quiz 9
Which are the following are among the "big 3" of major label conglomerates?
- Universal : yes - Sony: Yes -WEA: yes
Match the percentages with the correct segment of the iTunes royalty, paid on the 99-cent download.
-To Apple: 34% -To the producer as per the contract: 3-5% -To the artist as per the recording contract: 7-12% -To the label: 49-56%
The lecture noted ten steps between when a contract is signed and a debut album's street release date. The contract was signed 12 months before the street. Identify how many months before the release date in which the other steps usually occurs.
1. A&R meets the group: 11 2. Photo shoot: 6 3. Radio single and marketing plan: 3 4. Artist development for the recording sessions: 10 5. Recording session: 9 6. Masters delivered to label: 4 7. Publicity campaign begins: 5 8. Solicitation: 2
What is the difference between a packaging deduction, a "for returns" deduction, and a breakage deduction?
1. It is common for companies to take out a package deduction of 20-25%, on the assumption that they shouldn't pay the artist for materials. 2. They also withhold payments ("for returns") on royalties for 25% of records shipped in a quarter, with the idea in case the product is returned unsold to the company. This enables companies to hold money for two years, and then pay it to the artists. 3. For years, royalties have been based on 90% of record sold, considered a "breakage fee." Companies felt that 10% of the vinyl records would break and they withheld from paying on them, and continued through the CD era.
The lecture and PowerPoint noted six types of television income. Name and DESCRIBE 3.
1. Licensing royalties for performance rights and commercials 2. Promotion for album sales by exposing the recording in a commercial or in a show 3. Special events help raise the profile of artists
Use the following key to match the area of the record company that fulfills the role identified in each question. Each question is worth one point each.
1. Licensing samples: Business affairs/legal department 2. Newspaper interviews: Publicity department 3. Music Videos: Creative services department 4. Securing talent: Artist and Repertoire (A&R) department 5. Product placement: Sales and marketing department 6. Creation of album artwork: Creative services department 7. Use of album artwork: Business affairs/legal department 8. Magazine interviews: Publicity department 9. Working with web designers: Creative services department 10. Providing input on mastering and mixing: Artist and Repertoire (A&R) department 11. Conflict of contrast issues, such as exclusivity: Business affairs/legal department 12.Artwork for advertisements: Creative services department 13. Album sequencing: Artist and Repertoire (A&R) department 14. Studio choice: Artist and Repertoire (A&R) department 15. Signing older artists for re-issue releases: Artist and Repertoire (A&R) department 16. Processes audits: Business affairs/legal department 17. Coordinating local promotion staff: Publicity department
The lecture and PowerPoint noted six types of television programs. Name 3.
1. Network late night 2. Daytime Talk 3. Network Morning News
Most record royalties range from
7-12%
Most record royalties wage from
7-12%
Which of these are NOT part of a publicity plan?
Coordinates tour plans
What is evangelist marketing?
Cultivating key opinion leaders and tastemakers to spread the word
Describe the four Amazon pay rates.
Front Line: This tier pays you the highest wholesale price (best for new releases). Mid Line : This tier offers a slightly lower payout than Front Line (suggested for new releases and recent releases). Catalog : This tier is slightly lower than both Front Line and Mid Line (suggested for releases older than 18 months). Special :This is the lowest wholesale pricing tier offered (suggested option for promotions, older and/or slow-selling catalogs).
How much does a ringtone pay?
$.24 as per statutory rate
How much is does an individual "side musician" get on a typical three hour recording session?
$818.56
What are the 5 periods in a product life cycle?
Introduction, Growth, Maturity, Decline, Withdrawal
AFM functions on local and federation levels, as noted on page (page 182). Federation contracts embrace all services of musicians in all BUT ONE of the following fields
Live performances
Identify the differences, advantages and disadvantages between major label and independent recording companies.
Major label -Advantages: well financed/can take losses; the honor of the name of the label -Disadvantages: get lost in the shuffle of a huge company; if your rep leaves you might get dropped Independent -Advantages: personal service, more power of artistic and promotional control -Disadvantages: much smaller financial commitment; no honor of the name of the label
Which company compiles Soundscan information?
Neilsen
Why do oligopolies expand and acquire small companies?
Oligopolies can gain more influence over the market by acquiring smaller/independent labels by buying them out. This is a reason why there are so many smaller labels affiliated with large parent labels, called conglomerates
What is street team marketing?
Organizing and motivating volunteers to work in personal outreach locally
Which of these are NOT among the "4 P's of Marketing"
Personal
What award is issued for 1,000,000 copies shipped?
Platinum
What entity pays the most to artists as of 2016?
Spotify
How much does Harry Fox receive for ringtones?
The company sends HFA the 24 cents, who after taking a 10% cut, will send the rest to the publisher.
If the label doesn't like an album submitted by an artist, what happens?
The label can choose to "shelve it"
Which of the following would NOT be an advantage to be signed to a major label?
The label has more patience to develop the artist's career
Describe a leader/contractor?
The leader or contractor is the musician who hires the other musicians and organizes the recording session alongside the producer.
Define Oligopoly
The negative aspect is that there are fewer major labels with large budgets, and they control the market of releases that have large marketing campaigns. Oligopolies can also control market price
A bassist leaves a rock band, and the band hires a replacement in agreement with the record company. In relation to a record company, what happens?
The new bassist gets an advance for subsequent albums, but doesn't get anymore money until previous album's have been recouped
What is an excess mechanical clause?
The record company will not be responsible for paying statutory rates for more than 10 songs on a release
What is a controlled composition clause?
The record company will only pay 75% of statutory rate since the artists are also the songwriters
When should you NOT have a press release?
To dispel social media rumors
The ADA (Alternative Distribution Alliance, page 199) offers all BUT ONE of the following services
Tour support funding
All of the "big three" conglomerates have four central divisions. Which of the four below are NOT a part of those central divisions.
Venue management
What is "doubling" in the context of union recording sessions?
When one musician will play another instrument in addition to their primary instrument
Production expenses (201) that are considered legitimate _______________ include studio rentals, union wages to AFM and AFTRA members, music arranging and copying expense and producer costs.
chargeback
What award is issued for 10 million copies shipped?
diamond
What items should NOT be included on a mailing list?
favorite band
What award is issued for 500,000 copies shipped?
gold
Haymarket Publishing Services did research that demonstrated how consumers were influenced to make purchases. Their findings estimated the percentage of consumers who indicated that these factors were important in determining if the consumer would make a purchase, apart from the influence from friends and family Considering those findings, which was the main factor that influenced purchases?
low price
How much does the record company pay for promotional material known as "free goods?"
nothing
How does an independent record store obtain hard copies of recordings?
one stop
How does a truck stop obtain CDs?
rack jobber
Which of these items are NOT in the anatomy of the press release?
Clear indentations for clarity
Compare Digital Rights Management and the Open Music Model
1. iTunes and Amazon use a model of Digital Right Management, where they act as a conduit for those who own the copyright of recording and publishing rights.2. In 2002, researchers at MIT felt that because piracy was inevitable, that an Open Music Model was the future of music distribution. It allowed is users to participate by following these five factors:-Open file sharing-Open file formats-Open membership-Open payment-Open competition
Company provides a database for publicists by subscription?
Bacon's Media
Which company bases their "Top 200" chart on Soundscan information?
Billboard
What is buzz marketing?
High profile people or journalists use the product
What is influencer marketing?
Identifying other artist fan clubs and key members of those clubs to help spread the word about the artist
What are the five types of consumers?
Innovators 2.5% Early adopters 13.5% Early majority 34% Late majority 34% Laggerts 16%
What are three functions of music videos?
Programming for videos Promotion for records Products to sell in stores
Which company provides sales awards?
RIAA
What is viral marketing?
interacting, entertaining or informative messages via the Internet or email
