This article will focus on and explain the 4 main areas ofthe Music Industry which are: live performances, record companies, musicpublishing companies and artist management using examples and references.
Live PerformancePromoting: Artists promoters oversee PR (publicrelations) and help to promote and upcoming event/live performance. To have a successfullive performance requires people to turn up and support the act, so that youcan earn money and gain publicity. Dera Shelton, an artist promoter says:”Promote a show as soon as it is booked”. She also says to “usethe tool of social media effectively to get fans involved and always give a lotof notice before marketing a show. Artists should send out a press release ofan upcoming show and target the promotion of an upcoming gig to the artiststarget demographic”. This shows that social media is very important in thepresent day (more than ever) in promoting gigs because it is easier to target acertain demographic of people and once an event is shared with one persononline, there is a high chance that they will spread the message to their otherfriends and their other friends may also share the news etc, thus increasingthe awareness of the gig.
The importance of the use of social media to promotegigs is also stressed by many other industry experts. Jared Kristensen, CEO of AudienceRepublic, states that: “every friend group has individuals that are influencersamong their peers. These individuals who have the most influence and make upapproximately 15% of your attendees. By incentivising these influencers toinvite their friends, it’s a much more authentic interaction and you getsignificantly better results”. https://www.
eventbrite.com.au/blog/promoting-live-music-fan-social-media-influencers-ds00/ Thisshows how much the message of an upcoming gig will spread if promoted well onsocial networking sites. LiveNation is the world’s biggest concert promoter. It owns or operates intimategig venues, giant rock arenas and music festival sites around the globe,including the Brixton Academy and Wembley Arena in London.
http://www.independent.co.uk/news/business/analysis-and-features/the-rise-of-concert-promoter-live-nation-804620.html Artists will often ask companies such as LiveNation to promote one of their upcoming tours/gigs because of the publicity andexposure that they offer.Setting up: setting up a live performance istricky and requires people with lots of expertise and experience so thateverything goes smoothly and according to plan. Tom Maunger, a productiondirector who manages the setup of upcoming live performances says: “every showstarts with the production manager, who then hires his people to help put theshow together”.
Setting up a live performance is key to ensuring the gig goessmoothly with no technical faults and should be done well in advance and notlast minute, so every piece of equipment can be checked to see if it is workingHealth & Safety: the health and safety regulations ofan event area extremely important and must be followed to ensure the safety ofthe artist and the fans. Stewards will often be hired for big events. The eventsafety guide made by the health and safety executive board states, “The eventorganiser, whether an individual, collective or local authority, has primeresponsibility for protecting the health, safety and welfare of everyoneworking at, or attending, the event. Good planning and management arefundamental to the success of any music event” https://www.worldskillsuk.org/media/2894/event-safety-guide.pdf Thesafety and welfare of fans attending an event is very important because if afan gets injured as a result of poor following of the health and safetyregulations act, the event organisers could be sued and this could greatlyimpact an artist from both a reputation and a monetary perspective .
Tour/EventManagement:A tour manager (or concert tour manager) is the person who helps to organizethe administration for a schedule of appearances of a musical group (band) orartist at a sequence of venues (a concert tour). In general, road managershandle small to medium-sized tours, and tour managers are used on large-scaletours. Live nation merchandise is a touring company and says “on tour, wetravel every step of the way with our artists and bands, ensuring thatcommercial ranges are available across all entertainment venues. We develop, produce and supply themerchandise range whilst managing tour budgets, sales projections, tourlogistics and monitoring financial performance” http://lnejobs.com/our-companies/live-nation-merchandise Tour managers will usually oversee thedistribution of tickets both electronically (online, e-tickets etc) and papertickets.
Some backstage tickets are usually available at a greater price andthey enable fans to meet their favourite artists in person usually before/afterthey have performed. Someone who works on the front of house on a tour usuallymanages the sound of the performance (microphone and amplifier levels etc). Front of house staff like Jim Ebdom (who wason the Maroon 5 tour) control the sound during a live performance. Thedifferent departments of tour/event management must all work togethereffectively in order to put on a enjoyable performance for the fans and toensure the performance is successful for the artists Record CompaniesArecord label or record company is a brand or trademark associated with themarketing of music recordings and music videos. There are two kinds of recordcompanies: major labels and independent labels. Here are some of thedifferences between them:· Majorlabels are usually owned by a parent company. For example; EMI’s parent companyis the Universal Music Group.
This is different from independent companies(Indie record labels) because they do not usually have a corporate backer. Anexample of an independent label would be; PWL. This means that Major companiesare at an advantage financially because they receive funding from parentcompanies whereas independent labels are usually started by ‘lone wolves’ withnot much major funding from outside sources.· Majorlabels won’t let the artists keep rights or control over their music. Artistswho sign to independent labels can keep rights to their music which can makeindependent labels more appealing· Mostmajor record labels artists earn 10-15% royalty on their music. An independentlabel is common to offer the artist 40-75% in royalty.
Hence why independent labelscan sometimes be more appealingFinding and signing artists (A): A (artist & repertoire) isthe part of the record label or music publishing company that scouts for talentand oversees the artistic development of recording artists and songwriters. Italso acts as a liaison between artists and the record label. This means Ais a key area of a record company so that they can see how their artists are progressingActs andmaterial: A record label usually makes a recording contract with anartist to market the artist’s recordings in return for royalties on the sellingprice of the recordings. Contracts may extend over short or long durations, andmay or may not refer to specific recordings.
Established, successful artiststend to be able to renegotiate their contracts to get terms more favourable tothem, but Prince’s much-publicized 1994–1996 feud with Warner Bros. provides astrong counter example. https://en.wikipedia.org/wiki/Record_label#Relationship_with_artistsRecordingStudios: A major record label will usually own various studios forartists that are signed to them to work in. However, an independent label willusually rent out studios for their artists when they need them.
This could makeindependent labels less appealing to artists because renting is not alwaysreliable (the nearest studio that the label could rent may be quite far fromwhere the artist lives, renting time slots are not always convenient foreveryone)Retail anddistribution: Traditionally, distribution companies sign deals withrecord labels which give them the right to sell that label’s products. Thedistributor takes a cut of income from each unit sold and then pays the labelthe remaining balance. Most distributors expect record labels to provide themwith finished, ready-to-market products, but sometimes distributors offer”M” deals. M&D stands for manufacturing and distribution.With this setup, the distributor pays the manufacturing costs of an album upfront and keeps all the income from album sales until that initial investmentis paid off. ?This means in some cases an M&D deal could be more appealing.https://www.thebalance.
com/music-distribution-defined-2460499Copyright/Digital rights: Copyright and digital rights is often a cause ofdispute between an artist and a label as to who owns the rights to the music.According to the Oxford Dictionary of Law copyright is the exclusive right toreproduce or authorise others to reproduce artistic, dramatic or literary, or musical works. It also states thatcopyright lasts for the authors lifetime plus 70 years after their death. It isa criminal offence to knowingly make or deal in articles that infringecopyright. Alex Mann from the Musicians Union says: “Copyright existsseparately in recordings and songs, which means that recording owners (usuallyrecord companies) and publishers can use the rights in different ways. Withsongs, the composer of the music and the writer of the lyrics are the firstowners of copyright. Copyright in a recording is different in that the owner ofthe recording is the person who arranges for the recording to be made.” http://www.
bbc.co.uk/blogs/introducing/entries/e6d9f4b9-e157-3fd6-8526-d3026f8ee3ca The complexity of copyright showshow important it is for artists to have a clear establishment with their labelas to who owns the rights to what material.Some examplesof Major and Independent labels: Independent Labels: 4AD, MatadorRecords, XL Major Labels: Warner, EMI, Sony Music Music PublishingCompaniesIn the musicindustry, a music publisher (or publishing company) is responsible for ensuringthe songwriters and composers receive payment when their compositions are usedcommercially. Finding and selecting song writers: Many artists approach musicpublishers and music publishers will often watch how an artist who is on their’radar’ is developing in their music.
Emma Kerr who is the head of promotion atBoosey says “publishers receive large numbers of approaches from composers. It is,in fact, rare for a composer to be immediately signed to a publisher followingsuch a submission: although it can happen, it is more likely that a publisherwill have heard a composer’s music in concerts or on recordings etc, andfollowed the career of a composer for a period, a process which eventuallyleads to a signing”. http://www.soundandmusic.org/resources/artists-toolkit/self-publishing/how-to-get-published This shows how difficult it can be to be noticed bypublishers, to get on their ‘radar’ requires persistence in sending material tonumerous publishersPromoting material: Music publishers promote new andupcoming music in a variety of ways such as: Adverts on TV/Cinema, adverts onYouTube, posters/billboards, through media such as MTV music, Vevo or on socialmedia. Music publishers may also pitch songs to record companies, film andtelevision production companies and advertising agencies. They will sometimeshelp writers get record deals and funding demos.
Promoting new and upcomingmaterial is key to making an artist’s new release a successMusic sales: Music publishing companies collectfees and royalties earned from music sales and distribute them to the artistsaccordingly. The IFPI Global Music Report 2016 is a useful overview of thehealth of the music industry showcasing the main revenue sources for eachstakeholder, here are some of things highlighted in the report: global musicrevenues increase 3.2% as digital revenues overtake physical for the firsttime, digital sales contribute 45 per cent of industry revenues; overtakephysical’s 39 per cent share, streaming revenues up 45.2 per cent, helping todrive 3.2 per cent global growth. http://www.ifpi.
org/news/IFPI-GLOBAL-MUSIC-REPORT-2016This shows that nowmore than ever, digital music sales are very important or arguably moreimportant than physical sales. Music publishing companies are starting to focusmore on digital sales, so they can gain more income. Copyright Management: copyright management is a veryimportant area of the industry that both music publishers and record companiesmust manage and control. Stopping the streaming/playing of music using illegalwebsites/downloads is extremely important for artists to get all the money theydeserve from their work. The illegal streaming/playing of music costs theindustry countless amounts of money per year and the problem only gets worse astechnology such as the internet develops, and more streaming websites arereleased. An example of action a record company/publishing company might takeis to request for a YouTube video of their artists music to be taken down ifthe publisher of the video has not properly credited the artist.
Jeff Taylor from the BPI says: “200million pounds is lost in the music industry each year in the UK because ofillegal downloads, the digital economy is important for the UK”. A lot ofplaces in the UK like restaurants, bars, clubs, studios etc must have a speciallicence to play recorded music which they obtain from the PPL. PPL licensesrecorded music played in public and distributes the fees as royalties to itsmembers.Some examples of music publishingcompanies: Kobalt,UMPG, BMG. Artist ManagementManagers oversee managing all business aspects of the artistscareer and articulating the artist throughout their career. This allows thetalent to focus entirely on creating music.
Artist managers make sure thatgenerally the artist is happy and receiving all the income they deserve fromtheir music.Small Label: The role can be varied. A manager responsible for an unsignedband or musician or signed to a small label (such as 4AD, Matador Records orXL) often has a promoter, agent, accountant or any other kind of professionalthe artist needs to perform and have a viable career. Major Label: A manager working for an artist that is signed to a largelabel (such as Warner, EMI or Sony) functions in more of a managerial capacityand supervises the other people employed by the musician(s).
These managershave oversight and ensure that essentials such as advertising and PR campaignsare running smoothly; that tours are being booked and that artists get paid.Sponsorship: An artistmanager will work to get an artist sponsored. They will often do this by contactingsponsors directly. Brand partnerships have been an area of greater investmentfor record companies over the last few years. Partnerships can range fromsponsorship deals in which artists endorse products, to arrangements that seerecord companies bring to bear the breadth of their developing artist rostersand create new content. Olivier Robert-Murphy, global head of new business atUniversal Music Group, says: “Brands are experiencing a revolution in howconsumers interact and engage with them. Entertainment in general and music notonly provides access to audiences but also helps brands become culturallyrelevant and meaningful across the board. The best marketers today know thatloyalty is in short supply and, so they must deliver experiences and emotionsthat tap right into people’s desires and aspirations.
Those brands thatsuccessfully create emotional engagement are the ones that succeed in turningcustomers into fans.” http://strivesponsorship.com/2016/09/04/the-growing-importance-of-brand-partnerships-in-the-music-industry/ Sponsorship is a key source ofincome and promotion for an artist and is an important area that artistmanagers must help their artists with.Merchandising: A musicmerchandiser may develop and implement marketing plans for the artists theywork with or the products they are promoting. As part of these plans,merchandisers may schedule promotional events and performances and set updisplays at venues or stores. Merchandise is very important because ittypically contributes to a large amount of an artist’s income because of brandloyalty and emotional attachment and customers becoming fans.Tourmanagement: Artist managers often go on tour with their artists andoversee things such as: generally making sure the artist is happy, making sureall sales of merchandise outside the venue is legal and making sure they arriveand leave on time.
This is important because artists themselves (especially ontheir first tour) are sometimes not familiar with industry etiquette such asarriving and leaving on time and not trashing the backstage, so they needsomeone to keep them in check!Royalties: Mechanicalroyalties are paid to songwriters for the use of musical compositions for useon CDs, records, and tapes. Payment is based on sales of the CDs, records ortapes. For instance, when a record label presses a CD of a song, a mechanicalroyalty payment is due to the songwriter. http://www.
mymusicroyalties.com/types Artistmanagers make sure their artists receive all their royalties which is importantto keeping an artist happy as they receive a regular and secure incomefrom royalties.