Music is a part of every dance studio. Music is used in just about every dance routine. Therefore, it’s important to have a good understanding of the costs of music in your studio, and how to charge appropriately for it, so that you don’t take a loss on your studio’s music expenses.
There are two major expense areas associated with music in the dance studio, Performing Rights Organizations (PROs) licensing fees, and music editing and remixing costs. In addition to these two costs, there are potentially other expenses if you have a competitive studio and audio CDs must be created for competitions. Also, if students expect to receive rehearsal CDs, there is a cost associated with that as well. However, for this article, I will ignore CD-creation costs since today there are online options for sharing music privately with students, and many competitions accept music uploads or submission via iPod or flashdrive.
To find out dance studio’s Performing Rights Organization costs, I contacted the two primary PROs in North America, ASCAP and BMI, and found their published annual fees for different sized dance studios. (Size is determined by total number of students.) I ignored SESAC licensing fees since the number of music artists they represent is a very small fraction of the other two major music PROs, and many dance studios don’t use any music represented by SESAC.
This leaves us with the last major expense in music for a studio; editing or remixing music to optimize it for dance routines. No matter what avenue you use to get your dance studio’s music edited or remixed, whether it’s done yourself, left up to each dance teacher, or if you hire a professional, there is a value associated with music editing that should never be absorbed by the studio nor the choreographer. In my experience, $29 is an average value for editing a song optimally for dance routines. In addition to editing a song, many popular songs today need to be cleaned of inappropriate lyrics, which requires skill and time to do. Also, competitive studios may benefit from having unique remixes created for group routines, especially high-calibre or “elite” teams. These unique remixes can be created at an average price of $99.
I have prepared a spreadsheet, below, showing the total music costs using average studio sizes shared by members of the Facebook group, Dance Teachers’ Network. I have divided the spreadsheet up into three typical studio sizes; a smaller studio with 130 recreational students and no company students; a medium studio with 352 students of which 77 are competitive; and a large studio with 690 students of which 115 compete.
The important thing to note is that in order not to have a loss on the studio’s music costs, these example studios charge a modest annual music fee per student. For many studios, $19 per student will cover all music expenses, and create positive cash flow for the studio, an extra $800 for the small studio example. However, each studio is unique, and will have a slightly different cost structure. After analysis, you may discover that you have a high number of routines per student (such as the Medium-sized studio in this example), and if that’s the case, the annual music fee you charge might have to be $24 or $29 per year in order not to take a loss.
Bear in mind that every studio is different in its approach, in terms of number of students and number of routines performed, and therefore the annual music fee needed to result in a profit and not a loss for each studio is different as well. The important thing is to run the numbers for YOUR studio, so that you come out ahead, or at the very least, break even. (It’s best to build in a small profit cushion to guard against unexpected expenses that always seem to crop up.)
If your studio has never charged an annual music fee before, you may have some dance parents question this new charge (even if it’s pretty small). Keep your explanation simple and straightforward; that this small annual fee covers all of their student’s dance music expenses for the year, including obtaining the license to use the music in their routines from the relevant Performing Rights Organizations, as well as all editing and remixing costs.
Alternatively, in your studio’s market, it just may not be feasible to have an annual music fee to be competitive with other studios in your area. If that’s the case, the music fee of approximately $19 could be added to your regular annual registration fee.
In the spreadsheet above, I have shown two different options (out of many) that a studio could choose in order to create positive revenue associated with the studio’s music. In Plan A of the spreadsheet, the same annual music fee is charged to both Recreational and Company students. However, it’s reasonable to charge Company students a slightly higher music fee since they often perform in more routines, especially solos, or in elite groups which have more expensive custom remixes. Therefore, in Plan B of the spreadsheet, I show the studio’s net music profit if Company students are charged an additional $10 over what Recreational students are charged.
In all cases, this spreadsheet shows how smart dance studios cover their music costs (and even have a few dollars left over). Conversely, studios that don’t charge an annual music fee wind up having to absorb their music expenses from other studio revenue.
If you are a dance studio owner, and have any questions about properly handling music income and expenses for your studio, please feel free to send me an email at email@example.com. I’d be happy to provide you with a modification to this spreadsheet using your studio’s exact number of students and routines.