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