Record Labels and Structure
Record Labels and Structure
“Wherever you are, always do your best.”
UPDATE: Big win for songwriters!
Major Labels Structure (chapter 11)
-Why a major label?
-Benefits: Large advances, marketing budgets, radio promotion, **relationships**
-Radio Promo: Easy 100K per single
-Video Production 50K to 500K+ per video (evolving)
-Tour support
-Publicity
-Marketing
***They can “push the button”***
-Cons: Easy for an artist to lose attention (especially up and coming), not always in touch with pulse of musical trends, they can “make” or “break” an artist
-Why an independent label? (Usually absorbed by a major when successful)
-Examples: (USA) Arista, Geffen, Sire / (UK) Island, Chrysalis, Virgin
-Spinnin’ Records. Spinnin’ Records is a Dutch record label, founded in 1999 by Eelko van Kooten and Roger de Graaf. In September 2017, Warner Music Group acquired Spinnin’ for over $100 million
– Sony Music Entertainment and Ultra Music (2013) — the EDM-focused record label, publishing house, management company and media platform owned and operated by Patrick Moxey — have announced a globe-spanning strategic partnership between the two companies. As part of the deal Moxey was appointed to the newly-created position of president, electronic music for Sony Music and will report to Sony Music CEO Doug Morris.
Under the agreement, “covering A&R, distribution, international repertoire and more,” Sony’s electronic artists will be available for inclusion on Ultra’s various compilation series, while Sony will avail itself of Empire Artist Management, Ultra Music’s artist management wing. In addition, Sony and Ultra will “share resources to promote and market Ultra’s artists worldwide.”
Sony Music will distribute Ultra releases via RED in the U.S. and Sony Music Canada, while outside North America, Sony Music International and Ultra will share resources to promote and market Ultra’s artists worldwide. Ultra Music will help promote and market Sony Music artists in the U.S. and Canada on a project-by-project basis.
-Technology (distribution, production) has evened out the playing field with majors
-Companies like Alternative Distribution Alliance (ADA) offers many functions majors usually have such as: marketing, product tie-ins, worldwide distribution, music licensing
-Benefits: Attention to artists, Build an artists career over time, regional strength, genre driven (as mentioned above)
-Cons: Don’t always have heavy cash on hand, limited reach, limited budgets
-Specialty Labels
-Some Independents are Specialty
-Examples of Classical Specialty Labels: Nonesuch and Odyssey
-Gospel
-These labels have their own lane and don’t compete with mainstream music
Record Company Structure (Chapter 11)
Departments
-CEO (Chief Executive Officer) – General Manager – “The Boss”
-They vary from entrepreneurs, to producers, to A&R executives and usually connected to talent
-Examples: Clive Davis, Ahmet Ertegun, David Geffen
-Artist and Repetoire (A&R)
***A shift from the past to day***
-Responsible for finding and signing new talent
-Act as internal music manager handling budgets, recording, song and producer selection
-Usually responsible for artist development (not as much development today)
-Most recently are searching social media using analytics
-A&R Admin: Handles economics of A&R (non creative issues)
-Distribution / Sales: Convince retailers to “showcase” it’s physical product on shelves or online
-Marketing / Product Management: Coordinate all aspects of current release, including packaging, advertising tours, publicity, promotion, and sales activities (act like internal manager)
-Radio Promo: In charge of getting airplay and charting. Close relationships with radio execs.
-Video Promo: Get video airplay on TV, web
-Publicity: In house publicists manage media exposure through TV appearances, magazine and
press/articles
–Digital: A lot of labels now have specific departments that just handle online promo. Can include social media promotion
-Business and Legal Affairs: Handles all legal issues for label, artists, agreements, copyright issues
-Accounting: Handles all financial functions
Major Trade Associations:
–Recording Industry Association of America: Represents the labels, major and minor, account for the lion’s share of sales.
-Also known as RIAA.
-Best known for certifying best-selling records
-Lobbies government for label friendly regulation
-Represents industry to consumers
-Collects industry stats
-Battles online piracy / CD counterfeiting
-Most prominent force in the Big Music Labels drive to curb piracy
-The Recording Academy: Was once The National Academy of Recording Arts & Sciences (NARAS)
-Known now as The Recording Academy
-Best known for The Grammy Awards
–Voting members is limited to professionally active in creative and technical side of industry
-Composers, performers, producers, engineers, etc.
-Have to have a certain number of releases
–Associate membership is open to music industry professionals whose business activity is directly related to recording, live performance, or music video industries or to creative and technical music professionals who don’t have documentation in order to be a voting member.
-Usually boosts sales for artists (www.grammypro.com)
**A student membership program** Available called Grammy U and is a community of full time college students pursuing a career in the recording industry (grammyu.com).
The Music Business (Chapter 3)
-See Figure 3.1 on page 25
General structure:
- The songwriter (sometimes the artist) writes a song and signs with a publisher.
- The publisher persuades an artist (or that artist’s producer) to record the song.
- Lawyers (at several stages) negotiate contracts between parties and specify terms.
- The record company produces a recording, possibly a video version of song.
- Radio promoters persuade programmers to broadcast the audio and video promoters to video.
- Record company uploads song for online sale and ships merchandise to distributors who sell to retailers.
- In cases where artists retain distribution rights, artists sell music from their websites and negotiate deals directly with download and/or streaming digital platforms.
- If song becomes popular, a second wave of exploitation can occur: ringtones, merchandise, etc.
- A talent agency contacts promoters and books a concert tour.
- Concert promoters enlist cosponsors and sell the tickets.
- The road manager moves the people and equipment.
- The concert production manager dresses the stage, lights it, and reinforces sound.
- The artists perform.
- The performing rights organizations collect performance royalties.
- The accountants account the money, pay bills.
- The government collects taxes.
