 |
|
Join TMBIO Full Version Now!
~ You Get Over 1500 Music Business Topics with All Discussion
Cross-Links Hot!1) Money paid up front (also called "front money") by one party (sometimes referred to as an "angel") to facilitate the career or business endeavor of another party, e.g., an investor fronts an artist money to record a demo. The advance is paid before any contractual considerations are delivered by the party receiving the advance. See: ANGEL, RISK, SPECULATION, PRODUCER under "Executive Producer."
2) Money paid up front by one party to entice another party to sign a contract. For example, money received by an artist or songwriter to sign with a record company or to assign unpublished or reassign published compositions to a music publisher.
3) Money paid up front by a music publisher or performance
rights society to a songwriter. The advance is against future
royalties and is made only if/when a song has achieved chart success.
Advances may be either specific or general, and recoupable
or non-recoupable. A specific advance is a recoupable advance
that is recouped from a specific future income source, e.g., from
a single musical composition. A general advance is a recoupable
advance that is paid back from a general income source, e.g.,
from an entire music catalog. Specific and general advances may
be either fully recoupable, partially recoupable, or non-recoupable.
The amount of recouping may depend on the royalty return. If the
royalty return is less than the advance or zero, full recoupment
is not usually required. Advances specified as gifts are non-recoupable
and no pay back is ever required.
Generally, artists and producers receive advances from record
companies, songwriters' advances are received from music publishers,
and music publishers sometimes receive advances from subpublishers,
and print music licensees. Performance rights societies do not
generally advance money to music publishers or songwriters. Mechanical
rights licensors also do not advance money to their licensees,
although there are exceptions-usually in emergency situations.
See: GUARANTEE, ROYALTY
under "Artist Royalty," "Songwriter
Royalty," RECORD COMPANY,
CROSS-COLLATERALIZATION,
BONUS, INCOME, CONTRACT-A CLOSER LOOK,
CONTRACT-RECORDING CONTRACT
clause #30, MUSIC PUBLISHER,
CONTRACT-SONGWRITER/PUBLISHER CONTRACT clause
#21.
(Must
Have TMBIO Full Version Password!)
.
© Copyright 
La Costa Music All Rights Reserved