Last Word

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

Suppose you are a business manager or lawyer for TV station operations, and you get a call from a producer who wants to use popular music in a feature piece or a news bump. And guess what? She wants to use it the next day.

This request doesn’t come as a surprise because TV station productions operate at a fast pace. At times, it appears to be organized chaos. Stories and shoots can involve rapid changes, and content is often created at the last minute. But do you have the proper music licenses? Will the use of popular music increase expenses?

Music licensing is a complex subject. The use of popular music in news bumps or elsewhere in local programming has both legal and financial implications. I want to discuss both, but this also leads into an explanation of the different types of music licenses.

From a legal point of view, you can use the popular music in your news bumps under your current public performance music licenses that TVMLC has negotiated with ASCAP, BMI and SESAC (performance rights organizations, or PROs) as long as that music falls within one of their repertories. However – and this is a big “but” – you will probably need other music licenses. Public performance licenses allow you to broadcast the music, but the actual production or creation of the programming, mixing the music with audiovisual content, may require synchronization and/or master use licenses.

For more information on these licenses, call TVMLC or consult our newly released book, “Music Licensing: A Practical Guide.”

Even if you obtain the proper licenses, there could be a financial downside for using popular music in local programming. There’s something called a per program license, which helps to save on music licensing fees, in general. However, if your station takes a per program license from any of the PROs, the savings your station otherwise gets could be reduced, potentially significantly, by incorporating popular music into news bumps. Let me explain.

Some local stations license their music from the PROs through a blanket license and some through a per program license. For the 1,200 stations that TVMLC represents, it’s about an even split.

A blanket license allows a station to broadcast any of the songs included in the repertory of a given PRO for a single fee.

A per program license gives a station the same copyright infringement protection they get from the blanket license. Under this license form, a station is still entitled to broadcast any music it wants from the PRO’s repertory. However, the per program license is an essential licensing option for stations because it allows stations to engage in at least some actual competitive transactions for music performance rights, such as getting licenses directly from music creators. In many cases, this can bring license fees down.

Under a per program license, a station

files detailed monthly reports with the PRO showing, among other things, what programs it aired that month and whether any music has been licensed through means other than the PRO. By licensing performance rights directly with composers, publishers or suppliers, or by acquiring or licensing performance rights from a music library, a station can pay lower total fees to the PRO than they would pay under a standard blanket license. There are tradeoffs. Under the per program license, stations have greater recordkeeping and reporting requirements than under the blanket license. If a station has a per program license, the station’s license fee depends on the number of programs that have been “cleared” of music licensed through the PRO. To “clear” music, stations can get performance licenses from individual The per program license is an essential licensing option for stations because it copyright holders, music libraries, or, in some cases, from program producers – for example, the producer of a allows stations to engage in some actual network or syndicated show. competitive transactions. Since popular music typically is not available from a music library and is usually not able to be “cleared” in some other fashion, incorporating this music into the program can result in per program license fees going up, even if every other bit of music used in the program has been “cleared.” Third-party administrators can analyze a TV station’s music use and determine whether the station can save money by switching from a blanket to a per program license. To locate a third-party administrator, please contact TVMLC. Janet McHugh is president and CEO of the Television Music License Committee and author of “Music Licensing: A Practical Guide,” available on Amazon. She can be reached at janet@tvmlc.com.

Thanks for 50 incredible years! We couldn’t have done it without you.

It’s not often a company accomplishes 50 years of serving clients, especially in the media business. But here we are, the first and largest media debt collection service, MORE focused than ever on delivering MORE debt dollars to our awesome clients. We also would not be here today without our talented employees who combine the art of diplomacy with savvy negotiation skills.

We asked a few clients to share why they continue to partner with us. Here’s a sampling of what they tell us. “...Szabo Associates more than delivers. They work as an extension of our internal teams helping us collect past due accounts. They are easy to work with, provide excellent service and their results have been outstanding...”

Christopher Sterling

Director of Credit & Collections Local Media Group Meredith

“It is with much enthusiasm that I am writing this letter on behalf of Szabo Associates, Inc. AARP began our business relationship with Szabo in June 2001 and for the past 20+ years we have been serviced with the utmost care and professionalism by their entire staff but specifically by Charles L. Langgood…We recommend Szabo for any of your collection needs and look forward to continuing our relationship with them.”

Linda Mitchell

AARP Credit & Accounts Receivable Manager

“I am so pleased with the incredible progress that has been made in the reduction of our DSO. Not only has the DSO for multiple PAGE members been reduced, Szabo has tackled some of the larger outstanding debts—all with great and continued success. I also want to compliment you on your customer service approach—always affable, but firm.” “We were looking for an affordable collection agency that would be courteous and non threatening to our clientele. Szabo has been that company! They took the time to understand who we are as a company and how we want our clients handled while also collecting over 90% of our debt. I would recommend Szabo to anyone who is searching for a collection agency.”

Darlene Mixon

Credit Manager Evening Post Publishing Group

Discover more reasons why we’ve thrived for 50 years and how we can help you recover MORE media debt dollars. Visit our new website Szabo.com to learn more.