Discovery and APM refuse to pay sync fees on score music CDs

From Film Music Magazine, July 2008:

DISCOVERY AND APM RELEASE SCORE LIBRARY; NO SYNC FEES FOR COMPOSERS

by Mark Northam

Media giant Discovery Communications and leading music library APM Music have released “Discovery Studios Tracks,” a five-CD set including over 200 tracks of score music selected from shows on Discovery’s cable channels.

However, Discovery has confirmed that composers who wrote the music on the CDs will not be sharing in the sync and license fees generated from the release.

The new CD series is based on Discovery’s 12-year relationship with APM and includes original music cues from the Discovery family of channels, including Discovery Channel, TLC, Animal Planet and Science Channel, available for the first time for licensing into third party productions. The release represents one of the first major score library releases by a major production company seeking to generate additional income from score music contained in its shows.

However when Film Music Magazine asked Discovery Studios whether the composers who wrote the music will share in the sync and license fees generated by the licensing of these tracks, Discovery’s Chris Finnegan confirmed that the composers on the CDs will not be sharing in the sync and license fees generated from the new library. While composers will receive the writer’s share of performing rights royalties for new usages of the music, if those usages are surveyed and paid by the performing rights organizations, it appears that for non-broadcast usages such as corporate industrial films and other usages where performing rights royalties may not be paid, the composers will receive no compensation.

Discovery VP of Music Services Peter McKelvy told Film Music Magazine, “Discovery strongly values the excellent relationship it has developed with the composer community over the past 24 years. We have worked tirelessly to ensure that performance royalties for composers who have been commissioned by Discovery Networks have increased significantly over the last three years. Discovery Studios Tracks allows us to release some great music for use in new production. We feel it’s an exciting opportunity for the composers who have worked with us over the years. Instead of lying dormant on the library shelves this music is now in circulation enabling composers to earn additional performance fees. It’s a winning proposition for all involved.”

APM President Adam Taylor stated, “Since the beginning of recorded music, composers and publishers have been free to negotiate terms that are acceptable to them. A wide variety of business models have evolved over these decades including work-for-hire agreements, which have been a standard part of the film, broadcast, videogame and production library industries for decades. The idea that the Discovery Studios Tracks business model is somehow precedent setting is simply not accurate. Additionally, copyright owners have the right to leverage their copyrights and since Discovery has chosen to find new uses for their owned copyrights, composers will receive additional performance royalties from these efforts.”

Composers and other music libraries expressed concern about Discovery’s policy towards composers regarding not sharing sync and license fees with the composers. Composer and activist Christopher Kennedy Alpiar said, “This seems to be a very scary first step and a new low for composer treatment. For Discovery to release a product of this type without sharing the income with the composers who created the product is beyond reprehensible. Sadly, this situation seems indicative of a global trend of negativity that composers today are being faced with. Discovery had an opportunity to release a product the right way that helps themselves and fairly compensates the composers who wrote the music. Instead, they chose the short-sighted path of maximizing short-term profits at the expense of those who created the music.”

Yoav Goren, President of music library Immediate Music said, “I’ve always been a very strong believer in composers sharing in sync licensing revenue, even if the creative output is part of a work-for-hire deal. At Immediate Music, all third-party composers participate in revenue derived from music placement in any visual media which generates sync fees. It allows us to continue a strong, mutually beneficial relationship with composers, because this sometimes substantial income can allow for a full-time composing career to flourish. These composers stay loyal to us, and we get great music in return, which leads to happy clients and more licensing revenue! As both a composer and library owner, I am sensitive to both parties sensibilities and requirements, and have found a fair middle ground with regards to sharing sync fees which keeps the business profitable and composers motivated to create more music.”

A veteran Los Angeles film composer who has worked in the library business told Film Music Magazine, “This is a dangerous precedent when composers are shut out of new income streams generated by their own music. It’s bad enough that composers may lose work because of these new high quality score libraries, but the fact that the Discovery Channel has chosen not to share any of the new license income with composers is unacceptable. Every studio in town could release these kind of score CDs from music they already own and composers might as well find another way to make a living.” The composer asked that his name not be used for this article.

The situation highlights sync fees, one of the most contentious parts of library music deals. Many music libraries split sync and license fees generated from their music with composers, but some music libraries retain all sync and license fees. These fees can be generated by the blanket license of one or more CDs of music to broadcasters and other music users, or individual licensing of tracks for specific productions and usages. Discovery Communications reaches more than 1.5 billion cumulative subscribers in over 170 countries through 100-plus worldwide networks, led by Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery and HD Theater, as well as leading consumer and educational products and service.

For more information about Discovery Studio Tracks, visit http://www.apmmusic.com.

ABOUT THE AUTHOR: Mark Northam is a journalist, classically trained jazz pianist and film composer and publishes Film Music Magazine and The Royalty Report. He is also founder of the Film Music Network professional trade organisation and teaches courses about the music business in Los Angeles and New York. He holds a degree in Accounting and Taxation from The University of Houston.

03-10-08