Record Producer Agreements
What does a record producer do?
Record producers work together with artists in the studio when making new recordings. They collaborate with the artist to help create the best sound for each track.
Some producers are employed by record labels who receive a salary for their work. Others work as freelance record producers and will want to ensure they are paid for the work on each track they help produce.
How much does a record label pay a freelance record producer?
It depends…
• Some successful record producers can command up-front ‘signature’ advances of £10,000 per track, with at least 50% payable before they even start the work. Other producers starting out however might be prepared to start work for little or no advance whatsoever.
• In addition to an advance, record producers are usually also paid a royalty by the record label based on eventual sales of the recordings produced. As a rough guide, the producer’s royalty is sometimes equivalent to 1/5th of the royalty paid by the record label to the featured artist. For example, for a points-based royalty of 25% of dealer price paid to a band, their producer may also receive a royalty from the record label of 5% of dealer price.
• One trend that has developed is that a record producer can also usually command that his royalty is payable from the sale of ‘record one’. This means that once the record label has recouped any initial advance from record sales, then the royalty payments due to the producer are calculated on sales from the first record actually sold. This is different to the way artists royalties are usually paid – which even though are also payable once advances are recouped, the royalty is not back-calculated from the sale of record one – but instead is based on sales from the later date the advance is recouped.
Key provisions in a record producer contract include:-
• Credit – freelance record producers will want to make a name for themselves to ensure other artists and record labels will want to work with them. It goes without saying that you will always find a requirement to ensure the producer is credited on any CD cover or other promotional material relating to the recording itself.
• A-side protection – if the lead track on a single download or CD is produced by the producer, then the producer will usually require ‘A-side’ protection, so that his royalty is not pro-rated by the other recordings, not produced by him, on the B-side or other non-lead tracks included in the single download.
• Delegation – Record producers are chosen based on prior recordings and their skill to help make a ‘hit’. It follows that the producer will therefore be prohibited from delegating his responsibilities.
Contact us
Chris Phillips and Mike Shepherd who head up the Media and Entertainment department here at Bolt Burdon are experienced lawyers used to negotiating and advising on all types of music industry agreements.
To find out more about music licensing agreements, and how we can represent you, please contact us for a free initial consultation on 0207 288 4700.