Recorded Music
Percent recoupable of: -recording costs/living advances -video production costs -independent promotion -tour support
100, 50, 50, 100
what percent is free goods deduction?
15
what percent is technology deduction?
15
Who is the newest of the three major labels?
Universal
What are the three major labels?
Universal, Sony and Warner
what are the big six?
Warner, EMI, Sony, BMG, Universal and Polygram
name the three different types (platforms) of releases of an album
Major Label, Independent label, self-release
What are the two types of musical copyright?
song (musical composition) and performance (sound recording)
who does the business/legal affair department of the record company deal with?
the artists, lawyers, and managers
How does the Business affairs convey negotiated points?
through a deal memo
What is the trend since 2000 in the number of records sold?
top acts are selling less and less records
which label started as a beverage company?
universal
What is the feast or famine principle, and what types of labels employ it?
100 albums released, 97 fail, 2 break even, 1 winner plays for all the losers employed by major labels
Describe the Master Use License Agreement
-Label licenses recording for period of time -label owns exclusive right to recording promotion and distribution exclusively for agree upon period of time -exclusive only for a limited period of time -***Reversion (master reverts back to artists)
Who of the big six merged/folds with who?
-Polygram and universal -Sony and BMG -EMI folds into Universal and Sony
What is A&R Administration?
-a subdivision of A&R -obtains clearances (licenses etc.) -album credits -financial aspects (Budgets, administer artist recording funds) -coordinate recording schedule -submit to Grammy's -submit to RIAA for Gold and Platinum record certifications
List the 5 types of recording agreements
-exclusive recording agreement (ERA) -master use licensing agreement (MUL) -production and distribution (P+D) -Joint Venture (J.V) -Self Release
List the four main roles of the record label
-finance and produce product -manufacture product -distribute product -market and sell product to consumers
Responsibilities/roles of A&R?
-find/sign new artists -maintain recording budget -choosing producer (w/ artist) -finds the studio -additional musicians (if needed) -songs--writers/record/select single -sequencing/mastering
What is the role of the business/legal affairs department of the label?
-in-house attorneys (lawyers) -negotiates on behalf of the record company
Describe the joint venture agreement
-major and indie label share in expense of producing, distributing, and promoting release -share product revenues 50/50
What are the effects of the decline of recorded music sales at record companies?
-mergers and acquisitions -jobs lost at labels -record store closings -more people doing less -less artist development -fewer signings
What make a label major?
-owns many labels (imprint) -owns major national distribution system -more funding (recording, promoting) -extensive network and infrastructure
Name three factors responsible for the decline of recorded music sales from 1999-2014?
-piracy -a la carte downloads -decline of traditional record stores -CD's over priced -devaluation of music
Describe the Production and Distribution Agreement
-provide manufacturing and distribution services -indie label or artist is responsible for recording album, marketing and promotion of record -indie retains all ownership rights and control -indie record label retains all income (pays distribution fee)
List the 4 recoupable costs
-recording costs/living advances -video production costs -independent promotion -tour support
What are some reasons that a label would sign an artist?
-star appeal -songs/hit song -live show/believability -image/age -desire/persistence -relevance/originality -story/research
Key points negotiated in a recording agreement?
-term -territory -artist advance -artist royalties -ownership
How much of the US Share does each of the major labels have?
-universal 28% -sony 22% -Warner 15%
the top ___% (superstar acts) account for over 75% of annual recording industry revenues
1
out of the 100,000 records released in 2016, what percentage were released by major vs. indie?
10% major, 90% indie
what percent is packaging deduction?
25
What is the standard producer royalty?
3-4% of SRLP
what percent is reserve against returns?
35
how much of the US share do indie label have?
35%
Independent acts are growing revenue at _____ times the rate of major label acts worlwide
4
Usually how long of a period of time is the MUL (Master Use License Agreement)?
5-7 years
How many major labels were there in 1988-1998?
6
Name the 7 departments at a record company
A&R, Business Affairs, Marketing, Sales and Distribution, New Media, Accounting/Finance, Creative Services
name some of the top streaming music providers
Apple Music, Spotify, tidal, pandora, YouTube, Soundcould, vevo, googleplay
Name some of Warner music groups imprints
Atlantic records group Warner bros records (parlophone, Warner music Nashville, rhino, Warner classics)
Name some of the current Sony music label groups
Columbia and epic records group RC and jive records group
what is the most common type of major label recording agreement
Exclusive recording agreement (ERA)
Types of works that is protected by the government by copyright
Literary (writings), dramatic (stage and film), musical, artistic
name some of universal music group's imprints
MCA, mercury and lost highway republic, decca interscope, Geffen, A&M, capitol island, def jam
Name some mainstream artists that started as indie
Macklemore, Chance, Adele, Tay Swift
How has the record label model changed from the old model?
New revenue streams from digital, mobile, and streaming platforms. -360 model (label commissions touring and merchandising
Is major label market dominance in jeopardy?
Recording -label no long the gatekeeper due to digital and recording platforms Manufacturing and distribution -label no longer the gatekeeper due to digital distribution Marketing -radio predominant source for reaching audition; competition (ONLINE RADIO)
What does RIAA stand for?
Recording Industry Association of America
six rights of copy right?
Reproduce, distribute, perform, display, derivative works, digitally transmit
Who is the oldest of the three major labels?
SONY
when does A&R rep get paid and how much percentage do they receive?
after recording costs are recouped via record sales, 1/2 to 1 percentage point
What does A&R stand for?
artist and repertoire
Describe the exclusive recording agreement (ERA)
artist records exclusively "individually and collectively" for recording company for period of time -label owns the sound recording/master recording "in perpetuity" (AKA FOREVER) or for a period of time -label has exclusive recording, promotion and distribution rights
describe a self-release
artist releases record independent of any label or distributor's support -own master -receive all profits -front all costs
What does the RIAA do?
certifies awards of Gold, Platinum and Diamond records -participates in collection, administration and distribution of music licenses and royalties
List formats of recorded music
compact disc, digital download, vinyl, streaming
Why did the revenues in recorded music increase 17% in 2017?
due to streaming (30 million new subscriptions)
definition of copyright?
exclusive right to make copies, license, and otherwise exploit literary, musical, or artistic work in printed, audio and video format
Copy right does not extend to ________, it only protects the expression of this.
ideas
what type of label is more likely to use an MUL?
indie
what is the benefits of a joint venture?
indie is able to retain all right -major infrastructure and marketing strategy/finances
what is the 360 model?
label commissions touring and merchandising
What is streaming music?
listening to music or watching video in real time instead of downloading a file to your computer and watching it later
What is typically not recoupable?
manufacturing costs, some advertising, some marketing
What are A&R department subdivided by?
musical genre -pop/rock -country -urban
how many acts does an A&R rep sign per year?
one or two
definition of royalty
payment made to artist for each copy of work sold
what is the goal of the RIAA?
promote the record label industry and protect the rights of copyright owner
What are the three income streams of the music industry?
recorded music, publishing, live performances
What is recoupment?
recovering funds from artists
Old record label model for obtaining revenue?
revenue= amount of record sales
what are the rights of the owner under copyright?
right to publish, reproduce, or sell an artistic work
Name three indie labels
saddle creek, sup pop, matador, merge, rough trade, domino, frenchkiss, mom + pop etc.
what is a deal memo?
short form agreement that outlines the key points to a long form recording agreement