Theatre Composing Contracts & Negotiable Terms

Payment and Royalties 

When you compose music for theatre, there are usually two main kinds of payments to think about. The first is an upfront fee, or what we call a commissioning fee, which you agree with your commissioner for creating the work. This is the main guaranteed payment for your work.

When a composer is preparing a quote for a commission, the Musicians' Union (MU) fee guidelines for concert music commissions (currently being reviewed) can provide a useful framework. Composers can also refer to the MU’s minimum recommended rates for arranging, music preparation, and orchestration when calculating additional elements of their quote. It is worth noting that some funding bodies may expect or want MU rates to be met as a minimum. 

The second form of payment is royalties, which are ongoing payments based on how the music is used when the show is performed. In theatre, there are two main types of royalties: Small Rights and Grand Rights.

Small Rights generally cover the use of existing music that has not been specifically written for a show. This can include incidental music and interpolated music. However, some catalogues and songs aren’t controlled by PRS for Music, and certain uses may require additional permissions or be treated differently. For this reason,  you should check with PRS for Music (PRS) which collects and distributes royalties on behalf of composers when their music is performed publicly 

Grand Rights, generally cover music that has been specifically written for the show and is part of a dramatic work, for example, musicals or operas, where the music is performed as part of a live stage production with story and characters. Grand Rights are not managed by PRS but are negotiated directly between the composer (or rights holder) and the producer. These agreements are negotiated on a case-by-case basis, with the rights holder granting permission for the music to be used and the parties agreeing on licence terms, fees, and how royalties will be calculated.

PRS explain the difference between Grand and Small rights.

Royalties

Royalties can be based on the number of performances, ticket sales, or a percentage of box office income, and it’s common to negotiate a share of either the gross (total ticket sales) or net (ticket sales minus expenses) box office receipts. It is important to clarify whether your royalties will be calculated on gross or net income and how, and whether they apply only to the initial production or to future runs, tours, or revivals as well.

If you’re working with co-writers, this is something you may need to negotiate together, agreeing in writing on how royalties are split – whether equally or based on individual creative contribution.  

Collaborative Theatre Composing

It’s important to discuss how your collaboration will work early on, and you’ll need an agreement to decide how rights, fees and royalties may be divided up between writers. You can find the Musical Theatre Kit on the Musicians' Union website for further information, along with resources such as the specimen Co-Writing Agreement and Song Share agreement. 

Licence terms

This means deciding who can use the music you compose, for how long, and where it can be performed. When you compose music for a theatre production, usually the work you create belongs to you, and your commissioner will need to secure a licence to legally use your work during performances. 

You might grant exclusive rights to one person or company for a period of time, or non-exclusive rights that allow you and others to use your music as well. It’s important to understand how long the licence lasts and where your music can be used. You may also want to restrict any changes to your work after the first preview to avoid your music being altered without your consent. This can also include whether future usage of your music requires further permission and/or remuneration, how you’d like to be credited and what royalties you could earn from the performance(s). 

As the same work may be licensed multiple times, these terms form an important part of the deal, giving you scope to shape usage and licence conditions with each agreement; for example, limiting duration, territory or number of performances might help you balance other elements of the offer.

Buyouts 

Sometimes, you might be offered a contract that includes a full buyout of rights, where the commissioner pays a single fee for the composition. This is then used to acquire - or ‘buy out’ - some or all of the creator’s rights and potential royalty income in respect of their work. 

You might also see the term ‘Work for Hire’ (particularly used under US law) – which refers to arrangements where the employer or commissioning party is treated as the legal author and copyright owner of the work. When this language appears in a buyout context, it can form part of an agreement under which a composer is paid a one-off fee, rather than receiving ongoing royalties.

Any offer should attract a fee that not only covers the creation of the music, including any costs involved, and the potential loss of future royalty income, but also allows you to hold onto at least some of your rights. 

Read more about buyouts and their potential impact here (note: this example is from media composition, but many principles also apply to theatre)

Expenses 

Your contract should explain whether expenses like travel, accommodation, materials, and equipment will be covered by the commissioner in addition to your fee.

Clarifying Your Role When Composing for Theatre

You may be hired primarily as a composer, but you could also be asked to take on other roles such as MD (Musical Director), Musical Supervisor, Performer or Sound Designer for example. Each role carries different responsibilities and can affect your fee. You can find more info on roles in theatre here.

If you’re performing too, the MU’s Theatre Agreements for players provide guidance on rates and T&Cs. MDs and Musical Supervisors are typically paid a negotiated fee reflecting the responsibilities of the role.