If you are a music creator, you probably want to get paid fairly for your work when it is streamed online. But how can you negotiate a better streaming license for your music, especially when you are dealing with powerful platforms and intermediaries? In this article, we will share some tips and strategies to help you understand and improve your streaming income.
The first step to negotiate a better streaming license is to know your rights as a music creator. Depending on your role, you may be entitled to different types of royalties from streaming, such as mechanical, performance, or sound recording royalties. You also need to know who collects and distributes these royalties on your behalf, such as your publisher, performing rights organization, label, or distributor. You should review your contracts and agreements with these entities and make sure they are transparent and fair. If you are not satisfied with your current deals, you may want to renegotiate them or look for alternatives.
The second step to negotiate a better streaming license is to understand the market and the dynamics of streaming platforms. Different platforms have different business models, payment systems, and terms and conditions. You should research and compare how they calculate and distribute royalties, how they value and promote your music, and how they interact with your fans. You should also be aware of the trends and challenges in the streaming industry, such as the growth of user-generated content, the emergence of new players, and the pressure for higher payouts.
The third step to negotiate a better streaming license is to define your goals and expectations. What do you want to achieve from streaming your music? How much do you think your music is worth? How do you measure your success and impact? You should have a clear vision of your artistic and financial objectives and set realistic and achievable targets. You should also consider your bargaining power and leverage in the negotiation process, such as your popularity, reputation, fanbase, and network.
The fourth step to negotiate a better streaming license is to explore your options and opportunities. You don't have to accept the default or standard terms offered by streaming platforms or intermediaries. You can look for ways to customize and optimize your streaming license according to your needs and preferences. For example, you can negotiate for higher royalty rates, advance payments, minimum guarantees, or promotional support. You can also diversify your income streams by licensing your music to multiple platforms, creating exclusive or premium content, or engaging with your fans through live streaming, merchandising, or crowdfunding.
The fifth step to negotiate a better streaming license is to communicate your value and demonstrate your worth. You should be able to articulate why your music deserves a better deal and how it benefits the streaming platform or intermediary. You should use data and evidence to support your claims, such as your streaming statistics, fan feedback, press coverage, awards, or collaborations. You should also highlight your unique selling points, such as your genre, style, message, or niche. You should be confident and assertive, but also respectful and professional.
The final step to negotiate a better streaming license is to review and monitor your streaming license and performance. You should read and understand the terms and conditions of your streaming license and make sure they reflect your agreement and expectations. You should also keep track of your streaming income and expenses and verify that you are paid correctly and timely. You should also evaluate your streaming results and feedback and see if they match your goals and objectives. You should be ready to adapt and adjust your streaming strategy and license if necessary.
It's incredibly hard to negotiate a better streaming licence. The vast majority of distributors, DSPs (digital service providers) and labels use a set % amount payout so it's highly unlikely you'll be able to negotiate. However you could negotiate better terms in regards to advances etc.