1. 1 Sound Recording Chapter 8 © 2009, The McGraw-Hill Companies, Inc. All rights reserved.

2. 2 CHAPTER OUTLINE History Sound Recording in the Digital Age Defining Features of Sound Recording Organization of the Record Industry Ownership in the Recording Industry Producing Records Economics Feedback

3. 3 HISTORY Phonograph: Thomas Edison –For dictation Graphophone: Bell & Tainther Gramophone: Berliner Nickelodeons

4. 4 Rivalry Victrola: Berliner –Disc player designed to look like furniture –“His Master’s Voice” By 1914 record players were common –National dance craze –Jazz Age

5. 5 The Impact of Radio on the Recording Industry By 1924, radio cut into sales of record players –Sales down 50% –Record companies improved quality of recordings –Record companies marketed combined radio- phonographs –RCA & Victor merged in 1929

6. 6 The Great Depression Jukebox: coin-operated music player –Installed in bars, diners, drugstores –Boosted record sales about 500% by 1939

7. 7 World War II and After Shellac declared defense commodity Musicians strike, 1942-1944 Capital Records sent free records to radio stations Columbia introduced 33-1/3 rpm LP (albums) RCA introduced 45 rpm (singles) Stereo players introduced in 1950s TV affected both radio and recording industries –Playing Top 40 songs became popular

8. 8 The Coming of Rock and Roll Rock’s roots in black rhythm and blues, commercial white popular music, country & western, jazz Popular new singers: Elvis Presley, Bill Haley, Buddy Holly, Little Richard, Chuck Berry, etc.

9. 9 Rock Goes Commercial Most original rock stars left scene by 1959 Payola scandals Early 1960 industry cleaned up its image –Wholesome, clean-cut American singers

10. 10 The British Invasion The Beatles, 1964 Rolling Stones, Animals, other British groups American Genres –Folk –Soul

11. 11 Transitions Late 1960s into 1970s Social experimentation and cultural transition –Country rock –Rock opera –Blend jazz, rock, classical –Heavy metal

12. 12 Industry Trends: 1970-1990s Disco Michael Jackson’s Thriller CD format dominated in 1990s

13. 13 The Contemporary Sound Recording Industry iPod and other portable MP3 players –By 2007, a billion downloads from iTunes –Slowdown in sales, increase in downloading –Retail arm of industry has problems –Industry fights against illegal file-sharing Recording industry more consolidated than ever –Encourages predictable and formulaic music

14. 14 SOUND RECORDING IN THE DIGITAL AGE Digital technology makes the recording industry vulnerable. Industry was not prepared for the digital age Illegal file-sharing changed music industry forever

15. 15 The Rise of the iPod iPod led to varied developments New business model New cottage industry (iPod accessories) Cultural impact (iPods at clubs) iPod jacking (listen to others’ music) Podcasts (downloadable programs) New radio format (“Jack FM” or “Dave FM”)

16. 16 The Decline of the CD Record companies packaged collections of songs (albums) on CDs People want to buy only the songs they like –Abandoned album format –CD sales declining since 2000 Legal downloads generate revenue –Not as much as lost from decreased CD sales

17. 17 New Products Recording industry developing symbiotic relationship with cell phone industry

18. 18 Mobile Music iPod allows people to take music with them (continuing Sony Walkman tradition) MP3-equipped cell phones –Music industry charges wireless providers more than it charges online services

19. 19 User-Generated Content Artists produce content and post on social networking sites Important to industry and individuals Artists, wireless providers, recording industry are all interested in using these sites effectively

20. 20 DEFINING FEATURES OF SOUND RECORDING Cultural force: characterizing social groups, defining movements and trends – helps shape modern culture International Unique blend of business and talent

21. 21 ORGANIZATION OF THE RECORD INDUSTRY The recording industry can be divided into four major segments.

22. 22 Talent Singers, musicians, songwriters, arrangers, lyricists Try to break in to industry by performing at local clubs, or posting videos on sites such as YouTube, Facebook, MySpace

23. 23 Production Recording the songs at the recording studios, using elaborate multi tracking equipment When singles/albums are released, label begins –Promotion, advertising, merchandising, packaging Four major firms dominate the industry, though many small companies exist

24. 24 Distribution Direct retail Rack jobbers One-stops Direct consumer sales Online sales Direct download

25. 25 Retail Traditional record stores facing stiff competition –Mass market stores (Wal-Mart, Target) 2006: 65% of CD and tape sales –Online music sites Some electronic retailers are starting music download businesses

26. 26 OWNERSHIP IN THE RECORDING INDUSTRY Recording industry is one of the most concentrated of all media industries Four firms account for 85% of all sales –Universal Music Group, Warner Music, Sony BMG, EMI These are multinational conglomerates with interests in many different industries

27. 27 PRODUCING RECORDS Artists and repertoire (A&R) Sales and distribution Advertising and merchandising Promotion Business Publicity Artist development

28. 28 Making a Recording Artists must gain attention of the industry –Produce demo –Post videos –Contact A&R department If signed, go to recording studio –Multitrack recording –Players need not be present at same time After recording, mix down to two tracks (stereo)

29. 29 ECONOMICS Economic issues are of concern to the industry as a whole and to individual musical acts

30. 30 Economic Trends Profits declining since 2000 –File-sharing programs became popular Legal downloading services are booming

31. 31 Rock Performers: The Bottom Line Royalty rates –CDs: roughly 9% to 20% (for superstars) –Downloads: royalty rates run about 9% Artist income sources –Royalties –Personal appearances, overseas sales, merchandising Must pay all expenses from income –Very few acts generate large sums –Only about 10% of new recordings are profitable

32. 32 FEEDBACK Feedback in the sound recording industry has been concerned more with sales and exposure than with audience composition

33. 33 Billboard Charts Billboard magazine prepares weekly ratings charts based on sales and exposure –Nielsen SoundScan provides sales figures –Nielsen Broadcast Data Systems provides exposure Radio stations monitor Billboard to see what they should be playing

34. 34 Sound-Recording Audiences Demographic profiles not common; industry not supported by advertising –People over 30 account for 55% of sales –Spending by people 19 and under declined to 21%