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Friday, August 29, 2008

Artist Quote of the Week


There is two kinds of music the good and bad. I play the good kind.

- Louis Armstrong

Thursday, August 28, 2008

The Orchard Licenses Catalog To Limewire



The Orchard is licensing its music to the DRM-free a la carte music download service operated by file-sharing network LimeWire. The store, launched earlier this year, has existing content from Redeye Distribution, Nettwerk Music Group, and IRIS. The addition of 1.2 million tracks from The Orchard doubles its catalog to more than 2 million songs.

The LimeWire store operates much like any other digital retailer, selling tracks both a la carte and taking an eMusic-like approach and selling tiered bulk "subscriptions" that offer anywhere from 25 to 75 songs a month on a sliding pay scale.

The company remains embroiled in a copyright infringement lawsuit brought by major labels against its popular P2P music network.

Wednesday, August 27, 2008

Tuesday, August 26, 2008

Administration Deals (aka "Admin Deals")


Typical Scenario. This type of deal is used when the songwriter just wants a publisher to collect royalties and handle the various paperwork (for example, the BMI/ASCAP song title registrations, copyright applications, the issuance of licenses, etc.), and where the songwriter does not want or need a publisher to proactively promote his or her catalog of song. A good example of a company that does a lot of Administration Deals is Bug Music in Los Angeles.

Material Covered by the Deal. Most often this kind of deal covers all material written by the songwriter, or at least any material that the songwriter has not already committed to other publishers.

Copyright Transferred. No transfer of copyright.

Income Sharing. Typically, the publisher will take 10% to 20% of the income, and the pay the rest to the songwriter and the songwriter’s publishing company.

Term. Administration deals are normally in the range of three to five years.

Advances. For catalogs generating a modest amount of income, usually no advance is paid. For more profitable catalogs, usually an advance will be paid, with the amount to be determined on the basis of the income that has been generated in recent years by the catalog.

Monday, August 25, 2008

Mixtape Community 8tracks.com Unveils Service



With user-generated playlist site Muxtape shut down for an indefinite amount of time, newly launched 8tracks.com is hoping to fill the void left in the mixtape community. Like Muxtape, the site allows users to upload content from their personal music libraries and create playlists for others to stream. The site also allows users to create playlists using content uploaded to the site by others.

Unlike Muxtape, the site does not allow users to see what track will play next or to skip forward and backward through tracks they might not enjoy. This is because 8tracks operates under a compulsory license as a non-interactive webcaster, as mandated by the Digital Millennium Copyright Act.

8tracks was founded by David Porter, formerly the director of business development at Live365.

Friday, August 22, 2008

Artist Quote of the Week


"99-cent singles create excitement. Whoever came up with that was somebody who was a little bit older and remembered buying 45s. The thing about it is, once they buy the singles, what's next. And that's what the record companies are not doing."

-Jermaine Dupri

Thursday, August 21, 2008

Live Nation Moves Into Latin America



Live Nation has made a major foray into South America in cutting a five-year exclusive distribution deal with CIE and T4F (Time For Fun), giving LN a huge presence in Brazil and Mexico. CIE is the third largest concert promoter in the world, according to Billboard Boxscore.

The deal effectively locks down Mexico and South America for Live Nation on most major tours in this vital and growing region, where LN has previously not been a dominant promoter.

"Wherever we can we want to have a Live Nation office executing, and we haven't had that in Latin America, largely because CIE is just so dominant," Jason Garner, Chief Executive Officer, North American Music, tells Billboard.biz. "In a region where we had zero market share, to form an exclusive deal like this gives us immediate entry, it didn't cost us a lot of money to get in, and we get the most proven execution and venue partner in the region."

Though this deal has been in the works for a year, Garner says Live Nation and CIE already had a relationship in place through LN's Global Touring division. "We wanted to formalize that relationship to make it exclusive and then add on the important South America piece to really complete our Latin America play," he says. "It was driven by a mutual desire between the two companies to find a way to formalize what has been a very friendly relationship. They were looking for a steady supply of talent and we were looking for an exclusive execution partner and that brought the two of us together."

Producing live concerts that drew over six million music fans in 2007, CIE generated more than $1 billion in revenue and margins approaching 21 percent, according to Live Nation. CIE, which is publicly traded on the Mexican stock exchange, also operates its own ticketing platform in many markets including Mexico City, Guadalajara, Monterrey, and others.

LN says CIE produces more than 85% of all the live concerts by international talent in Mexico, a country with a population of more than 100 million people. T4F operates top venues in Sao Paolo, Buenos Aires, Lima, Rio de Janeiro, Santiago, and Porto Alegre, all of which are emerging as important new markets for international talent.

Ocesa, CIE's live entertainment division in Mexico, is a vital component of the deal. "If you're a world class artist, you don't work in Mexico without working with Ocesa," Garner says. "By having an exclusive relationship with them it really gives us a nice advantage when we're sitting down talking with an artist, that we have this great partner South of the border."

George Gonzalez will continue as president of Ocesa in Mexico, Fernando Alterio will remain as president of T4F, and Bruce Moran will be president Latin America for Live Nation based in Los Angeles. "When you enter into a relationship like this, what you want to know is when you take a band that trusts Live Nation and you walk into Latin America, that you have solid operators," says Garner. "The key here is we have trustworthy, solid partners, a well financially backed, publicly traded company, and the best part is they're our friends.

Alejandro SoberĂ³n Kuri, Chairman and Chief Executive Officer of CIE says in a statement: "It is very clear to us that Live Nation's global platform is attracting the world's most exciting and successful artists, cementing their position as the leading provider of talent on a global basis. By forming an exclusive alliance with Live Nation, we are ensuring that our distribution channels will be filled with a steady stream of live concerts from the greatest artists in the world."

Wednesday, August 20, 2008

Tuesday, August 19, 2008

Mechanical Royalties Redux





This is the money that must be paid to the owner of the (composition) copyright every time a physical copy is made of any record containing that composition.

That means for every actual piece of vinyl, 8-track or cassette, a certain amount must be paid the copyright owner (usually the composer). Excluding use for broadcast, hence all the specifically marked "promo only" stuff. The artist never gets paid for those copies. Nor do they get money when their (major) label gives bunches of those records to Record and Tape Clubs. They are considered promotional copies, given to those companies as a "reward" for buying a certain amount of another artist.
By US law, this right cannot be assigned to the label ! So usually in a recording contract, the label bargains a lower rate (usually 2/3 or 3/4) that it must pay the composer. Again, this is a lot of paper work, small labels usually just roll this archaic stuff into a decent royalty rate.

The reason I call this archaic, is that it is grown out of an old system where the composer, arranger, performer, and label are very distinct entities.

US

In the US, the Harry Fox Agency is known for collecting and administrating Mechanical Licenses.

UK


Mechanical Copyright Protection Society (MCPS)
http://www.mcps.co.uk/

You will need to obtain a license with MCPS before a UK pressing plant is allowed to proceed with manufacturing.

Monday, August 18, 2008

ArtistDirect Lines Up Lyrics Site


ArtistDirect is getting on the lyrics bandwagon, with plans to launch a new interactive lyrics page on the company's Web site. The site, which is expected to go live sometime this fall, is designed to augment the company's existing stable of news, bio, reviews and streaming music and video content.

Unlike other authorized lyrics services that have emerged in the past year, ArtistDirect is pursuing its own licensing deals with music publishers rather than using pre-aggregated lyrics licensing programs such as that by Gracenote.

The company presently has deals with Universal Music Publishing Group and EMI Music Publishing.

Friday, August 15, 2008

Artist Quote of the Week


"I've made hundreds of legendary records that people talk about that didn't sell." Jerry Wexler

Thursday, August 14, 2008

Running a Label... Part II

Tactics

If you are a musician yourself, it is always better to start putting stuff out on other people's labels and then move onto your own once you have a bit of recognition. Getting excepted by a distributor will be HARD, and its getting harder. They want to work with people that have some kind of profile, not just a competent record. Distributors are steadily disappearing and your back catalog and balance due tends to disappear at the same time. Independent record stores are evaporating. On the other hand, the Internet is still exploding for Independent labels, and promotion has never been easier. Independent music may be down and it may be up again in a few years.

Cuts and Style

You will need a bunch of slamming tracks. Decide what you want the label to cover. Often, records are bought without having heard them, based on reputation, previous releases or curiosity. Erraticness or unpredictably will hurt your sales, as will blandness and predictability. Get an angle, work it. Think about what you look for in a label or record when you buy.

Capital and ambition

You will need some money to start with. You will make some money, but it will be hard work. If you just wish to make money, get a job, it will be easier.

Wednesday, August 13, 2008

Tuesday, August 12, 2008

Music Musing

Does that band from Wichita, Kan., really have 42 million MySpace fans? Are free music Web sites a solid business model? How do I reach that lucrative market of older music enthusiasts?

Execs from Pandora, Imeem, Kyte and hundreds of others from the music and digital industry are getting together this week at the Bandwidth conference in San Francisco to discuss just such issues.

The annual gathering looks at how people discover, interact with and, most importantly, spend money on music.

Speakers include Alexandra Patsavas of Chop Shop Music, who selects the music for television shows such as "Grey's Anatomy"; Jonathan Poneman, co-founder of Sub Pop Records; and executives from YouTube, Microsoft, Benchmark Capital and Cisco.

Monday, August 11, 2008

Running a Label ...Part I


Once upon a time this resource centered itself on the mechanics of starting your own label. I encourage you to think carefully before starting down this path. There are too many labels out there right now, the market is shrinking and for you to get the label properly noticed and accepted, you should be able to undertake this step with a proper and informed focus.

Starting a label is definitely not something for an industry beginner to undertake.

You should not start a label just because:

1. you as an artist have been turned down by other labels

Either you have not sent your stuff to the right labels, you need more time to develop, or you are doing something no-one else understands or cares about.


2. you think you will earn money.

Only if you really know what you are doing and put a lot of visionary effort into it. Getting a normal job is easier. Chances of losing money are fairly good. It happens. Usually.




You should start a label because:

1. You regard it as a work of art, an extension of making music

2. You see it as a way to promote your DJ-ing or live shows and are prepared to put money into the label

3. You like shopping at office supply stores and find fax machines and ring binders inspiring

4. You can't make music at all but you want to be involved and spread music and have something to contribute

5. You just want something to talk about while you are hanging out at shows sitting behind the merch table

6. You are just biding your time until you can diversify into train lines, jet planes and near-orbital space travel



This guide will attempt to be thorough and informative, but if you are actually going to start a label, I advise that you get in contact with people who have already done it and get some person to person advice.U

Friday, August 8, 2008

Artist Quote of the Week


Let me handle my business, damn!"

- Jay Z.

Thursday, August 7, 2008

Demos 101


The basics are to choose maybe 6 labels of different calibers and styles. You should look for opportunities on small labels. Larger labels watch the smaller labels for new talent. The larger labels are getting so many demos a week, they don't simply don't have the time to really listen to everything. In general, they are already in contact with the people they are likely to sign in the future. In order to be one of those people, you have to develop yourself as an artist and rise to that situation.

Choose labels you spin or that other people spin. Sit down with boxes of records and take notes. Either fax them or ask on the net for addresses. Starting a relationship with a small label is all about making friends. Look at how the label looks and find someone who reminds you of yourself (same attitudes) except more advanced and established. Sending it to the wrong label is not a big deal. Sending it to the TOTALLY wrong label is just a waste of time. Never try to second guess what the label guy thinks, just let him or her listen to it if they get a chance. Some label people I know just love listening to tapes. Even when they know they won't put it out, they still sit around and listen to them. Some people just fast forward through it and decide immediately. Some people will never even listen to your tape. You don't have to call them and bug them (maybe once, but just to
say hi), just keep sending stuff out and see what happens.

Don't get hung up on pass or fail bullshit. It can be good material but sent to the wrong label, it could be you aren't ready yet. The label might like it, put it out and its still crap. Why trust them more than yourself ? You might hate the record in 6 months. You can put out crap and you can fail to put out good stuff. Don't do either. Do send out demos though. Very simply : put it on a CDR with clear labeling. Some labels feel that if you spent time on the graphics, you probably care more about what you are doing. Some labels just want to hear the music. Properly labeling stuff is important. Put your address and telephone number on it. Wait. Send out more demos every-time you have a batch of material you feel strongly about.

Wednesday, August 6, 2008

Tuesday, August 5, 2008

Australian Biz Faces 5-Year Decline



The Australian recorded music market will continue to contract over the next five years, according to gloomy new analysis from PricewaterhouseCoopers (PWC).

The consultancy today (Aug. 5) released the latest edition of its annual Australian Entertainment & Media Outlook, which examines issues that will influence the local industries through to 2012.

In its music analysis, PWC states that the recorded music market fell by 10.6% in 2007 and this year will decline a further 6.8% to be worth $795 million Australian ($729 million) at the end of 2008. All told, the consultancy expects the market to contract at a compounded annual growth rate (CAGR) of 1.5% through to 2012.

According to PWC, the "rapid decline in physical recorded music sales is not matched by the growth in digital music downloads and ringtones". The fall in the volume of CDs sales plus discounting by retailers is also impacting margins, the report adds.

PWC believes that the overall Australian entertainment and media sector will continue to enjoy growth and by 2012 will be worth $31.2 Australian billion ($28.6 billion). However, David Wiadrowski, lead partner for technology, information, communication and entertainment, says the sector must continue to innovate if it is to ride out the current economic downturn.

"If entertainment and media businesses were to enter the difficult days ahead without thoughtful, innovative strategies to maintain share, it could be harder for them to recover than from a cyclical economic downturn," he says.

Monday, August 4, 2008

Music industry ‘should embrace illegal websites’


The music industry should embrace illegal file-sharing websites, according to a study of Radiohead’s last album release that found huge numbers of people downloaded it illegally even though the band allowed fans to pay little or nothing for it.

“Rights-holders should be aware that these non-traditional venues are stubbornly entrenched, incredibly popular and will never go away,” said Eric Garland, co-author of the study, which concluded there was strong brand loyalty to controversial “torrent” and peer-to-peer services.
EDITOR’S CHOICE
Guitar Hero aims to take on iTunes - Jul-10
Media and tech stars mingle in Sun Valley - Jul-10
Tech blog: Matthew Garrahan - Jul-10
John Gapper: The music labels can take a punch - Jul-02
Warner signs up for Nokia’s music service - Jul-01
Sony BMG joins Nokia’s all-you-can-eat music service - Apr-22

Radiohead’s release of In Rainbows on a pay-what-you-want basis last October generated enormous traffic to the band’s own website and intense speculation about how much fans had paid.

He urged record companies to study the outcome and accept that file-sharing sites were here to stay. “It’s time to stop swimming against the tide of what people want,” he said.

The study by the MCPS-PRS Alliance, which represents music rights holders, and Big Champagne, an online media measurement company, found that legal downloads of In Rainbows were far exceeded by illegal torrent downloads of the album.

Almost 400,000 illegal torrent downloads were made on the first day and 2.3m in the 25 days following the album’s release, compared with a full-week’s peak of just 158,000 for the next most popular album of the period.

“The expectation among rights-holders is that, in order to create a success story, you must reduce the rate of piracy – we’ve found that is not the case,” said Mr Garland, chief executive of Big Champagne, who highlighted the benefits that Radiohead received from the album’s popularity, including strong ticket sales for its concerts this year.

The findings could add impetus to rights-holders’ efforts to license digital services that are at present beyond their reach, following the pattern of the MCPS-PRS Alliance’s recent move to license YouTube, the Google-owned online video-sharing site.

“Developing new ways and finding new places to get something as opposed to nothing” was important, said Will Page, MCPS-PRS chief economist and co-author of the report.

Those new places could be peer-to-peer sites or internet service providers, he added.

Record companies should ask themselves: “What are the costs and benefits of control versus the costs and benefits of scale?” said Mr Page.

He also challenged the assumption that no other band could achieve the same benefits, saying Radiohead’s experiment had reduced the marginal cost and risk for those following their lead.

He described the launch of In Rainbows as “stunt marketing at its best”.

Copyright The Financial Times Limited 2008

Friday, August 1, 2008

Artist Quote of the Week


The music industry is a strange combination of having real and intangible assets: pop bands are brand names in themselves, and at a given stage in their careers their name alone can practically gaurantee hit records.

Richard Branson