Libraries: Exclusive or Non Exclusive?

Forums Film Scoring Business Libraries: Exclusive or Non Exclusive?

This topic contains 2 replies, has 2 voices, and was last updated by  Weston Brown 1 year, 7 months ago.

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  • #6030

    Weston Brown
    • Topics: 2
    • Replies: 2

    Hey everyone. My name is Weston and I’m new here to the community. I’ve been thinking about joining Audio Jungle but I’m not sure if I should go exclusive with them or not. Here’s why:

    I want to make sure I still have the rights to my music. Will I be able to license the music I upload to other directors outside of AJ? I know I can’t have the same music on other sites or even associated with ASCAP. Does AJ own the exclusive rights or will I still own the rights to my music? Most people say it’s good to exclusive, but I don’t like the idea of not owning my music.

    The other question I’m hoping someone could answer is that I’ve been making music for someone (yes, I do own exclusive rights), but I’ve given this guided meditation expert permission to sell it on his Itunes/CD Baby account and post it on his YouTube channel for more exposure. If someone were to buy the same track off Audio Jungle and wanted to sell it on their Itunes or put it on THEIR YouTube, would this cause copyright infringement issues? If yes, how would I have control over who does what when someone buys from AJ?

    Thank you, I would love to hear some thoughts on this topic (specifically you Evan.)

  • #6055

    Evan Evans
    • Topics: 38
    • Replies: 125

    Hey Weston, you definitely want to go non-exclusive as much as possible. Half the music libraries out there, have a non-exclusive policy. If you think of it from a mathematical perspective, if you have let’s say 500 tracks, and there are 1000 music libraries, and 1,000,000 placement opportunities in a given year, and 50% of the music libraries are non-exclusive … Then there’s 1000 placements happening per music library on theoretical average.

    If you give all 500 tracks, let’s say for mathematical purposes, 1 to each of the 500 exclusive music libraries, and let’s say each music library has 100,000 tracks total, than for 500 exclusive libraries, you will be 1 out of 100,000, and for the other 500 non-exclusives, you will have nothing.

    So under that scenario where you put all 500 tracks (1 to each library) on all the 500 exclusive libraries, you have a 0.001% chance of getting a placement on any of the 1000 placement opportunities any single exclusive library gets for a given year. Add to that, that you also now missed out on the other non-exclusive libraries, and you’re down to a 0.0005% chance of getting a placement. So, the end result of going exclusive, is you will get <span style=”text-decoration: underline;”>5 placements</span> in a year. They may pay well though. Maybe $2500 a piece, for $12,500 in revenue.

    Okay, now let’s do the math on going non-exclusive.

    Since it’s non-exclusive, you can submit all 500 tracks, to each of the 500 non-exclusive libraries. Again, if each library has 100,000 tracks, now you have a 0.5% chance of getting a placement. But the downside is, you will not get any placements in the exclusive libraries. And also, the placements in the non-exclusive libraries may be 1/10th to 1/100th the money that you would have got going exclusive. But let’s keep doing the math.

    So, out of 1,000,000 placement opportunities in a given year, where on average any single library will get 1000 placement opportunities, and you have a 0.5% shot, you will end up getting 2500 placements. Let’s say on average you are getting 1/50th the pay as an exclusive library placement would payout per placement, where in the other example we used $2500 as example. That would be $50 per placement. For 2500 placements, that adds up to $125,000.

    Here’s how royalties can really kick in under a non-exclusivity strategy. Let’s say that 20% of placements, end up earning broadcast royalties in exclusive scenarios, so out of 5 placements, 1 placement will net broadcast royalty revenue. Let’s say over the next 10 years, that adds up to $1000. Well, under the non-exclusive scenario, and perhaps to be truly realistic we could even adjust the percentage of placements that actually end up earning broadcast royalties, to 5% (4 times fewer), because projects under non-exclusive licenses tend to be smaller fry projects. So out of 2500 non-exclusive placements, that’s 125 royalty earning placements. At $1000 each over the next 10 years, that’s an extra $125,000 over the next 10 years.

    Exclusive License Strategy = 1 placement for $12,500/yr + $100/yr royalties
    Non-Exclusive License Strategy = 2500 placements for $125,000/yr + $12,500/yr royalties

    Non-Exclusive earns 10.9 times more than Exclusive. 1091% better ROI (return on investment)

    🎹 Evan Evans, Film Composer & Mentor,
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  • #6112

    Weston Brown
    • Topics: 2
    • Replies: 2

    Hey Evan,

    Thanks so much for getting back to me about this. The math part kind of flew by me, I haven’t had a math class since high school, but it seems to me like what you’re saying is that non exclusive is always the better way to go because it provides more opportunities for you, thus getting you more ROI. Bottom line right?

    It does say on Audio Jungle it’s highly recommended to exclusive with them. But can you answer this for me? If I go exclusive with them, will I be able to not license this music ANYWHERE else? If I go non-exclusive, do you know if I have to remove my tracks from ASCAP either way?

    Please let me know about these things. Thanks Evan!

    P.S. It would also be great if you can explain to me what would happen if someone wanted to sell my own music on Itunes if someone else is already selling it on Itunes (meaning they hired me to make the music but I own the rights.)

    What would happen if I, or someone else, wanted to sell a piece of my music but someone else already has the music on Itunes? Or already on another YouTube channel? Would I not be allowed to re-post due to copy right infringement or how does this work?

    Just a few more clarifications and I’ll be good to go. Thanks so much!

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