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Production rights
Old 26th February 2007
  #1
Gear maniac
 
DWINC's Avatar
 

Thread Starter
Production rights

Dear Kevin,

I have this friend who recently joined a signed band, and they get a lot of money from the label to record a cd. The label suggested a certain studio,despite the fact that my friend wanted to record at my studio facility. Ofcourse, big bummer for me, but hey...that happens.

But then: the studio (engineer and producer) wants to have a piece of the pie in terms of production rights. So next to their salary they want to have something like a share/ stock in the future sales of that album After a little research I found out that the producer is also affiliated with that label they signed to, so I was becoming a bit on guard about it. So the band almost canceled their studio time and was thinking about recording it at my place. Well...I said ALMOST...too bad the producer adjusted his demands.

My question: does this happen often or is it normal? (that the producer gets another share?) I am not known with this kind of stuff, but I am just a small producer so who knows?

Thanks for your time!

Björn
Old 27th February 2007
  #2
engineer / producer / mixer
 
Kevin Killen's Avatar
 

Quote:
Originally Posted by DWINC View Post
Dear Kevin,

I have this friend who recently joined a signed band, and they get a lot of money from the label to record a cd. The label suggested a certain studio,despite the fact that my friend wanted to record at my studio facility. Ofcourse, big bummer for me, but hey...that happens.

But then: the studio (engineer and producer) wants to have a piece of the pie in terms of production rights. So next to their salary they want to have something like a share/ stock in the future sales of that album After a little research I found out that the producer is also affiliated with that label they signed to, so I was becoming a bit on guard about it. So the band almost canceled their studio time and was thinking about recording it at my place. Well...I said ALMOST...too bad the producer adjusted his demands.

My question: does this happen often or is it normal? (that the producer gets another share?) I am not known with this kind of stuff, but I am just a small producer so who knows?

Thanks for your time!

Björn

Bjorn,

Typically a Producer gets an "advance" of money against potential future earnings that are a percentage based on either the retail price or some other pricing structure of the CD that is set by the label. The engineer would normally be paid a "fee for hire" for the time spent on engineering and or mixing a project. Both are part of the overall
recording budget that the artist must recoup at their share ( 10-15% of margin) before the producer will see any additional earnings.

An artist can include the engineer in that deal but in doing so they reduce their own share, it never comes from the label side.

One way of looking at it is that the producer will take a smaller cash advance for a greater percentage of the royality on the hunch that the album will be succesful. Its always a crapshot as to what sells or does not.

So what you described above is not atypical.

Kevin
Old 27th February 2007
  #3
Gear maniac
 
DWINC's Avatar
 

Thread Starter
Thanks for the clear explanation! I will probably never be in a luxury like that, but it is always nice to know.

Good luck with all your future projects!

Regards,

Björn
Old 3rd March 2007
  #4
engineer / producer / mixer
 
Kevin Killen's Avatar
 

Quote:
Originally Posted by DWINC View Post
Thanks for the clear explanation! I will probably never be in a luxury like that, but it is always nice to know.

Good luck with all your future projects!

Regards,

Björn

Hey never say never. There is always music for gaming, movies, national ad campaigns. Always remember that you have a skill and if warranted you deserve to share in the spoils.

Kevin
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