13
The Business of Commercials
Although the primary focus of this book is the creative process of compos-
ing music for commercials, an overview of thebusiness of commercialsis
necessary.
In the United States, New York, Los Angeles, Chicago, and Nashville
are the hubs for national advertising. In these locales, most musicians and
singers are union members, entitling them to receive union-scale session
payments and residual payments. Residual payments are additional pay-
ments to musicians and singers based on the length of time a commercial
is broadcast and the number of regions in which it is broadcast. These pay-
ments also apply to performances on the Internet, satellite radio, and cell
phones as well as motion picture theaters, cable television, and additional
new platforms referred to as ‘‘new media.’’ The various unions (AFM,
SAG, AFTRA, and SESAC, discussed later in this chapter) have dissimilar
payment scales that are periodically renegotiated with representatives of
the advertising industry.
Composers donotreceive residuals. For many years, composers have
unsuccessfully lobbied for this benefit. To compensate for the loss of this
potential income, some music companies charge sizable creative fees.
Composers who write for music houses are almost always included on
the musicians’ and singers’ contracts. This allows them to collect session
fees and receive residual payments.
Marketing a Music Company
Demonstration Reels
Music houses or independent composers submit audio reels and video
reels that serve as a demonstration of their work. It is advisable that each
reel does not exceed 7 to 10 minutes in duration.
When agency producers solicit reels, they are usually specific about
the style of music they are searching for. Try to customize a reel for each
individual request. It is difficult to be chosen for a job without demonstra-
ting a piece of music that sounds similar to the style of music that the
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