative briefs provided by movie producers.

Supervisors are the bridges between the music industry and the people that use synchronization. A music supervisor for a project can act as a record label for the soundtrack and performs all the operations that a record label performs to make music when an original score is required. Music supervisors also liaise between the production firm and the artists they work with (or their representatives). As a whole, they are in charge of finding the production team music that fits the creative brief, enhances the action or mood of the scene, and satisfies the sync budget.

3. Licensing Companies and Artist Representatives: Even though the recording artist and the songwriter can be the same person, music supervisors must deal with the publishing and recording businesses separately. Most major labels and publishers have a licensing department that handles incoming license requests and proactively reaches out to music supervisors and other relevant parties.

Publishers' and labels' licensing departments aren't the only places licensing companies' businesses are executed. Independent artists and smaller labels and publishers can benefit from the services of standalone pitching companies that specialize in this type of work. Alternatively, major synch agencies have built a direct pipeline from artists to end-users by integrating nearly every aspect of the licensing.

Between these two sets of licensing companies, there are still Ad-sync consultancy firms that work for brands and music supervision firms that provide services to production companies. Although there are only a few critical functions in the sync ecosystem, it is as diversified.

The licensing representative's competence is based on the company's network of music supervisors and their familiarity with the repertoire they are responsible for. Almost every artist (and nearly every song) has a sync chance these days, given the volume of content being produced. It's about finding the appropriate music and the good opportunity to perform it.

4. The Artist: For the artist, sync is rarely seen as a significant aspect of their musical career. In most cases, syncing opportunities will not influence creative selections. On the other hand, some musicians write songs specifically in anticipation of a sync contract as their sole source of income.

All about Royalties

Royalty Exchange

It's becoming increasingly crucial for the music business to earn money from synchronization royalties. Sync rights are an excellent way for artists and content makers to earn extra money from their work besides selling and streaming albums.

Using syncing rights to earn money has become more popular in the past few years. This change is partly due to falling music sales, which have forced artists to find other ways to earn money.

Now that so much material is on many media platforms, there are also more chances for music placement. Because of this, sync licensing is a good choice for artists and people who own music rights.

However, understanding sync licensing can be complicated. Artists and creators may need help figuring out sync rights, how to negotiate good deals, and how to track and receive their royalties properly.

This article aims to take the mystery out of synchronization royalties by looking at their benefits and the problems people in the business have to deal with.

Definition of Synchronization Royalties

Synchronization royalties are payments made to music rightsholders when their songs are used alongside visual media. This section will explain sync rights, the types of media involved, and how these royalties differ from other forms of music licensing.

How Synchronization Rights and Licensing Work

Synchronization rights, also known as "sync rights," let you use a piece of music with visual material. Someone needs to get a sync license from the copyright owner to use a song in a movie, TV show, or ad. Because of this permission, they can "synchronize" the music with the video.

Getting a sync license usually includes the following steps:

Finding those people who own the copyright (usually the songwriter and publisher)
Talking about the fee and the rules of use
Agreeing on the duration and scope of the license

After getting the license, the user pays a fee that becomes the syncing royalty for the rights owner.

Types of Media Involved

Sync licensing is used in many types of visual media. Here are some examples:

Commercials: Most brands use popular songs or custom jingles in their ads.
Movies and documentaries: Music helps set the mood and adds emotion to films.
Video games: Music is used in background scores, cut scenes, and in-game radio.
Online videos: YouTube videos, online ads, and streaming originals need sync licenses.
TV shows: Licensed music is used in theme songs, background music, and more.
Company videos: Presentations and training videos may use licensed music.

The rise of digital platforms has created more opportunities for sync licensing in these areas.

How Sync Royalties Differ from Other Music Royalties

Sync royalties are unique compared to other types of music royalties. Here's how they differ:

One-time Payment vs. Ongoing Royalties

The performance or mechanical rights payout is based on how often a song is played or sold. Sync fees, on the other hand, usually pay out all at once. The rights owner usually gets a lump sum when a song is licensed for use in a movie, TV show, or ad.

But sometimes, especially for TV shows that can be watched again or streamed later, extra fees may be charged each time they are used.

Visual Context

One notable aspect of sync licensing is that it combines music with visuals. This can change how people think about and value music. For instance, a song in a moving movie scene can become more popular and meaningful.

On the other hand, if a song is used in an ad or show that people don't like, it can hurt the song's reputation.

Negotiated Rates

Sync fees don't have set rates like some other royalties. Instead, they're usually decided through negotiations.

The amount of money can vary a lot based on several factors:

How widespread the song is: Well-known songs can command higher fees.
The project's budget: The amount of money available for music licensing can affect the fee.
How the song is used: Whether it's background music or a central feature, it can impact the price.
The length of the clip: Shorter clips might cost less than longer ones.
Where and how long the content is distributed: The fee can depend on where the content is shown and for how long.

This flexibility can be both good and bad for rightsholders. It means they can negotiate for higher fees, but it also means they might have to settle for lower ones.

Potential for Exposure

Advertising through sync placements can be very effective. Music can reach millions of new listeners when it's in a popular movie, TV show, or ad that goes viral. That publicity usually leads to more streaming, downloading, and interest in the artist in general.

Many musicians have seen their careers take off after a well-placed sync license. This turns the royalty into much more than just a one-time payment.

Complexity of Rights

Securing a sync license often requires clearing two sets of rights:

Composition Rights: These belong to songwriters and publishers.
Master Recording Rights: These are typically owned by record labels or independent artists.

Both rights need to be cleared before a sync license can be granted. This can make the process more complex, especially if multiple songwriters or different parties own the master recording and composition.

Payment Splits

Sync royalties usually have more complicated payment splits than other types of royalties. Most of the time, the money goes to:

The writers who came up with the song
The record companies that work with songwriters
The people who own the master recording, which is usually a record company or the artist.

The composition and master recording owners usually split the money 50/50, depending on the arrangement.

Opportunities for Earning

As the digital landscape evolves and global markets expand, new avenues for sync licensing continue to emerge, creating exciting possibilities for artists to monetize their work.

Emerging Platforms and Digital Media Channels

The digital age has brought about an explosion of new platforms and media channels, each offering fresh opportunities for sync licensing. These emerging platforms are constantly seeking music to enhance their content and engage their audiences.

Platforms for Social Media

Big social media sites like Facebook, TikTok, and Instagram are now major players in the sync licensing game. People can add music to their videos on these platforms, which creates a big need for licensed tracks.

As an example:

TikTok's viral challenges are often based on certain songs, which could make lesser-known songs global hits.
Instagram Reels and Stories both have music built in, so users can add music to their short videos.
The music library on Facebook for people who make videos lets a lot of artists get their music licensed.

Virtual Reality and Augmented Reality

Virtual Reality (VR) and Augmented Reality (AR) are transforming the way listeners experience music. These technologies are creating immersive and interactive environments that often incorporate music, opening up new opportunities for sync licensing, where musicians can get their music used in these interactive environments.

Podcast Boom

Podcasts are becoming very popular, and this is creating a new way for musicians to earn money through sync licensing. Many podcasts use music at the beginning and end as background music, which means more opportunities for musicians to get paid.

Advertising Trends and Brand Partnerships

The advertising industry continues to be a major source of sync licensing opportunities. However, the landscape is evolving, with new trends shaping how brands use music.

Authentic Brand Storytelling

Brands are increasingly focusing on authentic storytelling in their ads. This trend often involves using music that resonates with their target audience and aligns with their brand values. As a result, there's a growing demand for diverse, authentic music across various genres.

Micro-Licensing for Social Media Ads

With the rise of short-form video ads on social media, there's an increasing need for micro-licensing deals. These typically involve shorter clips of music and may come with lower fees but a higher volume of use.

Long-term Brand Partnerships

Some artists form long-term partnerships with brands, create custom music, or allow extensive use of their catalogs. These deals can provide a steady income stream and increased exposure for the artist.

Streaming Services and Their Impact on Sync Licensing

Streaming platforms have revolutionized how we consume both music and video content, creating new sync licensing opportunities in the process.

Original Content Production

Streaming giants like Netflix, Amazon Prime, and Disney+ are producing a massive amount of original content, from TV series to movies. This content creation boom has led to an increased demand for music licensing across various genres and styles.

Music Documentaries and Biopics

The popularity of music-focused content on streaming platforms has created unique licensing opportunities. Documentaries and biopics about musicians often require extensive use of their music catalogs.

Playlist Placement

While not traditional sync licensing, placement on popular streaming playlists can increase visibility and potential sync opportunities, many music supervisors discover new tracks for sync through streaming platforms.

International Markets and Global Licensing Opportunities

The entertainment industry's global expansion is creating new sync licensing opportunities beyond traditional markets.

Here are some key areas to consider:

Emerging Entertainment Markets: Countries like India, Nigeria, and South Korea are growing their entertainment industries, leading to unique content needs and musical preferences.

Global Streaming Platforms: Streaming platforms create localized content, licensing music that resonates with specific cultural audiences and creating more opportunities for artists.

International Advertising Campaigns: Global brands develop region-specific advertising with music licensing and unique market options.

Cross-Cultural Collaborations: Cross-cultural musical collaborations are growing, driven by global connectivity and the desire for diverse content, opening up sync licensing opportunities in multiple markets.

These developments show the importance of knowing about and interacting with international markets to get the most out-of-sync licensing possibilities. Artists and rightsholders can reach more people and make more money worldwide by using these trends to their advantage.

Challenges in the Market

The sync licensing market has many challenges that can make it hard for artists and rightsholders to succeed. Understanding these challenges is key to doing well in this industry.

Legal Complexities and Copyright Issues

Legal issues can be a big problem in sync licensing. These legal issues can make it hard to get sync licenses, so it's important to have clear and accurate copyright information.

Disputes Over Ownership

Conflicts about who owns a song can delay or prevent licensing. Ownership disputes can occur when songwriters or contributors are not properly acknowledged or when there are disagreements about the percentage of ownership.

Different Copyright Laws

Each country has its own copyright laws, making international licensing complex. For example, the Berne Convention aim to harmonize copyright protections globally, but differences in national laws and enforcement mechanisms continue to pose challenges.

Getting Permission

Obtaining permission from all necessary parties can be time-consuming and costly. This includes securing licenses from songwriters, publishers, and record labels, which can be particularly challenging when dealing with multiple stakeholders.

Competition and Market Saturation

The sync licensing market is highly competitive, with many artists and rightsholders vying for a limited number of spots.

This intense competition can lead to several challenges. For instance, when too many songs compete for the same opportunities, it becomes difficult for any song to stand out.

Moreover, high competition can drive down licensing fees, making it harder for artists to earn a living from their music. To succeed in this crowded market, artists and rightsholders must focus on producing high-quality music that can cut through the noise.

They must also be strategic in their licensing efforts, carefully targeting the right opportunities and negotiating fair deals to maximize their earnings.

Negotiating Fair Rates and Terms

Negotiating fair rates and terms is crucial in sync licensing.

This process involves understanding industry standards, which means knowing the typical rates and terms for sync licenses to ensure fair negotiations. It also requires assessing the music's value, considering factors such as popularity, genre, and other relevant considerations.

Additionally, being flexible in negotiations while standing firm on key points is essential to achieve fair deals. By balancing flexibility with firmness, artists and rightsholders can secure agreements that accurately reflect the value of their music.

Tracking and Collecting Royalties Efficiently

Tracking and collecting royalties efficiently is another big challenge. This involves:

Using technology: Software and databases help track and manage royalties.
Working with collection societies: Partnering with organizations that specialize in collecting royalties.
Keeping accurate records: Detailed records of licensing agreements and royalty payments are essential.

By making the process of tracking and collecting royalties more efficient, artists and rightsholders can ensure they get the compensation they deserve.

Conclusion

Synchronization royalties are a valuable way for artists and rightsholders to earn money in the music industry. By understanding the opportunities and challenges of sync licensing, both can navigate this complex area and maximize their earnings.

For those interested in exploring sync opportunities, Royalty Exchange can help. They provide a platform for buying and selling music rights and copyrights, offering creators debt-free funding and access to income-generating assets for investors.

The future of sync licensing looks promising. As digital media grows and demand for high-quality music content increases, sync licensing opportunities will expand. Artists and rightsholders who stay informed and proactive will be well-positioned to benefit from this trend.

Understanding and leveraging sync licensing opportunities can help artists and rightsholders succeed in the music industry. With the right resources and knowledge, they can confidently navigate this dynamic and evolving industry.

Understanding sync

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A successful sync agreement consists of what parties?

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All about Royalties