Music Business Final

What is the general provision in a record deal that alludes to recoupment?

"all amounts to you or on your behalf, or otherwise paid in connection with this agreement" are recoupable unless the contract specifically provides otherwise

What are the producer's tasks in the production phase?

- tracking, Select songs for radio airplay, tracking who played what, and sending progress reports to the record company

You shouldn't try to sell your music until you have ______ fans?

2,500

According to Passman, what is the next generation of marketing?

A direct relationship with fans

What is a packaging charge?

A packaging charge is a deduction from an artist's royalty base before computation of the actual per-album royalty is the cost of the covers, sleeves, and containers in which the recording is packaged.

What is a point?

A point is a percentage of royalty payment. When signed to a label, royalties are paid on a percentage basis of a suggested retail price.

How is a producer paid?

A producer is paid with either points (if the producer believes there is a higher chance of money on the backend), cash (by project, by song, or by hour), or a combination of points and cash.

What are the advantages and disadvantages of paying a musician by hiring them as an employee? For both the PAYER and PAYEE

ADVANTAGES for PAYER: Above board (no red flags) ADVANTAGES for PAYEE: Benefits (SS/health) DISADVANTAGES for PAYER: Lots of paperwork DISADVANTAGES for PAYEE: taxes take away money

What are the advantages and disadvantages of paying a musician with cash under the table? For both the PAYER and PAYEE

ADVANTAGES for PAYER: Quick, no paperwork ADVANTAGES for PAYEE: No taxes and all the money is paid DISADVANTAGES for PAYER: No record of paying, which means no tax reduction DISADVANTAGES for PAYEE: Code of ethics, proof of income issue of proving legitiment expenses

What are the advantages and disadvantages of paying a musician with Form 1099? For both the PAYER and PAYEE

ADVANTAGES for PAYER: small paperwork, simple to file, one time thing ADVANTAGES for PAYEE: Receive all money up front DISADVANTAGES for PAYER: 1099 workers are expected to pay twice as much for social security and medicare taxes. DISADVANTAGES for PAYEE: independent contractors don;t have to adhere to company policies, they can work their own hours

What are the two major unions in the music industry?

AF of M -- (American Federation of Musicians) -- for musicians, arrangers, orchestrators, conductors, adn music copyists SAG/AFTRA -- for singers and actors

What is a reserve and why does it exist?

AN ARTIST's ROYALTIES ARE WITHHELD A reserve against return is a safety net issued by the record label in which the company keeps a percentage of the money paid to an artist in the case that the CD's do not sell in stores.

What are the 2 categories of film rights

Acquisition of rights for the picture: (deals to put music in the film) Licenses of rights from the picture company to others: (once the company acquires the rights, these are the deals to let other people use the music)

Who hires the record producer?

An artist looking to record, a label in charge of directing the recording process, or the producer initiates the project

What is a record?

Any kind of delivery of music for consumer use

Characteristics of hiring union musicians

Best musicians, profit sharing (up front and back end), above board (so no trouble)

How were records originally made?

By having the musicians and singers perform for every record sold

What are the three ways to pay musicians?

Cash Form 1099 Hire as an employee

Characteristics of hiring non-union musicians

Cheaper, less paperwork, always W.F.H.

What is the point of a union?

Collective Bargaining

What are 4 real tools that are essential no matter what market you're in?

Contacts, people skills, persistence, and dedication

What are the 3 things your bio should do?

Create an identity Define a musical style Lead the reader directly to to the music

What are 4 types of comments you can make to encourage the other person to talk?

Expanding Comparing Self-Revealing Clarifying

What are free goods? Describe two types

Free goods are a discount of the price. The record company does not get paid for them, so they do not bear royalties. Promotional copies = radio station copies, contest giveaways, etc. Phony free goods = Selling one-hundred records at 85 cents each was the same as selling eighty-five records for 1 dollar each (giving the customer 15 "free" records for every 85 they bought). Record company didn't have to pay artist royalties on the 15 free ones.

According to Kimpel, people prefer to do music business with.....

Friends and people they enjoy working with

According to Kimpel, your website should include 5 things.

Get a user's email address Offer easy ways to listen to artist Make product attractive Show who you are, what you look like, and what you sound like Acknowledge and interact with visitors

What is the Taft Hartley Act?

Gives those who are not in a union the opportunity to do union jobs for a short period of time (30 days) without joining a union. If the work becomes consistent, they would have to decide on joining a union.

What is the general role of a contractor?

He or she knows the best musicians and gets players. Has a big contact list

What is important when thinking about your "look?"

Identifying yourself

What is cross-collateralization?

If an artist's first album does not sell well enough to pay back the advance, the label can use money made by later albums to pay back the advance from the first album

What is the 10-5 rule for meeting and greeting?

If you make eye contact with someone within 10 feet of you, you must acknowledge them with a nod or smile At 5 feet you should say "hello" or "good evening."

Once you recoup, you are said to be......

In the black

What does it mean when advances are nonreturnable?

It is totally the record company's risk. So, if you don't sell any records, it will never get back its advances.

According to Kimpel, what are the prerequisites to a "scene?"

Large college, local media to promote it, visual artists to identify it, and an audience hungry for culture and enlightenment

What are the two different Independent Labels?

Major-Distributed Independent = has little or no staff but rather signs artists and makes deals with a major label to perform all the functions except recording the records. True Independent = financed by its owners and/or investors. They distribute their records through independent distributors, which are set up to deal with the specialized needs of independent companies.

What are the costs paid on behalf of the artist that are never recouped under industry custom?

Manufacturing costs, advertising, marketing, and shipping

According to Passman, how are producer royalties distributed? 2 Ways

Most producers are paid retroactive to record one after recoupment of recording costs at the net rate. Producers are sometimes paid prospectively after recoupment at the combined rate. (Once recording costs are recouped at the all-in rate, you get paid on sales after that point)....not retroactive to record one though

What is the strongest calling card, according to Kimpel?

Personal References

What are the producer's tasks in pre-production?

Plain and simple.....BUDGET AND SCHEDULE obtain a written song via a license and have it arranged and rehearsed, select an engineer and a studio best fit for all the parties involved, find musicians and decide on payroll if needed.

What does Project Management do?

Project managers are in charge of whipping up all of the other departments to work on the artists' records. They oversee everything and make sure the artist is being propelled forward by a coordinated team effort

What are 7 assumptions to avoid about anyone whom you are introduced?

Race Age Sexual preference Political affiliation Music likes and dislikes Religion Marital status

How are royalties paid?

Royalties are paid on units distributed by units sold Royalties are paid for each record sold

What is SoundScan and why is it important?

SoundScan removes the reason for reserves. It is a computer system that collects P.O.S. data from CD barcodes. Since the company's birth, labels do not have to wait to see sales data.

What are recoupable recording costs?

Studio time, equipment, travel, arranging, instrument transportation, and union scale

Who does the company give your music to to release?

The Distributer

What are the advantages of signing with a major record label? 5 things

The advantages of signing with a major record label are that they operate their own distribution, they are well funded, they have a large staff for promotion, they maintain inventory of older issues, and there is a certain amount of stability within the company.

What are the advantages of signing with an independent record label? 3 things

The advantages of signing with an independent record label is that there is more individual attention to the artist which also means they will be more committed to the project at hand. With that, they also offer more creative control over the project and will know how to accurately target the demographic sought after.

What does the Marketing Department do?

The are in charge of advertising, album cover artwork, promotional videos, web campaigns, promotional merchandise, and other things of that nature

What does the International Department do?

The international department coordinates the release of records around the world and oversees all the functions in foreign territories

What are the two meanings of "masters?"

The original recording made in the studio A recording of one particular song (also called cuts)

What does the Production Department do?

They are in charge of manufacturing, cover printing, assembling, and shipping physical product to the distributers

What do the Business Affairs/Legal executives do?

They are in charge of the company's contracts. Business affairs people negotiate the deals and, in conjunction with other executives, make the decisions as to what to give and what to hold. The legal department gives legal advice and drafts the contracts.

What is the basis by which Royalties are paid?

They are paid on a % of a suggested retail price.

Who are A&R people?

They are responsible for finding and signing talent, as well as finding songs, matching producers and artists, and generally overseeing projects

What does the New Media Department do?

They care and feed all things digital, as well as figure out new ways to deliver music

What does the Finance Department do?

They compute and pay your royalties and keep track of the company's income and expenses

Who does the Sales Department do?

They get the records into the stores and onto digital sites

What does the Promotion Department do?

They live solely for the purpose of getting your records played on the radio

Who are the three major labels?

Universal, Sony, and Warner Brothers

What are the 3 things a press kit should have when sending to a journalist?

Well written bio, press clippings, and a professional photo suitable for scanning and inserting in a magazine

What is an assumption agreement?

assumes the responsibility of paying union scale wages plus their benefits...spells out hourly wages, breaks (50 minutes work, 10 minute break), number of minutes/hours, usage of the music, and other benefits.

For every song going into a film, there are always deals to be made with at least ______________

at least 3 and often up to 8 different folk. Can even be up to 15-20

Who is the biggest retailer of music in the United States?

iTunes

What are the producer's responsibilities in post-production?

mixing and mastering (or sending it to a professional), paying everyone, getting the artwork designed, labeling the album credits, submitting the lyrics, and delivering the finished master for release.

What is "union scale?"

the guaranteed hourly wage set by union negotiation....basically the minimum wage

Why should you wait to join a union unless you MUST in the music industry?

they do not do anything to get you jobs