Music licensing can be an invaluable income source for songwriters, composers and music publishers, and offers creatives a variety of opportunities to make money from their music.
With music streaming rates now typically worth less than a penny per stream, making significant money from Spotify can be a challenge for emerging talents – which is where music licensing, production music and creating curated tracks for a music library can come in.
According to recent figures, income from synchronisation use, including film, games and advertising, reached a new annual high in 2024 with an 11.3 percent rise to £43.9m.
By giving permission for your music to be used as a soundtrack to a film or making bespoke production music where content creators can download tracks from an online library, there are opportunities for great value to be leveraged from music. With more online platforms, video games and visual content being created within the digital world, increasing numbers of world class tracks, music and sound effects are required.
Our blog will explore the music business skills development needed to understand music licensing and the diverse range of opportunities this creates. From house and electronics to rock and guitars, producers can find commercial projects of all genres around the globe if they are able to put themselves and their music out there.
If you are looking to study this in greater detail and discover other areas of the music industry, then check out our Music Business degree – and contact our SAE team for more.
Why is Music Licensing Important as an Income Stream
With major streaming platforms paying roughly $0.003 (£0.002)–$0.005 per stream, it’s a challenge for emerging artists to make enough income to support their careers from these services alone.
It’s still important for songs to be featured on these platforms, to offer songwriters a base level of passive income. But music licensing can provide a wider variety of potential sources of revenue to fuel their careers, whether that be writing music for corporate videos, licensing royalty free music to sample libraries or creating instrumentals for use on mobile apps.
How does Music Licensing work
A key part of music licensing stems from copyright – and there are two elements in a song or composition. They include:
Composition Copyright (Publishing): This covers the underlying melody, lyrics, and structure of a song. Whenever the music is used – for example played in a pub or broadcast on the radio – then the licence holder will receive some form of remuneration.
Sound Recording Copyright (Master): This protects the specific recorded performance. Sampling a song requires permission from the copyright owner, usually the recording artist or label.
These elements within a piece of music are how ownership of a piece of music is established.
From here, whoever owns the copyright, whether it be the original songwriter, composer or rightsholder in the form of a music publisher, can provide permission for their music to be used. This permission will usually be granted in exchange for an agreed fee.
How can Music be Licensed when Looking for the Perfect Track?
If businesses such as pubs, gyms or hairdressers want to play music, they will need to invest in a music licence to gain permission.
In the UK, this is granted by PPL and PRS for Music, two Performing Rights Organisations (PROs) that have combined into PPL PRS Ltd. They now offer one license, one invoice, and one contract for both recorded and live music.
For using music in TV, film, ads, games, or YouTube, a synchronisation license (for the composition) will be needed.
This ensures creators are compensated via royalties or flat fees, managed through the PROs and publishers.
How is music used
There are various different ways in which music can be licensed for sync from television to adverts, mobile apps and more.
In television series, certain songs can be used either in the background, to push the story’s narrative forward or to emphasise an emotional moment.
For example, in the hit Netflix series, Stranger Things, Kate Bush’s song Running Up that Hill was used in the climactic scene of Season 4. From the sync placement, the song became a global smash, reaching number one in the UK, topping Spotify charts, and surpassing 1bn streams.
Many of Quentin Tarantino’s films are as loved for the music as much as the high-paced action and drama with songs finding new leases of life through the soundtracks to Reservoir Dogs and True Romance.
Guitarist Dick Dale’s Misirlou and Jungle Boogie by Kool and the Gang capture the vibe and energy of the comic book romp of Pulp Fiction perfectly.
How the Licensing Process Works
For a piece of music to progress from creator to audience, there are certain steps that need to be followed as part of the licensing process. They include:
Identify Rightsholders: It is the rightsholder who owns the copyright in a piece of music. So if a track is to be used in an ad or television series, then the owners of the publishing and the recording need to be identified and contacted.
Negotiate Terms: Fees vary based on popularity, usage, and duration, often requiring both a sync and master licence.
Payment and Clearance: A contract is signed, fees paid, and permission granted to use the music.
Royalty Collection: PROs and collectives such as PRS for Music, MCPS, and PPL track usage and distribute royalties.
Production Music
Production music is also referred to as library or stock music, is pre-recorded, high-quality music licensed for use in film, TV, advertising, podcasts, and digital content.
Unlike commercial tracks, this music is created specifically for media and is royalty free with producers usually composing for a library. This means content creators can usually license tracks from libraries rather than negotiating individual rights.
They can often use a music library’s platform to search for music depending on the mood or focus that their content has, whether they are looking for pop sounds, country or music with soulful vocals and percussion.
How to seek out music licensing opportunities
As a professional or artist, how do you seek out music licensing opportunities to place your music? Here are some tips on some of the most effective ways to do it.
Make great sounding music
It sounds obvious but honing your craft, being innovative with your sound and getting your music out there can go a long way.
The market is hugely competitive so while there are opportunities, it’s also worth ensuring you’re putting together the best quality music you can muster. If it sounds professionally mixed and mastered, then this can impress a music supervisor looking for music to soundtrack their next project.
Review trending sounds among television shows and films
There are also always trends in TV, gaming, film and advertising, so it’s a good idea to keep an eye on what’s being released. Of course, you don’t want to follow the crowd with your music. But having a knowledge of what is popular, what different platforms are looking for and where your music might fit is invaluable.
Pitch appropriate music
If you get the opportunity to pitch something for a sync placement, make sure what you’re pitching is appropriate. For example, a heavy grunge track probably isn’t what a supermarket chain wants for their latest advert. Always consider the platform you want your music to land on.
Do your research into music supervisors
In terms of getting your work in front of music supervisors, do your research into those professionals working on specific shows, games, films or ads. You can usually find details via Google searches, then connect with them on professional networking sites such as LinkedIn. Alternatively, look out for events and Q&As with supervisors, then you can connect with them in person.
Study Music Business at SAE
Studying our leading Music Business course will give you a comprehensive education in labels, publishing, management, touring, distribution, and live events.
You will have the opportunity to collaborate with an exciting student body to record your artists, film music videos and begin to plan your own career in one of the world’s most exciting industries.
