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Master Deal Royalty Paid on Terms Definitions
Master Deal Royalty Paid on Terms Definitions

SR1's Master Deal Royalty Paid on Definitions

Sara avatar
Written by Sara
Updated over 11 months ago

%PPD Price—This is unit based pricing using the PPD (Wholesale) price of the item that is being sold. The PPD price is set by the user in Releases Pricing and is calculated as follows:

(% Of Price) x (Number of units) – (any other deductions/ownership shares, etc.)

= Royalty paid to Artist

%Retail Price—This is unit based pricing using the Retail Price (price sold at a retailer) of the item that is being sold. The Retail price is set by the user in Releases Pricing and is calculated as follows:

(% Of Price) x (Number of units) – (any other deductions/ownership shares, etc.)

= Royalty paid to Artist

Net Sales %— This calculates the royalty based on the amount before the DSP takes their share. This usually is not used for digital since many of the DSP statements don't provide enough information to figure out the Net Sales amount.

% Average Price or Income Share %— This is based on the average price per unit calculated by dividing the total units by the total amount received.

% Average Price— This is meant to be unit based:

(avg. price per unit x number of units x royalty rate)

However, Income Share is percentage based:

(Net Income x Royalty Rate)

The distinction is important for the user who will want to set up the rates based on the language in their deal.

Please note that the royalty calculated based on % Average Price is the same as calculated by Income Share %. You can use either, whichever makes the most sense based on your deals terms.

Flat Unit Amount: This is a set amount per unit and is set in the Paid On% /Unit Amt$ field on the deal terms.

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