Mechanicals VS Performance royalties in Production Music

bolla · Post by **bolla** » Mon Aug 08, 2011 5:33 am

Mechanicals VS Performance royalties in Production Music

I have a few tracks with various production music companies. Past contracts have either had a buyout on Mechanicals or an advance on Mechanicals.

I have no real idea what the potential earnings could be from mechanicals. I'm looking at setting up my own publishing and sub-publishing OS. I understand the distribution/breakup but can anyone give an average % compared to performance income. Obviously this will vary but some indication would be appreciated.
Thanks, Bolla.

MIDI Life Crisis · Post by **MIDI Life Crisis** » Mon Aug 08, 2011 8:08 am

A little knowledge is a dangerous thing. Get to your licensing agent and get definitive info. Relying on such info from the Internet in connection with forming a legal entity is 'not advisable.' Not only could loose $$$ but you are getting into an area that requires some legal savvy. Not that you shouldn't do it, but get definitive info and do not rely on the Internet for information.

mikehalloran · Post by **mikehalloran** » Fri Aug 12, 2011 12:29 pm

MIDI Life Crisis wrote:A little knowledge is a dangerous thing. Get to your licensing agent and get definitive info. Relying on such info from the Internet in connection with forming a legal entity is 'not advisable.' Not only could loose $$$ but you are getting into an area that requires some legal savvy. Not that you shouldn't do it, but get definitive info and do not rely on the Internet for information.

Amen to that!

In addition, join one of the three PROs: ASCAP, BMI or SESAC if you are in the USA or one of their foreign affiliates if not (I know you are in Oz but others reading this might live in the States).

This is where your performance royalties come from - it is a separate right from mechanicals. All three have membership departments that can give you the straight scoop and I am certain the Australian one(s?) do also. Again, do not rely on the internet for your information other than their web sites - and then talk to someone anyway.

I know and am partial to ASCAP, being a long time member. The most I know about BMI and SESAC is that they exist.

Here is one Australian PRO. I do not know if there are others:

Australia

Australasian Performing Right Association Ltd.
6-12 Atchison Street St.
Leonards NSW, 2065
Australia
Tel:
011-61-2-9935-7900
Fax:
011-61-2-9935-799

Nigel Keay · Post by **Nigel Keay** » Sat Aug 13, 2011 1:41 pm

I was once a member of APRA, and when I was it wasn't possible to belong to any other PRO at the same time - it was for all territories. Then when I switched to SACEM they asked if I wanted selected or all territories; it was possible to belong to them and another PRO at the same time, so there are different modes of functioning. I was told that when royalties are passed from one PRO to another under reciprocal arrangements (ie. country to country) then 10% was deducted before passing on. In this case it might sensible to belong to the PRO where most of the income is coming from if the choice is possible. As already pointed out you'll want to get up-to-date info from the horse's mouth...

bolla · Post by **bolla** » Sat Aug 13, 2011 9:13 pm

Thanks for your replies.
I'm an APRA member. They have always been helpful.
Re:Production Music
In the past I have had mechanicals paid as a buyout or as a re-coupable advance. This is no longer the norm. In fact no-one seems to be offering any mechanicals.
I'm looking at setting up my own publishing (with good legal advice) and then hoping to sub-publish with various publishers in different territories OS.
This will hopefully produce some income from mech's hence the original question.
Cheers, Bolla

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