Committee Member, SIMON ELMS writes :
Having received input from a considerable number of our members, PCAM, The Society for Producers and Composers of Applied Music, has come to the conclusion that the pitching process for music for TV commercials has become unsustainable for music production companies and freelance composers alike. As a result, the industry is hemorrhaging experienced composers and discouraging many brilliant young composers who are trying to get started, which in turn is affecting the quality of advertising music.
Current Practice
Presently, agencies will generally ask a number of music companies and/or freelance composers to pitch for an ad soundtrack. Each company/composer is paid between £750-£1,000 and is usually expected to provide several music demos. From the demos received, the agency will usually develop two options. Music production companies or composers are then routinely expected to tweak the arrangement/instrumentation/pace etc until the agency is happy to present the soundtrack to clients. It is not uncommon for a composer to be asked to rework the successful track between five and 10 times as the demo progresses through the agency. The music company/composer is routinely expected to do this at no extra cost, ‘on spec’. Frequently, the creative brief changes, so the process starts again, often without any compensation for the additional work done up to that point.
Music production companies cannot cover costs when working like this, and the process means that freelance composers are often working at — or below — minimum wage.
In addition, it is only once the favoured track is approved that the music production company or composer can invoice for the production work involved as well as the composer’s time, the studio time, the composition fee, etc, meaning that the music companies or composers are carrying and absorbing these costs on behalf of agencies and clients and often waiting several months to receive payment, in spite of the standard payment terms stipulated in the PCAM/IPA contract.
Our Proposal
To begin to redress this imbalance, PCAM proposes that:
- Demo fees are increased to a guideline minimum of £500 for each track, which would include the first round of tweaks.
- All subsequent tweaks will be charged at a suggested guideline of £300 per round, to cover studio time, the composer’s time, programming, and mixing – i.e., ‘production’.
- Usage fees remain the same, as per PCAM guidelines.
- Payment should be made in accordance with the terms and conditions stipulated in the PCAM/IPA contract.
A Personal Statement by PCAM Director Chris Smith
I entered the media music profession in 1988, when I established my music production company, Final Touch Productions. Although we also provided music for long form television and film projects, our primary market was providing original music for TV commercials. PCAM, or SPAM as it was then called, had been established six years earlier and the “Pink Form’ contract, agreed with the IPA, was already a well-established norm, along with recommended guidelines for rates and usage licences.
At that time, the standard rate for a music demo (one piece of music) was £1,000. If the demo required bringing in musicians or singers, that figure was generally increased to cover the additional costs.
While it is true that technology has transformed the way we work these days, it must be remembered that the inflation of rent, rates, and salaries, along with the need to maintain, update, and renew equipment on a regular basis, all mean that operating a creative music business is no less costly today than it was in 1988.
According to the CPI Inflation Calculator, the average annual rate of inflation between 1988 and now is 3.42%. If demo fees had merely kept pace with inflation, the 1988 rate of £1,000 would be £3,360 in 2024.
I believe this figure on its own explains and justifies the urgent need for a review of current working practices and budgets.