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Topic: How to charge for this Royalty Situation?

  1. #1

    How to charge for this Royalty Situation?

    So, I know this will be a hard question to answer, and may vary depending on what part of the world you live in, but I am curious how some of you might charge for this situation.

    We have compsosed 5 tracks of music for a 10 minute natural history documentary. The license granted them exclusive use of our music for the term of the project.

    The producer has been asked to create a 30 minute DVD to accompany a natural history book, that will be distributed world-wide. This DVD will draw from several other projects he has worked on (a compilation of sorts) but they want to use two of our tracks on the DVD. (6 minutes total music) They will be giving us credits, but they want us to give them an idea of what we would charge to use the two tracks as a part of the Book/DVD product.

    Is that enough info?????

    Looking forward to some responses.
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  2. #2

    Re: How to charge for this Royalty Situation?

    I agree with Stephen. You should determine if the book will sell a lot of copies, or just a few copies. If it has no potential to be a good seller, then a flat fee upfront would be better. But if it will sell hundreds of thousands, or even millions (wishful thinking) then take a percentage of each book sale.

    For a flat fee, I would ask for 1000 USD per minute. And if you have some leverage, ask for a flat fee upfront, as well as a percentage of each book sold.


  3. #3

    Re: How to charge for this Royalty Situation?

    Just a little something that I've been caught out by in the past, you probably will have no way of ever knowing how well or how badly the DVD sells, and plenty a company will say, "well sorry, but we hardly sold any" when they know full well it went global.
    It's a tough call but you might just be better off with a good ol' fat fee.



  4. #4

    Re: How to charge for this Royalty Situation?

    Music libraries offer what's called a production blanket license, which allows unlimited use from their library within an aggregate music use time (10-20 minutes; 20-30 minutes, etc). For non-broadcast use within a single program or DVD, most companies have a graduated rate scale based on the number of units distributed/manufactured:

    1. Under 5,000 units: $x
    2. 5,000-20,000 units: $1.5x
    3. 20,000-50,000 units: $2x
    4. Over 50,000 units: $call us and we'll make something up

    The base rates are divided into 'for sale' and 'not for sale' DVD's (with the 'for sale' price being higher). An average for a 10-20 minute blanket license would have 'x' priced at around $500. This is a one-time fee with no back-end royalties.

    While this may not be your exact situation, it gives you an idea of how this kind of DVD use is dealt with in some situations.
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