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Music Business Vocabulary

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Catalog

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The collection of songs and recordings that an artist or songwriter has released.

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Publishing Deal

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A legal contract between a songwriter and a music publisher in which the songwriter agrees to let the publisher represent and promote their songs.

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Demo

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A rough version of a song used to give an idea of the finished product, often used to pitch songs to artists or labels.

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Record Deal

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A contract between a record label and an artist, where the label agrees to produce, distribute, and sometimes promote an artist's recordings.

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Advance

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An upfront payment to a songwriter or artist against future royalties, which must usually be paid back or 'recouped' before they can earn additional royalties.

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Producer Points

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A percentage of royalties given to a music producer for their role in creating a recorded song or album.

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360 Deal

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A record deal where the label shares in multiple revenue streams traditionally outside of record sales, including touring and merchandise.

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Breakage Fee

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A fee historically included in record contracts to cover the cost of vinyl records breaking during shipping, often still charged even though digital sales do not incur this issue.

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Mechanical Royalties

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Royalties paid to songwriters and publishers for the physical reproduction or download of their musical compositions.

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Royalties

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Payments that songwriters, artists, and producers receive for the use of their music.

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Performance Royalties

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Royalties collected and paid out to songwriters and publishers when their music is performed publicly, like on radio, in venues, or through online streaming.

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A&R

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Artists and Repertoire - the division of a record label that is responsible for talent scouting and overseeing the artistic development of recording artists.

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Distribution

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The process of getting music from the artist to the consumer, traditionally through physical means like CDs, but now largely digital.

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Indie Label

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An independent record label that operates without the funding of or association with the major record labels.

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Sync License

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A license that allows a licensee to synchronize music with some kind of visual media output.

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Master Rights

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The rights to the original recording of a song, which allow the owner to control how that recording is used and to earn revenue from it.

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Shelf

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The term used when a record label decides not to release an album that it has contracted for, leaving the recording in its 'catalog' but not making it available to the public.

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Tour Support

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Financial support provided by a record label to an artist for expenses associated with touring and live performances.

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Option

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In a recording contract, the clause that gives the label the right to extend the contract for additional albums beyond the initial release.

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One-stop

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A licensing option where a single entity can grant both the mechanical and synchronization rights for a piece of music.

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Music Supervisor

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A professional responsible for selecting and licensing the music used in media like films, television shows, advertisements, and video games.

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Cue Sheet

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A document used in the media industry that lists all the music and compositions used within a television show, movie, or advertisement and details the ownership of each.

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Single

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A type of music release that typically features one main song or track which is promoted to radio and consumers, often as a teaser for an upcoming album.

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Platinum Record

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A music industry certification awarded to a song or album that has sold a substantial number of copies, typically 1 million units.

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Gold Record

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A music industry certification awarded to a song or album for surpassing a certain number of sales or streams, typically 500,000 units.

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Public Performance

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Any live or broadcast rendition of a song or piece of music in a public place or via digital media, wherein performance royalties are generated.

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ISRC (International Standard Recording Code)

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A unique code assigned to each version of a song recording, used to track and report sales and broadcasts.

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Digital Service Provider (DSP)

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A company that offers digital music services to consumers, such as streaming or download services.

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Payola

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The illegal practice of payment or other inducement by record companies for the broadcast of recordings on commercial radio in which the song is presented as being part of the normal day's broadcast.

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Work-for-hire

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A contract where an artist is commissioned to create music specifically for a project, and typically the hiring party owns all rights to the work.

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Top-liner

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A songwriter who specializes in writing melodies and lyrics (the 'top line') over a pre-made beat or chord progression.

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Major Label

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A large record label that has its own distribution system and represents a significant portion of the commercial market share.

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Producer

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An individual who oversees and manages the sound recording and production of a band or performer's music, which may include gathering ideas for the project, selecting songs, coaching the artist and musicians.

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Recoupment

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The process by which a record label recovers the money it has invested in an artist before the artist sees any profit from their recordings.

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Residuals

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Payments made to performers, composers, and other creators for the ongoing use of their work, particularly in secondary markets like reruns or streaming.

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Trade-out

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An arrangement where goods or services are exchanged by companies or individuals in the music industry instead of monetary payment.

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Venue

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A place where live music performances are held, can range from small clubs to large stadiums.

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