We had an amazing time discussing how the best music may not be the available music for the visual project, missed it? You can read it here. In this writeup we will be answering a very pivotal question on the license of Music for film, TV, Internet, DVD, VOD and other platforms that exist as an idea or in demo mode.
Would it be profitable for a licensor to give in all media rights for a visual project?
Before we select YES or NO… A Broad Rights or All media Rights simply describes the medium or media where the music will be synchronized to the picture. A licensee requesting for “All Media” rights is requesting for use of Music on more than one media platform. All Media rights include Film Festival, Theatrical Exhibition/cinema, Television, Home Video, Pay/Subscription Cable, Industrial, Video Game, In flight, Trailer/Promo, video game… the list is long but we can pause here.
Why seek All Media Rights?
It is a strategy used by Music Supervisors and Licensing Specialists to license music at once for use in all media formats created at the time of licensing the music and in the future. Imagine watching the advert below in twenty years without this exact music or watching Kate Winslet and Leonardo Dicaprio’s scene on the front deck of the Titanic in a new media format in ten years time without Celine Dion song “My Heart Will Go On”.
The absence of the exact music would not create the nostalgic feeling the audience want to experience. So a Music Supervisor or Licensee would want to seek all rights at once by requesting for the right in perpetuity on all media formats now known or hereafter devised.
Is The broad right a Win for the Licensor or Licensee?
This is determined on a case by case basis. A typical movie for example may undergo exhibition on various platforms separately and at different times. For Example It may take this progression below
- Film festival Exhibition
- Placement in the Cinema (Theatrical Exhibition)
- Subsequently, licensed for exhibition on in-flight services,
- Exclusively shown on a SVOD platform(e.g Netflix) for a fixed period of time,
- Then distributed non-exclusively to another platform for example TVOD platforms(E.g Amazon’s Rent or Buy video store) and
- Placement on Pay/Subscription Cable subscribers.
For each of these placements there is a consideration(fee) in exchange for the license of the visual project by the Producer.
In a situation where the Broad Rights term is employed in the negotiation process no form of royalty will be paid for master use and sync license as the film progresses through the various media placement platforms listed above hence, the music used would not receive sync royalties as this has been covered by the Broad Rights clause.
What is the alternative to a Broad Rights or All Media Deals?
When finances are limited to pay for Broad Rights a Back end or Step Deal is a good alternative.
A Back end or Step deal is simply a deal that allows a Licensor the flexibility to pay a certain amount in addition to the initial license fee upon attainment of an agreed milestone. Example below
- ₦3000 up front for cinema exhibition
- ₦1000 upon license for inflight exhibition
- ₦2000 upon license to SVOD
- ₦500 upon license to Pay/subscription TV
NB: These are not actual licensing rates and solely used for illustration purposes.
The back end deal may be perfect for a low budget film with great potential as It prevents so much back and forth in clearing very expensive music that can break a perfectly curated budget. However, In some cases the Broad Rights deal may be the best option for the clearance of the song.
In conclusion both the licensee and licensor has a duty to be on top of where digital music licensing is going to ensure Music rights holders are not underpaid and at the same time the best music is synchronized to visuals at a fee that is fair to both parties. It is absolutely pleasant that Music and Visuals are being licensed for use in emerging technologies however it is important that whenever Music is being played on these media formats every right holder is compensated commensurately.
