Music Business Final

The function at record labels of conceiving marketing messages and originating marketing and sales materials is called ______ services.

Creative

Name the organization that gives out the coveted Grammy music awards.

(NARAS) or the Recording Academy

An artist earns the following gross income: Live shows / touring: $12,375.00 Publishing: $6,500.00 Record royalties: $8,250.00 Merchandise: $10,775.00 Given the low end of an industry standard contract, what is the personal manager's commission? A. $1,895.00 B. $3,790.00 C. $5,685.00 D. $7,580.00

C: $5,685.00

Which of the following is NOT a genre that independent music labels pioneered? A. Rock and roll B. Punk C. Pop D. Rap

C: Pop

The typical, industry standard commission for a booking agent is:

10%

The first U.S. copyright was enacted in what year?

1790, when the U.S. Congress implemented a principle of copyright enshrined in the U.S. Constitution

What year did Thomas Edison invent the phonograph, which played cylinders?

1877

When did radio stations largely abandon live music and turn to recordings, as TV cut into its audience?

1950s

Stereo was introduced in the record industry in what year?

1958

A U.S. copyright in a composition created in 2016, and not a work for hire, extends for how many years after the last surviving author's death?

70

Which of the following is part of what some companies call the "administration" department for a record label? A. CD distribution B. A&R C. Accounting D. Video promotion

C: Accounting

The function of negotiating and finalizing contracts for business deals and licensing copyrights is called ______ ______ at record labels. A. Business affairs B. Legal affairs C. Both A + B D. None of the above

C: Both A + B

A recording contract that gives the label a cut of revenue from licensing artist products such as T-shirts with the artist's picture or band's logo is called a _____ deal. A. 360 (or "merchandise / merchandising / merch") B. 420 deal C. Both A + B D. None of the above

A: 360 (or "merchandise / merchandising / merch")

Compared to independents, what are the areas in which major labels have the biggest advantage? A. Financial strength and distribution prowess B. Sophisticated recording technology and media advertising scale C. Consumer brand strength and trailblazing A&R D. Focus on a single genre

A: Financial strength and distribution prowess

Which of the following is NOT typically a responsibility of a marketing department for a record label? A. Royalties B. Publicity C. Advertising D. Radio Promotion

A: Royalties

The name terrestrial radio describes which delivery technology?

AM and FM stations

For music produced for commercials, what party is responsible for filing work reports with labor unions and coordinating with a third-party payroll service?

Advertising agency

Which main member if the artist's professional team is not included: business manager, attorney, personal manager?

Agent

Which of the following is typically the last member of the artist's professional team that they will bring on board? A. Agent B. Personal Manager C. Business Manager D. Attorney

C: Business Manager

An artist earns the following gross income: Live shows / touring: $25,775.00 Merchandise: $8,260.00 Publishing: $3,842.00 Record royalties: $5,280.00 Given an industry-standard contract commissioning the gross, what is the business managers commission? A. $4,315.70 B. $2,157.85 C. $6,473.55 D. $8,631.40 E. None of the above

B: $2,157.85

The Recording Industry Association of America (RIAA), which is best known for issuing certifications for big-selling records, does not concern itself with which one of the following? A. Music industry piracy B. Disputes over individual artist royalty payments C. Collecting music industry statistics D. Lobbying government for industry-friendly regulation

B: Disputes over individual artist royalty payments

Specialty labels tend to be successful when they: A. Take the major labels head-on but with fewer releases to pick their spots carefully B. Do not compete in mainstream music where the majors dominate C. Spend heavily on recording studios so their acts have polished sounds D. Save money by skimping on promotion to let music "find" its audience organically

B: Do not compete in mainstream music where the majors dominate

Which of the following would constitute a conflict of interest for the attorney? A. An attorney representing an artist on a recording contract that has previously represented the same label on a contract with another artist B. The attorney is representing the artist and the label on the same recording contract C. An artist has one attorney working on a recording contract and another attorney working on a publishing agreement D. All of the above are conflicts of interest for the attorney

B: The attorney is representing the artist and the label on the same recording contract.

Which of the following is NOT one of the four main professionals on the artist's team? A. Business Manager B. Tour Manager C. Attorney D. Personal Manager

B: Tour Manager

A large publisher's copyright department will perform a number of tasks. Which of these tasks would typically NOT be performed by that group? A. Conducting title searches B. Registering claims of copyright C. Auditing the writer's share of performance royalties D. Issuing mechanical licenses or managing a relationship with another entity to do so

C: Auditing the writer's share of performance royalties

Radio stations located in Canada have call letters that start with the alphabet letter ____, and for Mexico the first alphabet letter is _____.

C, X

An artist is booked to perform a concert for $5,000. They sell $1,000 in merchandise at the show. What is the agent's total commission? A. $600 B. $400 C. $900 D. $500

D: $500

The role of an attorney on an artist's professional team includes: A. Drawing up and reviewing contracts B. Negotiating contracts with the other team members, labels and publishers C: Dealing with corporate issues, trademark and licensing, and lawsuits D. All are included in the attorney's role

D: All are included in an attorney's role

Which is a legitimate way for the attorney to bill an artist (or client)? A. A flat fee B. An hourly rate C. A percentage of the total monetary value of the deal they are negotiating D. All are legitimate ways for the attorney to bill a client

D: All are legitimate ways for an attorney to bill a client

Which of the following are possible methods for an artist to compensate a business manager? A. An industry-standard commission of the gross income B. An hourly rate C. A flat monthly fee D. All are possible methods to compensate a business manager

D: All are possible methods to compensate a business manager

An agent will want to represent the artist in which of the following areas? A. Live shows and appearances B. TV and film C. Book deals D. All of the above

D: All of the above

The role of the personal manager includes: A. Advising the artist on major business decisions B. Working with the artist on creative decisions C. Working with the artist's record label D. All of the above

D: All of the above

Which of the following should an agent commission? A. Publishing income B. Recording income C. Merchandise sales D. Concert guarantees

D: Concert guarantees

The territory that an agent will want to represent the artist includes: A. Locally B. Regionally C. Nationally D. The world

D: The world

Which of the following is the minimum qualification to be a business manager? A. State licensure and guild membership B. Certified Public Accountant certification (CPA) C. Certified Financial Planner certification D. There are no minimum qualifications required to legally serve as an artist's business manager

D: There are no minimum qualifications required to legally serve as an artist's business manager

(T/F) A copyright is not valid until registered in Washington, DC.

False

(T/F) A disadvantage of publicity - which solicits the press and others for coverage in media - is that it costs more than other forms of promotion or advertising.

False

(T/F) A publisher's income from current hits (new songs) is greater from "paper" sales than from record royalties and performance royalties.

False

(T/F) Decisions of what music to play today are usually based on local music sales figures, listener requests, and the gut opinion of a station's local program director.

False

(T/F) Independent record labels always spread their resources nationally and are not satisfied with simply getting regional hits.

False

(T/F) It's rare for major labels to buy independent labels because their scrappy, iconoclastic organizations are a bad fit with a major.

False

(T/F) Large labels and their parent organizations don't care much about the music publishing rights for the songs by their artists who are under recording contracts.

False

(T/F) Most big record labels employ a large roster of staff video directors who are assigned to make short-form videos.

False

(T/F) Music publishing usually is combined with A&R in an organizational chart for a record label.

False

(T/F) Once an artist has added a member to their professional team, they should stick with that member no matter what. Changing a team member, even if the artist has doubts, could cause irrevocable harm to the artist's career.

False

(T/F) Recording artists who write their own material rarely set up their own publishing firms.

False

(T/F) Since family members tend to look out for each other, it is wise for the artist to hire a family member as their business manager whenever possible.

False

(T/F) The personal manager is always the first person that an artist will have on their team.

False

(T/F) There was a vast business producing music videos long before MTV: Music Television was launched, so MTV shouldn't take much credit for shaping the modern music video production industry.

False

(T/F) Under no circumstances may an attorney represent a client where a conflict of interest exists.

False

(T/F) Writers of hit songs tend not to write music for commercials because advertising doesn't pay well and it would sully their reputations.

False

(T/F) Most recordings at major music labels turn a profit.

False; 1 in 5 records make their money back

(T/F) Ad agencies tend to shop around for outside music creative talent when producing original music for commercials and do not tend to have musicians on in-house staff.

True

In 1934, this U.S. agency that regulates broadcasting was opened and still exists today.

Federal Communications Commission (FCC)

Under U.S. copyright law, a musical work is "created" when _______.

It is in fixed musical notation or recorded on a phonorecord

In the Great Depression of the 1930s, what emerging platform helped prop up the struggling record business?

Jukeboxes

The chief executives in charge of record labels tend to have risen from which work background?

Lawyers or producers

What is the very high end of fees that advertisers pay to license hit songs?

Millions of dollars

The largest music publishing companies today administer at least how many songs?

More than 1,000,000

(T/F) Ad campaigns tend to utilize the same creative elements of music and visuals in placements across media, whether TV, radio, or online.

True

A personal management contract calls for a commission of 25% of gross, and a term of five years plus two one-year options. Are these terms industry standard?

No. The commission is too high and the term is too long to be considered industry standard.

___________ is illicitly paying money or other compensation to personnel of a radio station (or similar media outlet) in return for playing specific songs.

Payola

Once on board, the __________ heads up and oversees the work of the other professionals on the artist's team.

Personal Manager

When it comes to promotion of popular music compositions, a publisher's main approach is what?

Persuading artists and producers to record songs

Who is the executive most in charge of a TV musical special or awards show?

Producer

What are some above-the-line expenses in making a music video?

Producer and director

The executives at larger record labels who oversee distribution of recordings to the consumer marketplace, including packaging, advertising, tours, publicity, promotion, and sales activities, are known as __________ managers.

Product

What viable genres did the big labels overlook, leaving them to independent labels in the 1950s?

R&B and C&W

What ground down the mom-and-pop independent record stores that dominated music retailing in the 1960s?

Rack jobbers, record supermarkets, and mail-order record clubs

The term "cut-in" most commonly refers to _______. (The Beyounce Effect)

Sharing of the revenue from a copyright with a party who doesn't own the copyright

Copyright vest initially with whom?

The author

(T/F) "Publication" is the distribution of copies or phonorecords of a work to the public by sale or otherwise transfer of ownership or by rental, lease, or lending.

True

(T/F) A songwriter will want to be obligated to less songs than the publisher may want to require the songwriter to produce in a publishing contract.

True

(T/F) An audiovisual work consists of a series of related images intended to be shown via projectors, viewers, or electronic equipment, together with accompanying sounds, if any. It does not include a sound recording unless the recording is accompanied by images.

True

(T/F) Anyone may make a recording imitating or mimicking the sound of a commercial release without owing a sound recording royalty to the original artist or label.

True

(T/F) As the recorded music industry declined after 2000 due to the digital revolution, many performers no longer looked at major-label deals as a career necessity for the first time.

True

(T/F) Awards shows are increasing on TV and represent platforms for music performances.

True

(T/F) Because of copyright law, under certain circumstances the employer may be considered to be the "author" if the employer engaged a person to perform on a work-made-for-hire basis.

True

(T/F) Commercial production companies offer an assortment of music types to fit various formats of radio stations and also the various mood-setting needs of advertisers.

True

(T/F) Despite audience fragmentation by cable TV networks, over-the-air broadcast TV is still considered a powerful force on the TV landscape.

True

(T/F) For a percentage of the artist's gross income, a business manager will track the money, collect the money, pay the bills, provide financial statements, file tax returns, invest money, and forecast potential earnings for the artist.

True

(T/F) Hiring an inexperienced or cheaper attorney could very well cost the artist more money in the long run.

True

(T/F) In brief, describe how digital technology has leveled the playing field, reducing the competitive advantage that major record labels have over competitors. ANSWER: The advantage of major labels is eroded by digital technology because almost anyone can distribute music globally online and avoid a proprietary network of sub-distributors and wholesalers. Also, home recording and semiprofessional equipment of high quality lowers the cost of producing albums, which puts artists with modest resources on a more equal footing with major label artists.

True

(T/F) In one sentence, describe how independents, as compared with majors, approach which artists and genres to sign. ANSWER: Independents fill niches that the major labels ignore and work with artists who don't immediately interest the major labels.

True

(T/F) In recent years, publisher royalties from performances have grown in importance relative to mechanical royalties paid by record companies.

True

(T/F) In the 1970s, singer-songwriter artists emerged for the first time as superstars by meshing another creative ability with singing.

True

(T/F) Large publishers may buy out other publishers' whole catalogs if the price is right.

True

(T/F) Like most large business entities, major labels are conservative and are slow to catch up with the shifts in tastes in the consumer marketplace.

True

(T/F) Major record companies have their own in-house offices in 40 to 50 countries overseas.

True

(T/F) Nielsen Music electronically compiles lists of music via automated sensors that recognize music on radio and cable channels.

True

(T/F) Over the years, advertisers have combined "canned tracks" of prerecorded music with custom (original) lyrics performed by singers hired for a specific advertising campaign.

True

(T/F) Some independent publishers focus only on collecting royalty payments.

True

(T/F) Some specialty labels, particularly in classical music, sidestep conventional distribution through stores to instead go direct to buyers and via online.

True

(T/F) The contract of the American Federation of Musicians (AFM) labor union varies the minimum wages for its members, depending on whether commercials run nationally or locally.

True

(T/F) The duties of A&R reps (artists & repertoire) are label executives responsible for finding new talent to sign to recording contracts and guiding careers of artists under contract. To find new talent, A&R reps network with their industry contacts, evaluate demo recordings submitted, track the independent music scene, read industry publications, and visit night clubs to hear unsigned acts. For established acts under contract, the A&R reps advise talent about any projects and/or their careers; administer the many production, budgetary, and other details of an album; and serve as liaison between the artist and other label personnel.

True

(T/F) The personal manager should be the professional point of contact between the other members of the artist's team as well as the point of contact between the artist and the outside world.

True

(T/F) The record label staff that tries to interest radio stations in programming music and go get songs on popularity charts also works to arrange promotional appearances, interviews, giveaways, and contests with radio stations.

True

(T/F) The two duties of the special products department, otherwise referred to as "catalog" are that it handles incoming requests to license masters of older recordings and is also responsible for finding new ways to redesign or repackage for re-release the music that the company has previously released.

True

(T/F) What economic and distribution advantages do the major labels possess over rivals? ANSWER: Major labels are large organizations with economic heft to fund far-reaching activities, such as large work forces, which results in 200 employees or more working on a new release. They provide publicity, advertising, and tour support to acts under contract. Because the major labels sell so many recordings, they have clout with retailers to push recordings into the retail pipeline, especially recordings of little-known new artists. Major labels can afford the $1 million to give meaningful promotion to a new album release. Major labels have the size to be able to hold product inventories, meaning they can supply product to the marketplace long after a recording's initial release. Being large organizations, their economic heft allows major labels to fund elaborate projects, and there is more certainty that major labels will pay their financial obligations to third parties.

True

The ultimate authority for U.S. copyright law is the ________.

U.S. Constitution

Radio stations located on the east side of the Mississippi River have call letters that start with alphabet letter ____ and on the west side start with letter _____, with a few exceptions. Call letters are the three or four letter names or designations of radio stations.

W, K

The contract governing commercials for the SAG-AFTRA labor union, whose members include singers and dancers, provides different minimum pay scales for singers based on _____.

Whether performing in a solo, duo, or group (three or more singers)