Pump Audio has sent out the notice posted below to all of their contributors.
It basically says that from now on their split will be 35% to the artists and 65% to Getty Images.
It would be surprising if this was a Pump Audio decision but it is definitely not surprising that this is a Getty Images decision. Getty Images along with Jupiter Images are pretty ruthless in how they treat their composers. And their composers are the ones who make their business models profitable.
Dear Pump Audio Artist,
We would like to thank you for your music and congratulate you on being part of one of the fastest growing music licensing companies in the world. Since the acquisition of Pump Audio by Getty Images, we continue to hear praises from a wide expansion of our clients on the depth and quality of our catalog and that is a testament to you.
As we plan for the future growth of our offering to the global music licensing client base, we have determined that to fully support the 400+ person Getty Images sales staff and invest in marketing and technology needs that we must make adjustments to the current revenue split system. By making these changes, we intend to accelerate the pace of our growth and achieve our goal of becoming the largest music licensor in the world.
The new model will be as following:
1) Licensing fees will now be 35% to the artist, 65% to Pump Audio/Getty Images
2) This change will take place as of July 1, 2009. Any royalties payable through June 30, 2009 will not be affected by this change
3) Performance royalty splits will remain at 50% of the publisherâ€™s share
4) Those that donâ€™t accept the new split will have their music removed from the system no later than December 31, 2009.
5) The rights you granted to us in the original contract do not change
If you have any questions, please email [email protected].
Please sign the enclosed amendment and send back to Artist Relations.
I have been reading about this development on blogs like the themusicsnob.com here
Pump Audio Reduces Music Licensing Payments
There are lots of comments regarding this move by Getty and Pump Audio, most of them bad, things like;
“Thatâ€™s defaulting on the contract. If they have a signed agreement with me that states 50/50 and they decide to make changes to the split, they need to have a new contract signed with that agreement, which I will not do, and if they default on my contract and change the terms without my written consent, I will sue them.”
“You have to really stay on top of things with Pump/Getty and I will definitely be looking for alternatives. Just when I was thinking they were cool it turns out to be another artist-leaching corporation”
I’d also like to quote Scott Hallgren, Owner/composer/producer at Scootman Music Productions http://www.scootmanmusic.com
Scott has contacted his rep at Pump Audio with some direct questions and received these as replies
1. Nacia at Pump couldn’t promise me the problems they’ve been having reconciling all of their databases (including, among other things: incorrect contact, PRO, and direct deposit info) are going to be fixed anytime soon. Even with all the new bodies, notice none are dedicated to admin…
2. She also informed me that Pump would now be giving their ‘clients’ UP TO A YEAR to report usage. Not pay, just report! So an artist could conceivably be waiting for 2+ years for payment if the bi-annual reporting didn’t fall in one’s favor.
3. I’ve also learned from another source that Pump are 15 months behind in registering their PRO info.
Scott goes on to say:
I have music in the PumpBox and have gotten a placement, but after this and the forced addition of our content to iStockPhoto.com (without receiving the benefits that people who joined iStock of their own volition, natch), I’m beginning to wonder if I need to ‘beat feet’ and let my participation die a natural death…
I think one of the reasons behind the success of Partners In Rhyme and www.musicloops.com and www.sound-effect.com is that we are a company run by musicians, first and foremost we think of our musicians above all else because we know first-hand what it is like to try to make a living at composing music.
It is difficult in that musicians are just that, musicians, they do not have MBAs or degrees in marketing and promotion and they are often times completely socially inept. To expect a musician to spend his/her days producing creative work and then ask them to also handle all the business dealings plus the marketing, self promotion, accounting, etc, etc. is a really big ask.
At Partners In Rhyme we are trying to make a place where musicians just have to create, we take of the rest and send them a nice paycheck every month. I can promise you we will never turn “corporate” (even though we are incorporated) and we will always be on the side of the little guy.
50/50 Forever! 🙂
So how do you feel about this new development at Pump Audio?
Do you have music in their library and are you going to keep it there?
Are you also looking for alternatives like these other Pump Audio composers?
Tell us your feelings and what your plans are. It might help other composers figure out their own way forward.