Licensing Payment Breakdowns
The amount of money a music license can generate varies greatly on many factors. The main factors are; how the music is being used, where the commercial, TV show, or film is going to be broadcast, and for how long - commonly known as Use, Territory and Term.
With music licenses, there is usually one up front fee paid by the licensee (Ad agency, TV or film production company etc). This term depends on the Use, Term, and Territory, as well as the licensee’s budget. The fee could be a minimal amount (such as $250) or it could be $1 million (if it’s being used in a commercial all over the world).
However, the money doesn’t stop there. Each time the ad or TV show/film is aired anywhere in the world, the PRO will collect money from the TV stations, radio stations and cinemas for the music, and pay it back to the songwriter and publisher as royalties. The PRO splits the royalties into two portions; writers share, and publishing share.
All Performance Rights Organizations and most licensing catalogs/libraries pay their members quarterly. You will get only one check from the licensing catalogs/libraries for each license, but the PRO’s checks can keep coming over the span of a few years depending on the Use, Territory and Term.