Some of the biggest business challenges faced by Canadian screen composers is how much work clients demand for any one project and the value clients give to that work, says a new study from the Screen Composers Guild of Canada.

The study, funded by the SCGC and the Ontario Media Development Corporation and conducted by Circum Network Inc., was based on a survey of SCGC members and analysis of previously published statistics and information. The goal of the study was to give screen composers in Canada a data-based snapshot of the current state of the industry instead of just anecdotal evidence, said SCGC president Marvin Dolgay.

While the guild has had a good sense of the issues faced by its membership, “we realized we…couldn’t substantiate anything,” Dolgay said.

In line with other industries, screen composers are seeing smaller fees for larger amounts of work, Dolgay said. Delivery times are shorter, budgets are smaller and the number of minutes that need to be written and produced per project is greater, he added. 

For screen composers that run their own business, the study found that average total business expenses ran at about $50,749 in 2013, compared to average gross revenues of $109,297, which means expenses represent 46% of gross revenues.

Of those expenses, 65% went to overhead or fixed costs, while 31% went to production or variable costs. Most screen composers also work for themselves, the study found. Eight out of 10 SCGC members own and run a screen composing business, with about half of those operating as an incorporated entity. Only about 6% of SCGC members received a salary for screen composition from a company that was not one they owned themselves.

The study also looked at what kind of contracts clients are offering screen composers in Canada. The study found that 91% of the gross screen composing revenues for SCGC members in 2013 came from package deal contracts. In these contracts, the composer assumes all the cost of creating and recording music, and then gives a producer authorization to use the music. Only 9% of the members’ gross revenues in 2013 came from creative deal contracts, in which the screen composer would receive a creative fee for doing only composition, and then the production company would cover the costs of producing, recording and mixing the music. In both cases, copyright and shared future revenues are negotiated with producers, which is often dependent on upfront fees, Dolgay said.  

Going forward, Dolgay said he hopes the results of the study will help this organization better navigate the changing nature of the industry. While Dolgay noted that many composers are concerned about smaller margins, this baseline study can help the guild identify ongoing trends and address challenges.

“We are putting a mirror up to ourselves,” Dolgay said.