1. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 1 Joseph R. Dominick University of Georgia-- Athens

2. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 2 Part II Media

3. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 3 Chapter 8 Sound Recording  History History  Sound Recording in the Digital Age Sound Recording in the Digital Age  Defining Features of Sound Recording Defining Features of Sound Recording  Organization of the Recording Industry Organization of the Recording Industry  Ownership in the Recording Industry Ownership in the Recording Industry  Producing Records Producing Records  Making a CD or Tape Making a CD or Tape  Economics Economics  Feedback Feedback  The Recording Industry The Recording Industry Chapter Outline

4. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 4  Edison invents phonograph (1877)  Tinfoil-wrapped cylinder  Peddled as aid to dictation  Bell and Tainter’s graphophone  Wax cylinder  Berliner’s gramophone (1887)  Spiral track recordings on a flat disk  Lippincott and stenographers  Nickelodeons History

5. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 5  Rivalry  North American Phonograph Company  Edison  Cylinders  United States Phonograph Company  Berliner  Disks perfected  Columbia Phonograph Company  zonophone, their version of disk player  Victor Talking Machine Company  Berliner and Johnson  “His Master’s Voice”  Victrola (1906) History

6. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 6  Record players ubiquitous (1916)  107 million records produced (1919)  Radio’s Impact on Recording Industry  Radio cuts record player sales in half (1923)  Electronic recording  radio  Radio/phonograph combos (1926)  RCA/Victor merge (1929) History

7. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 7  The Great Depression  Edison’s company out of business (1930)  Record sales $46M (1930)  $6M (1933)  Jukeboxes appear after repeal of Prohibition (1933)  World War II and After  Shellac restricted during WWII  American Federation of Musicians strikes  Capitol Records – free recordings to radio stations History

8. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 8  Battle of the Speeds  Long-playing record (LP)  33-rpm  Columbia Records (1948)  Extended play record  45 rpm  RCA  1947-1949 sales drop due to battle  HiFi sets appear 1954  Radio’s Top 40 helps sales of 45s History

9. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 9  The Coming of Rock and Roll  Bill Haley and the Comets (1955)  Elvis Presley (1956)  Jerry Lee Lewis  “Whole Lotta Shakin’ Going On”  6M copies 1957-1958  Little Richard  Chuck Berry History

10. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 10  Rock Goes Commercial  Loss of pioneers from music scene  Clean-cut image  Bobby Vinton  Frankie Avalon  The British Invasion  The Beatles (1964) – Seven #1 records  The Rolling Stones History

11. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 11  Transitions and Trends 60s-90s  1960s: Freedom, experimentation, innovation  The Who  Blood, Sweat, and Tears  1970s: Heavy Metal  1980s: Thriller  1990s: CDs replace tape History

12. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 12  Digitally encoded music – easily copied and shared  Napster  KaZaA  Grokster  MusicNet and PressPlay  Apple’s iTunes  Copy-protection software Sound Recording in the Digital Age

13. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 13 Could pirating shut down the recording industry ? Sound Recording in the Digital Age ??

14. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 14  Cultural Force  Shapes musical development  International business  5 dominant companies in 5 countries  Blend of business and talent  Singers and musicians  Recording companies Defining Features of Sound Recording

15. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 15  Four major segments  Talent  Production  Distribution  Chain Retail Organization of the Recording Industry

16. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 16 Organization of the Recording Industry [Insert Figure 8-2 here] Figure 8-2 Record Distribution Channels

17. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 17 Ownership in the Recording Industry [Insert Table 8-1 here] Table 8-1 Top Five Recording Companies, 2004

18. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 18  Seven departments 1)Artists and repertoire 2)Sales and distribution 3)Advertising and merchandising 4)Business 5)Promotion 6)Publicity 7)Artist development Producing Records

19. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 19 Making a CD or Tape 1. Record 4-track demo tape 2. Sell demo with agent 3. Record multitrack master tape 4. Equalize tracks 8. Reproduce on tape and disk 5. Add special effects 7. Mix down to stereo master 6. Re-record as required

20. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 20 Economics [Insert Figure 8-3 here] Figure 8-3 Recording Industry Revenues, 1980-2002

21. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 21  Economic Trends  2000: File-sharing programs flourish  2001: Hybrid Theory has equal sales and pirated downloads  2002: Consumers buy more blank CDs than recorded CDs  Weak economy  Consumer sense of CD overpricing Economics

22. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 22  Courtney Love’s example  Four-performer band  20% royalty + $1 million advance  Recording: $   million  $150,000 to staff; $170,000 in taxes  $45,000 each for one year  1 million copies  $2 million royalties  $1.1 million promotion and tour support  Left for band: Economics $0.00

23. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 23  Billboard Charts  Sales  Nielsen SoundScan  Weekly sales data from 14,000 retail locations  Exposure  Nielsen Broadcast Data Systems  Airplay on 1200 radio stations  Index number is a composite Feedback

24. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 24  Sound Recording Audiences  Little audience data  By Year 2000  85 million stereos; 85 million tape players  40 million CD players  $500-$800 per sound system  In 2003  30+ spent 55 cents per dollar spent on prerecorded music  19- declined 11% from 1988 Feedback

25. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 25  20,000 people in industry  Entry-Level  Engineering  Recording Institute of America  Creative  Mass media, business admin, music  Volunteer at local studio  Business  Business admin and mass media  Start at branch office The Recording Industry

26. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Slide 26  Upward Mobility  Audio engineer  Staff engineer  Senior supervising engineer  Producer  Staff producer  Executive producer  Business  Management The Recording Industry