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Music Business NEWS & FAQ:

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RIAA to halt lawsuits, cozy up to ISPs instead

Fri Dec 19, 2008 10:18AM EST

At last, the music industry admits what we've known for years: That filing music-swapping lawsuits against teenagers, little old ladies, and corpses is a fool's errand (not to mention an expensive headache for the defendants). But don't worry—the RIAA has something new up its sleeves.

The new strategy (as reported by the Wall Street Journal ): If the music industry finds out that you're swapping music files online, it'll send an e-mail to your ISP (agreements have already hashed out agreements with "some" unnamed service providers, apparently), which will in turn forward the message to you—probably with a little "P.S." asking you to stop. [ Update: CNET has a copy of the RIAA's form letter to ISPs.]

If you don't stop, well ... your service provider probably won't sue you, but it might slow down your broadband connection, or cut off your service altogether.

So, why has the RIAA changed the play? Well, maybe it's been looking at reports like this one from the NPD Group , which shows that U.S. CD sales continue to slide, while the number of tunes shared via P2P sites continues to increase, despite all the litigation.

And then there's the disastrous headlines , as the RIAA relentlessly tracked down and sued tens of thousands of alleged music pirates. Among them: Kids, octogenarians, and a few dead people .

Reaction to the news? Mixed. Engadget's headline reads (in part): "RIAA finds its soul," with the story noting that while the RIAA reserves the right to go after "heavy uploaders or repeat offenders ... it appears that single mothers are in the clear."

All Things Digital has a darker outlook , speculating that ISPs—which "care about the cost of moving lots of data around … [and] want to make money by selling, renting, or just offering up Hollywood's movies and TV shows to subscribers"—might be more than content to "cut off file-sharers … [or] simply [charge] heavy file-sharers a lot of money."

And here's another possibility, courtesy of yours truly: Say your ISP catches you sharing tunes via P2P. No problem—download away! But when you get your next cable bill, you'll find the itemized songs added to your monthly charge, kind of like an iTunes bill.

Call it the "if you can't beat 'em, join 'em" strategy.

P.S. Make no mistake—just because the RIAA has stopped filing new music-swapping lawsuits doesn't mean that it's dropped the existing ones, according to the Journal. Quite the contrary.

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Amazon & Walmart Tie For #2 U.S. Music Retailer
iTunes Still #1 As Digital Grows

iTunes continued to be the top retailer of music with 28% of all music purchased by U.S. , up 4% since Q1 2009 according to researcher NPD. Amazon gained 3% to tie Walmart's shrinking music department for second position at 12%

Sales of digital tracks and albums accounted for 40% overall music sales in the first quarter of 2010, up 5% from Q1 2009.*

iTunes Flat For Last 4 Quarters

When reviewing sales of digital music separately from CDs, NPD found that iTunes’s share of the digital-music download market has remained essentially flat since Q1 2009 - growing just 1% to 70% of the digital music market last quarter. At the same time, AmazonMP3 grew by 4% to reach 12% while Amazon’s share of the CD market grew 2% to 11%.

"Amazon’s growth reflects a stronger position in both the CD and digital formats,” said Russ Crupnick, VP of NPD. “This dual-pronged approach of selling both digital music and CDs helps attract the most valuable and committed music buyer who prefers access to both formats.”

Walmart led U.S. CD purchases in Q1 2010 with a 17% share of the retail market. Best Buy followed Walmart with 14%, Amazon’s 11 percent share positioned them in third place.

* NPD’s data is based on a combined music-retailer ranking that reflects the combined sales of CDs and digital music downloads (i.e., 12 digital music track downloads are equivalent to one CD).


 

Rip an MP3 - go to jail for ten years !

Matt Loney 26 July 2002 02:30

From this week, if you live in the UK you can be sent to jail for up to ten years for making, dealing with or using illicit recordings -- that is, infringing copyright. That is a longer sentence than that which one might expect to see handed down to a convicted murderer, rapist or even paedophile. Now consider that every MP3 file downloaded from the Internet could be classified as an illicit recording. Scary, isn't it? Well, it caught your attention anyway, and in a way that simply reporting the enactment of the Copyright, etc. and Trade Marks (Offences Enforcement) Bill would not. And in fact, it probably will not be quite as bad as it sounds, although it could, if we are not very careful, lead us down the slippery path that the US Congress, pushed by big business, has found itself slithering and sliding uncontrollably down. In one sense we should be grateful. In practice, you are unlikely to spend ten years in the clink for downloading an MP3 file, although there is some justification for locking up country music fans. Furthermore -- and despite the efforts of some industry bodies such as the Alliance Against Counterfeiting and Piracy -- there is no criminal offence relating to circumvention of copy protection devices. For this, the government should be applauded, although it probably will not be long before we have our own version of the controversial US Digital Millennium Copyright Act here, which makes it a criminal offence to build a device (or write code) that lets you make perfectly legitimate backup copies of protected songs, software or other intellectual property. Even if we don't get our own DMCA, there's a chance that we could, in this brave new world of borderless technology, be brought to trial in the US for doing something here that would, if we were in the US at the time, be illegal. That's what happened to Russian programmer Dmitry Sklyarov, and his employer, Elcomsoft, will be facing trial in the US shortly for not committing a crime on Russian soil. It's ironic that Elcomsoft will be standing trial in the country that refused to sign up to the International Criminal Court in case its citizens were hauled abroad to stand trial in a foreign jurisdiction even though they may not have committed a crime under US law. Go figure. So right now, we're left with an updated copyright law which, while slightly onerous, is far better than what the big media companies had wanted. By media, I mean record labels, movie studios and software companies. Although copyright law is a relatively recent phenomenon (the Romantics, led by William Wordsworth, pushed through the law here in the early 18th century, even though Wordsworth himself used to steal work from others), we have grown generally used to the idea. And few would now argue that some form of copyright law is not useful. Examples we regularly see here at ZDNet UK range from cheeky one-offs to systematic abuse. One of the cheekiest one-offs involved a story that was reproduced elsewhere word for word with a new author's name at the top and a copyleft licence at the bottom, which basically said that verbatim copying and distribution of the article was permitted without royalty in any medium provided the (bogus) author was credited. That sort of thing raises my hackles, but it hardly warrants a ten-year prison sentence. And nobody would really expect the full force of the new copyright law to be used against in such circumstances. Indeed it shouldn't. One of the features of a liberal society is that people have the freedom to break laws; of course in most civil societies there are plenty of pressures to stop people from doing so, not least of which is deterrents in the form of fines, community service or prison terms, but the freedom is there. The alternative, where citizens are actively stopped from breaking laws, is surely best known as a police state. So in the UK, we appear to have struck a balance -- whether it's good or bad I'm not quite sure. In the past, there was the frustrating position whereby a counterfeiter producing a high volume of fake CDs could be prosecuted for having used the band's trade mark on the inlay card on the CD, but the act of infringing copyright by copying the music on the CD was not deemed serious enough to take action over. That disparity has now been resolved. Also, the Act will also give the police strengthened search powers where criminal copyright infringement is suspected and give greater powers to confiscate counterfeit goods. Of course we're talking large-scale counterfeit operations here -- the police are not going to come knocking on your door at 3.00 a.m. to remove your iPod. Meanwhile for legitimate copying of copyrighted works, there could be help around the corner. One section of the community that is being hit particularly hard both by copyright legislation, and by anti-copying technology, is the visually impaired, who are not always able to access copyright material in the form in which copyright owners have produced it. For these people, another private member's bill called the Copyright (Visually Impaired Persons) Bill is on the cards. If it passes through parliament without too much interference from industry lobbyists, this Bill will remove some of the difficulties facing visually impaired people who need conversions of copyright material into alternative formats, while balancing any solution with the rights of copyright owners. The Bill proposes that single alternative format copies can always be created without permission, as long as this is done on a non-commercial basis. This is what has always been known as the 'fair use' clause in copyright laws, and one that we remain in danger of losing. Well, it's nice to know some people can see sense.

 

EMI Music launches DRM-free superior sound quality downloads across its entire digital repertoire

http://www.emigroup.com

Apple's iTunes store to be the first online music store to sell EMI's new downloads

London, 2 April 2007 -- EMI Music today announced that it is launching new premium downloads for retail on a global basis, making all of its digital repertoire available at a much higher sound quality than existing downloads and free of digital rights management (DRM) restrictions.

The new higher quality DRM-free music will complement EMI's existing range of standard DRM-protected downloads already available. From today, EMI's retailers will be offered downloads of tracks and albums in the DRM-free audio format of their choice in a variety of bit rates up to CD quality. EMI is releasing the premium downloads in response to consumer demand for high fidelity digital music for use on home music systems, mobile phones and digital music players. EMI's new DRM-free products will enable full interoperability of digital music across all devices and platforms.

Eric Nicoli, CEO of EMI Group, said, "Our goal is to give consumers the best possible digital music experience. By providing DRM-free downloads, we aim to address the lack of interoperability which is frustrating for many music fans. We believe that offering consumers the opportunity to buy higher quality tracks and listen to them on the device or platform of their choice will boost sales of digital music.

"Apple have been a true pioneer in digital music, and we are delighted that they share our vision of an interoperable market that provides consumers with greater choice, quality, convenience and value for money."

"Selling digital music DRM-free is the right step forward for the music industry," said Steve Jobs, Apple's CEO. "EMI has been a great partner for iTunes and is once again leading the industry as the first major music company to offer its entire digital catalogue DRM-free."

Apple's iTunes Store ( www.itunes.com ) is the first online music store to receive EMI's new premium downloads. Apple has announced that iTunes will make individual AAC format tracks available from EMI artists at twice the sound quality of existing downloads, with their DRM removed, at a price of $1.29/€1.29/£0.99. iTunes will continue to offer consumers the ability to pay $0.99/€0.99/£0.79 for standard sound quality tracks with DRM still applied.  Complete albums from EMI Music artists purchased on the iTunes Store will automatically be sold at the higher sound quality and DRM-free, with no change in the price. Consumers who have already purchased standard tracks or albums with DRM will be able to upgrade their digital music for $0.30/€0.30/£0.20 per track.  All EMI music videos will also be available on the iTunes Store DRM-free with no change in price.

EMI is introducing a new wholesale price for premium single track downloads, while maintaining the existing wholesale price for complete albums. EMI expects that consumers will be able to purchase higher quality DRM-free downloads from a variety of digital music stores within the coming weeks, with each retailer choosing whether to sell downloads in AAC, WMA, MP3 or other unprotected formats of their choice. Music fans will be able to purchase higher quality DRM-free digital music for personal use, and listen to it on a wide range of digital music players and music-enabled phones.

EMI's move follows a series of experiments it conducted recently. Norah Jones's "Thinking About You", Relient K's "Must've Done Something Right", and Lily Allen's "Littlest Things" were all made available for sale in the MP3 format in trials held at the end of last year.

EMI Music will continue to employ DRM as appropriate to enable innovative digital models such as subscription services (where users pay a monthly fee for unlimited access to music), super-distribution (allowing fans to share music with their friends) and time-limited downloads (such as those offered by ad-supported services).

Nicoli added: "Protecting the intellectual property of EMI and our artists is as important as ever, and we will continue to work to fight piracy in all its forms and to educate consumers. We believe that fans will be excited by the flexibility that DRM-free formats provide, and will see this as an incentive to purchase more of our artists' music."

UNIVERSAL MUSIC GROUP, WORLD\'S LARGEST MUSIC COMPANY, DRAMATICALLY REDUCES CD PRICES

http://new.umusic.com/flash.aspx

UMG Institutes a $12.98 Manufacturer Suggested Retail Price on Virtually all Top Line CDs


New York, NY and Santa Monica, California September 3, 2003 - Universal Music Group (UMG) announced today an aggressive plan to significantly reduce the cost consumers pay for CDs by decreasing its wholesale prices and by instituting a $12.98 Manufacturer Suggested Retail Price (MSRP) on virtually all top line CDs in the U.S..

UMG will introduce a new pricing policy with the aim of bringing music fans back into retail stores and driving music sales. The program, which will begin in the fourth quarter of 2003, will eliminate $16.98, $17.98 and $18.98 equivalent MSRPs. UMG believes retailers will begin offering the lower priced CDs to consumers as soon as October 1, 2003.

As part of this new policy, UMG’s labels plan to significantly increase their direct-to-consumer advertising to raise music fans’ awareness of the artists and their music.

Concurrently, UMG will also reduce its wholesale price on cassettes so its MSRP for top line releases will be $8.98.

UMG’s roster includes such renowned artists as Ashanti, Mary J. Blige, blink-182, Bon Jovi, Mariah Carey, Sheryl Crow, Dr. Dre, Eminem, 50 Cent, Enrique Iglesias, India.Arie, Elton John, Diana Krall, Nelly, No Doubt, Puddle of Mudd, Reba McEntire, Stevie Wonder, Sting, t.A.T.u., Texas, Shania Twain and U2. The new pricing policy will also apply to UMG’s historic catalog of recordings which includes artists such as ABBA, Louis Armstrong, James Brown, Eric Clapton, Patsy Cline, John Coltrane, Ella Fitzgerald, Jimi Hendrix, Billie Holiday, Antonio Carlos Jobim, Bob Marley, Nirvana, The Police, Rod Stewart, The Who, Hank Williams and the Motown catalog, which includes The Four Tops, Marvin Gaye, The Supremes and The Jackson Five.

"Our new pricing policy will allow us to take the initiative in making music the best entertainment value and most compelling option for consumers," said Doug Morris, Chairman and CEO, Universal Music Group. "UMG is responsible for almost 30% of all album sales in the U.S. so we are uniquely positioned to try this new strategy. We strongly believe that when the prices are dramatically reduced on so many titles, we will drive consumers back to stores and significantly bolster music sales."

"Music fans will benefit from the price reductions we are announcing today," said Jim Urie, President, Universal Music & Video Distribution. "Our new pricing model will enable U.S. retailers to offer music at a much more appealing price point in comparison to other entertainment products. We are confident this pricing approach will drive music fans back into retail stores."

About Universal Music Group

Universal Music Group is the world’s leading music company with wholly-owned record operations or licensees in 71 countries. Its businesses also include Universal Music Publishing Group, one of the industry’s largest global music publishing operations.

Universal Music Group consists of record labels Decca Record Company, Deutsche Grammophon, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, MCA Nashville, Mercury Records, Mercury Nashville, Philips, Polydor, Universal Music Latino, Universal Motown Records Group, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalog of music in the industry, which is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Strategic Marketing and Commercial Affairs (outside the U.S.). Universal Music Group also includes eLabs, a new media and technology division.

Universal Music Group is a unit of Vivendi Universal, a global media and communications company.

 

WeirdMusic.net Online:

Interact: www.MySpace.com/NetPR

Eclectic-Music.com - WeirdMusic Mp3s on iTunes

BBC - How to Promote Your Music: http://www.bbc.co.uk/radio1/onemusic/promotion/

FAQ: Careers in Music Business/Management

Personal Manager (or Artist Manager, Agent)
Personal managers represent one or more musical groups or artists, and oversee all aspects of an act's career. They deal with and advise the act(s) on all business decisions and many of the creative decisions an artist must make, and attempt to guide the artist's rise to the top.

Booking Agent (or Talent Agent)
Booking agents work to secure performance engagements for musical artists and groups. They work to find talent to book, and may be involved with developing the talent toward a goal. They must possess good communication skills to sell talent and develop contacts in the music industry. They often work closely with an act's Manager, and may be involved in setting the fee and negotiating with promoters or clubs. A booking agent is paid a percentage of the negotiated fee for an act's performance.

Concert Promoter
The concert promoter presents, organizes, advertises, and in many cases, finances concerts at performance venues such as arenas, festivals, clubs, church buildings, auditoriums, etc. The promoter often secures money for the concert by finding others to share in the profits/expenses. However, it is often times the concert promoter who absorbs all the financial risk.

Independent Radio Promoter
The Independent Radio Promoter (IRP) has a similar role as that of a Promotional Staffer at a record label, except the IRP is usually employed by an Independent Radio Promotions Company or they may work freelance. Often times a record label, artist/band or manager will hire the services of an Independent Radio Promotions Company to generate airplay of a particular song or record.

The IRP contacts radio station program directors, music directors, and disc jockeys in a local, regional, national or even an international market. They set up appointments with these station people and bring a number of new album releases as well as a supply of promotional or press material relating to the artist or band. An IRP may socialize frequently with program directors and music directors to help improve the chances that a radio station will add a song to its playlist. An IRP often will often take key radio station personnel out to lunch, dinner, or for drinks. They may also bring a program director to a club in order to listen to a group play a song(s) live and gauge audience response.

Entrepreneur (Music Business)
A person who organizes, operates, and assumes the risk for a music business venture. Some common businesses started by music entrepreneurs are: Recording Studio Facility, Private Teaching Practice, Performing Band, Booking Agency, Artist Management, Music Retail, Music Publishing Company, Record Label, etc.

Retail Sales Management
A Retail Sales Manager works, runs and operates a retail music store. Duties would include employee supervision, training, ordering, coordinate the timing and arrival of distribution shipments to the store, budgetary and financial planning, and coordinate sales promotions for specific CDs.

Entertainment Attorney
An entertainment attorney handles any contractual matters conceivable within the Entertainment industry. Entertainment attorneys can be freelance, hired on retainer or as an employee of a company or business within the entertainment industry. Entertainment attorneys generally specialize in one of three separate fields within the entertainment industry: Sports, Film and Television, and Music. An attorney that specializes in the music industry usually has a solid depth of understanding with regard to copyright laws and artist/band agreements with managers, publishers, record labels, booking agents, etc. Successful completion of Law school and a state bar exam are requisites for being an entertainment attorney as well.

Business Manager
The business manager handles the financial affairs of musicians and entertainers. Most have degrees in business administration with concentration in accounting or management. The business manager should have knowledge of negotiating, accounting skills, investments, and a thorough knowledge of tax laws.

Music Supervisor (Music Licensing/Clearance)
A music supervisor may act as an A&R scout to find and license popular songs (as source music) for a film, TV soundtrack or other media format.

Music Business Consultant
The Music Business Consultant advises his/her clients, who are generally artists, music industry professionals or entrepreneurs, on music business strategy for their career or business.

Contractor (or Leader)
A contractor is responsible for hiring musicians or road crew staff and tending to all the necessary contract obligations through the appropriate union organizations. It is in the contractors best interest to procure the best talent possible while working within given budget guidelines.


Record Label Business Careers

Record Company Executive

This person would usually be employed at a record label and be a director, vice-president or president of any of the various departments or areas therein.

A&R Coordinator
The main duty of the Artist & Repertoire coordinator is to find talent for the company to sign. A&R Coordinators search for new talent by visiting clubs, going to showcases, listening to tapes and demo recordings, and watching videotapes of acts performing. He or she is often responsible for helping find songs for the artists signed to the record label.

A&R Administrator
The Artist & Repertoire Administrator works in the Artist & Repertoire Department along with the A & R coordinator. In large companies, the A&R administrators are responsible for clerical functions within the department, planning budgets for artists signed to the label, and working on the annual or semiannual budget for all artists' expenditures. They must analyze previous budgets, and prepare a budget proposal with projected cost estimates for recording current acts. They also monitor the budget in relation to the expenses throughout the year. Staying within a budget means that the A&R administrator is doing his or her job. The individual might work exclusively with one or two studios in order to build up a great volume of studio time. With this volume, the A&R administrator can often receive discounts on time. They also keep track of all money spent for recording studio time, session musicians, talent, and miscellaneous expenses.

Director of Publicity (or Public Relations Director)
The Director of Publicity supervises the record label publicity department and develops and oversees publicity campaigns. As director, this person oversees all the work that is performed by the staff of the department.

Publicist (or Staff Publicist, Press Agent)
A Publicist handles the publicity and press needs of acts signed to a label. Publicity helps the label sell records and produce income. A publicist must be able to get an artist's name in the news (magazines, music trades, TV, radio, etc.) as often as possible. This is accomplished by writing press releases, sending them to the correct media, talking to media about acts, and arranging interviews. The Publicist often arranges a series of print interviews, radio interviews, and TV appearances in conjunction with the release of a new record. Staff publicists spend a lot of time on the telephone, and are usually the first to send out promotional copies of new records and other important materials to the media. After a new record is released, a publicist may work with the A&R or promotional departments on a showcase booking of the group, and make arrangements for a press party.

Assistant Publicist
Assists the publicist, compiling press kits, writing press releases, and double-checking information for accuracy.

Artist Relations Representative (Artist Development Representative)
The Artist Relations Representative's responsibility is to represent the label's interest to the artist/band and the artist/band's interest to the label, and maintain proper communication, cooperation and mutual understanding between the two entities. This person's job is to make the artist feel appreciated by the label by thoughtful gestures such as buying flowers, writing letters, arranging promotional appointments that coincide with a new tour, album release or career milestone such as having a certified Gold or Platinum album. If there is a problem or concern that the label or artist have with the each other, the Artist Relations Representative will seek to mediate the situation. The Artist Relations Representative may also advise the artist on creative/performing related issues as well.

Promotional Staffer
The prime function of the promotional staffer is contacting radio station program directors to generate airplay for the label's records. Promotional staffers will work closely with program directors, music directors, and disc jockeys in these markets. They set up appointments with these station people and bring a number of the label's new album releases as well as a supply of promotional or press material relating to the artist or band. A promotional staffer may socialize frequently with program directors and music directors to help improve the chances that a radio station will add a song to its playlist. Promotion Staffers often take key radio station personnel out to lunch, dinner, or for drinks. They may also bring a program director to a club in order to listen to a group play a song(s) live and gauge audience response.

Advertising Account Executive
An Advertising Account Executive develops advertising campaigns for a record label's products. This person must be creative, aggressive, have good sales skills and may have advertising experience in another area, as well as a strong knowledge of music.

Salesperson (Record Label)
A record label salesperson establishes a relationship with various accounts to sell the company's products, and provide continuing service to the accounts. Accounts may include retail stores, rack jobbers and one-stops.

Regional Sales Manager
The regional sales manager is responsible for supervising the selling of the label's records and tapes to wholesalers and/or retail outlets in a specific region, creating sales campaigns and policies, and overseeing sales staff.

Marketing Representative
The marketing representative is responsible for overseeing specific markets, and reporting sales of records to radio stations and trade publications.

Field Merchandiser (or Merchandiser)
The field merchandiser is in charge of distributing and explaining merchandising promotions to record stores/departments in specific markets.

Consumer Researcher
A consumer researcher researches and analyzes consumer-buying practices for the record company. This person should have knowledge of research and analytical methods, the ability to write reports, and knowledge of the music business and record industry.

College Representative (or Campus Representative)
College Representatives are responsible for promoting a record label's products to students on campus or perhaps to music retailers. They are students working toward a degree who have an interest and/or skill in the music industry, and often times are a music business major in college.

Music Publishing Business Careers

Music Publisher

Music publishers are responsible for acquiring the copyrights to songs and publishing them. They may work for a very large music publishing company and perform one or two specific duties as a music publisher. They may work for a relatively small firm and fulfill a variety of functions. Many individuals in music publishing or songwriting become independent music publishers, running their own music-publishing firm. The goal of the music publisher is to find and acquire potential hit songs (copyrights) and songwriters, promote them for financial gain and serve as copyright administrator whereby tracking, licensing and payment collection can be done efficiently. A good music publisher has knowledge of all facets of the music business, an understanding of music industry dynamics, an ability to hear hit tunes, knowledge of copyrights laws, and contacts in the music business.

Song Plugger (Professional Manager)
Song-Pluggers or Professional Managers work for a music publisher, and perform the administrative functions of music publishers. They also work to add new possible hits to the publisher's catalog, and to find acts to record these songs, generating income for the publisher. Professional managers seek to have a song covered and recorded by as many artists as possible and attempt to make the tune a "standard." Song-Pluggers rely heavily on their contacts in the music business to accomplish their job, and must have great communication skills. The Song-Plugger may provide creative input into a band or artist's demo since they have a good understanding of what the industry is looking for.

Tour/Road Work Business Careers

Tour Coordinator

The tour coordinator is responsible for coordinating the many facets of an act's tour, including travel, lodging, arranging for services, and budgeting for expenses.

Road Manager
Road managers handle the problems that occur while an act is traveling. They supervise equipment, sound, and light personnel.

Tour Publicist
The tour publicist is responsible for publicizing an act's tour to both fans and the media through press releases, press conferences, and special promotions.

Advance Person
The advance person is responsible for arriving ahead of the act to prepare for a concert, and assisting the tour coordinator or road manager with details prior to the show.

Sound Technician
Sound technicians are responsible for high quality sound during the live performance. They usually arrive at the concert sight before the performers and are involved in unloading and setting up the equipment and instruments along with the road crew. The sound technician supervises the placement of equipment, and works with the talent during the sound check to achieve the best sound. They may even work a soundboard during the actual performance

This page will help you to understand the Discography terms:

Acetate
When a record is made, making the acetate is the second point in the process (the first being a master tape recording). An acetate is a piece of metal, covered in a layer of acetone (therefore causing it to be heavier than a standard record). To make a record, an engineer places a blank acetate on a cutting lathe. The cutting lathe then proceeds to carve a groove into the acetate, based on the sound waves the acetate cutter is receiving from the sound source attached to it (a master tape). When finished, the acetate is then used to press up proper vinyl records. This is achieved by first coating the acetate with a layer of metal. This "metal mother" is then taken off the acetate (both 'a' and 'b' sides), and placed on a vinyl stamper (the machine that actually makers the record). These two metal mothers are then placed on the top and bottom of the machine. A "puck" (a lump of vinyl) is then placed on the vinyl stamper, with paper labels on top and bottom sides. When the vinyl stamper is activated, the metal mothers come down on both sides of the puck, squeezing the vinyl out to the edges. This is how a record is made.

Sometimes, acetates contains versions of songs that are not released. Also, for every record pressed, an acetate exists. An acetate label is usually the label of the manufacturer (not the record label, but the pressing plant used, like Sterling Sound, The Exchange, Bernie Grundman Mastering or Future Disc, for example). The label is usually either hand written, or is typed. They are rarely, if ever, professionally printed.

Catalog Number
Almost every release manufactured has an identifying number. That is the catalog number. As an example, let's use a US pressing of Violator. The release has a catalog number of 26081. To identify whether the release is a record, cassette or CD, the record company will add a suffix to the main catalog number ("-1" is vinyl, "-2" is CD, "-4" is cassette, "-7" is a 7 inch single, and "-0" is a 12" inch single). So, the cassette of the US Violator album has a catalog number of 26081-4. The UK Mute releases handle this the same way, except their base catalog number for that release is STUMM 64, and they use prefixes ("CD" is CD, "C" is cassette, et cetera). So, the Mute CD of Violator would be CD STUMM 64.

"CD-R", "CD-Recordable", "Recordable CD Promo" or "Reference CD"
Starting in the early 1990's, record companies started creating, or "burning", a small number of a release (single or album) on recordable CD's. These promotional items are usually burned in extremely low numbers (25-50), and are created for the following reasons:

a) An advance pressing ("test pressing") for the artist, management, or someone who works for them.
b) A small "additional servicing" to radio stations, after a record label has already distributed a promotional single.
c) "In-house" use by the record label employees.

In regards to item "b", these CD-R's are usually made after an initial "real" promotional single (silver) has been made. They are usually shipped out to "key" radio stations (the bigger, more important ones), and almost always contain mixes and songs not available anywhere else. They almost never contain a catalog number, and because of how common CD recording equipment, they are subject to being bootlegged.

A CD-R is a modern day equivalent of the old vinyl test pressing.

"Cut Out"
A "cut out" release is a commercial release, but it is defaced in one of the following ways:

a) A large hole punched out of the cover (usually over the UPC bar code)
b) A gold stamp on the front cover, stating that the item is for "promotional use only, and not for sale"
c) A "saw cut" on the edge of the cover
d) One of the corners of the cover cut off. These are usually commercial copies that are shipped to record retailers for in-store play, as well as radio stations and magazine reviewers. These pressings are not true promotional items in the eyes of collectors.

Longbox
When CD's were first released in the U.S., the record companies packaged the CD's in a long cardboard box, to prevent theft of the discs. Better theft protection phased out the longbox years ago, making them especially collectible to collectors, though the longbox has started making a appearance again in some American shops (CostCo, et cetera).

Mix Names
After some tracks, it might be noted if it is a 7" Version, Single Version, LP Version, et cetera. Some help on this is below:

•  7" Version, Single Version - Usually refers to the version released on a 7", Cassette or CD single.

•  LP Version, Album Version - The version used on the album. Sometimes, like on the album Speak & Spell, different countries will have different versions of the same tracks. So, saying "LP Version" can be misleading. Case in point - "Just Can't Get Enough", on the original UK pressing, is the actual album version. On the original US pressing, the label used the Schizo Mix, which is actually the 12" Version.

•  12" Mix, 12" Version", 12" Remix - This refers to the remix available on the 12", or CD single. Like the examples above, these terms are pretty much interchangeable. Sometimes, when there is only one 12" version available, the remix will be referred to as the 12" version, even though it might have it's own name (like the "Just Can't Get Enough" example above).

•  Multiple Names - When a song is first remixed, the remixer will write down on the tape the name he or she wants the mix to have on the tape submitted to the record comapny. From there, audio engineers, promotions people, the art department, sales, and many other branches have many opportunities to alter that name. This is how a track like the 1989 remix of "Everything Counts" can be called the "Bomb Beyond The Yalu" mix, the "Tim Simenon / Mark Saunders" mix, and the "Bomb The Bass" mix, yet all actually be the same mix!

Promotional Only Pressings
A promotional only release is a record solely designated to be sent to radio stations. They usually contain special edits for radio use, have a catalog number specific to it's release (usually with a P somewhere in it, like "PRO-A-xxxx" or P12BONGxx"), and they sometimes contain mixes that are not commercially available to the public. They can number anywhere from 1000 to 10,000 in number, depending on the country that presses them. Smaller countries have a smaller area to cover for promotion, hence they press less (sometimes in the hundreds).

Scribe
On vinyl pressing, in the run off groove (the area near the label), pressing plants will carve into the acetate (or "scribe") the catalog number of that particular release. This is done to identify the acetate, and will usually contain a long series of numbers (the main catalog number, as well as additional numbers and letters to signify A and B sides). Some pressing plants (mainly UK ones) have engineers who write little messages in the run off groove area.

Test Pressing (or White Label)
The first records pressed from the vinyl stamper are called test pressings. There are usually only between 5 and 30 test pressings made. These are made, and then sent to the record label and/or recording artist to "proof" the recording (approve that the pressing is satisfactory). Sometimes test pressings of a record are used in the actual promotion of a record. This happens when a record is really "hot", or is being "rush released" (a quick pressing, with little time from the initial test pressings to the final versions that are ready for the public). Usually though, test pressings are just that...tests. Most are disposed of after being pressed, therefore they are very rare. Just like acetates, there is a test pressing for EVERY record ever released (commercial, and promotional pressings). And just like acetates, the label is usually that of the pressing plant. The challenge for a collector is to obtain every test pressing and acetate ever made (a very unlikely happening).

White Label
See "Test Pressing" (they are technically the same thing).

--------

 

This oft-referenced article is from the early '90s, and originally appeared in Maximum Rock 'n' Roll magazine. While some of the information and figures listed here are dated, it is still a useful and informative article. And no, we don't know how to reach Steve Albini.

-Negativland

www.negativland.com

The Problem With Music
by Steve Albini

Whenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed. Nobody can see what's printed on the contract. It's too far away, and besides, the shit stench is making everybody's eyes water. The lackey shouts to everybody that the first one to swim the trench gets to sign the contract. Everybody dives in the trench and they struggle furiously to get to the other end. Two people arrive simultaneously and begin wrestling furiously, clawing each other and dunking each other under the shit. Eventually, one of them capitulates, and there's only one contestant left. He reaches for the pen, but the Lackey says "Actually, I think you need a little more development. Swim again, please. Backstroke". And he does of course.

Every major label involved in the hunt for new bands now has on staff a high-profile point man, an "A & R" rep who can present a comfortable face to any prospective band. The initials stand for "Artist and Repertoire." because historically, the A & R staff would select artists to record music that they had also selected, out of an available pool of each. This is still the case, though not openly. These guys are universally young [about the same age as the bands being wooed], and nowadays they always have some obvious underground rock credibility flag they can wave.

Lyle Preslar, former guitarist for Minor Threat, is one of them. Terry Tolkin, former NY independent booking agent and assistant manager at Touch and Go is one of them. Al Smith, former soundman at CBGB is one of them. Mike Gitter, former editor of XXX fanzine and contributor to Rip, Kerrang and other lowbrow rags is one of them. Many of the annoying turds who used to staff college radio stations are in their ranks as well. There are several reasons A & R scouts are always young. The explanation usually copped-to is that the scout will be "hip to the current musical "scene." A more important reason is that the bands will intuitively trust someone they think is a peer, and who speaks fondly of the same formative rock and roll experiences. The A & R person is the first person to make contact with the band, and as such is the first person to promise them the moon. Who better to promise them the moon than an idealistic young turk who expects to be calling the shots in a few years, and who has had no previous experience with a big record company. Hell, he's as naive as the band he's duping. When he tells them no one will interfere in their creative process, he probably even believes it. When he sits down with the band for the first time, over a plate of angel hair pasta, he can tell them with all sincerity that when they sign with company X, they're really signing with him and he's on their side. Remember that great gig I saw you at in '85? Didn't we have a blast. By now all rock bands are wise enough to be suspicious of music industry scum. There is a pervasive caricature in popular culture of a portly, middle aged ex-hipster talking a mile-a-minute, using outdated jargon and calling everybody "baby." After meeting "their" A & R guy, the band will say to themselves and everyone else, "He's not like a record company guy at all! He's like one of us." And they will be right. That's one of the reasons he was hired.

These A & R guys are not allowed to write contracts. What they do is present the band with a letter of intent, or "deal memo," which loosely states some terms, and affirms that the band will sign with the label once a contract has been agreed on. The spookiest thing about this harmless sounding little memo, is that it is, for all legal purposes, a binding document. That is, once the band signs it, they are under obligation to conclude a deal with the label. If the label presents them with a contract that the band don't want to sign, all the label has to do is wait. There are a hundred other bands willing to sign the exact same contract, so the label is in a position of strength. These letters never have any terms of expiration, so the band remain bound by the deal memo until a contract is signed, no matter how long that takes. The band cannot sign to another laborer or even put out its own material unless they are released from their agreement, which never happens. Make no mistake about it: once a band has signed a letter of intent, they will either eventually sign a contract that suits the label or they will be destroyed.

One of my favorite bands was held hostage for the better part of two years by a slick young "He's not like a label guy at all," A & R rep, on the basis of such a deal memo. He had failed to come through on any of his promises [something he did with similar effect to another well-known band], and so the band wanted out. Another label expressed interest, but when the A & R man was asked to release the band, he said he would need money or points, or possibly both, before he would consider it. The new label was afraid the price would be too dear, and they said no thanks. On the cusp of making their signature album, an excellent band, humiliated, broke up from the stress and the many months of inactivity. There's this band. They're pretty ordinary, but they're also pretty good, so they've attracted some attention. They're signed to a moderate-sized "independent" label owned by a distribution company, and they have another two albums owed to the label. They're a little ambitious. They'd like to get signed by a major label so they can have some security you know, get some good equipment, tour in a proper tour bus -- nothing fancy, just a little reward for all the hard work. To that end, they got a manager. He knows some of the label guys, and he can shop their next project to all the right people. He takes his cut, sure, but it's only 15%, and if he can get them signed then it's money well spent. Anyways, it doesn't cost them anything if it doesn't work. 15% of nothing isn't much! One day an A & R scout calls them, says he's 'been following them for a while now, and when their manager mentioned them to him, it just "clicked." Would they like to meet with him about the possibility of working out a deal with his label? Wow. Big Break time. They meet the guy, and y'know what -- he's not what they expected from a label guy. He's young and dresses pretty much like the band does. He knows all their favorite bands. He's like one of them. He tells them he wants to go to bat for them, to try to get them everything they want. He says anything is possible with the right attitude.

They conclude the evening by taking home a copy of a deal memo they wrote out and signed on the spot. The A & R guy was full of great ideas, even talked about using a name producer. Butch Vig is out of the question-he wants 100 g's and three points, but they can get Don Fleming for $30,000 plus three points. Even that's a little steep, so maybe they'll go with that guy who used to be in David Letterman's band. He only wants three points. Or they can have just anybody record it (like Warton Tiers, maybe-- cost you 5 or 7 grand] and have Andy Wallace remix it for 4 grand a track plus 2 points. It was a lot to think about. Well, they like this guy and they trust him. Besides, they already signed the deal memo. He must have been serious about wanting them to sign. They break the news to their current label, and the label manager says he wants them to succeed, so they have his blessing. He will need to be compensated, of course, for the remaining albums left on their contract, but he'll work it out with the label himself.

Sub Pop made millions from selling off Nirvana, and Twin Tone hasn't done bad either: 50 grand for the Babes and 60 grand for the Poster Children-- without having to sell a single additional record. It'll be something modest. The new label doesn't mind, so long as it's recoupable out of royalties. Well, they get the final contract, and it's not quite what they expected. They figure it's better to be safe than sorry and they turn it over to a lawyer--one who says he's experienced in entertainment law and he hammers out a few bugs. They're still not sure about it, but the lawyer says he's seen a lot of contracts, and theirs is pretty good. They'll be great royalty: 13% [less a 1O% packaging deduction]. Wasn't it Buffalo Tom that were only getting 12% less 10? Whatever. The old label only wants 50 grand, an no points. Hell, Sub Pop got 3 points when they let Nirvana go. They're signed for four years, with options on each year, for a total of over a million dollars! That's a lot of money in any man's English. The first year's advance alone is $250,000. Just think about it, a quarter million, just for being in a rock band! Their manager thinks it's a great deal, especially the large advance. Besides, he knows a publishing company that will take the band on if they get signed, and even give them an advance of 20 grand, so they'll be making that money too. The manager says publishing is pretty mysterious, and nobody really knows where all the money comes from, but the lawyer can look that contract over too. Hell, it's free money. Their booking agent is excited about the band signing to a major. He says they can maybe average $1,000 or $2,000 a night from now on. That's enough to justify a five week tour, and with tour support, they can use a proper crew, buy some good equipment and even get a tour bus! Buses are pretty expensive, but if you figure in the price of a hotel room for everybody In the band and crew, they're actually about the same cost. Some bands like Therapy? and Sloan and Stereolab use buses on their tours even when they're getting paid only a couple hundred bucks a night, and this tour should earn at least a grand or two every night. It'll be worth it. The band will be more comfortable and will play better.

The agent says a band on a major label can get a merchandising company to pay them an advance on T-shirt sales! ridiculous! There's a gold mine here! The lawyer Should look over the merchandising contract, just to be safe. They get drunk at the signing party. Polaroids are taken and everybody looks thrilled. The label picked them up in a limo. They decided to go with the producer who used to be in Letterman's band. He had these technicians come in and tune the drums for them and tweak their amps and guitars. He had a guy bring in a slew of expensive old "vintage" microphones. Boy, were they "warm." He even had a guy come in and check the phase of all the equipment in the control room! Boy, was he professional. He used a bunch of equipment on them and by the end of it, they all agreed that it sounded very "punchy," yet "warm." All that hard work paid off. With the help of a video, the album went like hotcakes! They sold a quarter million copies! Here is the math that will explain just how fucked they are: These figures are representative of amounts that appear in record contracts daily. There's no need to skew the figures to make the scenario look bad, since real-life examples more than abound. income is bold and underlined, expenses are not.

Advance: $ 250,000
Manager's cut: $ 37,500
Legal fees: $ 10,000
Recording Budget: $ 150,000
Producer's advance: $ 50,000
Studio fee: $ 52,500
Drum Amp, Mic and Phase "Doctors": $ 3,000
Recording tape: $ 8,000
Equipment rental: $ 5,000
Cartage and Transportation: $ 5,000
Lodgings while in studio: $ 10,000
Catering: $ 3,000
Mastering: $ 10,000
Tape copies, reference CDs, shipping tapes, misc. expenses: $ 2,000
Video budget: $ 30,000
Cameras: $ 8,000
Crew: $ 5,000
Processing and transfers: $ 3,000
Off-line: $ 2,000
On-line editing: $ 3,000
Catering: $ 1,000
Stage and construction: $ 3,000
Copies, couriers, transportation: $ 2,000
Director's fee: $ 3,000
Album Artwork: $ 5,000
Promotional photo shoot and duplication: $ 2,000
Band fund: $ 15,000
New fancy professional drum kit: $ 5,000
New fancy professional guitars [2]: $ 3,000
New fancy professional guitar amp rigs [2]: $ 4,000
New fancy potato-shaped bass guitar: $ 1,000
New fancy rack of lights bass amp: $ 1,000
Rehearsal space rental: $ 500
Big blowout party for their friends: $ 500
Tour expense [5 weeks]: $ 50,875
Bus: $ 25,000
Crew [3]: $ 7,500
Food and per diems: $ 7,875
Fuel: $ 3,000
Consumable supplies: $ 3,500
Wardrobe: $ 1,000
Promotion: $ 3,000
Tour gross income: $ 50,000
Agent's cut: $ 7,500
Manager's cut: $ 7,500
Merchandising advance: $ 20,000
Manager's cut: $ 3,000
Lawyer's fee: $ 1,000
Publishing advance: $ 20,000
Manager's cut: $ 3,000
Lawyer's fee: $ 1,000
Record sales: 250,000 @ $12 =
$3,000,000
Gross retail revenue Royalty: [13% of 90% of retail]:
$ 351,000
Less advance: $ 250,000
Producer's points: [3% less $50,000 advance]:
$ 40,000
Promotional budget: $ 25,000
Recoupable buyout from previous label: $ 50,000
 Net royalty: $ -14,000

--------------------------------------------------------------------------------
Record company income:


Record wholesale price: $6.50 x 250,000 =
$1,625,000 gross income
Artist Royalties: $ 351,000
Deficit from royalties: $ 14,000
Manufacturing, packaging and distribution: @ $2.20 per record: $ 550,000
Gross profit: $ 7l0,000

--------------------------------------------------------------------------------
The Balance Sheet: This is how much each player got paid at the end of the game.


Record company: $ 710,000
Producer: $ 90,000
Manager: $ 51,000
Studio: $ 52,500
Previous label: $ 50,000
Agent: $ 7,500
Lawyer: $ 12,000
Band member net income each: $ 4,031.25

The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month. The next album will be about the same, except that the record company will insist they spend more time and money on it. Since the previous one never "recouped," the band will have no leverage, and will oblige. The next tour will be about the same, except the merchandising advance will have already been paid, and the band, strangely enough, won't have earned any royalties from their T-shirts yet. Maybe the T-shirt guys have figured out how to count money like record company guys. Some of your friends are probably already this fucked.

Steve Albini is an independent and corporate rock record producer most widely known for having produced Nirvana's "In Utero".


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ABC's of the Music Industry

 

Summary:
Music is an art, however, when it comes to the music industry Music is about money! If anyone or any company feels that your music will not make them money, there will be absolutely no interest in your music. That's it in the nut shell. Remember, to always remember this. The Music Industry is about Money!

Music is an art, however, when it comes to the music industry Music is about money!

If anyone or any company feels that your music will not make them money, there will be absolutely no interest in your music. That's it in the nut shell. Remember, to always remember this. The Music Industry is about Money!

There are a few sources of money to be made in the music industry. They include but are not limited to:

· Record sales

· Songs played on the radio

· In movies and television

· Concerts

· Song writing

· Producing

· Merchandising

· Advertising

· CD-ROMs/DVDs

If you are an artist and want to get into the music business, you need 3 very important very good people in your corner batting for you on a daily basis. They include:

Personal Manager – The most of important of the three. They should have contacts in the music industry, keep on eye on all your affairs, advise you on things to do, help promote your music, producers to hire, who to sign with when to go on tour, etc. The personal manager will receive 15% and 20% of an artists gross earnings and have good contacts with record companies A&R, Marketing / Sales, and Promotion departments.

Music Attorney – A good attorney specializing in the music will know how to properly negotiate and structure the deals an artist makes. They should have good contacts and be trust worthy. Expect to pay between 100 and 200 per hour for a good music attorney. If an attorney thinks you will get signed, they forego a set fee and charge a percentage of artist's earnings. In bigger cities, you'll pay more than in smaller cities.

Music Agent – Book concerts and special appearances. A Personal Manager will help the artist with selecting a good agent.

If you blow up and start generating the big money, then a good Manager / Accountant will be needed to handle your tax situation, review royalty statements, financing tours, offer invest advice and how to manage your money.

Getting recognized by mailing your demo to record labels isn't impossible, however, 99.9% of the time your material will not get listened to. Even if you have the best song on the planet, it will not be listened to. Record labels want to limit their liability, so they do not listen to unsolicited music. Record labels don't want to listen to numerous songs and then be held liable if someone claims their material was copied.

If you do decide to mail your CD to record label, send the “solicited” material. First get a contact, preferably an individual in the Artists & Repertoire (A&R) department. Call and first speak to someone. After sending your CD follow up to determine if the targeted individual received your material and another follow up call to determine if it was listened to. Submit 3 to 6 songs and send a bio and picture of yourself. Again this isn't the preferred way to submit your material to major record labels.

Until you have music business advisors in your corner trying to promote you and there is a “buzz” going around about you, your demo will not reach the decision makers at the record labels. Record companies on a daily basis receive thousands of unsolicited CDs. Most likely your CD will be tossed into a bin located in a remote room filled with overflowing bins of CDs.

Record labels like to deal with artists who have a history of record sales. These are artist that may have produced and sold their own CDs locally or regionally. Record labels like to deal with artists who have performed their material and there is this “buzz” going on about them. MC Hammer, before he became famous, performed his own materials and sold his own records until a major record label signed him. MC Hammer had a lot of leverage in negotiating a good contract because he already proved on a local basis he could sell records.

Record companies want to limit their liability. If you are signed, you are considered an investment that will require some money and they want to see a premium return on their money invested in you. The more you can prove that you can sell record, the better chance you can get signed.

If you get signed to a record company, you the artist will go into the studio and record songs for the record company. The record company makes copies of the master recording and ships it to a distributor. The distributor is a wholesaler who then sells the CDs to retail outlets like Best Buy, Sam Goody and Tower Records. The record company then pumps money into marketing by advertising and promoting your music with hopes of selling records, thus making you a superstar and becoming rich!

It is not as easy as it sounds. It takes a lot of hard work by a talented group of people. Everyone has to work together to make this happen. There are usually many people behind the scenes working to make an artist a superstar.

Record companies often categorized into 4 groups: · Major label record companies - have the recording and operating resources to complete all function to sell records. Major label record companies are integrated in that they can handle the promotion, sales, marketing, and distribution to sell music. Major label record companies are Arista, Atlantic, Capital, and Sony.

Major label affiliate labels – have special agreements with the major label record companies, where the major label may fund the smaller labels recording and operating expenses in exchange for a portion of the smaller label profits.

Independent labels - distributes records through major labels. Independent labels have few employees. They tend to find talent, sign the talent, sees to it the music is recorded and contracts with major record labels to perform the promotion, marketing, and other functions.

True independent labels – Has no association with a major label and distribute their music through independent distributors.

The A&R (Artists & Repertoire) Department

The A&R department is the talent scout. They are in charge of finding new talents. They are the eyes and ears of the record company. However, not because you get signed to a record label because an A&R representative likes you it doesn't mean your CD will ever get produced and released. Executives higher in the company could cancel your deal if they feel your CD will not sell. A record company will have to invest several hundred thousands of dollars to release your CD, so they will be extremely cautious on whom they release.

The Marketing and Sales Department

This department is responsible for getting the public excited about your music and first selling to retail stores the idea of carrying your CD. They are responsible for promotional merchandise, advertising your CD, in store displays, publicity, your CD cover, etc.

The Promotions Department

This department is responsible for getting your music played on the radio. The individuals in this department will visit the various radio stations to convince them to play your material. If your material doesn't get played, no one will now how you are. People will look at your CD in the retail store and wonder who you are. There is also a direct correlation with CD sales vs. how many times a song for that CD gets played on the radio. More air time on the radio equals more CD sales for the record companies.

Remember music is art, but to the record companies, it's about money. Keep in mind that it's a business. Keep in mind everyone is out to make money. The minute people believe that you will not make money for them, you will be dropped and these same people will turn to seek other new artists that they believe will make them money. Unfortunately, the record business doesn't believe in grooming people. If your first CD isn't a success, you are out. There are rarely second chances. There are always other talented people behind you who what their shot at fame.

Distribution

Most major retailers such as Tower records will not carry a CD unless the record has a distributor. A strong distributor ensures that your CD will be available in enough places so your CD will sell to ultimately make money. Major labels use large distributors who are better able to get record stores stocked. After years of consolidation, there are only 5 major national wholesale distributors in the US who are owned by conglomerates who also own major record labels. They are:

· BMG (distributes Arista, BMG and RCA)

· EMI (distributes Capital and Virg.)

· Sony Music (distributes Columbia, Epic and Sony)

· Universal Music Group (distributes Interscope, Island/Def Jam, and MCA)

· WEA (distributes Atlantic, Elektra and Warner Bros.)

Distribution via the Internet Record labels and artists are increasingly using the web to distribute their music. Unknown artists can also use sites like this mZeus.com, http://www.mZeus.com, to generate buzz about their music. However, unknown artists will still have to work hard to get the buzz going about their music. Ultimately, signing a contract with a major record label is the way to go. The major record labels have the financial muscle and people to give you a good shot at becoming famous.

Let's face it. It's all about money! Yes, the entertainment industry seems fun and exciting, but people are in it to make money. As an artist the most important contract in the music industry is the record contract. The royalty is a portion of money from record sales paid to the artist for his/her music. The record contract which is a negotiated legal agreement between the record label and artist will state how much royalty an artist is entitled to among other things.

An artist should have a good understanding of how royalties are calculated. A good music attorney will help with this process by making sure the artist is paid what he/she deserves. A 13% royalty for one artist may be a lot of money, however a 13% royalty for another maybe “chump change”.

So this is how the numbers work. An artist successfully signs a record contract. The artist goes to the studio and work diligently to create a CD that the record company fully supports. The record company via its distributor sells the CD with a suggested retail list price (SRLP) of $17.99 to a retailer for about $10.99. The distributor will take 10% - 14% of the $10.99. Therefore the record company will get about ? the SRLP of $17.99. Independent record companies may receive less than ? the SRLP. Major record companies will pay artist royalty as a percentage of SRLP.

Rates will vary of each artist depending on how successful their record sells. For a new artist who never had a record deal or has sold less than 100,000 albums will get a typical royalty rate of 12% to 14% of the SRLP. For an independent record label it maybe 10% to 14% of the SRLP. For established artists who have a track record of selling 200,000 to 500,000 albums the royalty rate maybe 14% to 16%. For artists who have sold over 750,000 albums the royalty rates maybe 16% to 18%. As you can see, the more successful the artist is, the higher the royalty. Additionally, royalty maybe based on how well the record sells. For instance, the record contract may state that an artist will get 12% for the first 100,000 units sold, 14% for 100,001 to 300,000 units sold, and 16% for over 300,000 units sold.

But hold your horses. If you sell 500,000 albums and have a royalty rate of 12% doesn't mean you will get 12% of 500,000 at a SRLP of $17.98 which would equal $1,078,800. This is because as specified in the record contract, there are deductions (expenses) that have to be deducted.

To start off the bat, the record company will deduct a “packaging charge” from the SRLP which is typically 20% for cassettes and 25% for CDs.

Second, more often the artist is responsible for paying the record producer a portion of his/her royalties. Typically a producer will receive 3% to 4% of the SRLP.

Third, in the record business, the contract may state that the artist's only generates royalties on 85% of the unit sales. For every 100 albums sold, 15 albums sold, the artist gets no royalty.

Forth, the record company will hold a portion of the royalty money because the distributor typically has an agreement with the retail outlets to take back and credit the retail stores money from unsold units. This is very important, because a good portion of your album could be returned to the record company if the album doesn't sell! The money that's held back is called a reserve. Reserves maybe held for 2 years before it's paid to the artist. Typically a major record label will hold a reserve of 25% to 40% of the royalties.

Fifth, advances paid from the record company to the artist are deducted from the artist's royalty. Advances include but are not limited to the:

· Recording studio expenses (new artists to an independent my get an advancement of $0 to $80,000, new artist to a major record label $150,000 to $400,000

· Hiring independent promoters to help sell the albums

· Cost of making a music video (promotions and an inexpensive music video can cost $150,000 to $200,000.

When money is made for the record sales, these costs are deducted from the artist's royalties. This is called re-coupment. Therefore, if the artist's record isn't successful, the artist may never see a dime. If the royalties are less than the deductions, they artists may well owe the record company money by being in the red! This negative cost maybe carried over to the next album release. A good record contract will not allow a negative cost from one album to be carried over to another album (cross collateralization). If there isn't another album the record company generally eats the loss.

There are many other costs that the record company will not charge the artists. This includes marketing and in-house promotions (free CD give away, etc.).

So how much does an artist make for a gold album (500,000 albums sold).

Check out the math:

CD (suggested retail list price SRLP) = $ 17.99 Less CD Packaging of 20% = $ -4.50 NET = $ 13.49 Times: Net artist royalty rate (12% - 3% to producer) = X 9% Gross royalty per CD (9% of $13.48) = $ 1.21 Times 500,000 albums = $ 500,000 SUB TOTAL = $ 605,00 Times: Royalty bearing % (15% o = no royalty) = X 85% Gross Royalty = $ 514,250 Less advances: Recording, promo, music video, tour = $ -350,000 TOTAL ROYALTY TO ARTIST = $ 164,250 - Reserves (35%) returned by retailer) = $ -57,487.50 (1) ACTUAL ROYALTY PAID TO ARTIST = $ 106,762.50

(1)Reserves will be paid to artist in 2 years if no CDs returned by retailer

Remember the artist still has to pay TAXES! Don't forget Uncle Sam has to get his cut! Also, don't forget the Personal Manger, the Attorney, the Accountant, the Agent and other numerous expenses.

However, there are many other royalties that an artist can acquire. They include, Record Clubs, Compilation CDs, Samplers (low-priced albums in which a few artists are featured), Premiums (albums sold with other products, such as cereal), Film Soundtrack Album, Music Video Sales, Greatest Hit's Album, Foreign Royalties (song played in some foreign country radio stations pay royalties, unlike the US), Master Use License (music used in a movie, television, commercial, the Internet, CD-ROM and DVD), etc.

Of course because of the Internet, the rules royalties are changing. Many people now buy their music via the Internet. Just think, no packaging required and no distribution to traditional retail stores needed. Some websites allow customers to buy individual songs as oppose to an album. Changes are currently taking place on how royalties are calculated because of the Internet. Many attorneys are pushing to have royalties be based on each song sold as oppose to each album sold. So stay tuned!

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UNSIGNED ARTIST (TERM)

The term "unsigned artist" is used in the music industry to refer to a singer, songwriter, musician, or band that has no affiliation with a record label. Many unsigned artists sell their music and music-related merchandise without the financial support of a record label, while often seeking a recording contract through the recording of demos. The difference between an unsigned artist and an aspiring artist is that aspiring artists in most cases do not sell their music commercially . Recently, the internet has helped promote independent artistic material. Artists tend to post their music on websites such as myspace, iLike, WeirdMusic.net etc, and sometimes have their music played on podcast shows. In recent times, artists such as Nine Inch Nails and Radiohead , who once had major label record deals, have started to release their music independently.

Notable unsigned artists :


Clap Your Hands Say Yeah, Indie rock band (have a distribution deal with Wichita Records, but are not signed to the label)
Cymbals Eat Guitars, Indie rock band
Faithless , seminal British trip-hop ensemble
fun., indie rock band. Currently have a distribution deal with Nettwerk Records, but are not signed to the label
Adil Omar, hip-hop artist. Has currently gained online prescence and appeared on numerous songs with Cypress Hill , Penn Jillette and others but has remained unsigned as of yet.
Koopa and Mesh-29, the only two unsigned bands to have a UK Singles Charting hit.
Metric, indie rock band, currently have a distribution deal with Last Gang Records but are not signed to the label
Nine Inch Nails , formerly of Interscope Records
Radiohead , formerly of Parlophone Records. Currently have a distribution deal with TBD Records but are not signed to the label.
We Are The Ocean, Post-Hardcore band from London.
Marilyn Manson , formerly of Interscope Records and Nothing.
Jeffree Star
Yung Mar A-List Music Group, currently unsigned but promoted under a distribution label

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MUSIC JOURNALISM

Music journalism is criticism and reportage about music. It began in the eighteenth century as comment on what is now thought of as 'classical music'. This aspect of music journalism, today often referred to as music criticism (although that risks confusion with the academic discipline), comprises the study, discussion, evaluation, and interpretation of music and its performance. Modern art music journalism is often informed by music theory consideration of the many diverse elements of a musical piece or performance, including (as regards a musical composition) its form and style, and as regards performance, standards of technique and expression. It was expressed, for example, in journals such as Neue Zeitschrift für Musik founded by Robert Schumann, and is continued today in the columns of serious newspapers and journals such as The Musical Times.

Today a major branch of music journalism is an aspect of entertainment journalism — covering popular music and including profiles of singers and bands and album reviews. In the 2000s, online music bloggers are to some degree displacing newspaper and magazine-based pop music critics.

Entertainment journalism is an umbrella term used to describe all forms of journalism that focus on the entertainment business and its products. Like fashion journalism, entertainment journalism covers industry-specific news while targeting general audiences beyond those working in the industry itself. Common forms include television and film criticism, music journalism, video game journalism and celebrity coverage.

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Entertainment law or media law is a term for a mix of more traditional categories of law with a focus on providing legal services to the entertainment industry. The principal areas of Entertainment Law overlap substantially with the well-known and conventional field of intellectual property law. But generally speaking the practice of entertainment law often involves questions of employment law, labor law, bankruptcy law, immigration, securities law, security interests, agency, intellectual property (especially trademarks, copyright, and the so-called "Right of Publicity"), right of privacy, defamation, clearance of rights, product placement, advertising, International law (especially Private international law), and insurance law. Much of the work of an entertainment law practice is transaction based, i.e. drafting contracts, negotiation and mediation. Some situations may lead to litigation or arbitration.

Entertainment law is generally sub-divided into the following areas related to the types of activities that have their own specific trade unions, production techniques, rules, customs, case law, and negotiation strategies:

FILM: covering option agreements, finance, chain of title issues, talent agreements (screenwriters, film directors, actors, composers, production designers), production and post production and trade union issues, distribution issues, motion picture industry negotiations distribution, and general intellectual property issues especially relating to copyright and, to a lesser extent, trademarks;
MUSIC: including talent agreements (musicians, composers), producer agreements, and synchronization rights, music industry negotiation and general intellectual property issues, especially relating to copyright (see music law);
TELEVISION and RADIO including broadcast licensing and regulatory issues, mechanical licenses, and general intellectual property issues, especially relating to copyright;
THEATRE: including rental agreements and co-production agreements, and other performance oriented legal issues;
MULTIMEDIA, including software licensing issues, video game development and production, Information technology law, and general intellectual property issues;
PUBLISHING and print media issues, including advertising, models, author agreements and general intellectual property issues, especially relating to copyright;
VISUAL ARTS AND DESIGN including fine arts, issues of consignment of artworks to art dealers, moral rights of sculptors regarding works in public places; and industrial design, issues related to the protection of graphic design elements in products.
Defamation (libel and slander), personality rights and privacy rights issues also arise in entertainment law.

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Amazon & Walmart Tie For #2 U.S. Music Retailer
iTunes Still #1 As Digital Grows

iTunes continued to be the top retailer of music with 28% of all music purchased by U.S. , up 4% since Q1 2009 according to researcher NPD. Amazon gained 3% to tie Walmart's shrinking music department for second position at 12%

Sales of digital tracks and albums accounted for 40% overall music sales in the first quarter of 2010, up 5% from Q1 2009.*

iTunes Flat For Last 4 Quarters

When reviewing sales of digital music separately from CDs, NPD found that iTunes's share of the digital-music download market has remained essentially flat since Q1 2009 - growing just 1% to 70% of the digital music market last quarter. At the same time, AmazonMP3 grew by 4% to reach 12% while Amazon's share of the CD market grew 2% to 11%.

"Amazon's growth reflects a stronger position in both the CD and digital formats,” said Russ Crupnick, VP of NPD. “This dual-pronged approach of selling both digital music and CDs helps attract the most valuable and committed music buyer who prefers access to both formats.”

Walmart led U.S. CD purchases in Q1 2010 with a 17% share of the retail market. Best Buy followed Walmart with 14%, Amazon's 11 percent share positioned them in third place.

* NPD's data is based on a combined music-retailer ranking that reflects the combined sales of CDs and digital music downloads (i.e., 12 digital music track downloads are equivalent to one CD).


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