Glossary of Music Business MBU 1110 Final Review
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- Name the first song that sold over 1 million copies of sheet music.
- "After the Ball" - 1882
- How can you become a better songwriter?
- read philosophy, co-write with someone better, network, and practice
- How do songwriters make money?
- royalty stream and ownership of copyright
- How do music publishers make money?
- royalty stream and ownership of copyright
- List the types of music publishers and their differences.
- Major (100% owned by Mega)
Specialty (appeals to niche)
- Where and what was tin pan alley?
- New York
Book publisher turned into music publishing company.
- Define the following:
Performance "blanket" License
- Mech. Lic.
For reproduction and distribution
For public performances or broadcast
For film, TV, video
COmbination of mech/blanket licenses. Used for Muzak.
For use overseas
- Who is the NMPA?
- National Music Publishing Association
- Who are ASCAP, BMI, and SESAC?
- Performing rights organizations
- Who does the Harry Fox Agency represent?
- Music publishers
- When can you recapture a copyright?
- 35-40 years
- Name three types of businesses.
- Sole Proprietership
- What do you need to start a music publishing company?
- Register with a P.R.O.
Obtain a federal tax number
- What is the most important thing you will need to become successful as a music publishing company?
- good songs
- Explain how a multiple is used to determine the value os a publishing company.
- A multiple is negotiated by the catalog's worth to determine the value of the publishing company.
- List the 5 types of songwriting publishing deals.
- Work for Hire
- Who is the SGA?
- The Songwriter's Guild of America
- How are mechanical license royalties determined in foreign countries?
- Foreign P.R.O.'s
- How do ASCAP, BMI, and SESAC collect money/pay their writers and publishers?
- They use charts, BDS, and analyze radio airplay to determine their fees.
Money is paid directly to songwriters/publishers.
- In the US, what business is exempt from being issued public performance licenses?
- small restaurants, businesses, and hotels
- How are public performances monitored?
- The BDS System
- Is sampling a copyright infringement?
- Yes, if royalties are not paid to the original songwriter.
- Which performing rights organization is a for-profit?
- What license does a live performance of a non-dramatic song require?
- Performance "blanket" license
- Describe the procedure for paying songwriters and publishers mechanical royalties.
- Label pays Harry Fox Agency
HF Agency pays the Publisher
The publisher pays songwriter
- Describe the procedure for paying soungwriters and publishers performance royalties.
- Venue pays the PRO
The PRO pays the songwriter and publisher directly.
- Performance royalties are collected from?
- Radio, businesses, venues, and digital transmission
- Sync royalties are collected from?
- Film, plays, TV networks
- Mechanical royalties are collected from?
- Music Labels
- How does the Fairness in Music Act affect songwriters/publishers?
- They do not earn royalties if their songs are played in small businesses.
- Foreign royalties are often paid at what percentage of American rates?
- The rate varies
- How many PRO's can you belong to at once?
- What is the advantage of owning your own publishing company?
- You can negotiate Co-Publishing and Sub-Publishing deals.
- Explain the effects of the controlled composition clause's use to the label and major artists.
- If the artist is a writer or co-writer of a song, the Label only pays 75% of the statutory rate.
- What does Soundcan do?
- It analyzes CD sales.
- What is the BDS system?
- a computer that scans radio for song plays
- List the 5 mega entertainment corporations and their host countries.
- Bertelsmann - Germany
Sony - Japan
EMI - England
Time Warner - USA
Universal - French
- What is the Mega Entertainment Corporations' organizational structure of divisions?
- What gives the mega's their power for economic success?
- Worldwide distribution, promotion, and publicity
- What is the biggest threat to the structure of the music industry and their parent corporations?
- The internet and downloads
- How are the megas responding tio the threat of internet downloads?
- They are beginning to use the internet as a tool to distribute, promote, and publicize their products.
- List the 2 companies that could become the 6th and 7th mega corporations.
- Dreamworks, Disney
- Who invented the first recording devices, film cameras?
- Thomas Edison
- Explain the company structure of a typical record label.
- List the five things labels must do to be successful.
- 1.Find and sign talent
- List the 5 types of labels.
- What are the three areas of Development?
- List 5 types of recording deals.
- What is the Controlled Composition Clause rate?
- 75% of the statutory rate
- What is the Formula Amount?
- It refers to increased advances with each option.
- What are the "All In's"?
- Expenses that are 100% recoupable from the artist's account
- What are free goods?
- CDs that are given away to stimulate retail sales.
Up to 25% of CD pressed can be given away as free goods.
- Name and explain the three stages of the recording session.
- Basic tracks
- Name 5 types of recording sessions.
Limited Pressing (LP)
"Right to Work"
- Explain cross-collateralization.
- The profits from the current recording pay for the debt of a previous recording
- What is promotion?
- Promotion is giving free samples of a product, such as radio airplay.
- What is Publicity?
- Publicity is telling people about your product and why they should buy it. It is usually based on image, such as magazine articles.
- Name the 7 types of distribution to retail.
- Explain the 40/20/40 of the SRLP in the price structure of labels and products.
- 40% to Labels
20% to Distributor
40% to retail outlet
- How much should you budget in your recording contract for promotion?
- 100-200% of the recording budget
- How much should you budget in your recording contract for publicity?
- 50-100% of the recording budget
- List and explain the 4 P's pf marketing as related to the music business.
- What are the legal requirements for artist management?
- there are none
- What percent of the artist's gross income do managers usually make?
- Explain the power of attorney agreement.
- The artist's manager can sign legal documents in place of the artist.
- Who hires the manager?
- the artist
- How do concert promoters make money?
- They make money from ticket sales.
- What agency licenses talent agents of actors, radio personalities, and talk show hosts?
- American Federation of Musicians (AFofM)
- What percent of the concert hall needs to be sold for a promoter to "break even"?
- What is a rider?
- instructions given to a venue detailing the artist's needs for the concert
- What is public relations?
- PR is used to clean up a negative image (bad publicity)
- What will managers not do as part of their job description?
- find employment for an artist
- When an artist and manager split before the end of the contract, how is the manager paid for the remainder of the original agreement?
- declining commissions on artist royalties
- Why do record labels support concert tours?
- Tours help to build the artist's image and stimulate retail sales.
- Who is Clear Channel?
- An entertainment corporation that owns about 10% of radio and TV stations.
- Explain the business model of radio stations.
- Radio stations sell airtime to advertisers and has no apparent cost to the consumer.
- How much money is in merchandising?
- about 15-35% of gross income
- Who is IATSE?
- a union for "techies" and road crew
- What is the key supportive "property value item" that allows the business and creative systems in the entertainment industry to exist?
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