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By Jeffrey Brabec and Todd Brabec

PART ONE

Whether the score is dramatic, soothing, romantic, comedic or foreboding, it is an integral part of the fabric of any motion picture.

INTRODUCTION

Music in the movies is an essential element of thefilmmaking process and is one of the main factors thathelps to determine box office success or failure. Thinkof a motion picture without music - whether it's anorchestral or synthesizer score, a brand new hit songor a long time standard - and you'll begin to realizethe value and contribution of music and lyrics to film.And whether you're a producer, a director, an agent,a composer, a songwriter, a studio executive, a musicsupervisor, a business affairs executive, or anyoneinvolved in film, or who wants to get involved.

THE FILM BUSINESS

Most feature films are produced either by the majorHollywood studios or by hundreds of U.S. and foreignindependent production companies. The independents rangefrom major companies just below the rank of the well-financed,all-purpose studios, to medium and small continuingcompanies, to firms that fold up their tents after justone production.

..there are manythousands of films produced each year worldwidewhich do well, make money, and create income opportunitiesfor composers and songwriters..

Filmmaking costs have skyrocketed in recent years.The average cost to produce, market and advertise afilm in today's industry is in excess of $75 millionversus a 1980 figure of $16 million. Out of necessity,films are now financed in a variety of complex waysincluding major studio backing, joint ventures, outsideprivate or public investors, limited partnerships andpre-sales of ancillary and distribution rights, amongothers. Regardless of how a film is financed, though,all parties involved normally have a good idea of theprincipal revenue-producing areas from which their investmentwill be recouped and, they hope, a profit made. Theyusually are also familiar with the various stages ofproduction which ultimately lead to the release of afinished motion picture.

Though the stakes are high, the returns for a blockbusterhit can be monumental. In 1976 only one film had generatedover $100 million in U.S. and Canadian box office receipts;by 2000, close to 200 films had reached the $100 millionmark. Considering also that foreign markets can equalor surpass the U.S. and Canadian gross (the film Titanicgrossed over $1.8 billion worldwide, with Star Wars:Episode I-The Phantom Menace at $920 million), theprofit potential for a hit can be astronomical despitethe high cost of producing a film as well as the oddsagainst box office success. Blockbusters aside though,there are many thousands of films produced each yearworldwide which do well, make money, and create incomeopportunities for composers and songwriters, both inthe initial year of release and for many years afterward.

THE MARKET

The initial market for any film is the exhibition inU.S. and foreign motion picture theaters. Films arethen released as DVDs, video cassettes and laserdiscsfor purchase and rental, with subsequent sales to pay-per-view,to pay cable services (HBO, Showtime, Disney, The MovieChannel, etc.), to the television networks (ABC, CBS,NBC, FOX, etc.), to local television stations or basicnon-pay cable services (USA Network, Lifetime, etc.)and to foreign television and cable stations. Soundtrackalbums and singles are also often released with manyof them becoming major chart hits, in turn creatingadditional income from such ancillary sources as U.S.and foreign performance income from radio, television,cable and theater performances, worldwide mechanicalroyalties from tape and CD sales, download and streamingroyalties and commercial advertising fees, among manyother sources.

TYPES OF MOTION PICTURE MUSIC

Motion picture music falls into three basic categories:underscore (James Horner's score to Titanic,John Williams' score to E.T.,or Randy Newman'sscore to Toy Story 2); the pre-existing songor song and original master recording (Bruce Springsteen's'Hungry Heart' for The Perfect Storm,Steve Miller's 'Fly Like An Eagle' for SpaceJam, the Guess Who's 'American Woman'in American Beauty); and the song written specificallyfor the film (Diane Warren's 'I Don't Want To MissA Thing' for Armageddon, Phil Collins' 'You'llBe In My Heart' for Tarzan and Harold Arlen'sand E.Y. Harburg's 'Over The Rainbow' forThe Wizard Of Oz.)
Each of these three distinct types of music in filminvolve very different negotiations, contracts and considerationsand produce very different backend royalties once thefilm is released.

THE PRE-EXISTING HIT SONG USED IN A FILM

Most successful motionpictures use hit songs to create a period flavor,establish a mood..

Most successful motion pictures use hit songs to createa period flavor, establish a mood, give an actor a chanceto sing, make people laugh, make people cry, elicitemotions, and create interest in the movie through successfulsoundtrack albums and hit singles. A film producer whowants to use an existing song in a motion picture mustsecure the permission of the music publisher to usethe composition in the film. Once an agreement is reachedas to a fee, the producer will sign what is known asa synchronization or broad rights license, which willgive the studio the right to distribute the film theatrically,sell it to television, use the song in motion picturetheater trailers or television and radio promos, andsell videos. The synchronization fee received by themusic publisher is shared by contract with the songwriter.

Determining How Much To Charge For A Song.

When the call comes in from the music supervisor ofa motion picture, there are a number of factors thatmust be considered in determining how much to chargefor the inclusion of a song in a film, including:

How the song is used (i.e. vocal performance by an actor on camera, instrumental background, vocal background)
The overall budget for the film, as well as the music budget
The type of film (i.e. major studio, independent, foreign, student, web)
The stature of song being used (i.e. current hit, new song, famous standard, rock n' roll classic)
The duration of the use (i.e. one minute, four minutes, 10 seconds) and whether there are multiple uses of the song
The term of the license (i.e. two years, 10 years, life of copyright, perpetual)
The territory of the license (i.e. the world, the universe, specific foreign countries)
Whether there is a guarantee that the song will be used on the film's soundtrack album
Whether the producer also wants to use the original hit recording of a song, rather than re-recording a new version for use in the film
Whether the motion picture uses the song as its musical theme as well as its title

Actual Fees Paid For Existing Songs.

Thereare no hard and fast rules in this area as the feesare negotiated in the context of each individualfilm..

The synchronization fees charged by music publishersfor major studio films are usually between $15,000 and$60,000 (with the majority ranging from $20,000 to $45,000)but can be lower if the music budget is small or higherif the song is used several times in the motion picture,if the use is under the opening or closing credits,if the song is a major hit, or if it is vital to theplot or particular scene of the motion picture. Thereare no hard and fast rules in this area as the feesare negotiated in the context of each individual film;the same song may be licensed at very different ratesfor different projects (i.e. major studio release, independentfilm, foreign film, film festival license only, webproduction, or student fil

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