Business and the Music Industry Revision PDF

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Business and the Music Industry Revision

What are the differences between Major and Independent labels? Major Labels:   

Owned by multinational corporations. Has its own distribution label, recording distribution, and publishing. Point systems are used

Independent Labels:    

Operates without the funding of or outside the organizations of the major labels. Rarely include publishing or manufacturing. Frequently have new media operations. Make 4/5 controlled releases and sell 30% of recorded music worldwide.

What is the major label hierarchy? Business and Admin Product Promotion

Who were the big 6? How did they become the big 3? The big 6 were: EMI, Sony, BMG, Polygram, WEA, MCA Polygram then merged into Universal Music Group, which was formerly MCA. Then, BMG got absorbed into Sony. Then the selling of EMI resulted of their recording division being absorbed into Universal and Parlophone and Virgin Classics being absorbed into Warner. The Publishing division of EMI was bought by Sony.

What did EMI do right? They were the pioneers of the 360-degree deal. They responded to new trends, like with releasing the first digital album download for David Bowie’s ‘…Hours.’ And the first ever internet video single ‘Dig In’ by Lenny Kravitz. They were the first major music company to make its music available without digital rights management software.

What did EMI do wrong? They sold to Terra Firma in 2007. The new owners focused on cost cutting. The music industry collapsed once the label was bought. They then treated the musicians like assets.

What is the copyright law? The law gives the creators of literary, dramatic, musical, artistic works, sound recordings, broadcasts, films and typographical arrangement of published editions, rights to control the ways in which their material may be used.

Describe different business models. Artist to Fan – Consumers could pay ‘nothing’. No label involved. Artist/Brand Relationships Unlicensed Peer to Peer Networks (p2p) – Consumers search for and download music without payment. No compensation for label. Internet Service Provider Music Access Proposal – Consumers would pay a monthly fee on their bill for access to unlimited music content. Money collected would be distributed to artists/labels. Subscription – Online subscription service. Subscription eMusic – Paying montly for however many downloads. Digital Retail iTunes/Amazon/CD Baby – Consumers by individual tracks or albums for set rates. Digital Retail Amie Street – Users purchase songs at a price that varies according to demand. Artist to Fan Magnatune – Consumers can buy or download songs or entire albums but can choose their price. Artist to Fan Sheeba.ca – Consumers can buy Jane Sibbery songs for anywhere. Patronage – Consumers fun the projects in exchange for the privilege of accessing the creative process. Licensing Rumblefish/Pump Audio– B2B Service. Music directors can use Pump Audio or Rumblefish as an affordable service for ads/tv/movies. Radio/Webcast/Digital Performances/Pandora – Ad supported model for free or ad free version for a monthly or yearly amount. Podcasts

Describe the early commercialization of music.

What is the impact of the internet? Streamz, sharing, new business models, social media, platforms.

What is A&R? Artists and Repertoire. Historically, they would select artists to record music that they had also selected out of an available pool of each. The A&R person is the first person to make contact with the band. They’re not allowed to write contracts and have little to do with the legal process. They present the band with a letter of intent or a “deal memo” which loosely states some terms and affirms that the band will sign with the label once the contract has been agreed on....