What's the Average Cost of a Sync License?
Your song could be the perfect complement to a commercial or movie, and you deserve the perfect compensation
The key to long-term sustainability for most financial plans is diversification, and the music business is no different. Leveraging your music library in as many ways as possible ensures that your overall income remains steady even in the face of unforeseen events (like a pandemic). Sync licenses are a revenue source many musicians leave unexplored, to their detriment.
Learning the average cost of a sync license could help you calculate its role in your revenue plan, or even to decide what kind of music you want to make next. As more types of visual content emerge, creators are always on the hunt for the perfect musical accompaniment, whether it be for movies, TV shows, advertisements, online videos, video games, podcasts, or any other medium.
This blog post will outline what the average cost of a sync license is and what it means for your finances as a professional musician. Before you get into the nitty-gritty of the dollars and cents of sync licenses, make sure you check out Music Royalties: The Ultimate Guide.
The average cost of a sync license
A sync license is a commercial agreement that grants someone permission to use a piece of music in a separate piece of media like a movie or commercial. The person who holds the rights to that music is compensated according to the terms laid out in the agreement. They're called sync licenses because they allow the licensee to synchronize, or sync up, your song with whatever video project they're working on.
The synchronization license cost for your music will depend on the kind of production that wants to use your music. Like any other market, it also depends on how in-demand your particular music, or type of music, is for this particular type of production. Some of the highest-profile syncs in modern media appear in television commercials, with reports indicating that at least one song from a Super Bowl 2021 ad brought in a dizzying $1 million. Something with a lower profile, such as the theme song for a reality TV show, can range from $5,000 to $100,000 depending on which musicians are involved.
On the other hand, digital media and entertainment attorney Steven Masur points out that the average cost of a sync license for a smaller artist is typically closer to hundreds of dollars. Price points lie everywhere between, depending on the individual needs of each project and the music in question.
The money you receive for your work being sync licensed will also depend on whether the deal is done directly, through a publisher, or through an online asset marketplace that connects interested buyers with songs at scale. Selling your music in such marketplaces will mean it ends up in front of many more potential buyers, but it also typically means you'll make less after the market takes its cut.
How is a synchronization license cost paid?
Unlike mechanical royalties, which are paid out every time the song itself is reproduced (check out our guide to mechanical royalties to learn more), each sync license is typically a one-time deal that outlines compensation for individual use of a song. Getting your synchronization license cost paid is therefore a way to diversify your revenue streams. Sync fees are paid upfront, as opposed to other royalties, which are ongoing, but more subject to change.
Having your music featured in external productions is also an excellent way to grow your audience. While you'll only have your synchronization license cost paid once, everybody who hears that radio ad or watches that YouTube documentary is a new potential fan. They may even go on to purchase your music directly. While both are separate parts of the business, the two sides of licensing and direct plays or sales can create a virtuous cycle.
Sync license issues to look out for
Like anything else in the music business, sync licensing agreements are negotiations. Minimize risk by doing your due diligence with potential licensees. Read up on their business to make sure they’re legitimate and don’t be afraid to check references and see if other musicians have had positive experiences with them.
Deal specifics also need to be hammered out well in advance, and don’t be afraid to get granular in order to make sure you understand contract terms. What media is included? Is it an exclusive or non-exclusive license, how many years or in perpetuity? If you don't understand the contract, it's ok to ask the licensee or reach out to an entertainment attorney. Seek a partner that will engage in an open and honest conversation with you, and it’s more likely you’ll be able to reach an agreement that works for both sides.
Make the most of your music
On top of the specifics of each arrangement, the more you know about how your own catalog of music is performing, the better off you'll be when it's time to set your sync license rates.
You don't need to trudge through pages upon pages of reports and broader industry analytics on your own. At Trqk our mission is to help musicians conquer the business side of their lives so they can make the money they deserve while staying focused on why they got started in the first place: the love of making music. Get in touch with us now to find out how Trqk can start helping you.