Production Music - "Royalty-free" Libraries

"Royalty-free" Libraries

With the proliferation of music libraries in recent years and the increase in competition, some smaller libraries have evolved the somewhat misleadingly titled royalty-free music model. These libraries do not charge their customers for licensing the music. Instead, the customers purchase a CD or access to an electronic collection of music - priced typically between 50 and 300 dollars - whose content is licensed in perpetuity for them to synchronize as often they wish. These libraries depend mainly on performance royalties for their income (with a small amount of income from sales of physical CDs or online track downloads). Assuming that the music is broadcast, royalties are paid on the music, though it is the broadcaster, not the customer, who pays them via annual fees to the performing rights societies.

In some cases the customer is the broadcaster, and in some countries (such as the United Kingdom) PRS licenses are required and royalties become payable for almost all non-domestic use of the music. Online music licenses must be obtained to use the music on websites, in podcasts, streaming video and downloads. Non-domestic use/public performance licenses are required for businesses to play music to their employees or use the music in presentations. Broadcast/public performance licenses are required to use the music with telephone on-hold systems.

Some companies offer truly royalty-free music which is not registered with any performance rights organisation (also known as "royalty collection agencies"). These companies license music to their customers on a non-exclusive basis where it can be used in perpetuity without any usage reporting. The music is licensed by the customers according to an accepted license agreement, and they cannot sell it or license it to others. Because of advancing technology, it is becoming easier for independent musicians to set up their own shops through which they can license music.