1. Part 1: Setting the Stage

2. Chapter 3

3. Start Thinking... 1. What areas of expertise are required to get a song to market? 2. What is your particular area of interest/talent in the music business industry?

4. Chapter Goals Understand that the music business is a system composed of subsystems, each of which submits to rational analysis. Learn how a song gets through “the maze”—how it travels through the system to the bank. Grasp the significance of the “information age” and how to deal with it today. Understand that the music business is largely based on the star system—that only individuals with strong talent and motivation can expect to persuade others to invest in their potential for commercial success. Understand that performers often can’t gain or sustain success without a fully staffed support system. Learn the four factors contributing to the success of those who “win” in the music business.

5. Defining the Business of Music Two essential elements: The Musician The Audience Drawing them together is the business of music How this is done has changed dramatically as a result of the Digital Millennium

6. Getting Through the Maze Two ways to view/analyze the industry Flowchart – Figure 3.1 on page 25 Sequence of events that occurs when a new song finds it’s way to market: The sequence is quite common although there are countless variations on the scenario

7. Getting Through the Maze How a song gets to market: 1. The composer—who sometimes is also the performing artist—writes a song and signs with a publisher. 2. The publisher persuades an artist (or that artist’s producer) to record the song. 3. Lawyers (at several stages) negotiate contracts between parties and specify terms for varying forms of usage and exploitation, such as mechanical rights and synchronization licenses. 4. The record company produces a recording and, possibly, a video version of the song. 5. Promoters persuade programmers to broadcast the audio recording and the video.

8. Getting Through the Maze 6. The record company uploads the song for online sale and ships the merchandise to distributors, who sell it to retailers. 7. If the song becomes popular, a second wave of exploitation can occur—licensing of ringtones and merchandise connected to the song and/or artist. 8. A talent agency contacts promoters and books a concert tour. 9. Concert promoters enlist cosponsors and sell the tickets. 10. The road manager moves the people and the equipment. 11. The concert production manager dresses the stage, lights it, reinforces the sound.

9. Getting Through the Maze 12. The artists perform. 13. The government collects the taxes. 14. The performing rights organizations collect performance royalties. 15. The accountants count the money; the participants pay their bills.

10. Show Me the Money Music is not simply about an artist performing a catchy tune. The music industry has mushroomed into an interconnected series of segmented, multi-billion- dollar businesses including: live concerts sale of musical instruments and equipment cell phone ringtones

11. Show Me the Money

12. Tools of the Trade: Everybody’s Gotta Learn Sometime Absolutely essential to keep informed about new developments in the industry in order to be marketable and to capitalize on new methods of licensing, marketing, etc. Amazingly, many composers, performers, business people and educators don’t really understand how it works. Worse yet, much of what they believe they know is either out of date or incorrect.

13. Tools of the Trade: Everybody’s Gotta Learn Sometime The results of this pervasive ignorance about the business has been tragic: Only 15% of AFM members work steadily in music Top graduates of conservatories fail to get their careers started Aspiring business-side candidates lack the big-picture smarts and specialized savvy to succeed in a competitive label environment Musicians navigating the DIY waters fall victim to sharks

14. Tools of the Trade: How do you get the important information? Take time to regularly read about developments in the business – wealth of info online (not all good) Bookmark sites that consistantly deliver good info Professional meetings – most organizations have websites (see back cover of textbook) Books on specialized topics: copyright, songwriting Blogs – ask around – fellow musicians Study at accredited college or university with specialized programs in music industry studies

15. The Musician-Entrepreneur: Prospering by Constantly Adapting Gene Perla – see pages 29 & 30 of text and class notes. Closing statement of this chapter: Only a limited number of performers can attain star status, so it is fortunate that the music business system offers many opportunities for individuals needed to help make the system function. No performer today can ascend to stardom and stay there without an array of qualified support personnel.

16. Whether as a star or support personnel, many do make it. Why: Luck? Timing? Education? Networking skills? These factors have all played a part in launching music business careers. Four other factors contribute to the success of those who “win” in the music business Four factors of “winners” in music business: 1. They are strongly motivated; they really want to win. 2. They are talented—and they surround themselves with talented associates. 3. They persevere; they hang in there until they succeed. 4. They get the important information. #1 – #3 depend on you #4 is offered in this course

17. For Further Thought... 1. What would you consider to be the essential factor(s) for “winning” in the music business?