Music Business Final
Terms
undefined, object
copy deck
- length of copyright
- 70 years plus the life of the composer
- law that pre-empted all other laws; defined two different copyrights (PA/SR); defined fair uses; defined length of copyrights
- Copyright Law of 1976
- granted performanceroyalties of SR copyrights if delivered in a digital medium
- The Digital Performance Right in Sound Recordings Act of 1995
- function is to market music and shop it to labels
- publishers
- two types of rights
- performing rights, sound recording
- Rights of Performing Arts
- actual music, distribution, making copies, derivatives, performing
- Rights of Sound Recording
- reproduce, distribute, derivatives, right to perfom Digital Audio Tranmission
- exceptions to royalty rules, ie. making photo copies to avoid a bad page turn
- fair uses
- two main types of copyrights
- mechanical, statutory
- copy or recording copyrights
- mechanical
- right in which the rate is set by US govt.
- statutory
- major clearing house in the US
- Harry Fox Agency
- collection of performing dues is the responsbility of _______
- Performance Rights Organizations
- three major PROs
- ASCAP, SESAC, BMI
- practice that CAN be denied,permission must be granted
- sampling
- litigation services in disputes
- attorneys
- occurs when mediation fails
- occurs when mediation fails
- keeps balances between parties
- mediation
- attorney compensation
- hourly fee, annual retainer, or percentage of income
- responsible for running an artist\'s business, finances, and production of the act
- manager
- manager compensation
- based on artist\'s income; performance income; recording income; publishing income
- artist must be exclusive with manager or agent
- key-man clause
- in charge of booking actual events
- agents
- function of contracts
- to keep lines of communication open between venue and artist
- represents instrumentalists, weak locally
- American Music Federation
- exists to compensate live musicians over recordings; financed by manufactured recordings from record label as a \"tax\"
- music performance trust fund
- recent problem with music performance trust fund
- money for recordings are not coming in as frequently
- qualifications for art administration
- bachelors or masters in art admin, strong org. and people skills, financial training and intern experience
- main difference between major and minor labels
- majors own their own distribution systems
- watchdog of the recording industry
- Recording Industry Association of America
- another name for a royalty artist agreement
- record deal
- when artists are given money ahead of time for future royalties, this is a RECOUPABLE cost and must be paid back
- advances
- royalties of second album must repay debts from first album
- cross-collateralization
- record labels try to control the amounts of royalties paid out in the case of a singer-songwriter; max set, no minimum
- controlled composition clause
- forms of sales tracking
- the \"charts,\" Broadcast Data System, Soundscan, Media Base 24/7, Sound Exchange
- tracks non-interactive digital exchange
- Sound Exchange
- monitors airplay, computer listens to radio stations, logs songs played
- Broadcast Data Systems
- run by Billboard Magazine, called in by reporting radio stations
- The Charts
- computer linked to retail outlets to monitor actual sales of records, more accurate than tracking sales to retailers because of return issues
- Soundscan
- types of distributors that put products in non-traditional retail outlets, builds traffic for retailer
- rackjobbers
- sells a mix of labels to small retailers at a shallow discount
- one-stops
- legal entity created to conduct business; shares can be bought and sold, shareholders have no control of management
- corporation
- legal entity created to conduct business; company is separate from its owners; company\'s liability does not touch personal assets of the owners
- limited liability company
- owned by a single person; owner assumes full risk
- sole proprietorship
- partnership formed to accomplish a specific project, not from a long-lasting business
- joint venture
- two or more people join together to form a business; partners are jointly and severally liable
- general partnership
- a general partner has control and is subject to personal asset libaility; other \"limited\" partners contribute capital and limit their risk solely to the money invested; usually bought out at some point
- limited partnership
- two major NAMM duties
- 1. put on trade show 2. educate the membership
- 3 Sub Orgs of NAMM
- National Association for Music Ed, Natl Assoc. of Recording Arts and Sciences, Retail Print Music Dealer\'s Association
- advantages of print music industry
- keep ahead of the competition, added potential profit, added potential cash-flow
- disadvantages of inventory
- if under capitalized, can be biggest cause for failure, cost of capital and added inventory, cash flow problems, delays in receivables,, added costs in personnel, space, etc.
- key to success in business
- slow, steady, manageable growth
- there are only so many musicians
- scarcity principle
- potential in your market is limitless
- abundance principle
- less expensive principle
- abundance