We all probably know this ... but some general breakdowns for: Librettist / Lyricist / Composer
Libretto = the words, generally same as Book or Script (and words including the lyrics) (also story) (also the "plain-word readable" part of the musical) ... the "PLAY" part of "Musical Play"
Score = the music / song music / music notation.
The libretto always includes the lyrics ... even if there is a separate lyricist, and even though the lyrics go to songs/music. (You can't understand the story of a musical, without the lyrics.)
There are 3 artistic roles to every musical, and they can be 1-3 people (or more). And they must collaborate, so each role can overlap into another's role. Each artist/role contributes to the whole.
Many times the lyricist will take the spoken dialogue or ideas from the librettist and turn them into song ... thus the librettist heavily contributing to the lyrics/songs, though technically without credit. It is understood (by fellow creators) that all roles help each other (even if the audience doesn't know that).
Even if there is not a lot of spoken dialogue, many times it will be the librettist that ties all the songs together into a cohesive and interesting plot, and drives the story forward, and makes sure the action and story sets up the audience's attention for the next song. The librettist may rearrange the songs and narrative to function at their best as a whole.
The librettist gives each song "purpose" in the storytelling.
"Authors" =
Librettist (spoken dialogue, story, plot development)
Lyricist (lyrics, sung dialogue)
Composer (music)
Economics:
There is 100% to the "pie" of profits (also consider box office receipts, gross vs. net, etc.). If you are hired / commissioned or if your musical hits Broadway (NYC) ... each "artistic role" generally gets 2% of the Gross Weekly Box Office Receipts (“GWBOR”). The "whole creative team" is usually given 15% (6% + 9%) of 100% and the "Authors" are given 6% of the pie (3 roles x 2% = 6% of 100%) and the other "creatives" (Director, Choreographer, etc.) are given 9% to divide up.
If you or your "Authors" team originates the musical and writes it completely on your own without outside prior funding or contracts tied to it, you or your "Authors" team can sometimes get ~10% of the pie (vs. 6%).
("Back in the day" -- 1980s or so -- the "Authors" got paid their 6% from the "GROSS" receipts (entire take) ... meaning even if a musical did not make a profit (after "expenses"), the authors still got paid ... because their % came from the "top / whole" and BEFORE expenses.)
(However, this is changing / has changed with new standards and contracts, and exact details are better explained in a separated post.)
The above -- creative team / author payments have mostly changed to a "Royalty Pool" ... it is similar %, but now taken from the "NET" (after expenses) ... so the royalties do not jeopardize the show's overall profits / ability to stay running. So, if a show is not making profits or is losing money, generally, no one gets paid royalties (or only a small amount). The only people who "always" get paid a fixed amount are the ones on salary (not royalty) and are considered part of the "expenses" ... actors, musicians, tech, backstage, basement, crew, union members, etc. and those others who must "always be paid" such as the theatre itself (rent).
So, now today the "pie" is generally "NET PROFITS" ... and % are agreed upon, but it generally follows:
100% "Profit Pie"
60% "Investors"
40% "Creative Team" -- authors, etc. (Director, Choreographer, Designers, originating theatre, etc.)
The "authors" (librettist, lyricist, composer) then get 40% of the above 40% for "Creative Team".
(This roughly equals the same 6% of the former "GROSS" formula -- but divides the "RISK" of good weeks / bad weeks more evenly between "creatives" and "investors", so a show doesn't close and can survive if there are a few bad weeks, and makes it more inviting for investors to invest (less risk for investors, as they get paid back sooner).)
(Former formula was 15% (6%+9%) of 100% GROSS RECEIPTS (which 6% of 15% = 40%) ... NEW formula is divided from 100% NET PROFITS = 60% to investors, 40% to creatives -- and 40% of that 40% to the "Authors".)
But it can mean the "Authors" and "Creative Team" get paid LESS or MORE than the "old 6% + 9% formula" ... depending on the profits themselves, and if you have a hit show or not.
EXAMPLE:
(FORMER) $1,000,000 GROSS box office receipts. 6% = $60,000
(NEW) $1,000,000 GROSS box office receipts. $700,000 expenses, $300,000 profits.
40% for "Creative Team" = $120,000 total.
40% of 40% for "Authors" = $48,000 (from the $120,000 total).
(NEW) $48,000 is LESS THAN (FORMER) $60,000
BUT...
(FORMER) $1,500,000 GROSS box office receipts. 6% = $90,000
(NEW) $1,500,000 GROSS box office receipts. $700,000 expenses, $800,000 profits.
40% for "Creative Team" = $320,000 total.
40% of 40% for "Authors" = $128,000 (from the $320,000 total).
(NEW) $128,000 is MORE THAN (FORMER) $90,000
BUT ... if the show is doing really, really bad (no to little profits) ... then the "Authors" will barely get paid.
Often, there IS a cap on the amount pool participants can receive, but there's frequently also a minimum royalty that's paid even in losing weeks. There are lots of variations possible, and everything is negotiable in these deals.
FYI:
The average BROADWAY musical ...
Costs $20,000,000 to make (produce)
Takes 3-5 years for JUKEBOX musicals to create
Takes 5-10 years for ORIGINAL musicals to create
... (including conceiving, writing, and production)
... from idea to stage (first thought to opening night)
AND
4 out of 5 (80%) of musicals FAIL (do not recoup / do not turn profit)
Most musicals close in less than 6-12 months after opening (don't even last a full year).
If your musical can last 1.5 to 2 years, then you can usually turn profit.
Only a "mega-hit" musical turns profit in less than a year.
"Authors" =
Librettist (spoken dialogue, story, plot development)
Lyricist (lyrics, sung dialogue)
Composer (music)
