{"id":3418,"date":"2014-07-04T00:00:00","date_gmt":"2014-07-03T22:00:00","guid":{"rendered":"http:\/\/srdevsite.soundreef.com\/derek-lefholz-we-don-t-get-paid-until-we-make-money-for-the-artist\/"},"modified":"2021-05-07T12:49:38","modified_gmt":"2021-05-07T10:49:38","slug":"derek-lefholz-we-don-t-get-paid-until-we-make-money-for-the-artist","status":"publish","type":"post","link":"https:\/\/www.soundreef.com\/en\/blog\/derek-lefholz-we-don-t-get-paid-until-we-make-money-for-the-artist\/","title":{"rendered":"Derek Lefholz: \u2018We don\u2019t get paid until we make money for the artist\u2019"},"content":{"rendered":"<p><img src=\"\/wp-content\/uploads\/2017\/03\/66704769c6aa568762e069bdcb037c87.jpg\" style=\"cursor: default;\"><\/p>\n<p><i>Derek Lefholz is<br \/>\nDirector of Artist Relations and Radio in Retail for&nbsp;<\/i><a href=\"http:\/\/musicsupervisor.com\" target=\"_blank\" rel=\"noopener\">Music Supervisor Incorporated<\/a><i>, Owner and President of&nbsp;<\/i><a href=\"http:\/\/embarkmusic.com\" target=\"_blank\" rel=\"noopener\">Embark&nbsp;Music<\/a><i>,<br \/>\nas&nbsp;well as continuing to create music as an artist in his own right. He took<br \/>\nsome time out to tell us what musicians need to know about the music business:<br \/>\nhow film and TV licensing works, what Music Supervisor does and PROs (collecting<br \/>\nsocieties).<\/i><\/p>\n<p>Film and TV licensing can be quite complex.<\/p>\n<p>\u2018Firstly you have to understand the bare essentials of a<br \/>\nsong,\u2019 Lefholz explains. \u2018A song is complete, it is one piece of music, but it<br \/>\nis really two separate entities, that being the writer and the publisher<br \/>\nportion of a song.\u2019<\/p>\n<p>\u2018You really want to try to maintain your rights for both<br \/>\nsides of your music, moving forward as an artist in the industry. It\u2019s going to<br \/>\ngive you more flexibility to do different things and to make more money, to<br \/>\nfind new avenues for your music if you have all rights. Then you don\u2019t have<br \/>\nsomeone who\u2019s&nbsp;<a href=\"http:\/\/pmamusic.com\/retitling\/\" target=\"_blank\" rel=\"noopener\">retitling<\/a>&nbsp;your works or whatever.\u2019<\/p>\n<p>\u2018When you get a song placed on a TV show, they have to clear<br \/>\nwhat\u2019s called the \u201cAll-in\u201d licence. And that is compiled of the master use, and<br \/>\nthen the sync use licence. The sync kind of correlates with the publishing side<br \/>\nand the master kind of correlates with the writer\u2019s side. Although, confusingly<br \/>\nenough, within music there\u2019s also a third, unseen right, which is the master<br \/>\nrights.\u2019<\/p>\n<p>\u2018So usually the label, if we\u2019re talking major label deal,<br \/>\ntraditionally \u2013 because there\u2019s a lot of different ways things work today \u2013<br \/>\nholds the master to that album. The publishing is usually represented by a<br \/>\npublisher that is an affiliate to the label in some way.&nbsp; Then the only thing that stays with the<br \/>\nartist is the writer\u2019s share, whoever wrote the song that stays.&nbsp; Now that\u2019s not to say that you couldn\u2019t go<br \/>\ngive a song to someone, and give them the writer rights too \u2013 it happens \u2013 but<br \/>\nhopefully the artist or the band maintains rights to at least their writers<br \/>\nshare.&nbsp; That\u2019s why we always tell artists<br \/>\nto keep their publishing.&nbsp; This is basically<br \/>\nthe parts you\u2019re working with that make a licence possible.\u2019<\/p>\n<p>What about cover songs?<\/p>\n<p>\u2018If you have a cover song, you can licence the song for film<br \/>\nand TV, but it makes it that much harder because they have to go clear the<br \/>\noriginal publisher of the song. When you do a cover, you own the master side of<br \/>\nit but the publishing is always retained to the original publisher.\u2019<\/p>\n<p>In practice, this means things can get expensive. <\/p>\n<p>\u2018Let\u2019s say we cover an original Beatles song and we have a licence request.&nbsp; They want to<br \/>\nlicence it for $5,000. &nbsp;Well they may go<br \/>\nto the publisher and the publisher says, now we\u2019re going to licence the<br \/>\npublishing side of this cover for $20,000. &nbsp;<a href=\"http:\/\/uk.practicallaw.com\/8-382-3637#\" target=\"_blank\" rel=\"noopener\">Most favoured nation<\/a>&nbsp;tells<br \/>\nus that the writer\u2019s side or the master use side has to get $20,000 as well,<br \/>\nthe same amount as the publishers, so all of a sudden someone that\u2019s working<br \/>\nwith a budget of $5,000 just went to spending $40,000 for a cover song. So it\u2019s<br \/>\nbetter for people to licence music that\u2019s 100% cleared on both the writer and<br \/>\nthe publisher side.\u2019<\/p>\n<p>Music Supervisor helps solve this problem.<\/p>\n<p>\u2018We\u2019re an agent for the artist. And with that said, we have<br \/>\n100% cleared songs on our catalogue, so both the writer and the publishers of<br \/>\nthe songs clear their music through us and give us the right to license their<br \/>\nmusic for a large scope of things.\u2019<\/p>\n<p>This service is popular with music supervisors, who can use&nbsp;<a href=\"http:\/\/musicsupervisor.com\" target=\"_blank\" rel=\"noopener\">musicsupervisor.com<\/a>&nbsp;to search for and license suitable music quickly. It\u2019s<br \/>\nalso&nbsp;popular with artists: \u2018People come to us because we don\u2019t take any<br \/>\npublishing from the artists, we don\u2019t do any retitling of artists\u2019 works, and<br \/>\nwe don\u2019t get paid until we make money for the artist! Which is how you guys<br \/>\nwork.\u2019<\/p>\n<p>How did he find Soundreef?<\/p>\n<p>\u2018I was looking for a way for artists to make money with<br \/>\ntheir music that would be somewhat more sustainable than film and television,<br \/>\nbecause it\u2019s kind of rocky: you get a placement and you get a decent amount,<br \/>\nbut it fades. Everybody banks on the back end, you know, making money for<br \/>\nplacements, but the PROs traditionally are pro-major label. So they\u2019re not<br \/>\nreally out for the indie guys.\u2019 <\/p>\n<p>\u2018They don\u2019t pay\u2026 ASCAP doesn\u2019t actually pay any retail<br \/>\nroyalties to any person that belongs to ASCAP unless the song has been placed<br \/>\non a film or TV show, or has been played on radio. All the income from retail<br \/>\nthat they collect goes to major label artists.\u2019<\/p>\n<p>He explains that this is to do with the way that income is<br \/>\ndistributed.<\/p>\n<p>\u2018If Muzak were to go and get some independent music \u2013 I\u2019m an<br \/>\nartist too, I\u2019m a producer, so if they were to find my music on some website<br \/>\nand just go ahead and upload it because they have licensing deals in place with<br \/>\nASCAP or BMI or SESAC, and they put some Beyonc\u00e9 music in, or some other major<br \/>\nartist, like Tiesto or something like that, then when they distribute royalties<br \/>\nthat year for the retail portion of it, Tiesto\u2019s gonna get paid any earnings,<br \/>\nI\u2019m not gonna see any earnings from that.\u2019<\/p>\n<p>(For more on why it works this way, see our blog post on&nbsp;<a href=\"http:\/\/www.soundreef.com\/en\/blog\/1\/making-money-from-your-music\/how-does-a-collecting-society-split-royalties\" target=\"_blank\" rel=\"noopener\">how PROs (collecting societies) distribute royalties<\/a>&nbsp;and&nbsp;<a href=\"http:\/\/www.soundreef.com\/en\/blog\/1\/making-money-from-your-music\/international-royalty-collection\" target=\"_blank\" rel=\"noopener\">distribute royalties internationally<\/a>.)<\/p>\n<p>\u2018So with all this, and also with the non-exclusive nature of<br \/>\nPROs in the United States, we knew we were able to do something like work with<br \/>\nSoundreef where we could get our catalogue to you guys and you guys could<br \/>\ncurate that for your radio stations and earn money for our artists. And so that<br \/>\nway the artists get paid directly, the PROs are not involved at all.\u2019 <\/p>\n<p>\u2018A company like ours and Soundreef was kind of a match made<br \/>\nin heaven because you guys traditionally don\u2019t charge the artist, you split<br \/>\nwhat you make with the artist, you\u2019re very pro-artist and so are we. &nbsp;It\u2019s<br \/>\njust a natural relationship to work together and come up with ways for artists<br \/>\nto make more money.\u2019<\/p>\n<p>Does he ever deal with PROs? <\/p>\n<p>\u2018I deal with the PROs, but I don\u2019t know how long I\u2019ll deal<br \/>\nwith the PROs.\u2019 <\/p>\n<p>\u2018The bottom line is this: no PROs are paying any indie guys,<br \/>\nperiod. At least not fair rate (what the majors make). I\u2019ve been a member of<br \/>\nASCAP for probably six or seven years, I have over 200 titles registered, I<br \/>\nknow my music\u2019s been played on a lot of internet radio stations and used for<br \/>\ndifferent web series, and all kinds of digital media, I get streams on Spotify,<br \/>\nall that kind of stuff, and I\u2019ve never seen one dime from ASCAP.\u2019 <\/p>\n<p>\u2018Last year, in 2013, I had about 10 or 15 of my songs used<br \/>\nfor&nbsp;<a href=\"http:\/\/www.elitemodellook.com\/pasteditions\/2013.html\" target=\"_blank\" rel=\"noopener\">Elite Model Look Singapore<\/a>&nbsp;\u2013 they&nbsp;used a lot of minimal and tech house stuff that I\u2019d written \u2013 and they used<br \/>\nthat for the show and there were webisodes, but then it was also showed on TV5<br \/>\nout of Singapore, so I\u2019ve been trying to collect now from ASCAP, since summer<br \/>\n2013, and they\u2019re telling me I\u2019m gonna see my first payment in February of<br \/>\n2015!\u2019<\/p>\n<p>\u2018It\u2019s ridiculous. And do you really think that I\u2019m gonna be<br \/>\nlike, \u201cYeah, I\u2019m getting all my money, oh yeah I\u2019m sure I\u2019m getting everything<br \/>\nI\u2019m owed.\u201d I\u2019m very passionate about the PRO situation because I feel like the<br \/>\nguise of, \u201cHey, come join us, we\u2019re gonna help you. Artists, this is your place<br \/>\nto come and have a home and collect professionally\u2026\u201d No. It\u2019s big walls, it\u2019s<br \/>\nbig business, it\u2019s major label-focused, and it\u2019s definitely not pro-indie.\u2019<\/p>\n<p>\u2018Artists don\u2019t necessarily want to deal with all of<br \/>\ncollecting on their own from all these places. But they would definitely open \u2013<br \/>\nI mean I would be open \u2013 to working with some other affiliate that is<br \/>\ncollecting my royalties and actually paying me something.\u2019 <\/p>\n<p>\u2018For instance, I\u2019ll give you a very specific example, ASCAP,<br \/>\nunless you have over 155,000 plays per quarter on Spotify, you earn $0. You\u2019re<br \/>\nunder the threshold, you make nothing. If you hit the threshold, you make one<br \/>\ncredit. So if I have 155,000 plays in a quarter at ASCAP, I earn one credit for<br \/>\n$7.80. For 155,000 plays. If I get just below that, I get nothing.\u2019<\/p>\n<p>\u2018And basically their consolation is, you can apply to our<br \/>\nawards ceremony and get an award from ASCAP and potentially like a few thousand<br \/>\ndollars or something if you win, if you can prove that you have had an active<br \/>\nyear in film or TV or retail or whatever it may be. So, ASCAP\u2019s saying, I\u2019m not<br \/>\ngonna pay you your money, but show me that you\u2019re doing well enough and that I<br \/>\nshould be paying you and I\u2019ll maybe give you an award and a little bit of<br \/>\nmoney. So it\u2019s pretty dirty.\u2019<\/p>\n<p>Sounds like the artist has to jump through a lot of hoops. <\/p>\n<p>\u2018That\u2019s the nature of the industry right now. I mean, with<br \/>\nall of the performance right collection societies, the PROs and affiliations<br \/>\nlike&nbsp;<a href=\"http:\/\/www.soundexchange.com\/\" target=\"_blank\" rel=\"noopener\">Sound Exchange<\/a>&nbsp;in the United States<br \/>\nthat collects for internet or for digital radio, like satellite radio et<br \/>\ncetera, and they pay the master and&nbsp;the performer for that, and that\u2019s all run<br \/>\nthrough the government and everything, there\u2019s a bunch of hoops there.\u2019<\/p>\n<p>\u2018It takes a long time to start getting money. When you go to&nbsp;<a href=\"https:\/\/www.harryfox.com\/\" target=\"_blank\" rel=\"noopener\">Harry Fox<\/a>&nbsp;you can\u2019t even talk to anybody at<br \/>\nHarry Fox, and it\u2019s all done&nbsp;through email\u2026 It\u2019s a lot of red tape, a lot of<br \/>\nhoops, at the end of the day for really little to no gain, because you\u2019re not<br \/>\nseeing the money that\u2019s supposed to be there, as an independent artist.\u2019<\/p>\n<p><i>In Part 2, Lefholz<br \/>\nexplains how things have really changed for artists and how artists can make<br \/>\nthe best of their music.<\/i><\/p>\n<\/p>\n<p><i>A member of the<br \/>\nRecording Academy,&nbsp;Derek&nbsp;Lefholz, aka&nbsp;<\/i><a href=\"https:\/\/soundcloud.com\/degreezero\" target=\"_blank\" rel=\"noopener\">DegreeZero<\/a><i>, founded&nbsp;<\/i><a href=\"http:\/\/embarkmusic.com\/\" target=\"_blank\" rel=\"noopener\">Embark Music<\/a><i>, a Creative Licensing Agency and&nbsp;Record Label in the early 2000\u2019s.&nbsp;Lefholz also works as Director of<br \/>\nA&amp;R and Radio in Retail for&nbsp;<\/i><a href=\"http:\/\/www.musicsupervisor.com\/\" target=\"_blank\" rel=\"noopener\">Music Supervisor Inc.<\/a><i>, managing and consulting&nbsp;with thousands of musicians, artists and bands daily. As an&nbsp;<\/i><a href=\"http:\/\/www.beatport.com\/artist\/degreezero\/107420\" target=\"_blank\" rel=\"noopener\">artist<\/a><i>&nbsp;he continues<br \/>\nto produce and has writer and&nbsp;publisher credits on over 200 tracks in many<br \/>\ngenres. You can contact him via&nbsp;<\/i><a href=\"https:\/\/www.facebook.com\/DegreeZero\" target=\"_blank\" rel=\"noopener\">Facebook<\/a><i>&nbsp;and&nbsp;<\/i><a href=\"https:\/\/twitter.com\/embarkmusic\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Derek Lefholz is Director of Artist Relations and Radio in Retail for&nbsp;Music Supervisor Incorporated, Owner and President of&nbsp;Embark&nbsp;Music, as&nbsp;well as continuing to create music as an artist in his own right. He took some time out to tell us what musicians need to know about the music business: how film and TV licensing works, what<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[56],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Derek Lefholz: \u2018We don\u2019t get paid until we make money for the artist\u2019 - Soundreef<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Derek Lefholz: \u2018We don\u2019t get paid until we make money for the artist\u2019 - Soundreef\" \/>\n<meta property=\"og:description\" content=\"Derek Lefholz is Director of Artist Relations and Radio in Retail for&nbsp;Music Supervisor Incorporated, Owner and President of&nbsp;Embark&nbsp;Music, as&nbsp;well as continuing to create music as an artist in his own right. 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