Publishing Contracts
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Wallows Rock Band is an American indie rock band formed in Los Angeles, California, in 2017. The band consists of three members: Dylan Minnette, Braeden Lemasters, and Cole Preston. According to various interviews, the band members write their songs collectively and share the songwriting credits. Therefore, it is essential to consider the publishing deals that offer them the most favourable terms and opportunities for their collective songwriting efforts.
The three publishing contracts offered to Wallows Rock Band are from Universal Music Publishing Group,
Good Soldier Songs, and Sentric Music Publishing. Each contract has different terms and offers that can affect the band's career path and earnings. In this essay, I will analyse the pros and cons of each contract and recommend the most suitable option for Wallows Rock Band.
The first publishing contract, from Universal Music Publishing Group, offers the band a Universe-wide territory, an Initial Period of one year, and two one-year Option Periods. The Initial Period offers an advance payment of £20,000 on signature and an additional £2,500 on fulfilment of the Initial Period minimum commitment requirements. The First Option Period offers a minimum payment of £30,000 and
a maximum of £40,000, payable in instalments, and the Second Option Period offers a minimum of £40,000 and a maximum of £75,000. The band must deliver one 80% controlled album or 15 70% controlled tracks released by major UK or US record labels. The retention period is Term plus 10 years. The band is entitled to 75% of mechanical royalties, 50% of the publisher's share of performance royalties, 65% of synchronization royalties, and 12.5% of RSP for print royalties.
The second publishing contract, from Good Soldier Songs, offers the band a worldwide territory, an Initial Period of one year, and four one-year Option Periods. The Initial Period offers an advance payment
of £15,000 on signature and an additional £5,000 on fulfilment of the delivery commitment. The Option Periods offer a minimum payment of £20,000 to £45,000, depending on the period, and the band must deliver eight 100% newly-written compositions released on a major or approved record label in the UK or US during each contract period. The retention period is Term plus 15 years. The band is entitled to 70% of mechanical royalties, 50% of the publisher's share of performance royalties, 80% of synchronization royalties, and 12.5% of RSP for print royalties.
The third publishing contract, from Sentric Music Publishing, offers the band a worldwide territory, an Initial Period of one year, and an Option Period of one year or until recoupment of advances paid. The Initial Period offers an advance payment of £10,000, and the Option Period offers an additional £10,000. The retention period is Term plus 2 years. The band is entitled to 80% of mechanical royalties, 70% or 80% of cover mechanicals, 60% of the publisher's share of performance royalties, 70% or 80% of synchronization royalties, 12% RSP, or 80% of sums received for print royalties.
Looking at the three publishing contracts available to Wallows, it is essential to consider their current situation and future career plans. The band writes their own music, and it is important to note that
songwriting is a significant source of revenue for them. As such, the best publishing deal for Wallows is one that allows them to maximize their songwriting royalties.
The first contract option with Universal Music Publishing Group offers a high advance payment of £20,000, but the royalties are not as favorable as the other two options. Mechanical royalties are set at 75%, and performance royalties are 50% of the publisher's share, with synchronization royalties set at 65%. The minimum commitment for the first period is one album or 15 tracks, with the second option period requiring a minimum commitment of £40,000 and a maximum of £75,000. The retention period is
ten years.
The second contract option with Good Soldier Songs offers a lower advance payment of £15,000, but the
royalties are better than the first option. Mechanical royalties are set at 70%, and performance royalties are 50% of the publisher's share, with synchronization royalties set at 80%. The minimum commitment is
eight newly-written compositions released on a major or approved label in the UK or US. The retention period is 15 years.
The third contract option with Sentric Music Publishing offers the lowest advance payment of £10,000, but the royalties are the best of the three options. Mechanical royalties are set at 80%, and performance
royalties are 60% of the publisher's share, with synchronization royalties set at 70% if procured by Sentric or 80% if otherwise. The minimum commitment is not specified, but the retention period is only two years.
Considering the market and genre of the band, it is important to note that Wallows has a growing fan base that appreciates their indie rock style. The band has also shown interest in working with other artists in the future. As such, a publishing deal that allows Wallows to write for other artists would be beneficial to their future career plans.
Based on the above factors, the best publishing deal for Wallows is the third option with Sentric Music Publishing. Although the advance payment is lower than the other options, the higher royalty rates for mechanicals and synchronization offer better long-term benefits. Additionally, Sentric's lower retention period allows Wallows to retain control over their music and future earnings, making it easier for them to explore other opportunities. The deal also offers more flexibility in terms of the types of compositions and opportunities for working with other artists, which could lead to higher earnings in the long run.
In conclusion, as an artist, it is essential to understand the terms and conditions of publishing contracts before signing them. It is important to consider the various royalty income streams and minimum commitments to ensure that the deal aligns with your current situation and future career plans. By considering the different publishing deals available, Wallows can make an informed decision that benefits their music and career growth.
Royalties:
In terms of royalties, all three contracts offer the standard mechanical and performance royalties for compositions, with Contract 1 and Contract 2 offering higher mechanical royalties than Contract 3. However, Contract 3 offers higher synchronization and cover mechanical royalties if procured by the publisher, providing potential earnings from commercial use in television, film, and other media. Additionally, Contract 3 offers higher royalties on all other income, which could include merchandise sales, touring, and other ancillary revenue streams.
In terms of key points, Contract 1 requires the delivery of one controlled album, or 15 controlled tracks, each contract period. This may be a challenging commitment for Wallows, as they are still an emerging band and may not have a large enough catalogue to meet these requirements. Contract 2 requires the delivery of eight newly written compositions each period, which is a lower commitment than Contract 1 but still may be a challenge for the band. Contract 3 does not have a specific delivery commitment, which may be a more flexible option for Wallows to consider.
Considering the market and genre of Wallows, which is indie rock, there may be opportunities for the band to compose for other artists in the future. Contract 3 offers a higher royalty rate for cover mechanicals and synchronization royalties, which may be important if Wallows receives requests to cover or license their compositions for other artists.
Based on these factors, it is recommended that Wallows consider Contract 3 with Sentric Music Publishing. This contract offers a reasonable advance, higher royalties on synchronization and cover mechanicals if procured by the publisher, and a more flexible delivery commitment. The higher royalties on all other income and lower retention period also provide more favorable terms for the band. Additionally, the potential for future opportunities to compose for other artists is supported by the higher royalty rates for cover mechanicals and synchronization. Overall, Contract 3 with Sentric Music Publishing provides a more balanced and flexible option for Wallows as they continue to grow and develop their career in the music industry.
In conclusion, the publishing contract is an important decision for any artist or band as it affects their ability to monetize their music and secure their financial future. Understanding the different types of royalties and key points in publishing contracts is critical for making an informed decision. By carefully considering their current situation and future career plans, artists and bands can choose the publishing deal that best fits their needs and maximizes their earning potential.
merits of different publishing deals, identifying and justifying the selection of one for a case study
When it comes to selecting a publishing deal, several factors need to be taken into account, such as royalty rates, advances, commitment requirements, territory, and term. The three contracts that have been analyzed above have different terms and conditions, and as such, each contract has its merits and disadvantages. However, for Wallows Rock Band, I recommend that they sign a publishing deal with Sentric Music Publishing.
The reason for choosing Sentric Music Publishing is that they offer a good deal for Wallows Rock Band. First, Sentric Music Publishing offers a higher percentage of mechanical royalties (80%) compared to the
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other publishers. This is a critical factor for the band as they write their songs, and mechanical royalties are an essential income stream for songwriters. Additionally, Sentric Music Publishing offers a high percentage of other royalties, such as performance and synchronizations.
Second, Sentric Music Publishing offers a smaller initial advance of £10,000, but this is still a reasonable amount for the band. Also, the delivery commitment required by Sentric Music Publishing is much less than that required by Good Soldier Songs and Universal Music Publishing Group, which means the band has more time to work on their music and to ensure that they are creating quality content.
Third, the retention period for Sentric Music Publishing is only two years, which means that if the band is
not happy with the publisher, they can move to another publisher after two years. This offers the band flexibility and the ability to experiment with different publishing deals.
Fourth, the contract terms for Sentric Music Publishing are more flexible. For instance, they offer a one-
year contract term with a one-year option period, which means that if the band does not want to renew the contract, they can simply walk away. Also, the territory is the world, which means that the band can explore opportunities beyond the UK and the US. This is important, especially for a band that wants to grow their fan base globally.
Finally, Sentric Music Publishing offers a higher percentage of royalties for cover mechanicals and synchronizations. This is an advantage for the band as it gives them a chance to increase their revenue streams by licensing their music for use in TV, films, and advertisements.
In conclusion, based on the above analysis, Sentric Music Publishing offers the most appropriate deal for Wallows Rock Band. They offer higher royalty rates for most income streams, smaller initial advance, a reasonable delivery commitment, a flexible contract term, a shorter retention period, and a wider territory. Therefore, I would recommend that the band signs a publishing deal with Sentric Music Publishing to maximize their revenue streams and to grow their fan base globally.
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- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $52,000 and equipment valued at $16,000 as well as $12,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 20 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. The partnership reported a net loss of $10,000 during the first year of its…arrow_forwardSteve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O'Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement: O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O'Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during 2016.…arrow_forwardSteve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O'Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement: • O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. • O'Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during…arrow_forward
- WHAT HAPPENS IF A PARTNER BECOMES INSOLVENT? In 2010, three dentists-Ben Rogers, Judy Wilkinson, and Henry Walker-formed a partnership to open a practice in Toledo, Ohio. The partnership's primary purpose was to reduce expenses by sharing building and equipment costs, supplies, and the services of a clerical staff. Each contributed $70,000 in cash and, with the help of a bank loan, constructed a building and acquired furniture, fixtures, and equipment. Because the partners maintained their own separate clients, annual net income has been allocated as follows: Each partner receives the specific amount of revenues that he or she generated during the period less one-third of all expenses. From the beginning, the partners did not anticipate expansion of the practice; consequently, they could withdraw cash each year up to 90 percent of their share of income for the period. The partnership had been profitable for a number of years. Over the years, Rogers has used much of his income to…arrow_forwardWHAT HAPPENS IF A PARTNER BECOMES INSOLVENT? In 2010, three dentists-Ben Rogers, Judy Wilkinson, and Henry Walker-formed a partnership to open a practice in Toledo, Ohio. The partnership's primary purpose was to reduce expenses by sharing building and equipment costs, supplies, and the services of a clerical staff. Each contributed $70,000 in cash and, with the help of a bank loan, constructed a building and acquired furniture, fixtures, and equipment. Because the partners maintained their own separate clients, annual net income has been allocated as follows: Each partner receives the specific amount of revenues that he or she generated during the period less one-third of all expenses. From the beginning, the partners did not anticipate expansion of the practice; consequently, they could withdraw cash each year up to 90 percent of their share of income for the period. The partnership had been profitable for a number of years. Over the years, Rogers has used much of his income to…arrow_forwardCody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $30,000 and $39,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $19,000. a. Determine the recipient and amount of the partner bonus. b. Provide the journal entry to admit Solano into the partnership. If an amount box does not require an entry, leave it blank. c. Why would a bonus be paid in this situation? Apparently, Jenkins and Tanner value offered by Solano.arrow_forward
- Shawna Kearn and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kearn contributes cash of $1,000,000 and land with a current market value of $13,500,000. When Kearn purchased the land in 2013, its cost was $7,500,000. The partnership will assume Kearn's $3,000,000 note payable on the land. White contributes cash of $3,000,000 and equipment with a current market value of Requirements 1. Journalize the partnership's receipt of assets and liabilities from Kearn and from White. 2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing.arrow_forwardCody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000. Determine the recipient and amount of the partner bonus. Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.arrow_forwardCody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings.Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000.a. Determine the recipient and amount of the partner bonus.b. Provide the journal entry to admit Solano into the partnership.c. Why would a bonus be paid in this situation?arrow_forward
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