SellaBand To License Music to Advertisements

SellaBand, which reinvents the record label model by letting listeners discover and invest in bands, has replicated another aspect of the traditional music industry by allowing filmmakers and advertisers to license SellaBand-created music for their projects through a partnership with YouLicense.com. "SellaBand gives up and coming artists the opportunity to professionally produce their music," stated […]
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Sellaband
SellaBand, which reinvents the record label model by letting listeners discover and invest in bands, has replicated another aspect of the traditional music industry by allowing filmmakers and advertisers to license SellaBand-created music for their projects through a partnership with YouLicense.com.

"SellaBand gives up and coming artists the opportunity to professionally produce their music," stated YouLicense CEO Maor Ezer, "and YouLicense.com makes it easy for artists to do business."

So far, SellaBand's system has resulted in the creation of 24 albums, some of which could find wider exposure as a result of the deal. SellaBand music director Dagmar Heijmans pointed out that advertisements have become a platform through which fans discover music (just ask any band whose music has been used in an iTunes commercial). "Working with YouLicense.com will enable our artists to promote their music to a wider audience," he said. "As SellaBand enters into its third year of business, we are looking for ways to evolve and get our artists' music heard."

SellaBand "believers" will receive compensation when music from an album they invested in is licensed. Here's how a $2500 licensing fee would break down between the various parties, according to Sellaband's Heijmans:

We see the license as two equal parts: one for licensing theactual recording (master licensing) and the other is for licensing the copyrightof the song (publishing). The earnings made with the exploitation of themaster is split between the Artist, the Believers of the artist and Sellaband inan equal way. The earnings made with the exploitation of the publishing rightsis split according to the following rule: 30% for the composer of the music, 30%
for the lyricist, 30% for SellaBand Publishing and 10% for the producer of theSellaBand recording of the song(s).

So to give an example:

Song A of Artist X gets licensed for use in a movie. The feeis $2500. The Master license is $1250. Publishing license is $1250. Fullsplit:

(Master recording license)

Artist: 1/3 * $1250 = $416,67

Believers: 1/3 * $1250 = $416,67

SellaBand= 1/3 * $1250 = $416,67

(Publishing license)

Composer= 0.3 * $1250 = $375

Lyricist: 0.3 * $1250 = $375

SellaBand Publishing: 0.3 * $1250 = $375

Producer: 0.1 * $1250 = $125

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