One of the ways that artists may earn money from their work is by licensing copyrighted music. Due to this, they must have a firm grasp of its significance and have sufficient knowledge of the music licensing sector. In 2020, the Australian recorded music market grew by 7.3 percent. This growth was due to an increase in revenue from vinyl and streaming services, which offset a drop in revenue for CD sales and digital downloads.
This article will explain what Music licensing companies in Australia do and the significance of music licensing.
Music Licensing vs Music Publishing
The first thing to remember is that music licensing and publishing are two different things. Music licensing companies in Australia transfer rights to use music for a specific commercial purpose and period from songwriters/record labels/publishers to a second party. Most broadcast media, including films, Netflix series, video games, podcasts, TV shows, YouTube and commercial videos, and all forms of commercials, employ licensed music (on TV, radio, or online). Depending on the type of music license and the amount of money received for the transfer, a music license determines the track’s intended use and how it should be utilized appropriately. Licenses in Australia allow you to utilize music for particular purposes and at specific times, such as filming an advertisement or a music video.
However, Music Publishing may be described as managing a recorded music track to profit from the record’s sales. It is up to the songwriter and composer to handle the publication of their music, or they can enter into a publishing contract. When a song is performed live or on the radio, a publisher ensures that the composer/songwriter is paid for their work.
It may appear that self-publishing is a more lucrative option for artists in Australia because they will receive all the money earned by royalties. However, the process is time-consuming and requires a strong network of connections in the sector. The publisher/publishing business will be given the rights to the record and the royalties they will collect from the sales.
A music license denotes an agreement allowing the commercial use of a music track’s rights to be transferred. In contrast, music publishing refers to managing agreements made for a specific track.
What is the significance of music licensing, particularly for self-released artists?
Music-related intellectual property (IPR) has long been essential in all forms of broadcast media, from feature films and television shows to podcasts and radio broadcasts. Independent musicians, in particular, have grown to rely on getting their music into popular media for financial gain. Licensing is a sophisticated and perplexing process that musicians must comprehend to know their rights and how much money they can expect to make from licensing music.
A music license in Australia is a written agreement that allows a specific individual or entity to use a copyrighted piece of music for a specific purpose and for a specific amount of time. A legally binding agreement ensures that the copyright owners – a composer and author/record label – will be compensated while allowing someone else to use their music under agreed-upon criteria and circumstances.
Those who own the copyrighted music in Australia also have the right to license others to distribute, reproduce, perform, exhibit, and modify the work of art. As a result, licenses and payments are required for others to use these rights. It is prohibited to utilize a work of art without permission or a suitable one, and the owner does not receive the money they are entitled to.
As a result, a music license protects both the user and the copyright holder of the song, allowing the artists to continue making music.