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Paying musicians for sampling, compilations and other music sales

I'm adding new functionality to my musician-payment accounting system, for several ways money can move around. Specifically:

1) our compilation albums sell surprisingly well. When I put the compilation together, I'd like to split all the money from sales among the musicians on the compilation. However, when I have a "star DJ", I'd like them to get a cut as well - in DJ Cary's case, giving her 20% of sales for putting together the compilation, and 80% distributed to the musicians. When there are 15 artists on a compilation I made, each artist gets 1/15th of the sale price of a Magnatune compilation.

2) Victor Stone has 3 albums on Magnatune that are remixes of other artists. I'd like the sampled artists to get 50% of the sale proceeds, as "remix source fees". When other remix albums occur, I'd like be ready to account for them fairly.

3) CDBABY is now paying us for sales of our music on iTunes and other services, and I want to both pay musicians for that, and also show them exactly what's selling where.


So here's what's new for musicians on the "Musician's Dashboard" at Magnatune (this is something all musicians have instant online access to).

In the "current balance" page, which is also what's emailed to them when it's time to pay, are two new lines, for "music in compilations or remixes" and for "sales at other music stores", the detail to which is available in the music license titled "CM2222#####" which they can view from the "music licensing detail" page.
Roy1

Next, musicians who sample other artists have deductions made against their account, which appear in their statement like this:
Roy2

in the sales detail, new lines are added with a date of 2000/1/1 with the "remix source tracks" fee, as well as another line for their portion sales of compilation albums where they appear:
Roy3

these are not huge amounts of money, but it's definitely the fair thing to do, and provides a small incentive for both remixers (they can make some money) and remixees (they can get paid for their source track contribution). Plus, it's all transparent and clear, so everyone hopefully feels comfortable with it.

iTunes and other stores are detailed in a new report available in the main menu as "Other music services":
Roy5

One thing I'm not yet doing correctly yet is paying each individual remixer on the Lisa DeBenedictis CC Mixter compilation album. The reason is that my system doesn't consider someone an artist unless they have an album on Magnatune, and being only 1/15th of an album doesn't count. If a remixer had a complete album on Magnatune, they'd get into my accounting system, get paid for sales of their album and then I could pay them also for their track on someone else's album. I'll need to eventually fix this, but for now, with the $100 minimum before paying someone, that CC Mixter remix album isn't selling enough to make each remixer go above the minimum, so I've put implementing that feature off until another day...

I am really looking forward to Ashwan's album being finished. He's on the Lisa D remix album, and when he visited me in London he dropped off an early version of his album that was incredible.

Posted by John Buckman on January 8, 2006 at 03:03 PM | Permalink

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