Music Business Final Exam - Rolston - MBU 1110

The term of a merchandising agreement is typically

one album cycle

Fees that are charged when a venue retails merch for the artist

Hall fees

What happens to advances if sales goals are not reached

they must be repaid

The contract between the agency and the promoter has two parts, the _____ and the _____.

Prima Facia / rider

Who in the music industry is responsible for finding work for the artist?

Agents

When a promoter rents a venue with just the most basic services (Heat and Air; Work lights, etc) it is called

four walling

the top grossing tours of the last five years have been acts like Madonna, U2, Bon Jovi, etc. What is the primary reason these bands are consistently top drawing tours?

Their audience is older and has more disposable income

Concert promoters contract for artists services through

Booking or talent agencies

What is scaling the house?

setting ticket prices

When the talent agency requires that the promoter give their artist top bill on all tickets, advertisement and press releases, he is asking for

100% star billing

The business jargon for complementary tickets is

comps

In concert promotion, "taking out the garbage" is considered ______

cartage

The area of the stage between the curtains and the audience is called

the proscenium

True or False: The concert promoter's budget is subject to approval by the talent agency?

True

What kind of deal with the promoter results in the promoter's fee being included as part of the break even expenses?

Promoter Profit Deal

In a promoter profit deal, the split after breakeven heavily favors who?

The artist

The amount of revenue a concert would make if every ticket is sold is called _____________

Gross Potential

The person that hangs speakers, lights, and staging from the building's superstructure is called ________

The Rigger

The first part of an agency-promoter contract deals with _________

fees, dates, and venues

the term of most merchandising agreements is ____________

one album cycle

Selling products with an artist's name or likeness on them is known as ______

merchandising

A coordinated body of methods, an organizational scheme, or a plan of procedure is called a _______

system

Of the 5 rules of engagement for the New Music Business model, which is the one that isn't really a new concept for the business?

The artist as a brand

At its core, the music business is selling ______

entertainment

which of the following is NOT part of the business subsystem in music business?

graphic designer

Which of the following is NOT one of the 3 primary income streams according to Hull?

- songwriting
- live performances
- merchandising
- recordings

Merchandising

Using a copyright for educational purposes is an example of ______

Fair Use

When a song is written by 2 or more people, who controls the copyright?

all of the songwriters have non-exclusive ownership

When a song is "published", who typically controls the copyright?

the publisher

when an artist samples a previous recording for inclusion in their latest single, who do they have to get licenses from?

The original recording artist and their label
AND
The songwriter and their publisher

True or false: a news report can play music in the background of a segment, as it is considered Fair Use?

False

Is the soundtrack attached to a movie considered a phonorecord?

Nope

The normal (or average) transfer of a copyright from writer to publisher is known as _______

assignment

True or false: the Harry Fox agency (mechanical licensing company) collects money from broadcast performances

False

A song has earned $100,000 in mechanical royalties. Assuming the industry standard split and no HFA fees, how much would the songwriter receive?

$50,000

The practice which provides that once a song has been recorded and released to the public, a copyright owner MUST license it is known as _____

Compulsory licensing

Under current law, what is the duration of a copyright for an original work created and published in 1975?

95 years

After the 1976 Copyright Act AND the Sonny Bono Copyright Extension Act were passed, a copyright for a song that is NOT a work for hire and was created after Jan 1st, 1978 lasts for ______

Life of the author plus 70 years

International copyright treaties are typically named after ______

The cities in which they are negotiated

True or False: in the case of a joint work, each author has non-exclusive ownership of the entire work

True

What does Sound Exchange do?

collects performance royalties for sound recordings

In what city is the U.S. Copyright Office located?

Washington D.C.

The _____ exempts a publisher from having to license a song at the statutory rate if it is the first time it has been licensed for recording

Doctrine of first used

Under current law, what is the duration of a copyright created as a work for hire?

95 years after publication
OR
120 years after creation

whichever is shorter

When there are multiple writers & publishers, how is the money split up?

the writers split the writers' share
the publishers split the publishers' share

The primary function of a publisher is acquiring and exploiting copyrights. This is accomplished mainly through ______

Marketing of copyrights (songs) to artists, managers, producers, and music supervisors

In publishing, a catalog refers to _____

A collection of song copyrights owned by a company

What does a song plugger do?

Presenting the writer's song to artsits and record labels in order to get them considered for recording

What is an administration deal?

The FOREIGN exploitation of a copyright via a license from the original publisher

Mechanical royalties for songwriters and publishers are generated by

Sales of recorded products (CDs, tapes, and downloads)

Of the 3 PROs, which is the only one that has members?

BMI

Is a synchronization license fee negotiable?

YUP

The entity held responsible by PROs for obtaining a performance license is _____

the venue manager

What type of contract gives the publisher all of the rights for all of the writer's songs during the contract period?

Exclusive writer agreement

The type of publishing company that generates the most revenue is a _______

Record company affiliate publisher

The license issued by a PRO that authorizes the use of all the songs in their catalog for public performance is a _________.

Blanket License

In the United States, song performance royalties, other than digital performances, are paid to _______.

Music publishers and songwriters

Permission to use a copyright is usually granted through a __________

License

The length (in time) of a publishing (or any) contract is known as the _____

Term

Most publishers use _______ to issue mechanical licenses

The Harry Fox Agency

The single song contract agreement (SSCA) should be signed by the _____ and ______ for every song.

writer and publisher

True or False: The grant of the right to reproduce the copyright in a phonorecord also includes the implied right to create a derivative work.

True

The ________ exempts a publisher from having to license a song at the statutory rate if it is the first time it has been licensed for recording.

Right of first use

True or False: a synchronization license is totally negotiable

True

True or False: An Electronic Transcription License, like those used by environmental music company Muzak, includes the right to reproduce the copyrighted work in phonorecords to sell those phonorecords to the public.

False

True or False: A rebroadcast of "Grey's Anatomy" on the local TV station is considered a public performance

True

The license needed for recording music to a CD is a _____ license.

Mechanical

A song has earned $100,000 in mechanical royalties. Assuming no HFA fees, how much would the SONGWRITER receive?

$50,000

A song has earned $100,000 in mechanical royalties. Assuming no HFA fees, how much would the RECORD COMPANY receive?

$0

True or False: A performance is considered a public performance if it occurs in a place open to the public and is broadcasted on radio or television.

True

What percentage of money is the songwriter entitled to in a standard writer/publisher agreement when money is received from the Harry Fox Agency for mechanical royalties?

50%

True or False: a license is required from both the owner of the song and recording when sampling another song

True

When one publisher splits royalties with another publisher in exchange for administrative or other services, it is known as _____.

Co-Publishing

The largest source of the performance royalty revenue (payments) comes from ________

Sales of prerecorded CDs

What kind of license is obtained from the PROs if a venue wants to allow performers to publicly perform any song in the PRO's catalog?

A blanket performance license

The license needed to use a song in a TV show or a movie is a ______________ license.

synchronization

If a writer or an artist is given an advance, the publisher or label will usually ________ before paying royalties

Recoup the advance

Royalties for digital music services and satellite radio are collected by _______.

SoundExchange

The type of publisher responsible for creation and sales of printed copies of the copyrighted work

print-specialty publisher

Which of the PROs typically takes about 20% of the licensing fees to pay for administration and overhead?

ASCAP and BMI

The largest percentage of a publisher's income comes from _____ revenue.

Mechanical license

The current statutory mechanical royalty rate is $_____ per song or $_____ per minute, whichever is greater.

$0.091 or $0.0175

The license required to use a recording with an audio-visual work is a ____________ license

Master

True or False: In terms of Performance Rights Organizations (PROs), a publishing company may affiliate with multiple PROs under different names.

True

The record company department responsible for finding and developing new talents is _____

A & R

According to Passman, artist royalties are calculated as a percentage of _____.

wholesale price

The Big Four label recently split up by its creditors (Citigroup) is _____

EMI

Before Universal Music Group was bought by Vivendi it was owned by

Seagram's of Canada

Today, most CDs are sold by _____ and downloads by _____.

big-box retailers/iTunes

The sales of greatest hits albums has declined thanks to ______.

digital downloading

Lawyers are most likely to be found in the _____ department of a record label.

Administration

A record company is like a venture capitalist because they ________ to artists knowing there is a good chance they will never get it back.

loan money

Creative, promotion and public relations departments are most likely to report directly to

the marketing department

True or False: Accounting is NOT a responsibility of the Creative Department at a record label.

True

Which department of the record company has the primary responsible of getting the label's artists radio play?

Promotions

The primary thing that makes the "Big Three" one of the "Big Three" is because they have their own _____.

Distribution

After Sony bought out BMG the new company was named

Sony Music Entertainment, Inc.

When Vivendi spun off the movie and TV part of the business it was purchased by

General Electric

When the artist is responsible for paying the producer and mixer royalties out of their own royalties, the artist royalties are known as _______ royalties

all-in

When a major label owns its own distribution that distributor is referred to as

branch distribution