What used to be considered the ‘Big Four’ will soon be down to the ‘Big Three’. EMI has been sold, and like I speculated in February – it has been sold as parts.
EMI Ceo, Roger Faxon, sent an email to his staff in which he informed them that the company would be split up. Faxon assures his staff that there were interested buyers to EMI as a whole, but the financial markets got in the way. “With credit spreads widening and little access to debt capital it became difficult for financial bidders to formulate compelling proposals at the right price”. And so, EMI will be split in half. However the separation of the two businesses will take some time, so for the time being EMI remains the same as it was before the sale.
EMI’s recorded music division has been sold to Vivendi’s Universal Music Group (UMG) for $1.9 billion. The price tag represents 7 x the company’s earnings before interest tax depreciation and amortization (EBITDA). The cost will be financed from Vivendi’s existing credit lines, and UMG will see about $500 million in non-core UMG assets. However, independent labels are protesting the sale of EMI to UMG claiming that UMG is too powerful as is.
EMI’s music publishing division has been sold to group led by Sony. The investment group is made of Sony Corporation, the Estate of Michael Jackson, Mubadala Development Company, Jynwel Capital Limited, the Blackstone Group’s GSO Capital Partners, and David Geffen. The price tag the heralded publishing division comes in at $2.2 billion. Once the transaction is complete Sony / ATV Music Publishing will oversee the operations of EMI music publishing. Much like the protest with EMI & UMG, independent music publishers have protested the sale of EMI to Sony. They might not have much basis to the protest though, because unlike the sale to UMG, this sale will allow EMI Publishing to operate as a separate business entity.
Both Universal and Sony need to clear necessary regulatory hurdles before they can take ownership of EMI. In other words – nothing is final just yet – and in this industry, things can change overnight.
References
Read CEO Roger Faxon's Letter To EMI Staff On Sale To Universal
Citigroup Press Release on EMI Sale To Universal Music Group
Citigroup Statement Announcing Sale of EMI Publishing to Sony / ATV Group
11.19.2011
11.05.2011
A Financial and Legal Nightmare for Record Labels
It’s every major label’s financial and legal nightmare – and it could soon be a reality.
Back in March, I wondered if Eminem’s victory over Universal Music Group in a case dealing with royalties and legal downloads would have an impact on the industry. (See original post here)
For Universal Music Group (UMG) that case has set off a firestorm one that no major label would want to deal with. UMG could soon be hit with multiple class action lawsuits that claim they have short-changed artists of royalties owed to them for digital downloads and ringtones. The lawsuits all deal with the basic principle – are digital downloads and ringtones sold or licensed?
The difference between a sale and a license? Billions of dollars.
Labels claim that digital downloads and ringtones are sales, however artists claim that they are licenses because there is little cost involved to the labels. Currently labels pay artists a royalty rate – anywhere between 10 and 20 percent – for a digital download or a ringtone. If the artists win their case, the revenue distribution is much closer to a 50/50 split – which would threaten the continued feasibility in the marketplace of the labels.
Earlier this year the 9th circuit court of appeals ruled that Eminem recordings transferred online were licenses. UMG spun that to mean that it as a singular case that dealt with specific language in Eminem’s contract. In the upcoming cases UMG hopes the cases are treated as breach-of-contract disputes. Otherwise it could mean huge losses for the recorded music industry if the artists get their way.
Currently UMG has been the only target of such claims, however if artists become successful in winning these cases in court, more labels could soon be the targets. In an industry that has already seen losses due to the digital age, this could potentially cripple the recorded music industry. (Recorded Music – not music – remember to distinguish the two).
In the coming months it will be interesting to see what perspires in two separate cases going on now – one spearheaded by Rob Zombie and the estate of Rick James, and one by Public Enemy member Chuck D – both of which are classified as class action.
References:
Universal Music Loses Bid to Dismiss Class Action Over Digital Revenue
Court Rules Against Universal Music In Lawsuit that Could Pay Artists Millions. Chuck D Joins Fight.
Judge Declines Universal Music Groups Bid to Dismiss Class Action Over Digital Revenue
Back in March, I wondered if Eminem’s victory over Universal Music Group in a case dealing with royalties and legal downloads would have an impact on the industry. (See original post here)
For Universal Music Group (UMG) that case has set off a firestorm one that no major label would want to deal with. UMG could soon be hit with multiple class action lawsuits that claim they have short-changed artists of royalties owed to them for digital downloads and ringtones. The lawsuits all deal with the basic principle – are digital downloads and ringtones sold or licensed?
The difference between a sale and a license? Billions of dollars.
Labels claim that digital downloads and ringtones are sales, however artists claim that they are licenses because there is little cost involved to the labels. Currently labels pay artists a royalty rate – anywhere between 10 and 20 percent – for a digital download or a ringtone. If the artists win their case, the revenue distribution is much closer to a 50/50 split – which would threaten the continued feasibility in the marketplace of the labels.
Earlier this year the 9th circuit court of appeals ruled that Eminem recordings transferred online were licenses. UMG spun that to mean that it as a singular case that dealt with specific language in Eminem’s contract. In the upcoming cases UMG hopes the cases are treated as breach-of-contract disputes. Otherwise it could mean huge losses for the recorded music industry if the artists get their way.
Currently UMG has been the only target of such claims, however if artists become successful in winning these cases in court, more labels could soon be the targets. In an industry that has already seen losses due to the digital age, this could potentially cripple the recorded music industry. (Recorded Music – not music – remember to distinguish the two).
In the coming months it will be interesting to see what perspires in two separate cases going on now – one spearheaded by Rob Zombie and the estate of Rick James, and one by Public Enemy member Chuck D – both of which are classified as class action.
References:
Universal Music Loses Bid to Dismiss Class Action Over Digital Revenue
Court Rules Against Universal Music In Lawsuit that Could Pay Artists Millions. Chuck D Joins Fight.
Judge Declines Universal Music Groups Bid to Dismiss Class Action Over Digital Revenue
10.23.2011
Learning From The Experts
Business Plans are written with the intention of getting presented to venture capitalists in hopes of securing funds for the business venture. Of course there are other reasons in which to write a business plan, but securing capital is the primary one. Venture capitalists can at times look through hundreds of plans – so it’s important to incorporate the specific things they do look for when you’re writing a plan.
I’m currently writing a business plan for an independent music publishing company and after researching information presented by venture capitalists Daymond John and XXXX, there are a few things I’ve incorporated and changed about my business plan along the way.
Daymond John stresses the importance of laying out a complete plan. This means doing your homework about similar businesses in the market and researching every aspect of your business. In designing my business plan I have carefully researched what others in the industry are doing, as well as what they are not doing. A good analysis of the market is an important part of a business plan because it allows venture capitalists to see where your company would fit in.
John also stresses the importance of being able to explain how your business operates to an individual who is not in the industry you are venturing into. This piece of advice has caused me to write a detailed operations section in my business plan. While the company operations might seem trivial to me, or even to others who understand how music licensing works, to a venture capitalist unfamiliar with the music industry these concepts are foreign. Giving them insight into company operations is essential.
Kevin Harrington stresses the importance of having a big marketing budget. He insists that 20 to 30 percent of a businesses’ initial budget should be towards marketing. This has caused me to change my marketing scheme. While originally thought to be a small marketing campaign, I have reworked my marketing and advertising budget so that there are different marketing channels being targeted every month, from different angles.
Harrington also says that a great executive summary is important – you need to show how you are going to benefit the investor and how the investor is going to make money. You need to show how you can benefit the investor. While I have yet to begin writing my executive summary, I know that I am going to have to work extra hard on it because sometimes it is the only thing that an investor will actually look at.
Overall, it’s important to understand that an investor is going to be investing in you and that your business plan is a reflection of you.
Sources:
Daymond John's Top 30 Tips and Advice From 2010
Ten Questions FUBU CEO, Daymond John, Asks Entreprenuers
Advice from the 'Shark Tank': How to Swim with the Big Fish
ABC Shark Tank Kevin Harrington Shares His Wisdom
I’m currently writing a business plan for an independent music publishing company and after researching information presented by venture capitalists Daymond John and XXXX, there are a few things I’ve incorporated and changed about my business plan along the way.
Daymond John stresses the importance of laying out a complete plan. This means doing your homework about similar businesses in the market and researching every aspect of your business. In designing my business plan I have carefully researched what others in the industry are doing, as well as what they are not doing. A good analysis of the market is an important part of a business plan because it allows venture capitalists to see where your company would fit in.
John also stresses the importance of being able to explain how your business operates to an individual who is not in the industry you are venturing into. This piece of advice has caused me to write a detailed operations section in my business plan. While the company operations might seem trivial to me, or even to others who understand how music licensing works, to a venture capitalist unfamiliar with the music industry these concepts are foreign. Giving them insight into company operations is essential.
Kevin Harrington stresses the importance of having a big marketing budget. He insists that 20 to 30 percent of a businesses’ initial budget should be towards marketing. This has caused me to change my marketing scheme. While originally thought to be a small marketing campaign, I have reworked my marketing and advertising budget so that there are different marketing channels being targeted every month, from different angles.
Harrington also says that a great executive summary is important – you need to show how you are going to benefit the investor and how the investor is going to make money. You need to show how you can benefit the investor. While I have yet to begin writing my executive summary, I know that I am going to have to work extra hard on it because sometimes it is the only thing that an investor will actually look at.
Overall, it’s important to understand that an investor is going to be investing in you and that your business plan is a reflection of you.
Sources:
Daymond John's Top 30 Tips and Advice From 2010
Ten Questions FUBU CEO, Daymond John, Asks Entreprenuers
Advice from the 'Shark Tank': How to Swim with the Big Fish
ABC Shark Tank Kevin Harrington Shares His Wisdom
10.02.2011
The Real Life Shark Tank
If you’ve ever thought about being an entrepreneur I’m sure you’ve watched the ABC hit-show ‘Shark Tank’. If you haven’t – you’re missing out. Shark Tank is a reality television show in which entrepreneurs present their business to a panel of investors who then evaluate and negotiate investment proposals. The panel is made up of entrepreneurs who are now investors. Two of these panelists, or ‘sharks’ as they are referred to on the show, are Daymond John and Kevin Harrington.
Daymond John was the force behind urban clothing FUBU in the 90’s. He was the founder, president and CEO of the company – leading it to $350 million in revenues by the late 1990’s. The company propelled to the levels of Donna Karan and Tommy Hilfiger. John also authored the book, Display of Power: How FUBU Changed a World of Fashion, Branding & Lifestyle. The book was named one of the best business books of 2007 by the Library Journal.
Kevin Harrington is one of the driving forces behind infomercials. He produced one of the first infomercials in 1984 and has since been involved in over 500 product launches. Harrington is a serial entrepreneur, having started several companies in the 90’s. His latest venture was a book, Act Now: How I Turn Ideas into Million-Dollar Products.
Both entrepreneurs have posted successful careers and both have critical and key components that they look for when deciding weather to invest in a particular business plan.
Kevin Harrington listed five key components he looks for before investing in a company, which he says he looks for by answering five key questions.
Is it a mass market? The bigger the market, the bigger the appeal of the product. If the market is too niche, then it leaves a smaller window of possible clients.
Is it unique in market? If there’s something similar in the market place already investors are likely to gravitate away from the investment, especially if the competition is already established. Being able to show an investor a new product, or a new feature to an old product is important.
Is it a problem solver? Everyone has a problem in the marketplace, and often times there needs go unanswered. A company that is solving this problem – weather by offering a new service or a new product, or an alternative to solving it versus one that is already available makes investors interested because they can see that there is already a market out there for your product or service.
Is there a transformation with this product? Investors look for exciting investments, products that can offer exciting changes to consumers tends to excite investors as well.
Is it multifunctional? If your company can provide different services, or if a product can provide different functions then investors feel more secure about investing because it can be marketed in many different capabilities, and thus be better than a similar product that can only offer one function. Case in point – today’s smartphone is a better investment than the traditional wireless phone.
Daymond John also tends to ask himself several questions when he looks at the key components of a business plan. While some are similar to Harrington, he also lists some addition ones.
What are the distribution channels? It’s great to have an idea and a great product, but it’s equally important to know how to get the product to the consumer. Sometimes the product can be a great, but if it is distributed poorly, can never find it’s way to consumer’s hands.
How much does the entrepreneur know about his own industry? John states that this is his biggest pet peeve when looking over business plans. An entrepreneur should know an immense amount about the industry they plan to enter into in order to competitively compete. Lack of knowledge about the industry, can bring down the company before it successfully begins.
Both entrepreneurs however agree that it is important to be able to answer all questions regarding your business and your business plan quickly. If there’s hesitation involved in answering, it causes an investor to hesitate when deciding if investing in your company is a wise decision. Take it from two guys who have been pitched countless ideas - the last thing you want as an entrepreneur is a hesitant investor.
References:
Daymond John - Shark Bio
Kevin Harrington - Shark Bio
5 Things Kevin 'Shark Tank' Harrington Looks For Before Investing
The Making of FUBU - An Interview with Daymond John
Daymond John was the force behind urban clothing FUBU in the 90’s. He was the founder, president and CEO of the company – leading it to $350 million in revenues by the late 1990’s. The company propelled to the levels of Donna Karan and Tommy Hilfiger. John also authored the book, Display of Power: How FUBU Changed a World of Fashion, Branding & Lifestyle. The book was named one of the best business books of 2007 by the Library Journal.
Kevin Harrington is one of the driving forces behind infomercials. He produced one of the first infomercials in 1984 and has since been involved in over 500 product launches. Harrington is a serial entrepreneur, having started several companies in the 90’s. His latest venture was a book, Act Now: How I Turn Ideas into Million-Dollar Products.
Both entrepreneurs have posted successful careers and both have critical and key components that they look for when deciding weather to invest in a particular business plan.
Kevin Harrington listed five key components he looks for before investing in a company, which he says he looks for by answering five key questions.
Is it a mass market? The bigger the market, the bigger the appeal of the product. If the market is too niche, then it leaves a smaller window of possible clients.
Is it unique in market? If there’s something similar in the market place already investors are likely to gravitate away from the investment, especially if the competition is already established. Being able to show an investor a new product, or a new feature to an old product is important.
Is it a problem solver? Everyone has a problem in the marketplace, and often times there needs go unanswered. A company that is solving this problem – weather by offering a new service or a new product, or an alternative to solving it versus one that is already available makes investors interested because they can see that there is already a market out there for your product or service.
Is there a transformation with this product? Investors look for exciting investments, products that can offer exciting changes to consumers tends to excite investors as well.
Is it multifunctional? If your company can provide different services, or if a product can provide different functions then investors feel more secure about investing because it can be marketed in many different capabilities, and thus be better than a similar product that can only offer one function. Case in point – today’s smartphone is a better investment than the traditional wireless phone.
Daymond John also tends to ask himself several questions when he looks at the key components of a business plan. While some are similar to Harrington, he also lists some addition ones.
What are the distribution channels? It’s great to have an idea and a great product, but it’s equally important to know how to get the product to the consumer. Sometimes the product can be a great, but if it is distributed poorly, can never find it’s way to consumer’s hands.
How much does the entrepreneur know about his own industry? John states that this is his biggest pet peeve when looking over business plans. An entrepreneur should know an immense amount about the industry they plan to enter into in order to competitively compete. Lack of knowledge about the industry, can bring down the company before it successfully begins.
Both entrepreneurs however agree that it is important to be able to answer all questions regarding your business and your business plan quickly. If there’s hesitation involved in answering, it causes an investor to hesitate when deciding if investing in your company is a wise decision. Take it from two guys who have been pitched countless ideas - the last thing you want as an entrepreneur is a hesitant investor.
References:
Daymond John - Shark Bio
Kevin Harrington - Shark Bio
5 Things Kevin 'Shark Tank' Harrington Looks For Before Investing
The Making of FUBU - An Interview with Daymond John
9.16.2011
Spotify - Legal Music at Your Fingertips
Spotify. Where are you? That’s the question I pondered a few months back. Spotify has since arrived and I for one am hooked.
Spotify launched in the United States in the middle of the summer, making millions in legal music available to listeners. Many people noticed, and along with it’s release came the critics. While in the US Spotify is only a few months old in Europe the company is in its third year of operation. At a time when more music start-ups fail than succeed, that’s quite impressive. The critics aren’t all that impressed. In its short time indie labels are protesting Spotify, saying that the model isn’t financially sustainable for indie labels. Will Spotify pay up? Apparently it has – Spotify released a statement last month that in just three short years, where they were mostly operating in Europe, they have already paid over $100 million to labels and publishers. IFPI figures actually showed that Spotify was the second largest source of digital revenue for labels in Europe. Impressive for a little start-up.
Currently, users of the free Spotify accounts can listen to anything they want from the database, as many times as they want, with advertisements in between. The free trial lasts for 6 months. So what happens after? You can still access Spotify, but with a few restrictions. Listeners will only be able to play each track 5 times, and will only be able to listen for 10 hours a month. The move has worked well in Europe were restrictions are already in place. In March, when there were free restrictions, 17.8% of the active user play was paying users. By June, when the restrictions were in place, 32.9% were paying users. Sure they lost more than a million free users, but they also gained more than half a million paying users. It’s left to see what will happen in the US once the restrictions are enforced. Analysts however feel that once their financial-year-ending reports are released, Spotify will have turned a profit. Isn’t that the goal of all start-ups – to turn a profit within three years?
Are you using Spotify? When the restrictions are in place – will you begin paying for a subscription? I sure will. Having an artist’s entire catalog available to me at the click of a mouse is amazing.
References:
Spotify Payouts Top $100m as it Responds to Indie Label Critics
Exclusive: Spotify Subscriptions Surged to 1.5m After Free Service Restrictions
Spotify launched in the United States in the middle of the summer, making millions in legal music available to listeners. Many people noticed, and along with it’s release came the critics. While in the US Spotify is only a few months old in Europe the company is in its third year of operation. At a time when more music start-ups fail than succeed, that’s quite impressive. The critics aren’t all that impressed. In its short time indie labels are protesting Spotify, saying that the model isn’t financially sustainable for indie labels. Will Spotify pay up? Apparently it has – Spotify released a statement last month that in just three short years, where they were mostly operating in Europe, they have already paid over $100 million to labels and publishers. IFPI figures actually showed that Spotify was the second largest source of digital revenue for labels in Europe. Impressive for a little start-up.
Currently, users of the free Spotify accounts can listen to anything they want from the database, as many times as they want, with advertisements in between. The free trial lasts for 6 months. So what happens after? You can still access Spotify, but with a few restrictions. Listeners will only be able to play each track 5 times, and will only be able to listen for 10 hours a month. The move has worked well in Europe were restrictions are already in place. In March, when there were free restrictions, 17.8% of the active user play was paying users. By June, when the restrictions were in place, 32.9% were paying users. Sure they lost more than a million free users, but they also gained more than half a million paying users. It’s left to see what will happen in the US once the restrictions are enforced. Analysts however feel that once their financial-year-ending reports are released, Spotify will have turned a profit. Isn’t that the goal of all start-ups – to turn a profit within three years?
Are you using Spotify? When the restrictions are in place – will you begin paying for a subscription? I sure will. Having an artist’s entire catalog available to me at the click of a mouse is amazing.
References:
Spotify Payouts Top $100m as it Responds to Indie Label Critics
Exclusive: Spotify Subscriptions Surged to 1.5m After Free Service Restrictions
9.04.2011
Artists & Social Media
Do-It-Yourself (DIY) artists are nothing new. Yet, as the digital landscape of the music industry keeps changing it’s important to use new technological initiatives to ones advantage. Receptive Music released the following infographic a few weeks ago.
At first glance it can be kind of over whelming, but if you break it down it’s much easier to navigate.
The Essentials:
Creating an online presence is the most important thing an artist can do to further their career. It’s not only about the music you play – but also about who you are. It’s important to create an avenue in which current and perspective fans can connect to you. Sites like Facebook and Twitter allow artists to directly engage with their fans. Artists should strive to make two-way conversations with people consistently.
Tyler Cordy, from the band 2AM Club, runs the band’s Twitter account and he makes it a point to communicate to the fans. If you mention the band, he’s more than likely going to respond to you. Fans love being noticed by their favorite bands – it makes them feel appreciated and as most musicians know, it’s now about the quantity of your fans, but the quality. One hundred die-hard fans will be more profitable to a band in the long run than one thousand casual fans.
Share Your Music:
After you’ve created an online presence it’s important to get your music out there and available to your fans. Websites such as SoundCloud allow you to upload your music and then share it through various platforms.
Sell Your Music:
While making your music available for streaming online is important – it’s also important to monetize your music. From direct-to-fan sales available through websites such as Audimated and Nimbit to digital distribution through TuneCore and ReverbNation, it’s important to find ways to monetize your music. The problem isn’t always that people don’t buy music – it’s that people can’t find the music to buy and thus resort to pirating it online. Making sure that your music is available online, as opposed to strictly physical copies sold at shows, is vital.
Tour Dates:
In the current music industry touring is one of the most profitable avenues for artists. It’s important that fans know when and where you’re performing, with enough time in advance that they can arrange to show up. It’s also important to list the details of a performance – cover charge, age restrictions, etc. Ex: If you’re performing at upscale clubs with a specific dress code make sure you let your fans know. Listing your tour dates on a website such as BandsInTown allows for not only your fans to find your tour dates, but also users who are in the city as well. At first login a consumer can see the tour dates of their favorite artists, as well as upcoming shows from other bands in their area. Plus they also send periodic emails to users informing them of shows in their areas.
Blog / Website:
While social networking websites allow you to directly engage with fans, it’s also important to maintain an artist presence outside of that – weather through a blog or a website. Tumblr provides the easiest form of blogging – that of micro blogging. Artists such as Pete Wentz have embraced the trend that allows you to share pictures, videos, audio, as well as short and long bursts of text.
Share Your Videos:
Video killed the radio star, at least that was the theory when MTV first premiered and launched with video from the Buggles in 1981. While MTV might not play as many videos as they used to, online platforms such as YouTube have allowed music videos to continue it’s rise. Some artists such as Soulja Boy and Rebecca Black have gained extensive media attention thanks to their YouTube video views. Creating a fancy music video is not a requirement though – sharing live performance videos works well too. Just make sure the audio isn’t distorted to the point that the music can’t be heard. Artists such as Lil Wayne have also taken it up another notch, using LiveStream and UStream to stream live footage in the studio.
Newsletter:
It’s also important not to forget about the marketing tool that preceded social networking – newsletters. Obtaining fan e-mail addresses is still an important aspect that should not be ignored. It also shouldn’t be limited to online. If possible try to obtain e-mails at shows and then proceed to send a show follow-up the next twenty-four hours. First time listeners of your music will be impressed, as will the loyal fans. Newsletters are also great for summarizing crucial band information and then sending it out to your fans. It’s imperative however not to bombard them with e-mails.
Measure:
After everything is said in then it’s important to measure the fruits of your labor. Knowing what platforms is attracting traffic, and which ones fans respond to more is important. It let’s you know what works, and what doesn’t. Measuring your visitors through websites such as Google Analytics also lets you know how the majority of your fans are reaching your pages. Active monitoring might lead you to find a page that’s supporting your music.
As the infographic points out – don’t take on more than you can handle. If your going to use the medium for a month and then abandon it, it’s best to just avoid it all together. No one wants to tune in to a page that hasn’t been updated in months. And if you’re still feeling overwhelmed – websites such as ReverbNation and TopSpin incorporate many of these tools into one platform. However they do charge you yearly fees.
References:
2AM Club Twitter
The Musician's Social Media Food Pyramid
25 Top Social Media Tools for Musicians
Video Killed the Radio Star YouTube Video
Pete Wentz's Tumblr
At first glance it can be kind of over whelming, but if you break it down it’s much easier to navigate.
The Essentials:
Creating an online presence is the most important thing an artist can do to further their career. It’s not only about the music you play – but also about who you are. It’s important to create an avenue in which current and perspective fans can connect to you. Sites like Facebook and Twitter allow artists to directly engage with their fans. Artists should strive to make two-way conversations with people consistently.
Tyler Cordy, from the band 2AM Club, runs the band’s Twitter account and he makes it a point to communicate to the fans. If you mention the band, he’s more than likely going to respond to you. Fans love being noticed by their favorite bands – it makes them feel appreciated and as most musicians know, it’s now about the quantity of your fans, but the quality. One hundred die-hard fans will be more profitable to a band in the long run than one thousand casual fans.
Share Your Music:
After you’ve created an online presence it’s important to get your music out there and available to your fans. Websites such as SoundCloud allow you to upload your music and then share it through various platforms.
Sell Your Music:
While making your music available for streaming online is important – it’s also important to monetize your music. From direct-to-fan sales available through websites such as Audimated and Nimbit to digital distribution through TuneCore and ReverbNation, it’s important to find ways to monetize your music. The problem isn’t always that people don’t buy music – it’s that people can’t find the music to buy and thus resort to pirating it online. Making sure that your music is available online, as opposed to strictly physical copies sold at shows, is vital.
Tour Dates:
In the current music industry touring is one of the most profitable avenues for artists. It’s important that fans know when and where you’re performing, with enough time in advance that they can arrange to show up. It’s also important to list the details of a performance – cover charge, age restrictions, etc. Ex: If you’re performing at upscale clubs with a specific dress code make sure you let your fans know. Listing your tour dates on a website such as BandsInTown allows for not only your fans to find your tour dates, but also users who are in the city as well. At first login a consumer can see the tour dates of their favorite artists, as well as upcoming shows from other bands in their area. Plus they also send periodic emails to users informing them of shows in their areas.
Blog / Website:
While social networking websites allow you to directly engage with fans, it’s also important to maintain an artist presence outside of that – weather through a blog or a website. Tumblr provides the easiest form of blogging – that of micro blogging. Artists such as Pete Wentz have embraced the trend that allows you to share pictures, videos, audio, as well as short and long bursts of text.
Share Your Videos:
Video killed the radio star, at least that was the theory when MTV first premiered and launched with video from the Buggles in 1981. While MTV might not play as many videos as they used to, online platforms such as YouTube have allowed music videos to continue it’s rise. Some artists such as Soulja Boy and Rebecca Black have gained extensive media attention thanks to their YouTube video views. Creating a fancy music video is not a requirement though – sharing live performance videos works well too. Just make sure the audio isn’t distorted to the point that the music can’t be heard. Artists such as Lil Wayne have also taken it up another notch, using LiveStream and UStream to stream live footage in the studio.
Newsletter:
It’s also important not to forget about the marketing tool that preceded social networking – newsletters. Obtaining fan e-mail addresses is still an important aspect that should not be ignored. It also shouldn’t be limited to online. If possible try to obtain e-mails at shows and then proceed to send a show follow-up the next twenty-four hours. First time listeners of your music will be impressed, as will the loyal fans. Newsletters are also great for summarizing crucial band information and then sending it out to your fans. It’s imperative however not to bombard them with e-mails.
Measure:
After everything is said in then it’s important to measure the fruits of your labor. Knowing what platforms is attracting traffic, and which ones fans respond to more is important. It let’s you know what works, and what doesn’t. Measuring your visitors through websites such as Google Analytics also lets you know how the majority of your fans are reaching your pages. Active monitoring might lead you to find a page that’s supporting your music.
As the infographic points out – don’t take on more than you can handle. If your going to use the medium for a month and then abandon it, it’s best to just avoid it all together. No one wants to tune in to a page that hasn’t been updated in months. And if you’re still feeling overwhelmed – websites such as ReverbNation and TopSpin incorporate many of these tools into one platform. However they do charge you yearly fees.
References:
2AM Club Twitter
The Musician's Social Media Food Pyramid
25 Top Social Media Tools for Musicians
Video Killed the Radio Star YouTube Video
Pete Wentz's Tumblr
8.19.2011
What's The Trend?
Trends are everywhere, and the music industry is no exception. However, the Hip-Hop community tends to create and embrace their own trends in comparison to the rest of the industry. This year alone they have managed to create quite a few of them.
Self-Production: Fifteen years after the trend originally appeared it has come back again. The days are over where you are left to wonder who produced an album. The trend today is for emcees to produce their own album. It seems fitting that the artist who perhaps inspired this trend the most was Kanye West. In a time where labels envisioned Trackmasters, Timbaland, or Scott Storch to be the ‘it’ producers required to make a single take off, Kanye West was making award winning albums on his own. The labels took note – especially when they released they could potentially save thousands, if not millions, on paying third party producers. Today the one-man is in full effect with producers / artists such as K.R.I.T., Blu and J.Cole all set to release albums this year.
Female Vocal Appearances: Hip-Hop has always favored female hooks, particularly those by white females, but lately there has been more of them then ever before. One of the recent breakthroughs – Skylar Grey. Not only did she right the hook for Eminem’s award winning track “Love the Way You Lie” but in the past 8 month’s she’s also appeared on Diddy-Dirty Money’s “Coming Home”, Lupe Fiasco’s “Words I Never Said” and Dr. Dre’s “I Need a Doctor”, just to name a few. Katy Perry is on the opposite side of the spectrum. She began guest appearing on Timbaland’s “If We Ever Meet Again” and then recruited rappers Kanye West and Snoop Dogg for two different singles on her last album “Teenage Dream”. One of most addictive hooks of the past year – Hayley Williams on B.o.B’s “Airplanes”. Seriously – if you weren’t singing it along in your head, reading it on Facebook statuses or on twitter feeds – something is wrong.
Album Delays: The classic album delays. No genre of music knows this better than that of Hip-Hop. Die-hard enthusiasts are still waiting for the day when Dr. Dre’s long anticipated album “Detox” is finally released. For years Dr. Dre has promised that ‘Detox was coming’. Release date after release date have come and gone, presumed singles have been released, and yet “Detox” appears to be a far away fantasy. For others, such as Kanye West and Jay-Z, after some release dates have past, the album suddenly drops with a week’s notice. Since January listeners had been waiting for the artists’ collaboration “Watch the Throne”. After the March release date passed with no release the album suddenly had a release date announcement, one week prior to the release. Since there wasn’t release date anticipation, leakers were unable to get their hands on the music and thus the album was actually released without being leaked, perhaps part of their strategy the entire time.
All of these trends have lead to hip-hop flooding the charts again like it once did – a quick look at Billboard’s Hot 100 for the week of August 27,2011 and one can see that 10 of the top 25 chart positions are held either by hip-hop artist or feature a hip-hop artist. Quite a feat for a genre that at one point in time was considered to be a passing fade.
References:
One-Man Armies – The Return of The Emcee/Producer Extraordinaire
Viva La White Girl – 5 Voiced Every Rapper Wants on Their Hit
The Big Pushback – Rappers & Labels Strategically Delaying Albums
Billboard Hot 100
Self-Production: Fifteen years after the trend originally appeared it has come back again. The days are over where you are left to wonder who produced an album. The trend today is for emcees to produce their own album. It seems fitting that the artist who perhaps inspired this trend the most was Kanye West. In a time where labels envisioned Trackmasters, Timbaland, or Scott Storch to be the ‘it’ producers required to make a single take off, Kanye West was making award winning albums on his own. The labels took note – especially when they released they could potentially save thousands, if not millions, on paying third party producers. Today the one-man is in full effect with producers / artists such as K.R.I.T., Blu and J.Cole all set to release albums this year.
Female Vocal Appearances: Hip-Hop has always favored female hooks, particularly those by white females, but lately there has been more of them then ever before. One of the recent breakthroughs – Skylar Grey. Not only did she right the hook for Eminem’s award winning track “Love the Way You Lie” but in the past 8 month’s she’s also appeared on Diddy-Dirty Money’s “Coming Home”, Lupe Fiasco’s “Words I Never Said” and Dr. Dre’s “I Need a Doctor”, just to name a few. Katy Perry is on the opposite side of the spectrum. She began guest appearing on Timbaland’s “If We Ever Meet Again” and then recruited rappers Kanye West and Snoop Dogg for two different singles on her last album “Teenage Dream”. One of most addictive hooks of the past year – Hayley Williams on B.o.B’s “Airplanes”. Seriously – if you weren’t singing it along in your head, reading it on Facebook statuses or on twitter feeds – something is wrong.
Album Delays: The classic album delays. No genre of music knows this better than that of Hip-Hop. Die-hard enthusiasts are still waiting for the day when Dr. Dre’s long anticipated album “Detox” is finally released. For years Dr. Dre has promised that ‘Detox was coming’. Release date after release date have come and gone, presumed singles have been released, and yet “Detox” appears to be a far away fantasy. For others, such as Kanye West and Jay-Z, after some release dates have past, the album suddenly drops with a week’s notice. Since January listeners had been waiting for the artists’ collaboration “Watch the Throne”. After the March release date passed with no release the album suddenly had a release date announcement, one week prior to the release. Since there wasn’t release date anticipation, leakers were unable to get their hands on the music and thus the album was actually released without being leaked, perhaps part of their strategy the entire time.
All of these trends have lead to hip-hop flooding the charts again like it once did – a quick look at Billboard’s Hot 100 for the week of August 27,2011 and one can see that 10 of the top 25 chart positions are held either by hip-hop artist or feature a hip-hop artist. Quite a feat for a genre that at one point in time was considered to be a passing fade.
References:
One-Man Armies – The Return of The Emcee/Producer Extraordinaire
Viva La White Girl – 5 Voiced Every Rapper Wants on Their Hit
The Big Pushback – Rappers & Labels Strategically Delaying Albums
Billboard Hot 100
8.18.2011
A Music Supervisor's Favorite Resource
Everyone knows that licensing music for movies and television shows can provide excellent returns – not only monetary but also in exposure. Music Supervisors are the most powerful individuals when it comes to this and use their own method of acquiring music that doesn’t involve calling individuals.
Music Supervisors frequent production music libraries because they can deliver any kind of music. No matter how obscure or otherwise difficult to obtain, one of more production libraries will have it. While they originally only contained background sound, production libraries today are much more than that. They discover groups, form record labels and forge alliances with clients in film and television. One of the greatest features of a production library, and a music supervisor’s favorite attribute, is that all the music they possess has been cleared. All the paperwork has already been done and it’s clear who the licensor is – so there is an unlikely chance that a problem with the license would appear. A music supervisor’s worst nightmare is finding out days before a project is to be released that there is a problem with a song that they were using for a scene and they can no longer use it. Using a production company minimizes greatly the chance that this would occur. Artists need to remember that to a music supervisor the quality of your music may matter less than the ability to achieve clearance. Paperwork and logistics can be a major roadblock. Production companies list meta-data standards to make sure that all the music in their catalogs meets certain requirements. Incorrect meta-data results in the legal department getting involved and using production libraries avoids such a mess.
Timing also comes into play when music supervisors decide to use production libraries. Many times a music supervisor will have a complex need to fill – a Latin-reggae tune in the style of a known artist but inexpensive – and will need it fast. For the most part production libraries have extensive catalogs – and if music supervisors use them often enough they can have some negotiation power over the price of a license.
So what does this mean for musicians? One thing is certain - instead of trying to get your music to a music supervisor, it might be wiser to get your music into a production library.
Reference:
What Music Supervisors Wish You Knew
Music Supervisors frequent production music libraries because they can deliver any kind of music. No matter how obscure or otherwise difficult to obtain, one of more production libraries will have it. While they originally only contained background sound, production libraries today are much more than that. They discover groups, form record labels and forge alliances with clients in film and television. One of the greatest features of a production library, and a music supervisor’s favorite attribute, is that all the music they possess has been cleared. All the paperwork has already been done and it’s clear who the licensor is – so there is an unlikely chance that a problem with the license would appear. A music supervisor’s worst nightmare is finding out days before a project is to be released that there is a problem with a song that they were using for a scene and they can no longer use it. Using a production company minimizes greatly the chance that this would occur. Artists need to remember that to a music supervisor the quality of your music may matter less than the ability to achieve clearance. Paperwork and logistics can be a major roadblock. Production companies list meta-data standards to make sure that all the music in their catalogs meets certain requirements. Incorrect meta-data results in the legal department getting involved and using production libraries avoids such a mess.
Timing also comes into play when music supervisors decide to use production libraries. Many times a music supervisor will have a complex need to fill – a Latin-reggae tune in the style of a known artist but inexpensive – and will need it fast. For the most part production libraries have extensive catalogs – and if music supervisors use them often enough they can have some negotiation power over the price of a license.
So what does this mean for musicians? One thing is certain - instead of trying to get your music to a music supervisor, it might be wiser to get your music into a production library.
Reference:
What Music Supervisors Wish You Knew
7.31.2011
Expert Advice Courtesy of a Podcast
Today the Internet makes it remarkably easy to seek the information that you need. With a simple click of a mouse you can find a plethora of resources at your fingertips. Podcasts for example, are a great way to gather information from the experts.
Mark Quail is an attorney who specializes in Entertainment and Media Law. Mark Quail produced a podcast entitled ‘Music Law Publishing’ that deals with the music publishing industry. The podcast is broken down into two parts and can be found here. The first half of the podcast deals with the different licenses that are assigned in relation to musical compositions in the music publishing industry in order to monetize the songs value and garner monetary compensation for the songwriter.
Mechanical Licenses grant permission to record labels so they can manufacture sound recordings. In the US the royalty rate for mechanical licenses is set at 9.1 cents for musical compositions 5 minutes in length or less and an additional 1.75 cents per minute for each minute over 5 minutes. Outside of the US & Canada, the royalty rate is calculated as a percentage rate of the wholesale price. In either case the record label manufacturing the record pays royalties.
Public Performance licenses control the performance of a song in public. This includes radio stations, television, restaurants, clubs and other venues that use music. Synchronization licenses dictate the terms in which a television or movie production can use a song in their work. These fees are dictated by the market and are reached by negotiation. Print licenses allow for the musical work to be sold or distributed in print form – this includes sheet music and folios, as well as the lyrics printed inside CD booklets. The final license is a new media license. This allows songwriters to license their compositions for greeting cards, midi files, streaming and/or downloads as well as software programs.
Each of these licenses comprises a different amount of a music publisher’s total annual earnings. Currently public performance royalties and mechanical royalties account for the bulk of total annual earnings. However, Quail points out that the other licensing opportunities should not be ignored. This is great advice for music publishers who more often like to go after the deals that look more financially enticing.
The second half of the podcast deals with the different types of publishing contracts. A full publishing contract is a 50/50 split of ownership in the musical work’s copyright as well as in the profits derived. This is what makes you think of a ‘songwriter’s share and a publisher’s share’ when you think of dividing the royalties. A co-publishing contract can be thought to be a 75/25 split of ownership. The songwriter retains the ‘songwriter’s share’ as well as ‘50% of the publisher’s share’. These are the most prevalent forms of publishing agreements. Administration Contracts are the most attractive to songwriters but are usually harder to obtain. Under this type of contract the publisher handles all of the copyright administration but does not retain ownership. They receive anywhere from 5% to 25% of net receipts of typical revenue and up to 40% of net receipt for sync licenses. The final contract is a sub-publishing contract. These types of contracts are usually entered into by the original publishing company and are considered to be administration contracts that are focused on one or more countries outside of the songwriter’s home territory.
The Chicago Music Commission is nonprofit organization formed from members in the Chicago music community. They hosted a panel on intellectual property and legal issues that can be heard here. The panel begins my hammering in what most artists should already know – having legal representation in this industry is a must. Legal representation is important because everyone else you deal with in the industry understands that this is a business. If they understand legal and business aspects and you don’t, then your not on an even playing field, therefore you’re not fighting a fair fight with who ever you are trying to negotiate, be it a booking agent or a record label. They also point out that you want to build a team of people who are on your side and looking at things from your perspective, because the people who want to use you will tell you things from their perspective, and not yours.
The panel also proceeds to dispute what has at one point been called ‘the poor man’s copyright’. It has long been assumed in the music industry, by musicians starting out, that you can simply send yourself a copy of your work by registered mail and that the postmark date will serve as the date of copyright. The panel points out that there is no value in mailing something to oneself. In a courtroom it doesn’t prove anything and won’t hold up as evidence.
Daniel Friedman is an Entertainment Attorney who took time from his busy schedule to speak at a music industry forum at Loyola University to speak on artist contracts. The video podcast can be found here. Friedman’s main discussion topic is on Copyrights. One of his main points is emphasizing the difference between a musical work and a sound recording. Both of which will have separate copyrights. The musical work is the underlying musical composition. The songwriter owns the musical work until the songwriter chooses to sign a publishing deal. The sound recording is the version of the song. It is owned either by the artist who covers it or belongs to the record company if the artist is signed to a record label contract. Friedman cleverly points out that – “the real estate of the music business is the copyright to the musical work”.
Friedman continues to talk about joint works. Unless you agree otherwise, the song is owned equally. There must be an agreement to identify the splits otherwise. Lyrics are generally 50% of a song and the music is generally the other 50% of a song. In hip-hop when a producer makes the beat and an artist rhymes over it, it is said the producer has created the music, and thus owns 50% of the copyright. With a band the theory is that the songwriter wrote the song and thus should own 100% of the copyright. However it can also be said that without the band there would be no way to exploit the song. Friedman suggests forming a hybrid between the two scenarios where the songwriter receives more of the copyright share than the rest of the band.
One of his final points is the provision that is often found in recording contracts for artists / songwriters. The controlled composition clause generally provides the recording artist / songwriter to sign for a lower mechanical rate than what they would usually receive. The industry standard tends to be 75% of the standard rate and is usually capped at 10, meaning if the artist releases more than 10 songs on an album; those additional songs are essentially ‘free to the label’.
That’s quite a lot of information to take in from three podcasts, but what better way to obtain your information that from industry experts and attorneys who specialize in the entertainment industry. By listening to three podcasts I have garnered more information about the different types of publishing agreements, the different publishing revenue streams and the fees associated with each type of licenses.
References:
Music Law Publishing
Chicago Music Commission – Musicians at Work Forum
Music Industry Forum – Daniel Friedman
Mark Quail is an attorney who specializes in Entertainment and Media Law. Mark Quail produced a podcast entitled ‘Music Law Publishing’ that deals with the music publishing industry. The podcast is broken down into two parts and can be found here. The first half of the podcast deals with the different licenses that are assigned in relation to musical compositions in the music publishing industry in order to monetize the songs value and garner monetary compensation for the songwriter.
Mechanical Licenses grant permission to record labels so they can manufacture sound recordings. In the US the royalty rate for mechanical licenses is set at 9.1 cents for musical compositions 5 minutes in length or less and an additional 1.75 cents per minute for each minute over 5 minutes. Outside of the US & Canada, the royalty rate is calculated as a percentage rate of the wholesale price. In either case the record label manufacturing the record pays royalties.
Public Performance licenses control the performance of a song in public. This includes radio stations, television, restaurants, clubs and other venues that use music. Synchronization licenses dictate the terms in which a television or movie production can use a song in their work. These fees are dictated by the market and are reached by negotiation. Print licenses allow for the musical work to be sold or distributed in print form – this includes sheet music and folios, as well as the lyrics printed inside CD booklets. The final license is a new media license. This allows songwriters to license their compositions for greeting cards, midi files, streaming and/or downloads as well as software programs.
Each of these licenses comprises a different amount of a music publisher’s total annual earnings. Currently public performance royalties and mechanical royalties account for the bulk of total annual earnings. However, Quail points out that the other licensing opportunities should not be ignored. This is great advice for music publishers who more often like to go after the deals that look more financially enticing.
The second half of the podcast deals with the different types of publishing contracts. A full publishing contract is a 50/50 split of ownership in the musical work’s copyright as well as in the profits derived. This is what makes you think of a ‘songwriter’s share and a publisher’s share’ when you think of dividing the royalties. A co-publishing contract can be thought to be a 75/25 split of ownership. The songwriter retains the ‘songwriter’s share’ as well as ‘50% of the publisher’s share’. These are the most prevalent forms of publishing agreements. Administration Contracts are the most attractive to songwriters but are usually harder to obtain. Under this type of contract the publisher handles all of the copyright administration but does not retain ownership. They receive anywhere from 5% to 25% of net receipts of typical revenue and up to 40% of net receipt for sync licenses. The final contract is a sub-publishing contract. These types of contracts are usually entered into by the original publishing company and are considered to be administration contracts that are focused on one or more countries outside of the songwriter’s home territory.
The Chicago Music Commission is nonprofit organization formed from members in the Chicago music community. They hosted a panel on intellectual property and legal issues that can be heard here. The panel begins my hammering in what most artists should already know – having legal representation in this industry is a must. Legal representation is important because everyone else you deal with in the industry understands that this is a business. If they understand legal and business aspects and you don’t, then your not on an even playing field, therefore you’re not fighting a fair fight with who ever you are trying to negotiate, be it a booking agent or a record label. They also point out that you want to build a team of people who are on your side and looking at things from your perspective, because the people who want to use you will tell you things from their perspective, and not yours.
The panel also proceeds to dispute what has at one point been called ‘the poor man’s copyright’. It has long been assumed in the music industry, by musicians starting out, that you can simply send yourself a copy of your work by registered mail and that the postmark date will serve as the date of copyright. The panel points out that there is no value in mailing something to oneself. In a courtroom it doesn’t prove anything and won’t hold up as evidence.
Daniel Friedman is an Entertainment Attorney who took time from his busy schedule to speak at a music industry forum at Loyola University to speak on artist contracts. The video podcast can be found here. Friedman’s main discussion topic is on Copyrights. One of his main points is emphasizing the difference between a musical work and a sound recording. Both of which will have separate copyrights. The musical work is the underlying musical composition. The songwriter owns the musical work until the songwriter chooses to sign a publishing deal. The sound recording is the version of the song. It is owned either by the artist who covers it or belongs to the record company if the artist is signed to a record label contract. Friedman cleverly points out that – “the real estate of the music business is the copyright to the musical work”.
Friedman continues to talk about joint works. Unless you agree otherwise, the song is owned equally. There must be an agreement to identify the splits otherwise. Lyrics are generally 50% of a song and the music is generally the other 50% of a song. In hip-hop when a producer makes the beat and an artist rhymes over it, it is said the producer has created the music, and thus owns 50% of the copyright. With a band the theory is that the songwriter wrote the song and thus should own 100% of the copyright. However it can also be said that without the band there would be no way to exploit the song. Friedman suggests forming a hybrid between the two scenarios where the songwriter receives more of the copyright share than the rest of the band.
One of his final points is the provision that is often found in recording contracts for artists / songwriters. The controlled composition clause generally provides the recording artist / songwriter to sign for a lower mechanical rate than what they would usually receive. The industry standard tends to be 75% of the standard rate and is usually capped at 10, meaning if the artist releases more than 10 songs on an album; those additional songs are essentially ‘free to the label’.
That’s quite a lot of information to take in from three podcasts, but what better way to obtain your information that from industry experts and attorneys who specialize in the entertainment industry. By listening to three podcasts I have garnered more information about the different types of publishing agreements, the different publishing revenue streams and the fees associated with each type of licenses.
References:
Music Law Publishing
Chicago Music Commission – Musicians at Work Forum
Music Industry Forum – Daniel Friedman
7.10.2011
Copyright Infringement
Another day, another case of copyright infringement is filed. In the music industry, especially the hip-hop community, there is no shortage of copyright lawsuits. There have been a few cases this year however that have caught my eye.
Lil Wayne is no stranger to copyright infringement accusations. He even received a copyright infringement summons while in jail last year. This past week another producer has gone on record saying that Lil Wayne stole his song. Lil Wayne’s latest release – “How To Love” is said to be produced by hip-hop producer ‘Detail’. However indie producer Chief Stockton claims he made a strikingly similar beat in 2008, which was available on the website 'SoundCloud'. The video claiming the infringement was released by musicindustryreport.org in the end of June. If you listen to both tracks there is no denying that Chief Stockton’s beat is almost identical to the beginning of ‘How to Love’. As of late, Chief Stockton has not filed a lawsuit and it is unclear if we will pursue legal action. If he does – it will be the fourth lawsuit that Lil Wayne is hit with in the past two months alone.
(Source: Music Industry Report)
Synchronization licenses are required in order to sync copyrighted audio with moving images – commercials included – regardless of weather the master sound recording is used or not. During this year’s Super Bowl, Chrysler released a commercial for their new Chrysler 200 model. Less than a year later Audi has released a similar commercial using music that is clearly meant to sound like Eminem’s “Lose Yourself” but without a license from Eight Mile Style LLC, the publisher of Eminem’s copyrights. The song has an instrumental beat that is hard to mistake. Listening to Audi’s commercial you can tell that they were trying to avoid a licensing issue, however the commercial music bares ‘substantial similarity’ to the original. Eight Mile Style filed a lawsuit in Germany in June ordering a cease-and-desist letter as well as seeking damages. The commercial has not been released in the U.S. and after the filing of the lawsuit it is unlikely that it will.
(Source: Billboard)
There is no shortage of sampling in the music industry. The majority of samples can be cleared with an upfront fee, while others require a stake in copyright ownership. Musicians are advised time and time again to clear samples before they are used or face a possible lawsuit. This week Ghostface Killah, of rap group Wu-Tang Clan, became the latest lawsuit target. Since his 1996 debut, entitled ‘Iron Man’, Ghostface has been known to use the moniker of the same name, and now is being sued for illegally using the ‘Iron Man Theme’ on his album ‘Supreme Clientele’. According to the lawsuit, portions of which can be viewed here, “Ghostface copied verbatim the sound recording and musical composition of the “Iron Man Theme” on two places on his album Supreme Clientale: as the first track and part of the last track”. I went ahead and performed a search of the Ghostface tracks in the iTunes Store and guess what? It is the same exact thing. This isn’t just a sample – it’s a blatant copy. Ghostface’s lawyers will most likely sit there astonished and wonder how it is that this wasn’t cleared ahead of time. My opinion would be that this gets settled out of court – sooner rather than later.
(Source: All Hip-Hop News)
References:
'Iron Man' Composer Sues 'Ghostface' For Millions Over Sample, Name Use
Eminem's Publisher Files Lawsuit Against Audi's Chrysler-Like Ad
Indie Producer claims Lil Wayne stole the “How To Love” Beat From Him!
Lil Wayne is no stranger to copyright infringement accusations. He even received a copyright infringement summons while in jail last year. This past week another producer has gone on record saying that Lil Wayne stole his song. Lil Wayne’s latest release – “How To Love” is said to be produced by hip-hop producer ‘Detail’. However indie producer Chief Stockton claims he made a strikingly similar beat in 2008, which was available on the website 'SoundCloud'. The video claiming the infringement was released by musicindustryreport.org in the end of June. If you listen to both tracks there is no denying that Chief Stockton’s beat is almost identical to the beginning of ‘How to Love’. As of late, Chief Stockton has not filed a lawsuit and it is unclear if we will pursue legal action. If he does – it will be the fourth lawsuit that Lil Wayne is hit with in the past two months alone.
(Source: Music Industry Report)
Synchronization licenses are required in order to sync copyrighted audio with moving images – commercials included – regardless of weather the master sound recording is used or not. During this year’s Super Bowl, Chrysler released a commercial for their new Chrysler 200 model. Less than a year later Audi has released a similar commercial using music that is clearly meant to sound like Eminem’s “Lose Yourself” but without a license from Eight Mile Style LLC, the publisher of Eminem’s copyrights. The song has an instrumental beat that is hard to mistake. Listening to Audi’s commercial you can tell that they were trying to avoid a licensing issue, however the commercial music bares ‘substantial similarity’ to the original. Eight Mile Style filed a lawsuit in Germany in June ordering a cease-and-desist letter as well as seeking damages. The commercial has not been released in the U.S. and after the filing of the lawsuit it is unlikely that it will.
(Source: Billboard)
There is no shortage of sampling in the music industry. The majority of samples can be cleared with an upfront fee, while others require a stake in copyright ownership. Musicians are advised time and time again to clear samples before they are used or face a possible lawsuit. This week Ghostface Killah, of rap group Wu-Tang Clan, became the latest lawsuit target. Since his 1996 debut, entitled ‘Iron Man’, Ghostface has been known to use the moniker of the same name, and now is being sued for illegally using the ‘Iron Man Theme’ on his album ‘Supreme Clientele’. According to the lawsuit, portions of which can be viewed here, “Ghostface copied verbatim the sound recording and musical composition of the “Iron Man Theme” on two places on his album Supreme Clientale: as the first track and part of the last track”. I went ahead and performed a search of the Ghostface tracks in the iTunes Store and guess what? It is the same exact thing. This isn’t just a sample – it’s a blatant copy. Ghostface’s lawyers will most likely sit there astonished and wonder how it is that this wasn’t cleared ahead of time. My opinion would be that this gets settled out of court – sooner rather than later.
(Source: All Hip-Hop News)
References:
'Iron Man' Composer Sues 'Ghostface' For Millions Over Sample, Name Use
Eminem's Publisher Files Lawsuit Against Audi's Chrysler-Like Ad
Indie Producer claims Lil Wayne stole the “How To Love” Beat From Him!
6.18.2011
Spotify - Where Are You?
For months we’ve been subjected to speculation that Spotify, the music streaming service that has gained a massive following in Europe, would finally launch in the United States. The service, which is currently available in France, Finland, the Netherlands, Norway, Spain, Sweden, and the UK has steadily been making moves in the US, and might see a launch date before the end of the year. Unlike online radio and music streaming service Pandora, Spotify allows you to listen to any track you like, any time you like. Their premium service works on your mobile phone, and has an offline mode for playlists. The offline mode syncs your playlists to your computer or mobile phone, so you can listen to them without an Internet connection.
Last week Spotify signed an American distribution deal with Universal Music Group, the world’s largest music label. The service already has agreements with Sony and EMI Music Group and is now just waiting to sign a similar agreement with Warner Music Group. Many believe the service won’t go live without it, since it would offer a hole in the music catalog. Earlier this week they secured funding totaling $100 million based on a $1 billion valuation. The addition funding could further prove that Spotify’s launch in the U.S. is approaching. Spotify’s biggest obstacle might be the industry itself. They need to entice users to stream music rather than pirate it while at the same time not discourage them from buying it or becoming paying subscribers.
The question that remains is weather Spotify will be successful once it reaches the U.S. Personally I can almost guarantee that it will get users to try their free trial, after all – it lasts 6 months. How many other companies do you know that are willing to let you try their service for half of the year at no cost? It definitely has to the right idea at getting your foot in the door. Once you’ve used something for so long, it’s kind of hard to go without it, and the $10 monthly fee by not seem as bad. Personally I can’t wait – so Spotify – hurry up and get here.
References
Spotify sings Universal Music, may get to U.S. after all.
Spotify Closes New $100 Million Funding Round, U.S. Launch Nears
Can Spotify and Hulu Move Forward Without Killing The Businesses They Rely On?
Spotify.com
Last week Spotify signed an American distribution deal with Universal Music Group, the world’s largest music label. The service already has agreements with Sony and EMI Music Group and is now just waiting to sign a similar agreement with Warner Music Group. Many believe the service won’t go live without it, since it would offer a hole in the music catalog. Earlier this week they secured funding totaling $100 million based on a $1 billion valuation. The addition funding could further prove that Spotify’s launch in the U.S. is approaching. Spotify’s biggest obstacle might be the industry itself. They need to entice users to stream music rather than pirate it while at the same time not discourage them from buying it or becoming paying subscribers.
The question that remains is weather Spotify will be successful once it reaches the U.S. Personally I can almost guarantee that it will get users to try their free trial, after all – it lasts 6 months. How many other companies do you know that are willing to let you try their service for half of the year at no cost? It definitely has to the right idea at getting your foot in the door. Once you’ve used something for so long, it’s kind of hard to go without it, and the $10 monthly fee by not seem as bad. Personally I can’t wait – so Spotify – hurry up and get here.
References
Spotify sings Universal Music, may get to U.S. after all.
Spotify Closes New $100 Million Funding Round, U.S. Launch Nears
Can Spotify and Hulu Move Forward Without Killing The Businesses They Rely On?
Spotify.com
6.04.2011
Parental Advisory Warnings - Could They Be Back?
Parental Advisory Stickers. We’ve all seen them. Those iconic little black and white stickers stamped on the cover of ‘explicit’ music, film and television. They were originally meant to inform parents of minors that the music they were purchasing for their children had ‘explicit content’ and was not suitable for children of all ages. Yet despite a warning label on a CD cover, teenaged consumers have made up the core audience for one of the most controversial and arguably most successful rap stars to emerge within the 21st century, Eminem, making one wonder what good the labels do in the first place.
On the other side of the world however, many believe they are still relevant and important. Now, the UK is taking steps to bring the parental advisory warnings to new medium – online music videos. In an age where YouTube is one of the most visited sites on the Internet, the UK government and the British Recorded Music Industry (BPI) are set to introduce a new set of guidelines that will affect music in the UK.
Today YouTube, Napster, Spotify, and Vevo do not have a uniform parental guidance system although Apple’s iTunes does. The iTunes online store runs a warning system on its audio and video content. Yet following recent concern about the amount of risqué music content that is too easily available to children online the BPI is going to begin introducing parental warning logos before songs and music videos on those services that currently do not employ a parental guidance system.
Although not yet a standard in the US, it’s only a matter of time before a similar stance gets adopted in the states. However one has to wonder how playing a warning at the beginning of a video or a song is going to have any affect if there is not a responsible adult around to see it appear. After all, at some point those stickers on CDs became an indication of which records we wanted to buy – the one that had them.
References
Parental Warnings to be Introduced for Online Music
On the other side of the world however, many believe they are still relevant and important. Now, the UK is taking steps to bring the parental advisory warnings to new medium – online music videos. In an age where YouTube is one of the most visited sites on the Internet, the UK government and the British Recorded Music Industry (BPI) are set to introduce a new set of guidelines that will affect music in the UK.
Today YouTube, Napster, Spotify, and Vevo do not have a uniform parental guidance system although Apple’s iTunes does. The iTunes online store runs a warning system on its audio and video content. Yet following recent concern about the amount of risqué music content that is too easily available to children online the BPI is going to begin introducing parental warning logos before songs and music videos on those services that currently do not employ a parental guidance system.
Although not yet a standard in the US, it’s only a matter of time before a similar stance gets adopted in the states. However one has to wonder how playing a warning at the beginning of a video or a song is going to have any affect if there is not a responsible adult around to see it appear. After all, at some point those stickers on CDs became an indication of which records we wanted to buy – the one that had them.
References
Parental Warnings to be Introduced for Online Music
5.22.2011
What About Negotiations?
Behind every successful business there are plenty of negotiations that had to be sorted out in the process. In fact, we participate in negotiations more than we realize, and the more we focus on our negotiation skills, the better we become at them. During the past week I had the opportunity to speak with Jonathan Martin, Co-Founder and Owner of a music-based website that helps independent artists monetize their music, as well as allow fans to discover and share music. Jonathan has previously started three separate music business companies and has worked with artists in management positions. During the past 5 years he has been a party to several negotiations and he was glad to share some suggestions with me.
I began by asking Jonathan about objective criteria, and how he had incorporated it in past negotiations. “I’m a Finance guy, numbers are my thing, so when I’m going into a negotiation I always come prepared with financial statements, analytic projections, etc. But it’s not enough to have the factual information. It’s important that when you go into negotiations with your material that you also know how to use it and it present it. In my case numbers don’t explain themselves all the time. I need to be able to build a case around these numbers that supports what I am essentially arguing in benefit of.” Jonathan also pointed out that if you wanted the ‘objective criteria’ to be taken serious it was also important to willingly listen to the other party when they presented their material, as well as initiating an interest in their views of the material.
During negotiations, emotions many times run rampant, so I decided to ask Jonathan which of Shapiro’s five core concerns that stimulate emotion (appreciation, affiliation, autonomy, status, or role) did he find more important. I can’t say I was surprised by his answer because I agree – affiliation. “Ideally, in a smooth negotiation you want to work together, not against each other. It makes the process of working together easier. Personally, I’ve found that during a negotiation if we’ve been able to build a personal connection either before hand, or during the process, I’m more open-minded about new ideas and about changing my mind. Versus if I feel that you are being insincere I’m more resistant about changing my mind.” While I had never thought about it, in that context I found myself in agreement. When there’s a connection between you and the other party, I feel that the parties are more likely to cooperate with each other rather than ‘stand their ground’.
To end our discussion I asked Jonathan if there was ever a time during a negotiation in which he felt the opposing party was ‘dirty’, and he shared this story with me. “During a negotiation with an investor for my last start-up initiative I found myself being seated in a chair that was as low to the ground as possible, with a stiff back. Being 6ft3 this was obviously an awkward situation. I knew if I said nothing and continued on with the negotiation that it would affect my position because I was going to be unable to concentrate throughout the meeting. Instead of ignoring the situation, I decided to excuse myself and adjust the chair.” So did the investor respond in any way to that action? “He simply sat back and smiled.”
I began by asking Jonathan about objective criteria, and how he had incorporated it in past negotiations. “I’m a Finance guy, numbers are my thing, so when I’m going into a negotiation I always come prepared with financial statements, analytic projections, etc. But it’s not enough to have the factual information. It’s important that when you go into negotiations with your material that you also know how to use it and it present it. In my case numbers don’t explain themselves all the time. I need to be able to build a case around these numbers that supports what I am essentially arguing in benefit of.” Jonathan also pointed out that if you wanted the ‘objective criteria’ to be taken serious it was also important to willingly listen to the other party when they presented their material, as well as initiating an interest in their views of the material.
During negotiations, emotions many times run rampant, so I decided to ask Jonathan which of Shapiro’s five core concerns that stimulate emotion (appreciation, affiliation, autonomy, status, or role) did he find more important. I can’t say I was surprised by his answer because I agree – affiliation. “Ideally, in a smooth negotiation you want to work together, not against each other. It makes the process of working together easier. Personally, I’ve found that during a negotiation if we’ve been able to build a personal connection either before hand, or during the process, I’m more open-minded about new ideas and about changing my mind. Versus if I feel that you are being insincere I’m more resistant about changing my mind.” While I had never thought about it, in that context I found myself in agreement. When there’s a connection between you and the other party, I feel that the parties are more likely to cooperate with each other rather than ‘stand their ground’.
To end our discussion I asked Jonathan if there was ever a time during a negotiation in which he felt the opposing party was ‘dirty’, and he shared this story with me. “During a negotiation with an investor for my last start-up initiative I found myself being seated in a chair that was as low to the ground as possible, with a stiff back. Being 6ft3 this was obviously an awkward situation. I knew if I said nothing and continued on with the negotiation that it would affect my position because I was going to be unable to concentrate throughout the meeting. Instead of ignoring the situation, I decided to excuse myself and adjust the chair.” So did the investor respond in any way to that action? “He simply sat back and smiled.”
4.14.2011
Record Store Day
Do you think all brick and motor music retail stores are dead? Think again. While mass-music retailers might have gone the way of the dinosaur in recent years, independent record stores are thriving, in part due to the increase in vinyl sales. While the music industry has fallen into a slump with overall sales dropping by 13% in 2010 both the Nielsen Company and Billboard report that vinyl has seen a 14% surge since 2009 and that’s good news for independent record stores.
Saturday marks the fourth annual Record Store Day. What started as a celebration of in-person commerce with 250 participating stores in the United States in 2008 has now grown to a national event celebrating independent record stores with more than 1500 participants. Michael Kurtz, co-founder of Record Store Day as well as president of the independent music store coalition Music Monitor Network, says that Record Store Day “started as a response to all the negative media coverage of record stores closing”. The first official Record Store Day was kicked off in San Francisco on April 19, 2008 by Metallica and since then has been celebrated on the third Saturday of April.
Of course, a big part of Record Store Day is the music – because where would these retailers be without them. Every year Record Store Day offers special editions not sold online or at stores such as Best Buy. This year’s special releases include a covers album by the Foo Fighters, two unreleased soundcheck jams from Phish, Rolling Stones’ “Brown Shugar” 7-inch and a re-release of the 1992 Nirvana EP “Hormoaning”. However the quantities are limited and there’s no guarantee of finding them at all independents either. For hard-core enthusiasts' that’s half the fun, traveling from store to store, taking in events and looking for that special release they’ve been hoping to get their hands on. While not all stores will offer the one-day specials they will celebrate by discounting current merchandise, offering giveaways and even live performances.
Sweat Records in Miami Florida is going all out by throwing a block party – doors open at 10am for Record Store Day exclusives followed by DJ sets at noon and then live performances by indie favorites ArtOfficial, Deaf Poets, Juan Basshead, Lil Daggers and Teepee. The best part for music lovers – the event is free.
So what does your local independent record store do to celebrate the day? Even if it’s nothing extravagant, remember that independent record stores always hide some true gems inside, and the people who work there are always willing to suggest some new music for you.
References
The Record Stores Are All Right
Record Store Day Celebrates the Independent Retailer
Independent Record Stores Gear Up For Anything Goes Record Store Day
Sweatstock and Record Store Day at Sweat Records
Saturday marks the fourth annual Record Store Day. What started as a celebration of in-person commerce with 250 participating stores in the United States in 2008 has now grown to a national event celebrating independent record stores with more than 1500 participants. Michael Kurtz, co-founder of Record Store Day as well as president of the independent music store coalition Music Monitor Network, says that Record Store Day “started as a response to all the negative media coverage of record stores closing”. The first official Record Store Day was kicked off in San Francisco on April 19, 2008 by Metallica and since then has been celebrated on the third Saturday of April.
Of course, a big part of Record Store Day is the music – because where would these retailers be without them. Every year Record Store Day offers special editions not sold online or at stores such as Best Buy. This year’s special releases include a covers album by the Foo Fighters, two unreleased soundcheck jams from Phish, Rolling Stones’ “Brown Shugar” 7-inch and a re-release of the 1992 Nirvana EP “Hormoaning”. However the quantities are limited and there’s no guarantee of finding them at all independents either. For hard-core enthusiasts' that’s half the fun, traveling from store to store, taking in events and looking for that special release they’ve been hoping to get their hands on. While not all stores will offer the one-day specials they will celebrate by discounting current merchandise, offering giveaways and even live performances.
Sweat Records in Miami Florida is going all out by throwing a block party – doors open at 10am for Record Store Day exclusives followed by DJ sets at noon and then live performances by indie favorites ArtOfficial, Deaf Poets, Juan Basshead, Lil Daggers and Teepee. The best part for music lovers – the event is free.
So what does your local independent record store do to celebrate the day? Even if it’s nothing extravagant, remember that independent record stores always hide some true gems inside, and the people who work there are always willing to suggest some new music for you.
References
The Record Stores Are All Right
Record Store Day Celebrates the Independent Retailer
Independent Record Stores Gear Up For Anything Goes Record Store Day
Sweatstock and Record Store Day at Sweat Records
3.31.2011
Eminem Victory - Industry Changing? Only Time Will Tell.
Within the next 60 days a lawsuit that has been circulating for a few years will finally draw to a close, but only after the Supreme Court refused to hear an appeal. The dispute at the center is based on the rate of royalties Marshall Mathers (Eminem) and his producers are entitled to for the sale of online music. The original producers who discovered Eminem (F.B.T. Productions) sued Universal Music Group (UMG) after an audit of accounting records that FBT and Eminem conducted back in 2005. The question at the center of the debate – is a song sold online considered a sale or a license?
Sale or License? Is it really such a big deal? You bet it is – for contracts that predated the digital era; they spelled out smaller royalty payments for music sold in physical form than music licensed. Eminem’s contract for example stipulates that he receive 50% of the royalties for a license, but only 12% for a sale. A federal jury originally ruled in favor of Universal in 2009, but that decision was overturned by the 9th Circuit Court of Appeals in San Francisco last year. Refusal to be heard by the Supreme Court means the decision by the Appeals court stands. In the lawsuit FBT argued that a record companies’ arrangement with digital retailers resembled much more of a license than it did a sale. The appeals court agreed and ruled that downloads from iTunes weren’t purchased, but rather ‘licensed’ to the buyer, stating that, “iTunes downloads (even the DRM-free variety) are encumbered by enough restrictions that they can’t be considered sales at all”.
So what does this mean for the industry? Currently not much. UMG issued a statement in regards to the matter. “The case has always been about one agreement with very unique language. As it has been made clear during this case, the ruling has no bearing on any other recording agreement and does not create any legal precedent”. While that might be true, record labels might find themselves having a harder time tying to renegotiate older contracts, as artists will demand higher royalties or might find themselves fighting similar cases in court. Industry observer’s think that as many as 90% of all contracts signed before 2000 predated the digital era and therefore didn’t incorporate digital downloads as ‘sales’. Only time will tell if this case will have a dramatic impact on the industry. In the meantime, both parties are due back in court within 60 days to discuss damages.
It’s important to note that Eminem himself wasn’t a party to the suit, but the way his contract with FBT was written he stands to earn millions from it.
For those of you interested in reading the original court opinion from the 9th Circuit Court of Appeals you can do so here.
References
Federal Court Sides With Eminem in Royalty Dispute; Record Business Does Not Impode
Eminem Lawsuit May Raise Pay for Older Artists
U.S. Supreme Court Denies Appeal on Eminem’s Music Royalty Dispute
Eminem’s Court Case May Set Music Standard
Sale or License? Is it really such a big deal? You bet it is – for contracts that predated the digital era; they spelled out smaller royalty payments for music sold in physical form than music licensed. Eminem’s contract for example stipulates that he receive 50% of the royalties for a license, but only 12% for a sale. A federal jury originally ruled in favor of Universal in 2009, but that decision was overturned by the 9th Circuit Court of Appeals in San Francisco last year. Refusal to be heard by the Supreme Court means the decision by the Appeals court stands. In the lawsuit FBT argued that a record companies’ arrangement with digital retailers resembled much more of a license than it did a sale. The appeals court agreed and ruled that downloads from iTunes weren’t purchased, but rather ‘licensed’ to the buyer, stating that, “iTunes downloads (even the DRM-free variety) are encumbered by enough restrictions that they can’t be considered sales at all”.
So what does this mean for the industry? Currently not much. UMG issued a statement in regards to the matter. “The case has always been about one agreement with very unique language. As it has been made clear during this case, the ruling has no bearing on any other recording agreement and does not create any legal precedent”. While that might be true, record labels might find themselves having a harder time tying to renegotiate older contracts, as artists will demand higher royalties or might find themselves fighting similar cases in court. Industry observer’s think that as many as 90% of all contracts signed before 2000 predated the digital era and therefore didn’t incorporate digital downloads as ‘sales’. Only time will tell if this case will have a dramatic impact on the industry. In the meantime, both parties are due back in court within 60 days to discuss damages.
It’s important to note that Eminem himself wasn’t a party to the suit, but the way his contract with FBT was written he stands to earn millions from it.
For those of you interested in reading the original court opinion from the 9th Circuit Court of Appeals you can do so here.
References
Federal Court Sides With Eminem in Royalty Dispute; Record Business Does Not Impode
Eminem Lawsuit May Raise Pay for Older Artists
U.S. Supreme Court Denies Appeal on Eminem’s Music Royalty Dispute
Eminem’s Court Case May Set Music Standard
3.23.2011
National Music Publishers Association & Net Neutrality
There are over 86,000 registered trade and professional associations – and for a young professional it is important to network and perhaps join, if not follow, the associations that work on your topic of interest. For me, my passion is in licensing and royalties – the backbone of the music publishing industry, and there’s a trade associate for that.
The National Music Publisher’s Association (NMPA) is the leading trade association in the United States for music publishers. According to the association’s mission statement, “the goal of NMPA is to protect its members’ property rights on the legislative, litigation, and regulatory fronts”. The NMPA also owns and controls the Harry Fox Agency, which is the largest mechanical rights collecting society in the United States.
According to the most recent newsletter sent out by NMPA, one of the initiatives that NMPA is working with is that for ‘net neutrality’. Net Neutrality is the principle that all Internet traffic should be treated equally and that all Internet users should be able to use the Internet without any restrictions by the Internet Service Providers (ISP). The NMPA filed reply comments that stressed that the Federal Communications Commission (FCC) should make it clear that ISPs can use management practices in order to address abuse that is occurring on their networks. They went on to say that ISPs must have the ability to create a warning system and penalties for those violators in order to prevent unlawful activity. The NMPA also believes that any forthcoming regulations should not prohibit the development of new technologies to fight digital theft. The NMPA signed on to a letter written RIAA on what Net Neutrality as it stands today was doing – “The current legal and regulatory regime is not working for America’s creators. Our businesses are being undermined, as are the dreams and careers of songwriters, artists, musicians, studio technicians, and other professionals. That’s why we look forward to working with you . . . to make the distinction between lawful and unlawful relevant in the marketplace…”.
I think it’s important that NMPA has voiced its concerns on this issue. ISP’s should be able to take measures in order to discourage unlawful activity such as copyright infringement. I think it is important that the NMPA align itself with different initiatives and legal matters that affect music publishers. Copyright infringement not only affects songwriters and musicians, but publishers as well because it dwindles down the royalties that publishers are received as well as the amount of licensing opportunities that present itself.
So where do you stand on net neutrality today? Should there be some amendments to the principle? I think so. And in case you’re wondering what kicked off this whole net neutrality debate – well Comcast was accused of blocking BitTorrent, a site that holds a plethora of pirated content, back in 2007.
3.09.2011
TED - Robert Gupta: Music Is Medicine, Music Is Sanity
Can music really be sanity? Robert Gupta believes so as he gives his presentation on TED.
Robert Gupta begins his presentation by telling a story that many are already aware of - that of Nathaniel Anthony Ayers, the Julliard trained basset who's career was cut short due to a battle with schizophrenia, and who's story was portrayed on the big screen in the movie 'The Soloist'. Robert Gupta himself had a chance to meet Nathaniel at Walt Disney concert hall. Shortly after meeting him, he heard word that Nathaniel wanted a violin lesson with him.
Gupta describes the day in which Nathaniel and himself started their first lesson, and the way Nathaniel was acting that day in a way that allows you to visualize the event in your mind. On that day, Gupta describes Nathaniel as having a "manic, glint in his eyes, he was lost". All the while Nathaniel talked about "invisible demons, and smoke, and how someone was poisoning him in his sleep". Gupta admitted that he was scared, yet not for himself. He explained how he was more afraid that if he began speaking to Nathaniel about scales and arpeggios he might ruin Nathaniel's relationship with the violin due to this 'episode'. How do you overcome such an obstacle, during what is supposed to be a violin lesson? The wrong step could send Nathaniel into a raging episode that could cause him to disappear for days, as he was prone to do. Instead of saying a word, Gupta decided to simply pick up the violin and begin playing. Gupta described how as he played, he could see a change in Nathaniel's eyes, how the rage disappeared and transformed into "understanding, curiosity, and grace". Soon afterwards they began talking about music, both with extreme passion. Gupta explained how Nathaniel transformed, almost as if there was two different people in front of him. Nathaniel went from "the paranoid, disturbed man" that had originally stepped in front of him, to a "charming, brilliant Julliard musician".
Gupta's passion in telling his story inspires everyone to believe that music really is medicine. To many people music provides a busy mind with calm. He strives to deliver his message that music gives you an escape form your reality, that it is the reason we make music in the first place. The reality of the expression created is what moves everyone and inspires him or her. He ends his presentation by stating that Nathaniel reminds him why he became a musician in the first place. That escape from our problems is the 'sanity' to which Gupta refers too.
So can music really be mental medicine? After listening to Robert Gupta's passionate encounter with Nathaniel Ayers, I believe it truly can.
If you would like to see the presentation in it's entirety, here's the video:
Robert Gupta begins his presentation by telling a story that many are already aware of - that of Nathaniel Anthony Ayers, the Julliard trained basset who's career was cut short due to a battle with schizophrenia, and who's story was portrayed on the big screen in the movie 'The Soloist'. Robert Gupta himself had a chance to meet Nathaniel at Walt Disney concert hall. Shortly after meeting him, he heard word that Nathaniel wanted a violin lesson with him.
Gupta describes the day in which Nathaniel and himself started their first lesson, and the way Nathaniel was acting that day in a way that allows you to visualize the event in your mind. On that day, Gupta describes Nathaniel as having a "manic, glint in his eyes, he was lost". All the while Nathaniel talked about "invisible demons, and smoke, and how someone was poisoning him in his sleep". Gupta admitted that he was scared, yet not for himself. He explained how he was more afraid that if he began speaking to Nathaniel about scales and arpeggios he might ruin Nathaniel's relationship with the violin due to this 'episode'. How do you overcome such an obstacle, during what is supposed to be a violin lesson? The wrong step could send Nathaniel into a raging episode that could cause him to disappear for days, as he was prone to do. Instead of saying a word, Gupta decided to simply pick up the violin and begin playing. Gupta described how as he played, he could see a change in Nathaniel's eyes, how the rage disappeared and transformed into "understanding, curiosity, and grace". Soon afterwards they began talking about music, both with extreme passion. Gupta explained how Nathaniel transformed, almost as if there was two different people in front of him. Nathaniel went from "the paranoid, disturbed man" that had originally stepped in front of him, to a "charming, brilliant Julliard musician".
Gupta's passion in telling his story inspires everyone to believe that music really is medicine. To many people music provides a busy mind with calm. He strives to deliver his message that music gives you an escape form your reality, that it is the reason we make music in the first place. The reality of the expression created is what moves everyone and inspires him or her. He ends his presentation by stating that Nathaniel reminds him why he became a musician in the first place. That escape from our problems is the 'sanity' to which Gupta refers too.
So can music really be mental medicine? After listening to Robert Gupta's passionate encounter with Nathaniel Ayers, I believe it truly can.
If you would like to see the presentation in it's entirety, here's the video:
2.19.2011
Website Review: Audimated.com
'Love Music. Make Money.’ That’s the slogan behind Audimated.com, a social platform that provides independent musicians and their fans the tools to share, discover, and monetize music. The Audimated model is simple enough – artists create products, fans promote those products and then fans earn commissions on sales. (You can view their marketing video at the end of this post.) The online community and marketplace is a free service. Artists can create profiles on the site so fans can discover their music and help spread the word to others. Artists can share their music and sell albums, singles, ringtones, concert tickets, or just about anything else they can think of that someone would shell out money for. The artist sets the price for everything they offer – and can even offer downloads of their music for free. Fans can create profiles as well and set up a personal “store” promoting their favorite artists. If other users buy an artist’s tunes, concert tickets, or memorabilia from a fan’s store, the artist and the fan can get paid. Artists get to choose whether or not they want to offer commission to the fans that promote their content though, and can set the commission rate to whatever they please. However the commission levels are set up in tiers – and commission is paid up to 5 tiers. It might sound confusing but here’s an example straight from the Audimated website. Let’s assume an artist has set a commission percentage of 10%. If fan 5 were referred by fan 4 who was referred by fan 3 who was referred by fan 2 who was referred by fan 1 then fan 4, 3, 2, and 1 would earn 10%, 5%, 2.5% and 1.25% respectively. In total the artist would pay out a total commission amount of 18.75%. Audimated themselves take a 10% cut of all sales on the site. I thought I’d run the numbers to see how much of a monetary advantage Audimated provides to artists. Assuming you sell a $0.99 single – Audimated takes $0.099 (which I assume they’d round up to $0.10), leaving you with roughly $0.89. If the single was sold to a tier 5 fan, you now have to pay roughly 18.75% in commission, which off of $0.99 single is equivalent to roughly $0.19 cents. That means the artist takes home roughly $0.70 – on a free account! Sounds like a good deal, especially considering that iTunes does not accept music from independent artists unless they go through a distributor, such as TuneCore. However all distributers will charge you a fee, while Audimated is completely free.
That pretty much covers the logistics of the operation – now for the website itself – it’s actually quite simple to navigate your way around. Audimated cuts out all that flashy design that clutters the page and keeps it simple. Sign-up was a breeze, taking me all of 2 minutes to accomplish and in addition to the main service they also offer an Audimated radio where you can hear tracks from artists who are registered as well as a blog that highlights featured artists, and articles that are can help any artist navigate their way in the music industry. My only complaint? Once you get to the blog, you have to look around for a link that’ll take you back to Audimated website. Audimated is still in the Beta version, having launched last summer, so we’ll just have to wait to see what the future holds for them as a company.
Here's the marketing video that also appears on the Audimated home page.
That pretty much covers the logistics of the operation – now for the website itself – it’s actually quite simple to navigate your way around. Audimated cuts out all that flashy design that clutters the page and keeps it simple. Sign-up was a breeze, taking me all of 2 minutes to accomplish and in addition to the main service they also offer an Audimated radio where you can hear tracks from artists who are registered as well as a blog that highlights featured artists, and articles that are can help any artist navigate their way in the music industry. My only complaint? Once you get to the blog, you have to look around for a link that’ll take you back to Audimated website. Audimated is still in the Beta version, having launched last summer, so we’ll just have to wait to see what the future holds for them as a company.
Here's the marketing video that also appears on the Audimated home page.
Save Independent Music: Audimated Tour from Audimated on Vimeo.
2.06.2011
It's Official: Citigroup Takes Control of EMI
After months of speculation about whether EMI could stay afloat on it’s own, would be sold off, or would be seized by Citigroup (Citi), we now have a definite answer.
Citi, which provided £2.6 billion of debt for the 2007 buyout by Guy Hands’ Terra Firma, wrote off most of EMI’s loans after the investment vehicle set up by Terra Firma defaulted. In a debt-for-equity swap, Citi wrote off 65% of EMI’s debt in exchange for full ownership of the company. Citi completed a recapitalization EMI – reducing debt by 63% from £3.4 billion to £1.2 billion, and providing more than £300 million of cash now available to EMI. The new capital structure provides EMI with a strong balance sheet and the ability to invest in and grow its business. Before the restructure EMI was operationally profitable and able to pay the interest on its loan, but struggled to make a dent in the principle. Citi reported that although it retains ownership of the company, it would not interfere with EMI’s operations, which generated $2.64 billion in revenue in its last fiscal year, and posted a $534.9 million profit before interest, taxes, depreciation and amortization.
So what does it mean for EMI? Currently Roger Faxon, EMI’s chief executive, has a bright outlook recently saying, “The recapitalization of EMI by Citi is an extremely positive step for the company. It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity.” EMI further released a statement that said it would “continue delivering on its strategy to maximize value for the artists and songwriters it is dedicated to servicing.” EMI might be continuing operations as usual for the foreseeable future but for how long? The latest acquisition by Citi tees up EMI to be sold again as the US. Bank will more than likely not want to hold the music company for the long term.
The question now is what does the future hold for EMI? It most certainly will be sold off again but it remains to be seen to whom. At this moment all signs point to Warner Music Group. Yet EMI’s remaining debt is large enough that it would still complicate a potential merger with Warner Music Group (WMG), who carries $2.4 billion in debt, including interest payments. The challenge of servicing such a massive debt burden would be further complicated by the question of which debt would be considered senior. Not to mention that Warner Music Group is publicly owned and would have to answer to stockholders. It is possible that WMG could sell its Warner/Chappell publishing catalog and put the proceeds toward a purchase of EMI, either as a whole or for one of it’s arms. A deal involving two of the world’s four largest record companies could face regulatory hurdles, much like those that Universal Music Publishing faced when they acquired BMG publishing. WMG does have it’s mind on some sort of restructure, the company has employed investment bank Goldman Sachs to explore the option of either a sale of Warner or a purchase of EMI.
But if WMG doesn't buy EMI as a whole, it is unlikely that any other media company or private equity firm would do so, inevitably splitting up the fourth largest record company in the world.
References:
Citi, which provided £2.6 billion of debt for the 2007 buyout by Guy Hands’ Terra Firma, wrote off most of EMI’s loans after the investment vehicle set up by Terra Firma defaulted. In a debt-for-equity swap, Citi wrote off 65% of EMI’s debt in exchange for full ownership of the company. Citi completed a recapitalization EMI – reducing debt by 63% from £3.4 billion to £1.2 billion, and providing more than £300 million of cash now available to EMI. The new capital structure provides EMI with a strong balance sheet and the ability to invest in and grow its business. Before the restructure EMI was operationally profitable and able to pay the interest on its loan, but struggled to make a dent in the principle. Citi reported that although it retains ownership of the company, it would not interfere with EMI’s operations, which generated $2.64 billion in revenue in its last fiscal year, and posted a $534.9 million profit before interest, taxes, depreciation and amortization.
So what does it mean for EMI? Currently Roger Faxon, EMI’s chief executive, has a bright outlook recently saying, “The recapitalization of EMI by Citi is an extremely positive step for the company. It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity.” EMI further released a statement that said it would “continue delivering on its strategy to maximize value for the artists and songwriters it is dedicated to servicing.” EMI might be continuing operations as usual for the foreseeable future but for how long? The latest acquisition by Citi tees up EMI to be sold again as the US. Bank will more than likely not want to hold the music company for the long term.
The question now is what does the future hold for EMI? It most certainly will be sold off again but it remains to be seen to whom. At this moment all signs point to Warner Music Group. Yet EMI’s remaining debt is large enough that it would still complicate a potential merger with Warner Music Group (WMG), who carries $2.4 billion in debt, including interest payments. The challenge of servicing such a massive debt burden would be further complicated by the question of which debt would be considered senior. Not to mention that Warner Music Group is publicly owned and would have to answer to stockholders. It is possible that WMG could sell its Warner/Chappell publishing catalog and put the proceeds toward a purchase of EMI, either as a whole or for one of it’s arms. A deal involving two of the world’s four largest record companies could face regulatory hurdles, much like those that Universal Music Publishing faced when they acquired BMG publishing. WMG does have it’s mind on some sort of restructure, the company has employed investment bank Goldman Sachs to explore the option of either a sale of Warner or a purchase of EMI.
But if WMG doesn't buy EMI as a whole, it is unlikely that any other media company or private equity firm would do so, inevitably splitting up the fourth largest record company in the world.
References:
1.14.2011
First Sale Doctrine: Valid for Promo CDs
Over the years I've managed to pick up my fair share of promo CD's - all with the same minuscule notice printed on the back of the case that stated "This compact disc is the property of the applicable record label and is being provided for promotional use only. Resale is unlawful and may be punishable under federal and state laws." While it never crossed my mind to sell these discs on eBay or by any other means, other people were doing just that. In fact, notably one person, Troy August was making a living by reselling promo CDs online.
The case, which closed a few days ago, originally dates back to 2007 when Troy Augusto was sued by Universal Music Group (UMG) for offering promo CD's for sale on eBay. UMG claimed that it had merely licensed the CDs for Augusto. The label insisted that it had never officially transferred ownership, and therefore Augusto did not "own" the CDs. Augusto on the other hand, had not received these CD's directly from record labels but rather had purchased them from used music stores. He claimed he owned the CDs and under the First Sale Doctrine was entitled to resell them. The First Sale Doctrine restricts a copyright owner from restricting further sales or uses of a work once title has passed. In other words, buyers of CDs (and books and DVDs for that matter), can do with the item as they please once they have purchased it. This includes lending it to a friend, selling it, or even destroying it. Note: It doesn't include making unauthorized copies of the material. In 2008, a U.S. District Court in Los Angeles sided with August, and after UMG appealed the decision as expected, the Ninth Circuit Court of Appeals upheld the lower courts decision last week.
The U.S. District Court in Los Angeles had declared in 2008 that simply because UMG claimed to retain the ownership of the CD didn't mean it virtually did. A federal judge ruled that promo CDs were gifts under federal law, and that the terms in which the promo CDs were given out in were consistent with ownership and not a license. In a license, the receiver has to agree to certain terms and restrictions, which in dealing with promo CDs was not the case. Last week the appeals court took it further, saying that UMG did not maintain control of the CDs once they mailed them out. UMG did not require recipients to agree to the "conditions" it sought to impose with its "not-for-sale" label, and they didn't require the return of the CDs if the recipient did not consent. Unlike software that forces you to agree to a certain amount of terms and conditions before using them, CDs have no such thing. UMG couldn't claim they were entering into a license agreement with the people who received their promo CDs.
Now Troy August, and others like him can continue to resell CD's on eBay and through other mediums. While certainly a victory for the end consumer - how does the music industry profit? Simple --- it doesn't.
For those of you who enjoy all the legal language, much like myself, you can read the entire opinion here.
References:
EFF Wins Landmark Ruling Freeing Promo CDs for Resale
Appeals Court Kills Universal’s Lawsuit Over Re-Selling Promo CDs
Court Tells Universal We Can Resell Our Promo CDs
Appeals court upholds first sale doctrine for promo CDs
The case, which closed a few days ago, originally dates back to 2007 when Troy Augusto was sued by Universal Music Group (UMG) for offering promo CD's for sale on eBay. UMG claimed that it had merely licensed the CDs for Augusto. The label insisted that it had never officially transferred ownership, and therefore Augusto did not "own" the CDs. Augusto on the other hand, had not received these CD's directly from record labels but rather had purchased them from used music stores. He claimed he owned the CDs and under the First Sale Doctrine was entitled to resell them. The First Sale Doctrine restricts a copyright owner from restricting further sales or uses of a work once title has passed. In other words, buyers of CDs (and books and DVDs for that matter), can do with the item as they please once they have purchased it. This includes lending it to a friend, selling it, or even destroying it. Note: It doesn't include making unauthorized copies of the material. In 2008, a U.S. District Court in Los Angeles sided with August, and after UMG appealed the decision as expected, the Ninth Circuit Court of Appeals upheld the lower courts decision last week.
The U.S. District Court in Los Angeles had declared in 2008 that simply because UMG claimed to retain the ownership of the CD didn't mean it virtually did. A federal judge ruled that promo CDs were gifts under federal law, and that the terms in which the promo CDs were given out in were consistent with ownership and not a license. In a license, the receiver has to agree to certain terms and restrictions, which in dealing with promo CDs was not the case. Last week the appeals court took it further, saying that UMG did not maintain control of the CDs once they mailed them out. UMG did not require recipients to agree to the "conditions" it sought to impose with its "not-for-sale" label, and they didn't require the return of the CDs if the recipient did not consent. Unlike software that forces you to agree to a certain amount of terms and conditions before using them, CDs have no such thing. UMG couldn't claim they were entering into a license agreement with the people who received their promo CDs.
Now Troy August, and others like him can continue to resell CD's on eBay and through other mediums. While certainly a victory for the end consumer - how does the music industry profit? Simple --- it doesn't.
For those of you who enjoy all the legal language, much like myself, you can read the entire opinion here.
References:
EFF Wins Landmark Ruling Freeing Promo CDs for Resale
Appeals Court Kills Universal’s Lawsuit Over Re-Selling Promo CDs
Court Tells Universal We Can Resell Our Promo CDs
Appeals court upholds first sale doctrine for promo CDs
1.09.2011
What Is Music Cashbox?
Music Cashbox is a music industry blog focused on the business side of the industry primarily dealing with music licensing, royalties and music law.
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