1. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. THE DYNAMICS OF MASS COMMUNCATION Joseph R. Dominick University of Georgia--Athens

2. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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 Making a CD  Economics Economics  Feedback Feedback  The Recording Industry The Recording Industry Chapter Outline

3. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

4. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Rivalry –North American Phonograph Company Edison  Cylinders –U. S. 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

5. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

6. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

7. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

8. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

9. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

10. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

11. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

12. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Could pirating shut down the recording industry ? Sound Recording in the Digital Age ? ?

13. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

14. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Four major segments –Talent –Production –Distribution –Chain Retail Organization of the Recording Industry

15. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Organization of the Recording Industry Figure 8-2 Record Distribution Channels

16. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Ownership in the Recording Industry Table 8-1 Top Five Recording Companies, 2004

17. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

18. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Making a CD 1. Record 4-track demo disc 2. Sell demo with agent 3. Record multitrack master disc 4. Equalize tracks 8. Reproduce on a disk 5. Add special effects 7. Mix down to stereo master 6. Re-record as required

19. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Economics Figure 8-3 Recording Industry Revenues, 1980-2002

20. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Economic Trends –2000-2003: recording revenues in a tail spin –2000: Peer-to-peer file sharing gained popularity –2002: Consumers buy more blank CDs than recorded CDs –2003-2004: Legal downloading increases thanks to iPod –98% of industry sales still come from CDs Economics

21. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. $0.00 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

22. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Billboard Charts –Sales and Digital Downloads 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

23. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Sound Recording Audiences –In 2000 85 million stereos; 85 million tape players 40 million CD players $500-$800 per sound system –In 2004 30+ spent 55 cents per dollar spent on prerecorded music 19- declined 11% from 1988 Feedback

24. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. 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

25. McGraw-Hill © 2007 The McGraw-Hill Companies, Inc. All Rights reserved. Upward Mobility –Audio engineer  Staff engineer  Senior supervising engineer –Producer  Staff producer  Executive producer –Business  Management The Recording Industry