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Compilation Contract Configuration
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This article will explain how to set up contracts for a compilation release.
How to Set Up Contracts for a Compilation
There are two ways to set up contracts, depending on whether the compilation features artists for which you've already created a contract on eddy.app, or artists that are only featured on the compilation.
Artists Have a "Main" Contract
If the compilation features artists that have other releases in your catalog, this means that you have already created a main contract for them to which their other releases are linked.
1. Link Each Track to the Relevant Contract
Simply add their track from the compilation to the content section (both digital and physical if relevant). Make sure to only toggle their own track(s), and not the full compilation release.
Full album sales will be automatically prorated for each artist in the compilation.
2. Add Recoupable Costs
Follow the instructions below, depending on how the costs associated with the compilation should be recouped:
- Track-Specific Costs
If a cost should only be recouped from a specific track of the compilation, simply link it to the relevant artist's contract.
A standard example would be production costs for a music video for one of the tracks on the compilation, which should be recouped from the revenue generated by that track only.
Note that costs that you associate with the artist's contract will be recouped from all the revenue generated by all content linked to it, i.e. cross-collateralized against all sales for the contract.
- Release-Specific Costs
If a cost should be shared between all contributing artists on the compilation, i.e. all artists should recoup an equal amount prior to getting paid, you should divide it by the number of artists.
As an example, let's say that we have manufacturing costs of €1000 for the compilation vinyl release. The compilation features 10 artists, so you need to simply divide this €1000 / 10 = €100, and create 10 costs of €100 linked to each artist's contract. That way, each artist recoups an equal amount of the cost from their revenue share.
Artists Do Not Have a "Main" Contract
If the compilation features artists that do not have any other releases in your catalog, you will need to create a contract for each contributing artist.
1. Create a Contract per Artist
Follow this step-by-step guide
Make sure to only link the artist's track to their contract, and not the full release. Full album sales will be automatically prorated for each artist in the compilation.
2. Add Recoupable Costs
Refer to this section of the article for instructions.