In addition to more conventional ways of generating revenue with music, there are two means that have yet to be widely explored: synchronization with audiovisual projects and association of music with brands as part of a sensorial marketing strategy called music branding.
The countries that most exploit the sync market are the USA, the UK and France, which have developed this area more and more. Compared to them, Brazil had sync revenue of just USD 1.1 million. This accounts for 0.5% of total revenue in the Brazilian recording industry in 2016, equal to USD 229.8 million according to information from Pró-Música Brasil. The sync market was down by 8.4% compared to 2015.
Last year, the USA saw earnings of USD 7.7 billion, with USD 204.3 million in synchronization licensing, accounting for 2.65% of the American recording industry. While the United Kingdom took in USD 1.2 billion, with USD 27 million in synchronization, representing 2.25% of the market.
In relation to these figures, Brasil, Música & Artes (BM&A), through its Brasil Music Exchange (BME) program, developed in partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil), put together the Brasil Music Summit, a structured initiative to categorically foster this kind of business. The event is being held from December 4 to 5, at Unibes Cultural, in São Paulo.
There is no data on the Music Branding market in Brazil. However, Leandro Ribeiro, BME Project Manager, believes that building ties between companies and brands that invest in publicity can increase knowledge and opportunities not only in Music Branding, but also in the Sync market, with benefits across the chain. “We want to use the BMS to bring professionals closer together and generate future business. We also want Brazilian participants, whether they are companies or artists, to sense how important these topics are abroad and how they are handled in other countries as well,” says Leandro.
This area is aimed at helping a brand to build a consistent relationship with its target audience, through work that ranges from soundtrack production, sound identity and consulting to music curation for events, stores, physical or digital environments and more.
A market with ample opportunity
The study done by Pró-Música Brasil also found that the sync market accounts for 2.3% of revenue from music currently recorded in the world, which means USD 370 million out of a total of USD 15.7 billion. According to Mario Di Poi, a producer at Inputsom Arte Sonara, the “Paid TV Act” (12.485/2011) drove growth in this market. “The requirements of this law have caused demand for Brazilian content on TV channels to skyrocket, resulting in demand for music for this content. The music production chain is increasingly prepared to merge with the audiovisual chain,” says Mario.
In effect since 2012, the law stipulates that paid channels have to broadcast at least 3 hours and 30 minutes each week of nationally produced content during primetime, and half of this content must be created by independent companies. In 2016, cable TV channels showed more national content than the minimum required by law, according to a report produced by Ancine (Brazil’s National Film Agency).
In addition to revenue from music licensing, sync business has a direct impact on revenue from performing rights. In 2016, the global figures represented USD 2.15 billion USD 2.15 billion, totaling 13.7% of total revenue in the recording market and resulting in a 7% increase in relation to 2015. In Brazil, USD 84 million in revenue comes from copyrights. Leandro explains that, particularly in the case of the sync market, good projects developed here in Brazil can also serve as export revenue streams. “Many audiovisual projects are broadcast abroad – as is the case with TV shows, movies, cartoons – in other words, even if the entire production was done here in Brazil, once it is licensed and executed outside of Brazil, everyone involved still profits from performing rights,” he says in conclusion.