Royalty & Revenue Toolkit
Fill-in worksheets and formula cards for common entertainment calculations. Educational resource — not legal or financial advice. Published by Art and Media Law.
1) Music Streaming Royalty Estimator
Music
Artist/Label
Assumptions required
This worksheet estimates artist payout from streams using the formula shown. Replace per‑stream rates with current data from distributors/platforms or use contractually specified rates.
Inputs (Fill Manually)
Formula & Example
Gross receipts = rate × streams
After distributor = Gross × (1 − distributor%)
Artist gross = After distributor × artist%
Estimated payout = Artist gross − other deductionsExample (illustrative only):
rate = $0.0035; streams = 1,000,000
distributor% = 15%; artist% = 100%; deductions = $2,000
Gross = 0.0035 × 1,000,000 = $3,500
After distributor = $3,500 × (1 − 0.15) = $2,975
Artist gross = $2,975 × 1.00 = $2,975
Estimated payout = $2,975 − $2,000 = $975
Note: Real payouts vary by territories, subscription tiers, pro‑rata models, recoupment, and contract terms.
2) Film Profit Waterfall (Simplified)
Film/TV
Illustrative
An illustrative waterfall showing common cash flow: Gross Receipts → Distributor Fee → P&A Recoup → Investor Recoup → Net Profit → Participations. Adapt to the deal’s actual hierarchy, reserves, overhead, and corridor terms.
Inputs (Fill Manually)
Formula & Example
Distributor fee = Gross × dist%
After distributor = Gross − distributor fee
Recoup P&A = min(After distributor, P&A)
After P&A = After distributor − Recoup P&A
Investor recoup = min(After P&A, investor cap)
After investors = After P&A − Investor recoup
Net Profit = After investors (ignores overhead/reserves/corridors)
Participations = Net Profit × participation%
Producer remainder = Net Profit − ParticipationsExample:
Gross = $5,000,000; dist% = 25%; P&A = $1,000,000
investor cap = $2,000,000; participation% = 20%
Dist fee = 5,000,000 × 0.25 = $1,250,000
After dist = 5,000,000 − 1,250,000 = $3,750,000
P&A recoup = min(3,750,000, 1,000,000) = $1,000,000
After P&A = 3,750,000 − 1,000,000 = $2,750,000
Investor recoup = min(2,750,000, 2,000,000) = $2,000,000
After investors = 2,750,000 − 2,000,000 = $750,000
Net Profit = $750,000
Participations = 750,000 × 0.20 = $150,000
Producer remainder = 750,000 − 150,000 = $600,000
Modify to include distribution expenses, overhead caps, reserves, bonuses, and corridor splits per your agreements.
3) Talent Commission Worksheet
Talent
Agent/Manager/Lawyer
Estimate commissions for representatives based on gross earnings and negotiated percentages. Choose a calculation approach (parallel or sequential) consistent with the agreement.
Inputs (Fill Manually)
Formulas & Examples
Base = max(0, Gross − Deductibles)Parallel method:
Agent fee = Base × agent%
Manager fee = Base × manager%
Lawyer fee = Base × lawyer%
Total comms = sum of above
Net to talent = Base − Total comms
Sequential method (agent → manager → lawyer):
Agent fee = Base × agent%
AfterAgent = Base − Agent fee
Manager fee = AfterAgent × manager%
AfterMgr = AfterAgent − Manager fee
Lawyer fee = AfterMgr × lawyer%
Total comms = Agent + Manager + Lawyer
Net to talent = Base − Total comms
Example (Parallel):
Gross = $250,000; Deductibles = $10,000 → Base = $240,000
Agent 10% ($24,000), Manager 15% ($36,000), Lawyer 5% ($12,000)
Total comms = $72,000; Net to talent = $168,000
Confirm stacking, carve‑outs (e.g., music vs. acting), packaging fees, and union rules in the governing contracts.
4) Performance & Mechanical Royalties (Overview)
Music
A quick-reference outline for common music royalty streams. Replace examples with local PRO/CMO practices and current rates.
| Royalty Type | Collected By | Trigger | Notes |
|---|---|---|---|
| Public Performance (Composition) | PROs/CMOs | Broadcasts, streams, public plays | Requires accurate cue sheets and registrations |
| Mechanical (Composition) | CMOs/Publishers | Reproduction: downloads, certain streams | Rates vary by territory and format |
| Neighboring Rights (Recording/Performer) | CMOs | Public performance of recordings | Territorial variance; performer credits matter |
| Master Use License (Recording) | Label/Owner | Synchronization or usage in AV | Often negotiated per project |
Always verify registrations (ISWC/ISRC), splits, and societies per territory to avoid leakage.
5) Notes & Assumptions
- Rates shown in examples are illustrative. Replace with current, contract‑specific figures.
- Streaming models vary (pro‑rata, user‑centric); platform geography/tier mixes affect effective rates.
- Film waterfalls often include overhead caps, reserves, bonuses, and corridors not depicted here.
- Commission stacking and carve‑outs are governed by the specific agreements and local law.
Last updated: [YYYY‑MM‑DD] • Editor: [Name] • Reviewer: [Name] • Publisher: Art and Media Law
6) Working Space
Embeddable Snippet (Copy & Paste)
Publishers and music/film offices can embed this quick reference with attribution to Art and Media Law.
Cite this Toolkit
“Royalty & Revenue Toolkit,” Art and Media Law, last updated [YYYY‑MM‑DD], https://artandmedialaw.com/
Attribution required: title, “Art and Media Law,” last updated date, direct link.