Part 1: Setting The Stage

Chapter 1

Start Thinking Is the music industry primarily about business, or about art? 2. How is the music industry different today than it was 100 years ago? Fifty years ago? What do you believe brought these changes? 3 Music Business Handbook and Career Guide 10th Ed. (c) 2013 Sherwood Publishing Partners

Chapter Goals Discover that the music business is large, diverse, and ever changing. Become familiar with the historical development of music as a profession. Learn that music today is but one component of the arts, entertainment, and communications industry. 4 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Music and Society Well over a billion digital music tracks are sold annually in the U.S.—compared with the 19 million bought as recently as Streaming music subscriptions totaled more than 13 million globally in One in five Americans plays a musical instrument. These musicians spend more than $6 billion a year on instruments, accessories, and sheet music. Hundreds of thousands of live performances take place annually in the U.S.—from symphony concerts to clubs. 5 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Art Versus Commerce Previously consumer appetite for music and stable business models = fat, happy music industry Now P2P file sharing + nontraditional and online retail + single track downloads = uncertainty for the music industry 6 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Art Versus Commerce Musicians and merchants can be both allies and natural enemies. Artists often want to: break creative boundaries be heard and appreciated as much as possible connect with their audience Music merchants often want to: fit the mainstream sales taste connect with audience’s wallets 7 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Art Versus Commerce New technology brings many changes: new business models new legal conflicts new licensing opportunities new definitions of artist label merchant/retailer music product 8 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Finding a Paying Audience Early music was simply for artists’ pleasure. First western professional musicians were singers/actors in Greek and Roman theaters. Middle Ages religious musicians received no pay. (5 th to 15 th Century) 15th and 16th century German guilds improved conditions for musicians. European artists employed as house musicians.(Mostly for nobility and very wealthy) 9 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Finding a Paying Audience Professional status came through the paying audience, especially in Italian and English musical theater and opera.(Note: this is an ‘elite’ audience). By 1800s paying to hear a professional was generally accepted. 10 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Finding a Paying Audience Professional musicians resulted in managers or agents. Mozart’s dad (1756) P.T. Barnum ( ) Show-biz atmosphere for popular music developed growing size and affluence of middle class Popularity of vaudeville theater. ( ’s) 11 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

12 Historical Development Finding a Paying Audience Music publishing houses emerged (mid-late 1800’s) spotted popular hits (at minstrel shows, etc) employed in-house composers (Tin Pan Alley in New York: 1900) After the Ball: First Mega-hit in 1892 – sold 1,000,000 copies!

Historical Development Mass Media 1920s: Radio expanded audience beyond an elite audience developed new fans for folk music, country and western songs, blues, and jazz publishers fought broadcasting said it hurt sales of sheet music initially no income from broadcast performances 13 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media Sound films usher further development synchronization rights musical films (1927) The Great Depression of 1930s saw: end of million-selling records sale of sheet music collapse vaudeville theater attendance drop radio broadcasting grow 14 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media Growth of radio music publishers focused on radio stars song plugging grew to national enterprise regional publishing offices closed big bands became brand names band singers became popular singers 15 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media Effect of World War II: Armed Forces Radio network (early 1940’s) by 1940s American style = world style returning G.I.s bought records music product factories reopened music industry reaching a mass market record companies moving millions of singles (1949) 16 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media Columbia’s long-playing record )1948) 12 songs = 600% increase in income classical records = 10% of market Low cost tape-recorders High-fidelity sound 17 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media The new music business attracted: new capital (banks and financial institutions invest) new merchants new distribution and merchandising methods rack jobbers (A wholesaler that provides racks filled with merchandise in space that is leased from retailers ) large investments in record production 18 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

Historical Development Mass Media The “money-tree” music industry the “Big 6” (now Big 3: UMG, Sony, Warner) record labels’ catalogs released on CDs Music TV takes root MP3 format arrives Digital file sharing = mass media controlled by the masses The future? 19 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners

For Further Thought Musical artists and music merchants are often considered natural enemies, holding different views on what music should be and do, but today they have to get along. What has forced this accommodation, this working relationship? 2. What influence has technology and communications had on the music industry? Give specific examples. 3. How is the life of an artist different today than it was in the Middle Ages? What has changed, and what remains the same? 20 Music Business Handbook and Career Guide 10th Ed. Copyright 2013 Sherwood Publishing Partners