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Some things about songwriter's royalties that many folks might not know or don't consider...


The last few days, I have been listening to a record that I really like.

Jon Pardi's "California Sunrise". I highly recommend this one.

I had not heard Pardi's music prior to this - as far as I know...

This is new, current Country, but has a lot of "that older sound" (sort of makes it a "gateway drug" for modern Country). Some of the songs have that '90s sound and feel, some have today's sound and feel, some a hybrid. All are well-written and produced. A nice variety of styles.

Wikipedia generally has information on artists and record releases that I find interesting - particularly for new music that I like and don't know a lot about. So, I looked this one up.

Now... some numbers... (this all from Wikipedia)

The album (released on June 17, 2016) debuted at No. 1 on the Country Albums chart, selling 24,000 copies in its first week. As of December 2016, the album has sold 87,100 copies in the United States.

This is after a single being released prior to the album release:
"Head Over Boots" - released to radio on September 14, 2015 and has sold 701,000 copies in the United States as of January 2017.
...and one after:
"Dirt on My Boots" - released to radio on September 19, 2016 - has sold 250,000 copies in the United States as of January 2017.


Last week, the album was #12 on the Billboard Country chart.
This week it is #14. It has been on the charts for 31 weeks (and did debut at #1).
Very surprising that these days, a record with these stats has only sold 87,000 records.


So... if you had a cut on this record... how much did you take to the bank (not considering taxes, etc.)?

The current mechanical royalty is 9.1 cents. So the songs on this record (that were not singles) each generated $7,917 ...(87,000 X .091). That is split 50/50 between songwriters and publishers - $3,958. As you can see below, most songs these days (that get cut) have 3 writers (on average).

That's $1,319 for you as 1 of 3 writers.




1. "Out of Style" ...................Lynn Hutton · Jeff Hyde · Neil Mason 5:05
2. "Cowboy Hat" .....................Jon Pardi · Brett Beavers · Bart Butler 3:18
3. "Head Over Boots" ................Pardi · Luke Laird 3:23
4. "Night Shift" ....................Tofer Brown · Phillip LaRue · Billy Montana 2:52
5. "Can’t Turn You Down" ............Randy Montana · Corey Crowder · Jeremy Stover 3:24
6. "Dirt on My Boots" ...............Rhett Akins · Jesse Frasure · Ashley Gorley 3:23
7. "She Ain't In It" ................Clint Daniels · Wynn Varble 3:18
8. "All Time High" ..................Pardi · Butler · Brice Long 3:53
9. "Heartache on the Dance Floor" ...Pardi · Butler · Long 3:25
10. "Paycheck" ......................Pardi · Laird 3:08
11. "Lucky Tonight" .................Pardi · Jim McCormick 3:28
12. "California Sunrise" ............Pardi · Butler · Larry McCoy 4:14


Of course, if you get a cut, the likelihood is that you have a staff writing position - which means you have been getting an advance on future royalties (as your "pay"). That AND half the cost any demos the publisher has done of your song for plugging purposes goes back to the publisher from any royalties you make. You don't see any of that royalty money until you've out-earned what they have paid you.

Now, if you are lucky enough (or, really, GOOD enough) to have writing credit on a single... "Heads Over Boots" (750k sales) generated $34,125 for 2 writers - $17,062 each - (and Luke Laird is his own publisher - so he gets another $17K)

Now, this is peanuts compared to what airplay royalties would be - where the real money is... A #1 radio song can easily generate $1M in royalties for the writers - which they split - and the same for the publishers - which Luke also gets!. (I've seen a couple of writers blow through that in less than a year - some are ill prepared for such a windfall).


Have a listen to the record....


1. "Out of Style" ...............
https://www.youtube.com/watch?v=qmbW2_K7BMA
2. "Cowboy Hat" .................
https://www.youtube.com/watch?v=us8nErZYtZo
3. "Head Over Boots" ............
https://www.youtube.com/watch?v=7K0akU-Rdv8
4. "Night Shift" ................
https://www.youtube.com/watch?v=rdV5CYTgNfQ
5. "Can’t Turn You Down" ........
https://www.youtube.com/watch?v=aNw7VxgcmBQ
6. "Dirt on My Boots" ...........
https://www.youtube.com/watch?v=gCxbgqyC2Wg
7. "She Ain't In It" ............
https://www.youtube.com/watch?v=uWjg65iMk-E
8. "All Time High" ..............
9. "Heartache on the Dance Floor"
https://www.youtube.com/watch?v=D7RSc3RTYaM
10. "Paycheck" ..................
https://www.youtube.com/watch?v=QiUUcjCY-Wo
11. "Lucky Tonight" .............
https://www.youtube.com/watch?v=6ex25n6tHY4
12. "California Sunrise" ........
https://www.youtube.com/watch?v=zYt7-szoRUM

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Interesting numbers. Yep.... unless the CD sells into the gold or platinum area, there's not a lot of money in the mechanicals. But as you point out, the airplay is where the money stacks up assuming you get into the top 10 or higher nationally.

That also explains the seriously tough competition to get writing sessions and cuts with artists who are at the top of the charts.

Good info.


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That's pretty amazing to see! So you're saying if you want to make money, write hits that get A LOT of airplay? That seems reasonable enough wink

I agree with you about JP's sound. There is actually A LOT of this kind of thing IF people actually listen. I find so many people point to the song or two they don't like from an artist and pretend that the market today. FAR from it.

Quote:
(sort of makes it a "gateway drug" for modern Country

Careful wink They may just get their "hooks" in you yet wink

Thanks for breaking that all down. VERY interesting!


Last edited by HearToLearn; 01/30/17 11:20 AM.

Chad (Hope that makes it easier)

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Letting that album play.... nice music....

#7... She ain't in it.... wow... just wow!

I have heard the "Boots over" tune on the radio more than a few times...

Last edited by Guitarhacker; 01/30/17 11:35 AM.

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That is a fascinating discourse on the state of royalties now days. What about Apple Music, Pandora, Spotify and YouTube? I would think there would be some decent change there. I once familiarized myself with the payouts for Spotify but promptly forgot it. We still get the occasional small "digital check" from the 2002 CD we did with Randy. It was sold through CDBaby and they put it out in the digital world and to this day still track it.

Bud

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Originally Posted By: Janice & Bud
What about Apple Music, Pandora, Spotify and YouTube?


Streaming pays almost nothing to the writers. Millions of streams gets you, maybe, a couple of grand. There are articles out there that have the numbers... they aren't good...


Here is a quote from this article

http://www.cbc.ca/news/entertainment/songwriters-royalties-streaming-1.3567947

"American songwriter Kevin Kadish, who co-wrote the body-positive anthem All About That Bass with Meghan Trainor, complained to the U.S. Congress that he received $5,679 US for a song that had 178 million streams."


Last edited by floyd jane; 01/30/17 01:00 PM.
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Originally Posted By: Guitarhacker
Yep.... unless the CD sells into the gold or platinum area, there's not a lot of money in the mechanicals.


I thought the airplay royalties were where you made the bulk of your money. If you get heavy rotation at 10 stations per state, that'd be 500 stations playing your song 12-15 times a day. Does anybody know how much you make per play on commercial radio? I know the streams are close to nothing, like $.0004 per stream or something ridiculous like that.


I smashed the hell out of my car today. When the cops came I told him "Officer, that guy was BOTH texting and drinking a beer." The cop said "Sir, he has every right to do that. I mean, it's HIS living room..."
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Originally Posted By: eddie1261
Originally Posted By: Guitarhacker
Yep.... unless the CD sells into the gold or platinum area, there's not a lot of money in the mechanicals.


I thought the airplay royalties were where you made the bulk of your money. If you get heavy rotation at 10 stations per state, that'd be 500 stations playing your song 12-15 times a day. Does anybody know how much you make per play on commercial radio? I know the streams are close to nothing, like $.0004 per stream or something ridiculous like that.


A song on a gold record generates $45,500 in mechanical royalties.
That is split 50/50 between publishers and writers. $22,750
If there are 2 writers on the song, they split the writer's share.
So they each get $11,375.

So, no, actually there is not "big money" in gold. Platinum would be twice that - again, not "big money".

If you've got 5 or 6 cuts on a gold record, you've made a decent living. For that year, anyway. There are only a handful of writers who get that many cuts in a year, much less on a single record. And gold records aren't a guarantee these days...because everyone can stream everything and never BUY a record. And...songwriters careers are a lot like pro athletes - 5 years is a good run. There used to be a handful of "superstars" who had 20 year careers (they aren't getting cuts now). The majority will have a good year or two.

Here is a list of the current "active" sellers in Country:

http://roughstock.com/news/2017/01/41331-top-10-country-albums-chart-january-23-2016

There are 21 gold or higher. Most of those have been on the charts for a year or more to make those numbers. And if you notice, the really BIG sellers are all OLD GUYS - because their old fans still buy records (CDs). As they fall away and younger acts take their place, these number will continue to fall, because eventually, no on will buy albums anymore. Everything will be streamed.

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What this tells me is this is good advertising for a tour. If you want to stay home and write and record without touring, good luck. It's also what you need to get booked in one of the few big name clubs in LA. A regular local act no matter now good gets nowhere around here without a serious resume with all this stuff on it.

Bob


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I don't think I actually said "big money... in mechanicals"....

To a starving songwriter in Nashville, $10k is like winning the lottery. I remember how broke I was a various times in my life, especially when I first started playing in bands. $10k then would have been simply wonderful. I recall having a conversation with another musician who commented that if he had $10k, he would never have to work another day in his life.....

The whole point being, yes, mechanicals are nice if you get a big cut... but that $10k gets a 20% or so hit for taxes and what's left goes fast....you'll probably have enough to catch your rent up, pay on your car payment and buy some food for the next week, and maybe pay off your credit account at the music store.

Airplay is where the money is hiding for the writers, but getting those airplay spins is the trick. There has to be some sort of buzz going on in other areas to get the attention of those who compile the airplay charts for the radio stations.


You can find my music at:
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Add nothing that adds nothing to the music.
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Originally Posted By: eddie1261
Originally Posted By: Guitarhacker
Yep.... unless the CD sells into the gold or platinum area, there's not a lot of money in the mechanicals.


I thought the airplay royalties were where you made the bulk of your money. If you get heavy rotation at 10 stations per state, that'd be 500 stations playing your song 12-15 times a day. Does anybody know how much you make per play on commercial radio? I know the streams are close to nothing, like $.0004 per stream or something ridiculous like that.


Apparently, the PRO you are with gets to make those numbers up as they go. Well maybe not exactly... but kind of seems that way. Of course, they have a formula that varies depending on a multitude of factors. Factors include: Length of the performance, market area, number of stations playing the performance, time of day of the performance, how many times the performance airs, etc....

All works in the BMI repertoire that are performed on radio will be eligible for a Current Activity Payment. BMI calculates a unique royalty rate for each work, which is based upon the license fees collected from stations that performed that work in combination with the number of times each work aired on those stations. For example, if one of your works was performed on 200 radio stations during a quarter, its unique rate is calculated based upon the license fees collected by BMI from those 200 stations. If another work in your catalogue was performed on 2,000 stations in the same quarter, that work’s rate will be different because it will be based upon the license fees collected from those 2,000 stations. All works that were reported to BMI as having been performed on radio during a quarter, regardless of how many times each of the works was performed, are eligible for the Current Activity Payment. The substantial majority of the amount available for distribution each quarter will be used to make Current Activity Payments.

The full BMI info page is here>>> http://www.bmi.com/creators/royalty/us_radio_royalties[i][/i]


NOTE: that info ^^^^^ is for airplay of songs like you hear on any given radio station. Airplay for TV and film is a bit different. Still collected and paid by the PRO but rates can be significantly higher. For example.... on my PRO statements, I have a number of cues (song snippet) that played for 5 seconds in a TV show that earned 5 cents each. That's 60 cent a minute. I have others that earned several dollars and played in a show for about 70 seconds, and everything in between. Those rate scales are different from radio station airplay.

Last edited by Guitarhacker; 01/31/17 03:07 AM.

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I know this was mentioned a bit in passing, and not the larger point being made in the thread, but this point has had me thinking...

Quote:
This is new, current Country, but has a lot of "that older sound" (sort of makes it a "gateway drug" for modern Country).


I think that gateway is two ways. I've seen a lot of kids get turned on to older country from these types of situations.

All the way around I feel it's a good thing.


Chad (Hope that makes it easier)

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Originally Posted By: Guitarhacker
...Airplay is where the money is hiding for the writers, but getting those airplay spins is the trick. There has to be some sort of buzz going on in other areas to get the attention of those who compile the airplay charts for the radio stations.


They had an effective way of doing that back in the late 50's smile


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Originally Posted By: Janice & Bud

They had an effective way of doing that back in the late 50's smile



Don't think for a second that that is not still the case.

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Originally Posted By: floyd jane
Originally Posted By: Janice & Bud

They had an effective way of doing that back in the late 50's smile



Don't think for a second that that is not still the case.




Yeah, except it's paid in white powder these days. grin


Regards,


Bob

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Originally Posted By: 90 dB
Originally Posted By: floyd jane
Originally Posted By: Janice & Bud

They had an effective way of doing that back in the late 50's smile

Don't think for a second that that is not still the case.


Yeah, except it's paid in white powder these days. grin


Wasn't it always? wink

The more things change....

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Is that why they sing about "sugar shakers?"


Chad (Hope that makes it easier)

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Great analysis, Floyd! Really interesting how little writers actually make from the royalties as opposed to airwave (and crazy how little they make from streaming!).


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Originally Posted By: floyd jane
Originally Posted By: 90 dB
Originally Posted By: floyd jane
Originally Posted By: Janice & Bud

They had an effective way of doing that back in the late 50's smile

Don't think for a second that that is not still the case.


Yeah, except it's paid in white powder these days. grin


Wasn't it always? wink

The more things change....


This reminded me of the payola episode on WKRP in Cincinnati, not sure if you ever watched that show? The guy giving Carlson a bag of Cocaine to play some records and Carlson, being totally naive about payola, thinking it was foot powder smile

Last edited by BlueAttitude; 01/31/17 08:37 AM.
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Great show and yeah that episode was memorable!

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