LASTWORD
When Pop Tunes ‘Pop’ Expenses
Hasty decisions about using well-known music in programs can increase your licensing fees. Know what you’re getting into. BY JANET McHUGH
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uppose you are a business manager takes a per program license from any of the files detailed monthly reports with the or lawyer for TV station operations, PROs, the savings your station otherwise PRO showing, among other things, what and you get a call from a producer gets could be reduced, potentially signifi- programs it aired that month and whether who wants to use popular music in a cantly, by incorporating popular music into any music has been licensed through means feature piece or a news bump. And guess what? news bumps. Let me explain. other than the PRO. By licensing perforShe wants to use it the next day. Some local stations license their music mance rights directly with composers, This request doesn’t come as a surprise be- from the PROs through a blanket license publishers or suppliers, or by acquiring or cause TV station productions operlicensing performance rights from ate at a fast pace. At times, it appears a music library, a station can pay to be organized chaos. Stories and lower total fees to the PRO than shoots can involve rapid changes, they would pay under a standard and content is often created at the blanket license. last minute. But do you have the There are tradeoffs. Under the proper music licenses? Will the use per program license, stations have of popular music increase expenses? greater recordkeeping and reporting Music licensing is a complex subrequirements than under the blanject. The use of popular music in ket license. news bumps or elsewhere in local If a station has a per program license, programming has both legal and the station’s license fee depends on the financial implications. I want to number of programs that have been discuss both, but this also leads into “cleared” of music licensed through the an explanation of the different types PRO. To “clear” music, stations can get of music licenses. performance licenses from individual From a legal point of view, you copyright holders, music libraries, or, can use the popular music in your The per program license is an essential in some cases, from program producnews bumps under your current licensing option for stations because it ers – for example, the producer of a public performance music licenses allows stations to engage in some actual network or syndicated show. that TVMLC has negotiated with competitive transactions. Since popular music typically is ASCAP, BMI and SESAC (perfornot available from a music library mance rights organizations, or PROs) as and some through a per program license. and is usually not able to be “cleared” in some long as that music falls within one of their For the 1,200 stations that TVMLC rep- other fashion, incorporating this music into repertories. However – and this is a big resents, it’s about an even split. the program can result in per program license “but” – you will probably need other music A blanket license allows a station to fees going up, even if every other bit of music licenses. Public performance licenses allow broadcast any of the songs included in the used in the program has been “cleared.” you to broadcast the music, but the actual repertory of a given PRO for a single fee. Third-party administrators can analyze production or creation of the programming, A per program license gives a station the a TV station’s music use and determine mixing the music with audiovisual content, same copyright infringement protection they whether the station may require synchronization and/or master get from the blanket license. Under this li- ca n save money by use licenses. cense form, a station is still entitled to broad- switching from a blanFor more information on these licenses, cast any music it wants from the PRO’s reper- ket to a per program call TVMLC or consult our newly released tory. However, the per program license is an license. To locate a book, “Music Licensing: A Practical Guide.” essential licensing option for stations because third-party adminisEven if you obtain the proper licenses, it allows stations to engage in at least some trator, please contact there could be a financial downside for actual competitive transactions for music TVMLC. using popular music in local programming. performance rights, such as getting licenses Janet McHugh is president and CEO of the There’s something called a per program li- directly from music creators. In many cases, Television Music License Committee and author of cense, which helps to save on music licens- this can bring license fees down. “Music Licensing: A Practical Guide,” available on ing fees, in general. However, if your station Under a per program license, a station Amazon. She can be reached at janet@tvmlc.com.
26 The Financial Manager • November/December 2021
