'Idol' moves toward lower payouts for runners-up

LOS ANGELES (AP) — Coming in second on "American Idol" may still be a path to superstardom, but it no longer offers guaranteed paychecks worthy of the next pop idol or rock star.

Wednesday night's runner-up, 16-year-old Jessica Sanchez, doesn't have a definite shot at producing an album and could be paid as little as $30,000 in advances for recording singles, according to the "Idol" contract she and other Season 11 contestants signed earlier this year.

The agreement appears to be the first time in "Idol's" history that producers are not offering the show's runner-up an album deal that in previous years came with a guaranteed advance of at least $175,000, an Associated Press review of the Fox show's contracts reveals.

The analysis covers eight of "Idol's" 11 seasons during which contracts filed for contestants under the age of 18 were available. The contracts were reviewed by judges in accordance with a California law that requires at least 15 percent of a minor entertainer's earnings be set aside for their benefit once they reach adulthood.

The reduced royalty advance covers the period immediately following the show. In addition to recording new music, the series' winners and finalists are obligated to perform in a concert tour and lend their likeness to a Walt Disney World Resort attraction in Florida.

If Sanchez is given an album deal following the show, she will receive the same $175,000 bonus that Lauren Alaina was paid after placing second in the show's 10th season. But 19 Recordings Inc., which has the option to handle the albums and recordings of Idol contestants for several years after they appear on the show, has replaced a guaranteed album deal for the runner-up with a staggered "Development Period" that requires less music and pays out less in advances.

Sanchez could be paid as little as $30,000 if she is asked to perform four single songs, or $60,000 if she records an "EP" of between four and 10 songs.

Representatives for 19 Recordings Inc. and "American Idol" producer FremantleMedia declined comment. They also have not disclosed which recording deal would be offered to Sanchez.

"It makes sense. You can't continue to offer the same sorts of rewards and incentives when the program was averaging 25 to 30 million (viewers), and (now) the finale is barely breaking 20 million," said Northwestern University assistant professor Max Dawson, who teaches a course on reality television. Wednesday's finale was the lowest-rated final show for "Idol" in its history.

"These contracts don't pay off," he said, contrasting the long list of "Idol" alumni who have been dropped by record labels with those who have thriving careers. "It seems like the successes that people like Kelly Clarkson and Carrie Underwood have had are the flukes."

He noted that the recording industry has shifted toward single song sales in recent years, and even established artists are struggling to sell full albums. "I wouldn't be surprised, quite frankly, if this is the direction they head with the winners," Dawson said.

Buyers purchased nearly 1.3 billion single songs last year as opposed to 331 million albums, said Dave Bakula, Nielsen's senior vice president of analytics for SoundScan. He noted that there have been some successful "Idol" runners-up, but producers appear to be giving themselves more flexibility with how they develop artists in different genres.

"Idol" winner Phillip Phillips will receive the same $300,000 advance given to last year's winner, Scotty McCreery, upon completion of his first album, according to the contracts. Finalists who placed third and lower could receive deals to record singles, EPs or full albums, with the lowest advance amounting to $24,000 if they complete their commitment to record up to four single songs.

Higher advances are paid if 19 Recordings agrees to produce more albums, with Phillips eligible to receive up to $800,000 for a six-album deal.

The advances are paid and later deducted from the singer's song royalties.

"As the music industry is changing, it makes sense for 'Idol' to change as well," Dawson said.

Despite the contract reductions, there are more opportunities for recent "Idol" contestants to earn money than their predecessors. Phillips will be paid $200,000 for his Disney attraction work and Sanchez will rake in $50,000 for her appearances. Both are also set to get a cut of merchandise profits.

No matter what recording deal Sanchez is offered, she already has heavyweight Hollywood representation. In March, a judge approved a deal in which she will be represented by Creative Artists Agency for future television, personal appearance and other employment deals.

source: philstar.com

A NYC Business Law Firm Details How Musicians Should Protect Their Unique Works

From the 18th century up to the Twenty-first century, the record industry has performed a very important part in the music world. When a composition is made by a composer, he or she has the copyright to that piece and license or can sell it to a publishing firm. A publishing contract is then set up to set forth the guidelines that will regulate what's required from both the composer and the publishing company. There are 7 types of music publishing contracts.

Ever since there was ever a rhyme, beat, or a chime which can be heard, mankind knew that there was a chance of creating a sound which is called music. This sound has developed throughout several years from a level of live performance, to the level of audio recording. Since early 1900s where music was initially put on wax, and people were able to hear melodious voices backed by music whenever and wherever they want, the tide has not turned back, but has been revolutionized from century to century.

A contract is lawfully binding and if those people that create the recording industries are involved in any type of agreements, cautious attention should be provided just before signing any piece of document. Because of the terminology, a person must protect him or herself from signing something that may put their careers in danger later on. Oftentimes, fine print and hidden clauses are mentioned in such a way that it's not always what it seems to become. There are attorneys who are specially trained to identify the legal terminology, making sure that their client is receiving what has actually been agreed upon between them and the other party.

Royalties are monies, that are usually paid out to an originator of some sort of original piece, musical composition in the recording sector, and according to the actual sales of the work. A number of requirements must be fulfilled in order for this process to be effective, including patent and copyrighting. The number of the overall profits is regulated according to what has been agreed upon contractually involving the creator, and the other parties or party concerned.

A management agreement is crafted in between a manager and an artist who decides to work together. The agreement specifies the partnership between the two, and describes the role of every party concerned in the written contract. Just before the contract is actually signed there are negotiations which will take place on things such as the term of agreement, accountabilities of every party, payments and expenses, and the level of power that the manager shall be able to use. Anytime negotiations are part of any kind of deal making, it's going to involve a back and forth battle where the best diplomat could eventually outbid the opposite in the bidding procedure. A lawyer understands the best way to ask for greater than just what his or her client is prepared to accept and successfully sees a middle ground that will be pleasing to all parties involved.

License audio rights are once the audio rights will be licensed only. It doesn't permit the publisher or creator of the works some other rights. Royalties for audio sales are usually calculated on net revenue instead of retail. Advances are generally settled on audio contracts, but they are very little. Legal assistance is a great thing to consider in these kinds of dealings simply because of the problems that involve the time allotment to publish material, the reservation of rights, warranty provisions, authorship credit, third party infringements, promotions, and terminations. These concerns will automatically need a few negotiations on terms, that are best taken care of by an attorney to reap results of a successful result. Furthermore, legal forms need to be completed which should also be done under legal advisement.

In nearly all business aspect of the music industry, it's usually a good idea to have a legal representative available whenever negotiating business contracts, simply because most of the transactions involve contractual agreements. Obtaining a lawyer is the greatest investment decision that one could make, and it will guarantee that the functions of the composer are guarded in the best and the most appropriate way.

Take into account choosing a NYC Business Lawyer to help represent you if you happen to believe your artist talents might be in danger. Look for a NYC Music Lawyer which offers a complimentary visit.

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