Tag Archives: fmsmf

Since we last reported to you, the world has continued to change. Fortunately, the Film Musicians Secondary Markets Fund’s (FMSMF) commitment to the work of collecting and distributing the secondary market residuals that are so critical to the lives and livelihoods of working musicians is unchanged.

As working film/TV musicians are aware, with the onset of the pandemic the Fund took the extraordinary—and one time —step of issuing its “July” distribution on May 22, more than a month earlier than originally scheduled. Over $99 million was distributed to almost 17,000 participants, just as work in the industry ground to a halt. The Fund’s urgency in issuing this early distribution reflects our recognition that secondary market residuals are an indispensable component of working musicians’ financial security, and the security of their families.

The annual distribution of supplemental market residuals from the smaller Live Television Videotape sub-fund, which covers programs such as Saturday Night Live, The Tonight Show, and other programs produced under the AFM’s Television Videotape Agreement, was issued on schedule on July 1. The Fund distributed approximately $1,076,000 to 1,587 participants in that distribution.

With those two main distributions completed, work resumed on distributing “re-issue” payments to musicians or their beneficiaries who had unclaimed residuals waiting at the Fund. Since July 2020, we have distributed a little more than $919,000 in unclaimed residuals to 196 Fund participants.

Keeping Eyes on the Road Ahead

During the first six months of Fiscal Year 2021 (April 1, 2020 to September 30, 2020), collections remained on pace with Fiscal Year 2020, with a little over $58 million collected as of September 30, 2020, as compared to $57.3 million collected as of September 30, 2019. The Fund will continue to monitor closely the pace of collections through the remainder of this fiscal year, to assess whether the slowdown in production during calendar 2020 has a trailing effect on the residuals collected between now and March 31, 2021, the end of the current fiscal year.

As we have continued to observe, the slowdown of production and closures of movie theaters because of the pandemic have accelerated the shift by companies to invest more in content made directly for digital streaming services, and specifically to their own streaming services. As we have also observed, these changes in the business paradigm could have a significant impact on musicians’ residuals. Although the Fund does not participate in the negotiations between the AFM and the Alliance of Motion Picture and Television Producers (AMPTP), the Fund will carefully observe the outcome of the 2021 theatrical and TV negotiations, which should also be of keen interest to every recording musician.

New Films for Fiscal 2021

Despite the slowdown in current production, the Fund has continued to receive residuals for pre-pandemic films and TV programs that are reporting residuals for the first time. As of the halfway mark of FY2021, almost 150 “new” titles reported to the Fund. Among the titles that have paid in for the first time in FY2021 are theatrical films such as Alita: Battle Angel, Bad Boys for Life, Just Mercy, Birds of Prey, Da 5 Bloods, Motherless Brooklyn, and others. In addition to receiving residuals for the most recent seasons of TV series such as Black-ish, Blue Bloods, Chicago Fire (and Med and PD), whether it has been driven by the pandemic or not, we also have observed that companies are pulling older series out of the vault and licensing them for secondary market distribution. In the past six months, the Fund has received first time residuals for seasons of vintage TV series such as Star Trek: Voyager (1990s), Moonlighting (1980s), and Columbo (1970s), among others.

Please Keep Up to Date

Please make sure that your beneficiary information is up to date with the Fund. In recognition of the difficulties for musicians in finding notary services in the current environment, until further notice, the Fund will accept non-notarized Beneficiary Designation Forms so long as valid proof of government-issued identification such as a driver’s license or passport is provided. You can find more information about the Fund’s beneficiary policies on our website at www.fmsmf.org/beneficiary or email us at participantservices@fmsmf.org with questions.

We strongly urge all Fund participant musicians to enroll in the Fund’s Go-Paperless program. Given the recent pressures on the US Postal Service, some of which may have lasting effects for months or years to come, it is in the best interest of all participants to ensure their residuals are received through safe, instant, and secure Go-Paperless/Direct Deposit. For more information on how to enroll in Go-Paperless, please visit www.fmsmf.org/faqs/pstart.php.

The Fund is committed to providing prompt and courteous service to participants throughout these challenging times, despite working at reduced capacity. Please note that responses to correspondence sent to us by US mail may be delayed. The best way to reach us is to send your questions or concerns via email to participantservices@fmsmf.org. And please visit our website at www.fmsmf.org and our page on Facebook for updates on Fund information.

On behalf of the Fund, we extend our sincere wishes to all members of the AFM and their families to remain safe and in good spirits. Each of us on the Fund staff wish you and yours a peaceful and healthy holiday season and a far better 2021. We are here to support you, and stand united with the community of professional musicians as we all work through the times ahead.

International Musician

Supporting Musicians During Difficult Times with May 22 Fund Distribution

June 8, 2020 IM

by Kim Roberts Hedgpeth, Film Musicians Secondary Markets Fund (FMSMF) Executive Director

As I write this, Americans have lived through almost two months of tragedy and disruption in their lives. And in a cruel irony, at a time when many Americans have turned to entertainment to ease the fear and anxieties caused by the current pandemic, the very artists whose talents create the entertainment that is soothing America’s soul have seen their livelihoods vanish in the blink of an eye.

Even before California issued its formal “shelter in place” orders, the Film Musicians Secondary Markets Fund (FMSMF) was tracking the rolling shutdown of production and understood that as production ground to a halt, so would session work for film and TV musicians. The Fund shifted its focus in order to accelerate its annual July distribution, in the hope of getting residuals to musicians as soon as possible. A skeleton crew worked through late March and April to finish out the 2020 fiscal year and prepare for the FMSMF distribution. It helped that the Fund is exempt from state and city closure orders, so some employees could continue in office. (Although exempt from closure, in an abundance of caution, Fund management arranged for most employees to remain out of the office until we could fully research and implement recommended hygiene and distancing protocols).

We are pleased to report the FMSMF distribution is being issued on May 22, more than a month earlier than the originally scheduled normal distribution date of July 1. The millions of dollars being sent to musicians and their beneficiaries in this annual distribution will hopefully serve as a critical lifeline to ease some of the stress on the community of professional film and TV scoring musicians affected by the abrupt and widespread loss of work caused by this pandemic.

Accomplishing this unprecedented—and one time—acceleration of the FMSMF annual distribution was not without cost. In order to have any chance of getting the larger FMSMF distribution processed early, work on the relatively smaller Live Television Videotape sub-fund (LTVF) was temporarily deferred. This will require redoubled efforts in order to distribute LTVF residuals by the July 1deadline. In addition, the Fund temporarily deferred processing unclaimed residuals and beneficiary claims, which has created a backlog of requests. But consistent with its commitment to its participants, the Fund will leave no stone unturned to move forward, get back on track and accomplish this work post haste.

Keeping Eyes on the Road Ahead

Fiscal 2020 collections came in slightly below Fiscal 2019, with over $114 million collected in FY2020 as compared to $115.7 million in FY2019. The question remains whether this slight dip in collections is a temporary blip, or the harbinger of a trend. The steady growth in residuals collected by the FMSMF between 2010 and 2019 has been driven by two key factors: increased compliance activity by FMSMF to recover residuals not voluntarily paid by companies and primarily by the rapid growth in residuals from secondary release of theatrical motion pictures and TV programs into digital platforms such as SVOD.

The shutdown of production and closure of movie theaters has accelerated the shift by companies to invest more in content made directly for digital streaming services. The pandemic has also incentivized companies to promote heavily in the rollout of their own digital streaming services that can retain exclusive rights to both their made for streaming content and digital release of their existing libraries of theatrical films and TV programs. These changes in the business paradigm would have a significant impact on musicians’ residuals in the future in any event, but the pandemic has accelerated these trends faster than anyone could have anticipated.

As new streaming services, such as Disney+, Peacock, HBO Max, along with Netflix, Prime Video, Hulu, and others increasingly invest in original content made directly for their services while a “traditional” platform like pay television experiences a drop in subscribership down to 1995 levels, the future is unclear. It is clear that the question of whether terms in the AFM Theatrical and TV Agreements governing made for “new media” content will be updated in the 2021 negotiations—to ensure musicians employed on content made for streaming services receive residuals—becomes even more pressing. Although the Fund does not participate in the negotiations between the AFM and the Alliance of Motion Picture and Television Producers (AMPTP), the outcome of the 2021 theatrical and TV negotiations and the impact of the pandemic-driven acceleration of changes in the industry’s business models will be watched closely by the Fund, and should be of keen interest to every recording musician.

Keep Up to Date

Please make sure that your beneficiary information is up to date with the Fund. In recognition of the difficulties for musicians in finding notary services in the current environment, until further notice, the Fund will accept non-notarized Beneficiary Designation Forms so long as valid proof of government-issued identification such as a driver’s license or passport is provided. You can find more information about the Fund’s Beneficiary policies at www.fmsmf.org/beneficiary or email us at participantservices@fmsmf.org with questions.

The Fund is committed to providing prompt and courteous service to participants throughout these challenging times, despite working at reduced capacity. Please note that until the Fund is back working at full capacity, responses to correspondence sent to us by US mail may be delayed. The best way to reach us is to send your questions or concerns via email to participantservices@fmsmf.org. And please visit our website at www.fmsmf.org and our page on Facebook for updates on Fund information.

On behalf of the Fund, we extend our sincere wishes to all members of the AFM and their families to remain safe, healthy and in good spirits. We are here to support you, and stand united with the community of professional musicians as we navigate the times ahead.

Spreading the Word to FMSMF Participants

December 20, 2019 IM

by Kim Roberts Hedgpeth, Fund Administrator, Film Musicians Secondary Markets Fund

The secondary market residuals negotiated as part of the AFM’s Theatrical and Television Agreements, which are collected, processed, and distributed by the Film Musicians Secondary Markets Fund (FMSMF), are an important part of supporting the livelihood of professional working musicians. Each year, the fund distributes thousands of residual payments to musicians that can range in amounts from double digits to more than seven figures. And because many films and TV shows continue to generate revenue and secondary market residuals for years, if not decades, after their initial release, a musician can continue receiving residuals well after his/her active career ends—operating almost like a second pension payment to help support a professional musician’s retirement security.

Each year, between 600 and 1,000 “new” musicians are added to the fund’s participant rolls because they are credited for the first time with residuals resulting from their work on an AFM covered film, TV show, or streaming product. During Fiscal Year 2019 (which ended March 31), 760 musicians were credited with residuals for the first time.

However, each year the FMSMF must expend extra efforts to spread the word about the fund, as there are musicians whose residuals are sitting unclaimed because we do not have good mailing addresses, complete contact information, and/or other details needed to process payments for such musicians. In addition to providing information to existing participants via FMSMF’s e-newsletter Music Notes, the fund has expanded its social media presence on Facebook, Instagram, YouTube, Twitter, and LinkedIn to get the word out to reach some of those musicians with unclaimed residuals.

Further, the fund is continuously expanding its outreach to meet musicians and their representatives at key venues. For the past five years, FMSMF has programmed a panel at South by Southwest to introduce the fund to musicians, emerging filmmakers, business managers, and music attorneys. The fund has programmed a similar panel at the American Film Market for the past three years, and our panel this year will be programmed in partnership with the Society of Composers & Lyricists (SCL). In 2019, the fund also gave presentations at an SCL membership meeting, a Music Managers Forum-US panel discussion and, of course, the AFM’s 101st Convention in Las Vegas.

As the film and TV business continues to undergo change, musicians are increasingly focused on their long-term economic security. The residuals distributed by the fund are an important part of that security, and ensuring musicians are informed about how they earn and receive secondary market residuals is a key focus of the fund’s work in 2019 and beyond.

The Road Ahead?

As reported in the June issue of International Musician, secondary market residuals collected by the FMSMF once again hit a record high during Fiscal Year 2019. The growth during the past 10 fiscal years—from $76 million in Fiscal Year 2010 to $115.7 million in Fiscal Year 2019—represents an increase of almost 51%.

The first six months of Fiscal Year 2020 are running slightly ahead of the first six months of Fiscal Year 2019 by approximately $3 million. If this trend continues for the next six months, Fiscal Year 2020 will mark another record-breaking tally of residuals collected on behalf of professional musicians.

However, as positive as these results have been during the past decade, the question remains: How long will this upward trend continue? The growth in residuals collected by the FMSMF has been driven by two key factors: increased compliance activity by FMSMF staff, outside auditors, and attorneys to recover residuals not voluntarily paid by obligated companies; and primarily by the rapid growth in residuals from secondary release of theatrical motion pictures and TV programs into digital platforms such as subscription video on demand (SVOD). In fact, residuals attributable to secondary market release of “traditional” product into digital platforms has offset the decline in residuals generated by secondary release into the home video market.

In the next few years, the industry will undergo a sea change in the distribution market. Companies are increasingly investing in content made directly for digital streaming services while simultaneously creating their own digital streaming services that will retain exclusive rights to both their made-for-streaming content and digital release of their theatrical films and TV programs. These changes in the business model paradigm will have a significant impact on the residuals generated for musicians in coming years.

FMSMF Reports Another Banner Year for Film and TV Musicians in 2019

June 10, 2019 IM

by Kim Roberts Hedgpeth, executive director, Film Musicians Secondary Markets Fund (FMSMF)

The Film Musicians Secondary Markets Fund (FMSMF) once again hit a record high in residuals collected for musicians in Fiscal Year 2019 (fiscal year ending March 31). Secondary market residuals, which were established by the AFM’s Basic Theatrical and Basic Television Agreements and are collected by the FMSMF, have grown over the past 10 fiscal years—from $76 million in FY2010 to $115.7 million in FY2019, representing an increase of almost 51% during that period.

The continued growth of contributions collected by the FMSMF during the past several years is driven by two major factors: Increased collection compliance activity by FMSMF staff and outside attorneys to recover residuals that were not voluntarily paid by obligated companies; and a steady growth in residuals generated by the release of films and TV programs into digital platforms, such as SVOD. In fact, the growth in residuals from the release of “traditional” content into “new media” platforms is the major driver of the increase in residuals since FY2010. Residuals attributable to secondary market exhibition on these new media platforms has offset the decline in residuals generated by secondary market release in DVD format during the past 10 years.

Secondary Market Residuals Increase Support to the AFM Pension Fund

FY2018 was the first fiscal year in which FMSMF forwarded a payment to the AFM-Employers’ Pension Fund (EPF) as required by the AFM Basic Theatrical and Television Agreements. This payment represents 1.5% of the residuals collected plus the FMSMF’s interest earnings for the year, and is sent to the EPF in order to support its health and funding status. During FY2019, almost $1.3 million was sent by FMSMF to the EPF to bolster the pension plan’s funding. The continued growth in secondary market residuals, if sustained and expanded in the future at levels consistent with the experience in recent years, will benefit all pension fund participants.

“New” Films

FMSMF received residuals for more than 250 new titles during FY2019. “New titles” refers to titles paying into FMSMF for the first time. Most of these newly reported titles were films and TV shows first released in their primary market in 2016, 2017, or 2018, although some were older films and series that generated secondary market receipts and residuals for the first time during FY2019.

The FY2019 new titles include feature films such as Blackkklansman, Crazy Rich Asians, Tag, and A Quiet Place, and television series such as Young Sheldon (’17-’18), Orville (’17), Designated Survivor (’16-’17 and ’17-’18) and New Girl (’18). An entire season of a multi-episode television series is counted as a single title. A complete list of the FY2019 new titles is posted on the FMSMF website at www.fmsmf.org/filmtitles/new-films.php.

Investing in the Future

FMSMF has embarked on a major system-wide redesign to its information systems and business processes. FMSMF has been operating on a database infrastructure that dates back to the fund’s origins in the 1970s, when FMSMF was a small operation managed out of the EPF’s New York City offices. With the growth of the FMSMF’s operation, the increase in the amount and types of residuals it administers, the increasing number of participants it serves, and the advancements in technology since the FMSMF established its stand-alone operation in Los Angeles in 1999, the time has come to take bold steps to move FMSMF into the future. This multi-year upgrade project is designed to bring the fund’s data systems and attendant business operations forward to better serve participants.

Just a few of the many improvements sought through the new system, which is estimated to go live during 2021, include improved and more functional interfaces for participants enrolled in online account access, increased residual contributions for participants through expanded collection activity, as well as faster resolution of unclaimed residuals and musicians’ film inquiries. The investment made now to modernize the FMSMF’s operations and systems will benefit today’s participants and future generations of AFM musicians.

There were 610 musicians credited with residuals for the first time in FY2019: 528 musicians as a result of work on original scoring sessions and 82 first-timers as a result of “new use” of prior union-covered sound recordings in a film or television program. Hundreds of new musicians are added each year as FMSMF participants because they were credited with residuals for the first time.

FMSMF continues to provide information to its participants via FMSMF’s e-newsletter Music Notes, which is emailed to participants several times each year. In addition, we have increased our social media presence with the recent launch of our exclusive YouTube channel. Our expanding social media presence includes updates on FMSMF’s community relations partnerships with Columbia University, ASCAP, SXSW, and the American Film Market. If you’re a FMSMF participant, we hope you will subscribe to Music Notes, and whether or not you’re a participant, we hope you’ll keep current on FMSMF activities by following us on Facebook, Twitter, YouTube, and Instagram!

International Musician, Recent News

Understanding Your Film Musician Secondary Markets Fund

December 1, 2017 IM

by Kim Roberts Hedgpeth, Executive Director Film Musicians Secondary Markets Fund

In 2017, the Film Musicians Secondary Markets Fund (FMSMF) celebrated 45 years of serving the film and television music community. Created in 1972 by the motion picture and television producers and the AFM, the FMSMF’s primary purpose was to act as the agent of the producers to collect and distribute residual payments to film musicians. Today, we continue this mission, while also serving as a resource for motion picture professionals in addressing various challenges to the industry.

For some musicians and filmmakers, the FMSMF remains a bit of a mystery. Because FMSMF distributes a significant source of income to working musicians, all musicians working in film, television, new media, as well as sound recordings should be familiar with how it works.

FMSMF provides a unique service to the film and TV music community. For producers, it shoulders the responsibility of calculating and issuing individual musicians’ residual payments and paying required taxes and withholdings. For musicians, FMSMF sends a detailed listing with a breakdown for each title that accompanies the musician’s annual payment. This provides a “one-stop shop” to make residual tracking, personal record keeping, and annual tax accounting easier and more efficient for the working musician.

FMSMF is a 501(c)(6) nonprofit organization operating under the supervision of an oversight committee appointed by the Alliance of Motion Picture & Television Producers (AMPTP), and AFM liaisons appointed by the AFM International President who consult with the oversight committee. FMSMF does not engage in collective bargaining on behalf of either producers or the AFM.

How FMSMF Works

FMSMF collects residuals (contributions) if a film, TV program, or new media project has moved from its primary market into a secondary market, and that secondary market use generates revenue, as described in Chart 1.

Residuals collected by the FMSMF represent a small percentage (below 1% net of deductions outlined in the AFM agreement) of distributors’ gross receipts from secondary market distribution of film, TV, or new media programs. Producers and/or distributors send residuals directly to the fund on a quarterly basis. Residuals collected during the FMSMF’s fiscal year (April 1-March 31) are distributed to musicians the following July 1. Administrative costs for operating the fund (legal and auditing fees, insurance, salaries, computers, rent, etc.), taxes, and other required withholdings, plus a small reserve for “omissions,” are deducted from the amounts collected. Each individual title’s contribution is allocated proportionally against the total contributions received for all titles during the year. (A title refers to an individual film or a season of a TV series). Each musician’s share within each title is determined by applying the percentage that his original wages represented of the total wages paid to all musicians for the score, against the residual payment collected for that title during the year.

A second, smaller “omissions distribution” is made each September to musicians who the fund discovers were erroneously omitted from a project’s list of musicians, or whose original wages were underreported to the fund. FMSMF conducts its own research, reviews, and audits, either directly by the Fund Compliance Department or by outside auditors engaged by the fund to ensure that signatory producers and distributors make the required residual payments. In addition, the fund’s Participant Services staff works to find musicians who may have unclaimed residuals waiting at the fund. Many of these “lost” musicians are musicians who performed on AFM-covered sound recordings that were used in AFM-covered films and programs, but do not have a valid current address registered with the fund.

Who Participates?

Participating musicians include, not just instrumentalists who played on the score (on or off screen), but also conductors, orchestrators, copyists, arrangers, contractors, and other AFM-covered positions. Further, musicians who worked on a union-covered sound recording used in an AFM signatory film, TV program, or new media project may be entitled to share in that title’s secondary market residuals. If a participant is deceased, his/her designated beneficiary is entitled to receive the participant’s share of residuals. The FMSMF staff researches, identifies, and contacts beneficiaries to effectuate the musician’s intent for them to benefit from their legacy.

Recent Activity

In the 2017 fiscal year, the FMSMF collected more than
$98.4 million in secondary market residuals. Participants received 15,676 payments in the July regular distribution and another 1,415 payments as part of the September omissions distribution. A list of films, TV programs, and new media programs that have paid into the fund over the years is located at www.fmsmf.org.

It can take several years after the first release or broadcast before a film, TV program, or new media program moves into a secondary market and revenues are generated. Resulting residuals for an individual title can vary from modest to significant, depending on its success. Overall, secondary market residuals have grown in recent years. Residuals from new media exhibition of film and television programs have become a more significant share of the totals, as illustrated in Chart 2.

FMSMF also administers a smaller sub-fund that collects supplemental market residuals for secondary use of live and videotape programs such as the nightly talk shows, variety shows, and other programs produced under the AFM’s Live Television Videotape and Basic Cable Television agreements.

Whether you actively work in film and television scoring, on a new media project, or in sound recordings, the FMSMF and the residuals it collects can be relevant to you. Now, the fund has new relevance to all working musicians. As a result of the AFM’s negotiations for its 2015 Film and Television Basic agreements, a portion of the residuals collected by FMSMF will be sent to the AFM-EPF to help support the funding of musicians’ pensions.

We invite you to learn more about the FMSMF by visiting our website where we keep musicians and producers informed about FMSMF activities and offer online services for musicians and beneficiaries to securely access accounts, update information, sign up for easy direct deposit and paperless options, and locate unclaimed residuals.

Remember, if you’re a participant, please make sure your address, email, contact information, and beneficiary designations are current and remain up-to-date with the fund. And, please visit us on Facebook.

On behalf of the FMSMF staff, we look forward to our continued service to the professional musicians of the US and Canada and extend our best wishes for a happy and healthy 2018!

Film Musicians Secondary Markets Fund End of Year Round-Up

February 23, 2017 IM

by Kim Roberts Hedgpeth, Executive Director Film Musicians Secondary Markets Fund

The Film Musicians Secondary Markets Fund (FMSMF) works to serve the film, television, and music communities and meet the needs of film musicians whose talents fuel the industry. To this end, the FMSMF is pleased to provide ongoing updates to the International Musician for the benefit of AFM members.

“New” Films

With the first six months of the FMSMF’s 2017 fiscal year now ended as of September 30, at the time of this writing, more than 150 new titles had reported residuals into the fund for the first time. Among the titles reporting for the first time this year are films such as The Peanuts Movie, Ride Along 2, Star Wars: The Force Awakens, Chi-Raq, Joy, and Deadpool, and television series such as Minority Report, 24: Live Another Day, The Catch, Agents of S.H.I.E.L.D. (2015/2016), and Wicked City. The list of “new” titles for fiscal year 2017 is now posted on the fund’s website, www.fmsmf.org, and will be updated as new titles report into the FMSMF for the first time during the remainder of the 2017 fiscal year.

As a reminder, when the FMSMF refers to “a title,” it refers to an individual motion picture, documentary, or television movie, or a single season of a television series.

2016 Distributions

The FMSMF distributed more than 15,600 payments to musicians and beneficiaries as part of its regular distribution on July 1, 2016. Another 545 payments were distributed in mid-September as part of the fund’s annual “omissions” distribution.

Learn More About FMSMF

The FMSMF was honored to conduct a workshop, entitled “FMSMF 101” for AFM Local 47 (Los Angeles, CA) members. This workshop is for the benefit of musicians who would like to learn more about the fund, how residuals work, and what the fund does to collect and distribute residuals to working musicians. FMSMF staff is always happy to provide such workshops for the benefit of working and aspiring musicians, and is available to travel to AFM locals outside of the Los Angeles area to conduct workshops at the local’s request.

Spreading the Word

FMSMF was proud to be an exhibitor at the American Film Market, November 2-9, 2016, in Santa Monica, California. This is one of several efforts the fund makes annually to reach independent producers and provide information, answer questions about film scoring, and about how the FMSMF works. These are also critical opportunities to remind new and aspiring filmmakers about the integral role that music plays to successful filmmaking, and the importance of planning ahead when budgeting. The FMSMF also attended the Toronto Film Festival in September, and plans to attend South by Southwest 2017 in March.

Visit Us on Facebook

Stay current with fund developments by visiting the FMSMF Facebook page and the website www.fmsmf.org. There you will find updates on fund policies, information on new titles, and new user features.

From everyone at the Film Musicians Secondary Markets Fund—nest wishes for a healthy and prosperous 2017!

Music Business

FMSMF Reports a Record Year

June 24, 2016 IM

by Kim Roberts Hedgpeth, Executive Director Film Musicians Secondary Markets Fund (FMSMF)

It’s a new record! The FMSMF closed its 2016 fiscal year with the highest level of contributions in the fund’s history! When the books closed March 31, the FMSMF had received residuals of more than $93.4 million, surpassing the record of $92,641,562 set in FY 2015. The continued growth of contributions to the FMSMF during the past several years is a reassuring testament to the continued growth of revenue generated by sales in secondary markets, such as pay TV, DVDs, basic cable, and new media platforms. It is also a good news indicator about the health of this segment of the industry and its ability to sustain a middle-class living for freelance talent working in film and television.

Unclaimed Residuals

Thank you for helping to get the word out. The fund consistently strives to find “lost” musicians who have residuals waiting at the fund, but for whom we don’t have a valid address on file or contact information. With your help, during the 2016 fiscal year, the fund staff located 498 musicians and beneficiaries who had unclaimed funds, and distributed $859,208 in unclaimed residuals since April 1, 2015.

The FMSMF will continue to put emphasis on finding musicians with unclaimed residuals, and we ask for your help in getting the word out. Please check the FMSMF unclaimed residuals list at FMSMF.org “Unclaimed Checks” to see if you or a fellow AFM member you know has unclaimed residuals waiting for them. In particular, as a reminder about AFM-covered sound recordings: If a covered sound recording is used in an AFM-covered theatrical or TV motion picture, the musicians who worked on that recording may be entitled to secondary market residuals.

New Films

The count is in for FY 2016: FMSMF received residuals for more than 250 “new” titles! Most of these newly reported titles were films and TV shows first released in 2012, 2013, or 2014, although some were older films and series that generated secondary market receipts and residuals for the first time.

The new titles for FY 2016 included feature films such as Trumbo, Fifty Shades of Grey, Jurassic World, Furious 7, Max, Pixels, and Annie. Among the new TV titles reporting for the first time during FY 2016 were American Crime (2015), New Girl (2014-2015), Black Sails (2015), Empire (2015), Dominion (2015), Olive Kitteridge, and Bessie. (An entire season of a multi-episode television series is counted as one title). FY 2016 new titles are posted on the FMSMF website at www.fmsmf.org/filmtitles/new-films.php.

AFM’s 100th Convention

FMSMF is proud to be an exhibitor at the Federation’s 100th Convention. We look forward to meeting with members at our exhibitor’s booth, and being available to answer questions and provide individual assistance. So if you’re attending the convention in Las Vegas, please drop by and say hello!

Officer Columns

Do We Have Money for You? Check the New Films and Claimed Payments

January 1, 2015 IM

by Kim Roberts Hedgpeth, Fund Administrator, Film Musicians Secondary Markets Fund

The Film Musicians Secondary Markets Fund (FMSMF) works to serve the film, television and music communities. To this end, the FMSMF is pleased to provide ongoing updates to the International Musician.

“New” films: The FMSMF received residuals for 137 “new” titles during the first seven months of the FMSMF 2014 fiscal year (from April 1 to October 31). Most of these newly reported titles were films and TV shows first released in 2012, 2013, or 2014, although a number of titles were older films and series that generated secondary market receipts and residuals for the first time.

Forty-four of the new titles were theatrical films—from big budget features such as Frozen, Captain Phillips, and Secret Life of Walter Mitty, to smaller films such as Nebraska, The Best Man Holiday, and At Middleton, which generated both critical recognition and secondary markets sales. Ninety new TV titles reporting for the first time included the 2013-14 seasons of Walking Dead, American Horror Story (Coven), Nashville, Sleepy Hollow, and Smash. In most cases, a full season of a series’ individual episodes is reported as one title, although there were 11 individual episodes of two PBS series reported as individual titles. New media is now emerging, with the first two seasons of Netflix’s House of Cards reporting residuals to musicians for the first time. Of course, additional new titles will remit secondary market residuals earned by musicians during the remainder of the fiscal year, which ends March 31, 2015.

Residuals paid to the FMSMF between April 1, 2015 and March 31, 2015 will be paid out in the July 1, 2015 distribution. A list of new titles for fiscal year 2014-15 can be found at the FMSMF website, www.fmsmf.org/filmtitles/newfilms.html, which our staff updates throughout the year. Please check our website at www.fmsmf.org to view both the list of new titles, as well as a list of all titles reporting so far during this fiscal year.

Unclaimed residuals: Thank you for helping to spread the word! During the first seven months of the FMSMF’s fiscal year, we distributed more than $900,000 of unclaimed secondary market residuals to musicians and beneficiaries who had not been previously found. This year, we’ve added to our existing efforts to find musicians and beneficiaries who may have unclaimed residuals. We’ve put our message encouraging musicians to check our unclaimed list into trade publications, added it to communications with AFM locals, and reached out to venues. We’re making progress, but still need your help. Please check our unclaimed residuals list at www.fmsmf.org/unclaimedchecks to see if you, or fellow AFM members, have residuals waiting.

As a reminder about AFM-covered sound recordings: if a covered sound recording is used in an AFM-covered theatrical or TV motion picture, the musicians who worked on that recording may be entitled to secondary market residuals. If you work on a sound recording session, make sure your B-4 form is complete and filed with the union. One day that recording may generate secondary market residuals for you.

From the staff at the FMSMF—best wishes for a happy, healthy, and prosperous New Year!