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Ron Medelsohn, Megatrax´President and CEO Writes Article for PMA July 21, 2010
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SHOULD YOU SIGN WITH A NON-EXCLUSIVE RETITLED LIBRARY?
Get the facts before you decide.
Many composers and songwriters are lately being offered what seems like a deal too good to pass up: get film/TV placements of their music and a share of sync fees from non-exclusive distributors while retaining 100% of their copyrights. While this may appear to be an irresistible bargain on the surface, it is essential that writers fully understand the ramifications of this business model in order to make an informed decision.
What Is Non-Exclusive Retitling?
First, let’s clarify what is meant by the term “retitled libraries”. This term does not refer to libraries that exclusively own the rights to their works and for whatever reason decide to re-release the works under alternate titles; it is a library’s prerogative to re-release or repurpose tracks in such a manner. Rather, for the purposes of this article, this term shall refer to libraries that engage in the practice of retitling tracks without obtaining exclusive rights to the works. For these libraries, retitling is simply a way to market and license non-exclusive content and collect performance revenues by registering existing works under different titles.
How Does It Work?
Retitled libraries solicit content from composers or songwriters promising that they will “retain ownership” in the works and simply license their tracks on a “non-exclusive” basis. They offer to retitle the works and share publishing revenue generated from their placements of the retitled tracks. (There is generally no upfront cost involved for the writer, although a few retitled libraries have been known to retain all or part of the writers share of performance royalties- a definite “red flag”). This sort of arrangement can obviously be appealing to a writer who might have dozens of songs, scores, demos and other unused musical material just “sitting on the shelf” gathering dust. Why not monetize these tracks to generate some extra revenue? For that matter, why not sign the same tracks with as many retitling services as possible to maximize income? Before signing away your tracks, let’s delve a little deeper and explore some of the repercussions of these deals.
One Song, Many Titles
The most obvious drawback with this model is apparent on the client side of the equation. With more and more companies dumping retitled content onto the market, situations are starting to arise where multiple parties are claiming ownership in the same work. In fact, several top Hollywood music supervisors are now refusing to accept material from retitled libraries after being pitched the same song from different sources under different titles (and at different rates!). The potential for confusion has led at least one major studio to issue an edict stating that they will only work with music companies that represent their content exclusively.
Similarly, for broadcasters or other library clients who are often highly sensitive about market exclusivity, it could be devastating to sign a deal with library X only to hear the same tracks used by a competing station who signed a deal with library Y. Such a scenario could easily happen if both libraries are offering retitled music.
On an industry level, it is hard to argue that the industry will benefit from situations where multiple parties are claiming rights to the same song and bidding against each other for the same placement. This practice only serves to further erode sync fees and devalue music in an already hypercompetitive marketplace, as well as feed cynicism and mistrust towards the production music industry in general. There is, after all, a certain aspect of duplicity surrounding the notion of the same piece of music having multiple title aliases depending on the situation or vendor. Such confusion, if unabated, will just encourage more unreported music uses and piracy due to the lack of publishers’ ability to effectively monitor and police their works. Furthermore, at a time when music rights are under siege by legislators, broadcasters and technology companies alike, it is safe to say that adding more confusion and uncertainty to the music rights landscape is probably not a sanguine development for the industry.
Identical Fingerprints
It is widely accepted in the music community that fingerprinting [1], in one form or another, holds the key to performance monitoring in the years ahead. ASCAP and BMI have already tested and implemented fingerprinting technology on a limited basis (Mediaguide and Landmark, respectively), and a more extensive rollout of these technologies is planned in the near future. Since every piece of audio contains a unique “fingerprint”, the day will soon come when digital algorithms will automatically detect each piece of music and (ideally) every performance will be tracked and paid- without the hassle of cue sheets or the burden of physically watermarking every track. Most libraries consider fingerprinting to be a critical step towards improving the fairness and accuracy of PRO distributions. In addition to performance tracking, fingerprinting systems are also being increasingly used by libraries to monitor sync uses of their catalog and by broadcasters to automatically generate cue sheets.
All of these scenarios present an obvious conundrum for retitled music companies: since their audio files are not unique, each detection can no longer be linked to a unique title record, making accurate performance identification virtually impossible. Clearly, the practice of retitling only serves to stymie these important initiatives and therefore runs counter to the best interests of the industry.
Legal Challenges Loom
It is only a matter of time before legal challenges arise from these practices. Whose title of a song was ultimately used in a film or TV show if multiple versions were pitched? Which title and which master are being referenced in a composer contract? Is anyone vetting these tracks for rights clearances or potential infringement issues? Do these companies even have the legal right to license these tracks, considering that copyrights are based not on title (titles are not copyrightable) but on the underlying composition and sound recording? How many non-exclusive catalogs have unwittingly entered into exclusive overseas subpublishing deals? Only time will tell how these issues will play out on the legal front.
The Artist Perspective
Industry considerations aside, what’s in it for the artist? The argument is often made that this model “helps artists” by allowing them to “retain control” while giving them “exposure” and generating “additional income”. To some extent, this may be true; a writer can sign a track with a retitled library while still releasing it on an album or otherwise exploiting it themselves. But often overlooked is the downside: once a writer signs a non-exclusive deal, that basically preempts any future possibility of signing an exclusive deal with another library or label. No reputable exclusive library is going to acquire or distribute a track that already exists in other permutations in the marketplace, and such exclusive libraries represent the majority of library music use in film and television. What may seem like a great deal is actually a dead end.
Writers also tend to overlook the fact that non-exclusive libraries are less likely to actively promote or pitch their tracks since they have less incentive to do so. These companies know that the same recordings might be available on other services, so often the tracks are just dumped on a drive or server and forgotten.
Another little known but critically important fact is that non-exclusive retitled catalogs miss out on significant revenue streams related to international distribution. Since libraries are generally represented by territory on an exclusive basis, retitled libraries technically cannot enter into these deals (to the extent that they do anyway, they are in breach of their contract). To drill down further, in many foreign territories music licensing is strictly controlled by mechanical copyright societies such as MCPS (UK), SDRM (France) and AMCOS (Australia). These societies, who are responsible for the vast majority of licensing in their respective territories, set the rates for music licenses as well as collect and distribute payments to composer and publisher members. In order for works to be represented by these societies, they must be the exclusive agents for their territory. Since non-exclusive content is often made available on websites or drives without regard to international borders, these catalogs do not qualify for registration and consequently their international income potential is severely limited. In the event a publisher or website representing non-exclusive content does attempt to register tracks with one of these mechanical societies, both the writer and the publisher will be in a potential breach of contract situation.
Last but not least is the new title itself: is it as effective and appropriate as the original title? Song titles should not be randomly generated or done in bulk fashion; they are more important than ever as they play a critical role in determining which songs get selected and auditioned by clients. It is not an obvious thing to effectively retitle a song with lyrics; by way of example, can you think of an alternate title for any of these hit songs: “Beat It”, ‘Like A Virgin”, “Hard Day’s Night” or “Are You Lonesome Tonight”? In lieu of donning a new title, some retitling services have resorted to simply adding a catalog number to precede the original title, i.e. “xyz001-My Love”, “xy002-My Love”, etc. It is hard to imagine how this scheme will accomplish anything except raise the amount of confusion among writers, clients and PROs to a whole new level.
Ultimately, writers need to weigh the perceived benefits of retitling against the potential pitfalls:
- Devalues your music
- Potential licensing disputes
- Potential legal challenges
- Risk of being blacklisted by film/TV clients
- Can create confusion around your catalog
- Can attach inferior titles to your songs
- Limited potential for international income
- Performances not tracked by fingerprinting
- No possibility of exclusive deals
- Limited potential for infringement claims with non-exclusive representation
A Song Is Still A Song
In conclusion, the practice of retitling does not pose a problem if the same entity, or combination of entities, controls the rights to all title variations of the same track; however it is very much a problem when multiple entitles lay claim to the same work non-exclusively based solely on title permutations.
Amidst all the technological change and upheaval buffeting the music industry over the past several years, some things still haven’t changed: a song is still a song and should not have multiple aliases depending on the situation or "who got the placement.” Clearly, the best strategy for composers and songwriters is to take the time to craft original, high quality music and develop a solid relationship with a reputable library that can represent their tracks exclusively and invest the necessary time and resources to properly tag, organize, promote and pitch their tracks. Integrity still counts, especially in the digital age.
-Ron Mendelsohn
April 26, 2010
Ron Mendelsohn is President and CEO of Megatrax and a founding member of the PMA
[1] A method of audio recognition by which a computer program identifies an audio track by matching its profile against an existing database.
PMA -
original email
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Karrin Wilcocks joins the Megatrax team as the Manager of the Audio/Visual Division July 9, 2010
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Karrin Wilcocks joins the Megatrax team as the Manager of the Audio/Visual Division. She brings with her 14 years of industry experience having worked as the regional manager at the Universal Music Publishing Group. Her experience covers television, radio networks, corporate production but she spent the majority of her career in the AV or Facilities Division, working with cable networks, production facilities, independent producers, and sports and outdoor programming.
When asked about her experience with Megatrax so far, Karrin says, “I love it. I am fully committed to our clients and it is very fulfilling to bring such a high quality product to the table.”
Having owned three businesses, Karrin provides Megatrax clients with a more personal understanding of the inner workings of business as well as the concerns and responsibilities of small business owners. She is passionate about music, coming from a musical family, having studied music as a child and in college, played 2 instruments and brings that passion into assisting her clients with an understanding of their music needs for their productions. She also spends time as an avid screenwriter, further enabling her to appreciate both the creative aspects of the industry as well as the business side.
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Megatrax at the APTC - Il Cumbre de Televisión Paga in Lima, Peru July 2, 2010
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Il Cumbre de Television Paga Lima-Peru 2010 took place on the 13th and 14th of May at the El Pueblo Resort and Convention Center in the charming city of Santa Clara.
One of the main objectives of the Asociaciación Peruana de Televisión por Cable” (APTC) for this event, was to try to ensure that all the members were given the opportunity to meet with commercial service providers; this, with the idea of developing strategic relationships and to open the possibilities of considering new technology and equipment adoption. Additionally, the conference was designed to give attendees the opportunity to buy or have access to new products and potential new commercial contracts with exhibitors.
The event was divided into two parts. The morning academic conferences brought together companies such as Megatrax, Telefonica del Peru, DN Consultores, Business Bureau, 4business and Internexa while the evening trade show hosted over fifty booths and allowed access for networks in Peru, Ecuador, Bolivia, Chile and Venezuela to deal face to face with various service providers.
Among many of the event’s attendees where Megatrax’ Phil Macko, the Vice President of Sales and Willy Rivers, the Senior Division Manager for Latin America and US Domestic Latin Broadcast/Radio in Central America.
Willy says, “We had the opportunity during the event to have representation in two ways: our booth at the commercial exhibitor hall, but also through a thirty minute presentation that I had the opportunity to conduct for all of the attendees. The presentation and my profile were featured in the event’s agenda. The name of the seminar was “Megatrax-Music Innovation for all your productions”. Basically, I tried to give them a small but clear overview of the music production options we offer and how they can access our catalogues. It was a dynamic presentation where the audience was motivated to participate and promotional items were raffled to attendees of the seminar. I was honored to receive from the President of the event, Daniel Segovia, a bronze city key to the city of Santa Clara in Miam-Perú.”
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Megatrax Announces Sales Awards for Q1 2010 June 15, 2010
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Megatrax proudly recognizes our top sales performers for the first quarter of 2010.
Salespersons of the Quarter (Q1 2010)
Sharon Baer
Ileana Landon
Wildcard Award for Top Achievements (Q1 2010)
Arlisha Anderson
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MEGATRAX SIGNS EXCLUSIVE DISTRIBUTION DEAL WITH RADIUM SOUND TO OFFER RADIO IMAGING ELEMENTS April 1, 2010
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Megatrax, www.megatrax.com, one of the world’s leading music production libraries, has formed a strategic partnership with Radium Sound, a leader in radio imaging elements, becoming its exclusive distributor in both North and Latin America.
Radium Sound will be exclusively distributed via Aircast Production, Megatrax’ popular custom division. Clients will initially receive a starter pack of over 500 elements followed by 180 new elements each month.
“Particularly for our radio clients, we can now meet even more of their production needs with 10 growing Megatrax music libraries, Aircast Production’s custom jingle services, as well as Radium’s radio imaging elements,” said Randy Hart, Creative Services Director. “The Radium sound elements are updated monthly and available for download from our secure, Aircast website,” he added.
Elements are organized for ease of use and productivity, categorized and grouped in folders allowing producers to streamline their workflow and meet their tight deadlines. The Radium Sound elements are accessible in 12 categories. From zippers and wipers to cutters and sweeps, they span every possible sound imaginable and are available in high quality 256K MP3 format for maximum Mac/PC compatibility.
Russell Nash, a radio production veteran known for his cutting edge approach, created radium. He has engineered, produced and created content for several syndicated radio shows including American Top 40, The World Chart Show and others. He has created over 80 CD’s of Imaging and music for production and music libraries, and produced and created custom imaging for nationally syndicated shows.
Founded in 1991, Megatrax is an independently owned and rapidly growing production music library based in North Hollywood, California. With nine libraries, Megatrax is committed to creating, licensing and delivering the finest quality library and custom music. It is most simply known for its commitment to music + innovation.
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MEGATRAX STRENGTHENS RECENT TV BARTER LAUNCH April 1, 2010
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Megatrax, one of the world’s leading production music libraries known for its innovative radio barter advertising, has hired Barbara Key, Division Manager of Broadcast Television, to further support the recently launched TV barter alternative for its clients and to round out the Megatrax Broadcast Television/Cable team.
“This pivotal position was created to manage Megatrax’s extensive rollout plans for our new barter options and to assist stations in monetizing unsold ad inventory,” said Phil Macko, VP of Sales. “ Barbara’s diverse experience in the television, radio and music industries makes her a huge asset to our clients, and our team,” he added.
Barbara joins Megatrax this month with ambitious goals to increase market share in the broadcast television market. She was formerly at Universal Music Publishing in Dallas, Texas, where she managed the cable division for nearly four years. Prior to her work there, Barbara was with CBS Radio, World Digital Media Group, Susquehanna Radio and Clear Channel Radio.
Founded in 1991, Megatrax is an independently owned and rapidly growing production music library based in North Hollywood, California. With nine libraries, Megatrax is committed to creating, licensing and delivering the finest quality library and custom music. It is most simply known for its commitment to music + innovation.
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Megatrax Launches TV Barter and Reinforces Commitment to Quality and Flexibility through Challenging Economic Times April 1, 2010
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Megatrax, one of the world's leading production music libraries known for its innovative radio barter program, has recently further differentiated its business from competitors and launched a barter alternative for its Television and Cable broadcast clients.
"We understand the challenges our broadcast clients have been presented by today's economy, and continue to seek new and innovative solutions. By offering our libraries and additional services in exchange for commercial inventory, we are uniquely positioned to partner with our clients and meet their demanding station budgets," said Phil Macko, VP of Sales.
"Like our music libraries, our barter business is specifically tailored to help our clients effectively accomplish their goals," Macko added.
In addition to expanding its barter offerings, Megatrax has launched a "Quality Counts" campaign focused on the impact of the quality of its products and services. For example, the Megatrax libraries are extremely well defined resulting in easy to locate music that is also simple to use with optimal customization.
Furthermore, Megatrax has committed to utilizing only top quality mastering houses, the same houses used by major recording artists and record labels. This is not a common practice in the industry, where production budgets continue to decline in other music libraries.
Megatrax is also now one of the only library companies to fully control the backend programming of its website and hard drive system allowing them to directly respond to client requests and continue to improve ease of use and functionality issues without the constraints of working with a third party software vendor. Further supporting the Quality Counts campaign, diligent staff music supervisors are trained and provide unmatchable personalized service and expert help with Megatrax clients' searches.
"We hold ourselves to a meticulous metadata standard so clients can efficiently find exactly what they need quickly and easily, " Macko added.
Each of Megatrax' libraries has a well-defined personality, a direct reflection of the unique perspectives of its expert producers. Libraries' broad range include the thrilling high-end set designed for trailer and promo editors in the recently launched Tonal Injection library to the evolution of urban music with Beat Bites and much more.
These libraries and tools help Megatrax bring the finest and most diverse products and services to its clients, including its custom division, Aircast, which specializes in scoring, imaging and theme packages for broadcast and media.
"If bigger were always better, there would be only one retail super-store available to consumers. When quality counts, Megatrax delivers," Macko added.
Founded in 1991, Megatrax is an independently owned and rapidly growing production music library based in North Hollywood, California. With nine libraries, Megatrax is committed to creating, licensing and delivering the finest quality library and custom music. It is most simply known for its commitment to music + innovation.
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Megatrax Announces Sales Awards for Q4 2009 February 2, 2010
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Megatrax proudly recognizes our top sales performers for the fourth quarter of 2009.
Salesperson of the Quarter (Q4 2009)
Diana Corbin
Wildcard Award for Top Achievements (Q4 2009)
Chuck Hamshaw
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Megatrax Announces Sales Awards for Q3 2009 November 6, 2009
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Megatrax proudly recognizes our top sales performers for the third quarter of 2009.
Salesperson of the Quarter (Q3 2009)
Chuck Hamshaw
Wildcard Award for Top Achievements (Q3 2009)
Michael Scott
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Press Room Page Now Available August 18, 2009
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Our new Press Room page has everything you need to know about Megatrax—corporate information,staff biographies and the latest press releases. Click here to view the Press Room page.
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Newsline Report Magazine interviews VP of Sales Philip Macko June 11, 2009
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Philip Macko, Vice President of Sales for Megatrax, shares his thoughts with Newsline Report Magazine on the company's strategy in Latin America and what the future holds for this rapidly growing territory. Read the full article here.
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Megatrax Acquires Aircast and Augments Custom Scoring Specialty for TV, Radio, Ringbacks and more June 5, 2009
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June 5, 2009 – North Hollywood - Megatrax, one of the world’s leading production music libraries, has announced its recent acquisition of Aircast Production, an innovative music and media production company specializing in custom music scoring, imaging and theme packages. This new division will be a participating sponsor at Promax in New York on June 16 - 18, booth #10.
Nashville based Aircast Production is best known for its work creating and licensing all types of custom scoring including audio branding, program theme packages, news music, radio ID packages, ringbacks, sweeps radio promotion and more.
“We are thrilled with this strategic acquisition of Aircast as we broaden Megatrax’ growing breadth of services and deepen our range of expert solutions for clients’ varied music needs,” said Ben Trust, President of Megatrax.
Aircast utilizes a wide variety of musical tools including award winning composers, musicians, singers and engineers to build custom solutions for their worldwide clients in television, radio, advertising and promotion. Ultimately, their work creatively builds brands, unfolds drama, develops themes and provides audio transitions in a variety of formats.
Some examples of Aircast’s recent clients and diverse projects include:
QUALCOMM (FloTV) – Aircast created the new audio logo for the rebranding of MediaFLO to FLO TV for video streaming on mobile devices.
NICKELODEON (Kid’s Choice Awards 2009) – Aircast was responsible for custom scoring the main musical theme, used for open, close and commercial breaks.
KRTH-101 – The station hired Aircast to create music beds for promotion of their annual BugStock event.
NEW ENGLAND SPORTS NETWORK – Aircast custom scored a new theme for their flagship show, SportsDesk.
DEUTSCH ADVERTISING – Aircast produced the infamous yodel for their Happy Cows campaign character, “Anna.”
Founded in 1991, Megatrax is an independently owned and rapidly growing production music library based in North Hollywood, California. With eight libraries and over 20,000 tracks produced to date, Megatrax is committed to creating, licensing and delivering the finest quality library and custom music. It is most simply known for its commitment to music + innovation.
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