I find cool music for brands to use in advertising and marketing campaigns, and then negotiate the rights to use it in all kinds of new media. I've worked with Macy's, American Eagle Outfitters, Nike, Chivas Regal, and others. I'm currently working at Amazon, and you might have seen some of my Kindle ads.
"How much does it cost" is a very complicated question, since it's different in every case. The short answer to your question is that yes, a Hollywood studio has to pay more to use Sweet Caroline in a blockbuster movie than a high school making a yearbook DVD because the blockbuster will reach more people. Here are some of the inputs we use to estimate how much a license should cost: Term: When will the project be available and how long will it be available? Territory: Where will the project be shown? Media: TV? A website? On demand? If the project will be shown online, what's the estimate of weekly traffic to the site? If it's a DVD, how many copies will be pressed? Use: What's the context of the song usage? Example: the song will be used over the end credits. Or the song will be a source cue in a scene where the two main characters are driving in a car through the Mojave desert, planning a bank heist. There are some other inputs, but these (above) are the main things we consider when making a quote, and the numbers themselves vary greatly. Most licensing reps have a good grip of the market price of their IP and quote accordingly.
Great question. You don't need a manager to get licensed. But it would really help to go through an independent licensing representative who pitches a catalog of music to music supervisors. You will probably have to network your way into one of those relationships. Even though selling your music should be their lifeblood, licensing reps are usually heavily backlogged with new music submissions and the best way to get their attention and jump to the front of the line is through a personal referral. If you're new to the licensing community, pick up the Film/TV guide from http://www.musicregistry.com/, and attend a few conferences. Also, contact your licensing people at ASCAP/BMI/SESAC and see if they can get you started. Targeting your pitches well will go a long way to getting you in the door. Do your research and make sure your music is appropriate for film/TV. If you can go to a music supervisor or a licensing rep and say, "I know your main character will be spending a part of next season in Afghanistan. Here's some hip new Afghani music", it's very likely that you'll be heard! So, know your market. Finally, this seems trite but it's SO important: Clearly label your CD and make sure all your files are perfectly tagged with metadata. Include master and publishing information, and your contact information. You want to make it as easy as possible for them to actually license your music if the opportunity arises. On the other hand, most people in music licensing don't care about artwork, photos, press kits, or packaging. So don't waste your money on that stuff.
Heineken, Target, Google, and Amazon have been killing it with cool music placements lately. And of course, car ads. Always car ads. I'm seeing a lot of the cool advertising music come up in smaller campaigns that aren't necessarily on broadcast television. Lots of internet fashion videos, for example. But are they "breaking" new bands? Probably not reaching enough people to do that on the scale that traditional mass-media ads have done in the past.
To become a music supervisor, you have to be really good at networking. Become a trusted music advisor to people who are making film/tv, ads and games. Start with a few projects, do a great job, and get referred into your next ones.
Also, have a strong network of licensing reps, artists, managers, labels and publishers. Your rolodex is your worth in this industry.
Finally, be very knowledgeable about copyright law and Union rules, and be great at reading and redlining contracts. Your job is to protect your production company from getting sued for not securing the rights to the music they want to use. You have to be super-organized and keep a tight paper trail.
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To license a song for a YouTube spot, you need to contact at least two parties:
1) label
2) publisher
You'll tell them how long the video will be up, in what territories, on which websites, etc, and they'll give you a quote. They also have the right to deny your request.
If you post these videos using music without permission, it's possible that the label and/or publisher can issue a Cease and Desist letter and YouTube can take them down. If your videos get a ton of traffic, it's more likely you'll get caught.
Music supervisors haaaaaate it when artists and licensing reps ask "have you had a chance to hear my music yet?" even though it's a totally legit follow-up.
A much better approach, especially when the music sup has already expressed interest, is to offer them extra value in your follow-ups, such as letting them know that instrumental versions are available, or that the clearance will be one-stop.
I know it can be stressful waiting to hear back on a potential placement. If the music supervisor has expressed interest and is waiting on approvals from everyone up the chain, it might be a good time to work on your relationship. Ask him/her about other projects and see if there's another opportunity to work together.
I've seen a few different compensation models for music supervisors. Sometimes it's a flat fee, sometimes it's a service fee tacked on to expenses, sometimes it's hourly. Also, many music supervisors are salaried employees of studios or production companies. I don't think I've seen a rev share.
There's a great study on revenue streams for musicians:
http://money.futureofmusic.org/40-revenue-streams/
According to a few different sources (A2IM and Soundscan and a few others), indie record labels control between 30% to 40% of the business. They're the largest segment.
So I think yes, there's quite a bit of money left in this industry.
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