Howtechnology, deregulationandgreed reshapedmusic andthemusician: 1980-2013

howtechnology,deregulationandgreed

reshapedmusicandthemusician:

1980-2013

CD:Compactdisk:

COMMERCIALLY1982

CD:Compactdisk:

COMMERCIALLY1982“PERFECT”COPIES

CD:Compactdisk:

COMMERCIALLY1982“PERFECT”COPIESDIGITALSPEED

CD:Compactdisk:

- ALBUMS- ORIGINALLY 22 MINS. PER SIDE (44

MINS. MAX)

Pre- CD:

- TAPE…

Pre- CD:

- 1979.

Walkman:

- 1979.- IPOD OF IT’S TIME.

Walkman:

- 1979.- IPOD OF IT’S TIME.- PIRACY

Walkman:

1983-ish.

CD PLAYERS

1983-ish.

CD WAS PLANNED TO BE THE SUCCESSOR TO THE GRAMOPHONE RECORD

CD PLAYERS

1983-ish.

CD WAS PLANNED TO BE THE SUCCESSOR TO THE GRAMOPHONE RECORD

Initially: NOT RECORDABLE

CD PLAYERS

1990- CD-R

Perfect copies of cds.

CD PLAYERS

1983:reinvigorate record business:

CD:

1983:reinvigorate record business:- high end audio file recordings

CD:

1983:reinvigorate record business:- high end audio file recordings- consumers re-purchase back catalogs

(beatles, rolling stones, marvin gaye…)

CD:


(beatles, rolling stones, marvin gaye…)- record companies become CATALOG focused.

- cost of promoting and signing new acts vs. cost of re-marketing proven catalogue.

CD:


(beatles, rolling stones, marvin gaye…)- record companies become CATALOG focused.

- cost of promoting and signing new acts vs. cost of re-marketing proven catalogue.

- price DOUBLES cost of albums/cassettes.

CD:

SYNCLAVIER II IN 1980.

Sampling:

SYNCLAVIER II IN 1980.

FEATURES:

SAMPLING, 64 VOICE POLYPHONY, 32MB OF WAVEFORM RAM (EXPANDABLE TO 768), 32 OUTPUTS, MUSIC-NOTATION PRINTING, MULTITRACK SEQUENCING,

AND DIGITAL HARD-DISK RECORDING.

Sampling:

CHANGES RECORDED POPULAR MUSIC

FOREVER.

Sampling:


FOREVER.

- ORCHESTRAS

Sampling:


FOREVER.

- ORCHESTRAS- STUDIOS

Sampling:


FOREVER.

- ORCHESTRAS- STUDIOS- MUSICIANS

Sampling:


FOREVER.

- ORCHESTRAS- STUDIOS- MUSICIANS- MUSICIANSHIP

Sampling:

“borrow” from others..

Sampling:

“borrow” from others..- sounds great!

- no need for musicians- no need for studios

Sampling:



publishing owned by major labels:- reshuffling of accounting in lawsuits- labels continue to adjust from being

record makers into ancillary units

Sampling:



publishing owned by major labels:- reshuffling of accounting in lawsuits- labels continue to adjust from being

record makers into ancillary unitslegal departments:

- #1 growth industry in the music business

Sampling:

legaldepartmentsbecome #1growthindustryinthe

recordbusiness.

1981:changes record business:- additional promotion- visuals vs./in addition to: touring- spawns copycats:

- vh1- tnn- bet

MTV:

Downloading:

Size of the file:- mp3 vs. cd or dvd

Downloading:


changes record business:

Downloading:


changes record business:- unlike advent of cd… downloading is allowed.

Downloading:



NO RESPONSE:

Downloading:



NO RESPONSE:- mp3 file sharing 1993…- Napster started 1999…

Downloading:



NO RESPONSE:- mp3 file sharing 1993…- Napster started 1999…- RIAA first suit: 2003.

Downloading:

fordownloading.

FREEMUSICFORALL!

recordlabels...

NOresponse…

The Telecommunications Act of 1996:

- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.



- THE CAP HAD BEEN 40 STATIONS.



- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN

1,200 STATIONS.




1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS




1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS




1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS- LESS LOCAL NEWS.




1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS- LESS LOCAL NEWS.- MORE DIFFICULT FOR NEW ARTISTS TO GET AIRTIME ON COMMERCIAL RADIO


FROM THE EARLY 1920S THROUGH THE EARLY 1950S, THE AMERICAN MOTION PICTURE INDUSTRY WAS CONTROLLED BY A FEW COMPANIES.

THE MOST POWERFUL OF THESE STUDIOS WERE THE FULLY INTEGRATED BIG FIVE STUDIOS: MGM, WARNER BROTHERS, 20TH CENTURY FOX, PARAMOUNT PICTURES, AND RKO.

THESE STUDIOS NOT ONLY PRODUCED AND DISTRIBUTED FILMS, BUT ALSO OPERATED THEIR OWN MOVIE THEATERS.

UNIVERSAL STUDIOS, COLUMBIA PICTURES, AND UNITED ARTISTS PRODUCED AND DISTRIBUTED FEATURE FILMS, BUT DID NOT OWN THEIR OWN THEATERS.

MediaMonopoly…VerticalIntegration:

VERTICAL EXPANSION (BUYING INTO INTEGRATION) CAN BE USED TO INCREASE SCALES AND TO GAIN MARKET POWER.

THE ACQUISITION OF DIRECTV BY NEWS CORPORATION IS AN EXAMPLE OF FORWARD VERTICAL EXPANSION. DIRECTV IS A SATELLITE TV COMPANY THROUGH WHICH NEWS CORPORATION CAN DISTRIBUTE MORE OF ITS MEDIA CONTENT:

NEWS, MOVIES, AND TELEVISION SHOWS.

THE ACQUISITION OF NBC UNIVERSAL BY COMCAST CABLE IS AN EXAMPLE OF BACKWARD VERTICAL INTEGRATION.

MediaMonopoly…VerticalIntegration:

IN UNITED STATES V. PARAMOUNT PICTURES, INC., THE SUPREME COURT ORDERED THE FIVE VERTICALLY INTEGRATED STUDIOS TO SELL OFF THEIR THEATER CHAINS.

MediaMonopoly:VerticalIntegration:

APPLE ITUNES: - owns store



- owns hardware



- owns hardware- owns software



- owns hardware- owns software

APPLE:DOES NOT MAKE CONTENT.


LET’STAKEABREAK.

MAKINGARECORD:

MusicCommunity:

MAKINGARECORD:

- artist

MusicCommunity:

MAKINGARECORD:

- artist- songwriter

MusicCommunity:

MAKINGARECORD:

- artist- songwriter- producer

MusicCommunity:

MAKINGARECORD:

- artist- songwriter- producer- engineer

MusicCommunity:

MAKINGARECORD:

- artist- songwriter- producer- engineer- musicians

MusicCommunity:

PROMOTINGARECORD:

- artist. - record company.- promotion team.- radio stations.

- video team.- concerts… promotion team, agents, etc.

- musicians.

MusicCommunity:

HistoryofMusicBudgets

In 1979 a typical music budget for a 60 minute prime time show was $35,000.

($104,117 adjusted for today's dollars)




This amount covered: Composer’s fee.




This amount covered: Composer’s fee. Musician’s payments (typically 30 musicians for 1 or 2

sessions).





sessions). Arranging and orchestration.





sessions). Arranging and orchestration. Union benefits, payroll taxes.





sessions). Arranging and orchestration. Union benefits, payroll taxes. Studio costs.

AFMStrike

Confluence:- End of studio music

departments:- Copying- Orchestration- Studio costs

AFMStrike

Confluence:- End of studio music departments:

- Copying- Orchestration- Studio costs

- Rise of technology:- Synthesizers- Home recording- Sampling

Badluck.

Theartofcomedyis…

Theartofcomedyis…ttttttt…

Timing.

AFMStrike

AFMstriketechnology

AFMstriketechnology

endofsystem (musicdepartments)

badluck.

badluck.timing.

income...vultures.

ThePackage

- Solution to troublesome AFM strike.

- Created by agents Mike Gorfaine and

Sam Schwartz along with Mike Post.

- Undercut AFM Strike.- Reconfigured TV and film music

economics.

ThePackageDeal

• Pre-1981: Composers fees were separate line items in budgets from:–musicians fees– conductors– orchestrators– studio costs

ThePackageDeal

• Pre-1981: Composers fees were separate line items in budgets from musicians fees, conductors, orchestrators, etc.

• Post-1981: Music budget cut by 50%, all expenses paid by composer, whose profit = what is left at the end.

ThePackage

- Composer is paid a fixed fee for the entire job, including recording expenses.

- Package dis-incentivizes composer from working with:- Musicians- Copyists- Contractors- Orchestrators- Recording Studios

ThePackage

- Born with AFM strike, 1980.

ThePackage

- Born with AFM strike, 1981. - Mike Post approach the producers:

"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.”

ThePackage


"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores

ThePackage


"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores- the AFM strike failed

ThePackage

- Born with AFM strike, 1981. - Mike Post approach the producers: "Give

me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores- the AFM strike failed

- Post became the top earning TV composer of the last 40 years.

ThePackage

- Born with AFM strike, 1980.- Makes Composers Independent

Contractors/Employers

ThePackage

- Makes Composers Independent Contractors/Employers

ThePackage


- Constricts/Eliminates/Limits AFM:- Musicians- Copyists- Contractors- Orchestrators

ThePackage


- Constricts/Eliminates/Limits AFM:- Musicians- Copyists- Contractors- Orchestrators

- Introduces a new way of working:

FREE!- composers, with no collective

bargaining, and no protection from a union, begin to work as such:

FREE!- composers, with no collective

bargaining, and no protection from a union, begin to work as such:- Free, unlimited demos… and…

FREE!- Unlimited demo submissions

- Free composition- Free recording- Free arranging- Free singing- Free lyric writing

- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes

- Contractual clause that prevents budget over runs regardless of what changes are asked for



- Free composition


- Free composition- Free recording


- Free composition- Free recording- Free arranging


- Free composition- Free recording- Free arranging- Free singing



- Free lyric writing



- Free lyric writing- Consistently decreasing fees for

shows



- Free lyric writing- Consistently decreasing fees for shows

- Non union buyout of musicians- 100% of the publishing



- Free lyric writing- Consistently decreasing fees for shows

- Non union buyout of musicians- 100% of the publishing- Copyright ownership



- Free lyric writing- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes


- Free composition- Free recording- Free arranging- Free singing- Free lyric writing

- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes

- Contractual clause that prevents budget over runs regardless of what changes are asked for

TVMUSIC:

In 1979 a typical music budget for a 60 minute prime time show was $35,000 ($104,117 adjusted for inflation)…

TVMUSIC:

In 1979 a typical music budget for a 60 minute prime time show was $35,000 ($104,117 adjusted for inflation)…

In 2013 a typical music budget for a 60 minute prime time show is…

$14,000- an 87% overall drop.

TV:HOURPRIMETIME

Writers’ Guild of America minimums:Network Primetime 60 minute script (Courtesy of the WGA)

WGA: 129% of 1979Music: 13% of 1979

• 1979: $8,655 ($25,347 adjusted for 2011)

• 2011: $32,700

Music = 13%

WGA = 129%

0 20 40 60 80 100 120

19792010

TheEnd

- Spotify, Pandora, Youtube… whatever…- Musicians have no leverage

- No union- No association with strong unions (WGA, others)

- No precedents - No partnership with record labels

- Labels remain only entity with real power due to catalogs

- Composers, musicians, songwriters, producers, engineers…

- NO protection- Who benefits:

Lawyers.

Howdoesthisgenerationrebuild?

Documents

Howtechnology, deregulationandgreed reshapedmusic andthemusician: 1980-2013