View
187
Download
4
Category
Preview:
DESCRIPTION
This is an overview from the Pacific Music Business Camp kickoff class that introduced students to some of the fundamental players, concepts and conventions within the music business.
Citation preview
Making Money Making Music
Pacific Music Business CampJuly 2013
Presented by Keith Hatschek & Dana Myers
Who’s Who?
Dana Myers – entertainment lawyer and criminal attorney, music manager, Pacific alumni
Keith Hatschek – program director, author, producer, engineer, musician
What’s Wrong with This Graphic?
Source: Nielsen/ Soundscan
Out with the Old, In with the New
Traditional record sales are only a small part of overall MUSIC industry today
Some artists, songwriters, managers, concert promoters are all still making money – how?
Success no longer requires major corporate backing But it can be a useful add-on if done
strategically (Examples: Macklemore & Death Cab)
Why Clout Matters
What is clout?
Who has it?
Who doesn’t
How to get it
What it will allow you to do
New Models/Metrics
Amanda Palmer – Kickstarter
Jay-Z + Samsung – Instant Platinum
Justin Bieber – Beliebers “fanatic fans”
Sources of Income Live shows
Have a Billboard – BoxScore data
Recorded music
Merch
Other
Where Does the $$ Go?
Solo artist, house concert, no band, use your parent’s car – you keep 100%
That is not the norm!
Expense areas Manager Venue share Agent Attorney Sound & Lights Roadies Food, instruments, insurance, marketing, promotion,
videos, etc. What else can you think of?
Gross vs. Net
Total revenue from a gig, album, tour, or other event is called the “gross” earnings
What the artist puts in her/his pocket after all expenses have been paid is the “net”
Many artists have earned millions and been forced into bankruptcy due to poor management, under what conditions artists are eventually paid
Never be afraid to ask, “What do you expect I will net from this opportunity?”
Live Revenue Splits
Bruno Mars - $65 ticket Venue/Promoter = 38% ($24.70) Artist = 34% ($22.10) Ticketmaster = 10% ($6.50) Facility fee = 8% ($5.20) Opening act = 7% ($4.55) Taxes = 3% ($1.95)
CD Sales Split – Traditional retail
J. Cole Born Sinner - #1 on Billboard 200 this week SRLP $16.98 (consumer pays) Published Price to Dealers $12.05 (Target
pays) Price paid by Distributor $8.45 (UMGD pays) Label pays out
$1.25 to artist $1.00 to songwriters Rest goes to pay off album’s cost
to produce and market (aka “recoupment”)
Merch Madness
Survey of class – how much does stuff cost?
$__ is a great price on a concert tee!
Revenue split Sales tax withheld Venue share (for allowing you to sell it) Merch share (for bankrolling your inventory) Artist share – what you get to keep (minus
your merch table staff payroll)
Forbes 2012 Top Earners
Dr. Dre $110MM
Roger Waters $88MM
Elton John $80MM
U2 $78MM
Take That $61MM
Bon Jovi $60MM
Britney Spears $58MM
Paul McCartney $57MM
Taylor Swift $57MM
Justin Bieber $55MM
Toby Keith $55MM
What does this mean to You?
DIY Artist Model
Do-It-Yourself (DIY) Artists take control of their own careers
This means: Creative control Learning the business aspects Building relationships Learning by doing! (Make that CD, book a
show, hand paint your t-shirts, make your EPK, etc.)
DIY Benefits
You’re the boss!
You learn what works and why
What doesn’t work and how to improve
You keep any earnings (but need to reinvest)
Fun, rewarding, empowering
Music Biz Camp Goals
This week you will study and learn: Production techniques Concert production and marketing Social Media for artists PR and Marketing Copyrights and “Wrongs” – protect your music Live Sound Careers in the Music Industry
. . . And make new friends while having fun!
Recommended