MB

Who is the concert promoter?

The person who promotes the show and holds the risk of the concert not being successful. They deal with ticket promotions and marketing the show.

What is a talent buyer?

When a concert venue takes on the risk and responsibility of the concert promoter and assumes more risk. They procure talent for the venue.

What are the 3 categories of concert promoters.

National promoters, local and regional.

What does “four walls” mean?

The Promoter takes all the money from ticket sales and assumes the full financial risk. The venue has guaranteed revenue but no upside.

How much profit can the venue actually make

Assume that all will remain is standing room only, Budget for 60% of the house

What are gross box office receipts.

All receipts from the sale of tickets before any taxes or fees are deducted.

Net box office receipts

GBOR minus taxes and fees that the parties agree to

Gross Potential

Capacity of venue x the value of a ticket

net potential

gross potential - complimentary tickets

Guarantee

Money paid to the artist regardless of how many tickets are sold.

Promoter Profit

Agreed upon minimum amount of money that the promoter will keep as profit once all expenses are paid for

Expenses

costs related to producing and promoting the event

Split Point

number at which the revenue from the event exceeds the expenses + promoter profit

Overage

The amount of money over a split point

Bonus

The amount an artist gets if certain targets are met

What split do they divide up the expenses with?

85 to 15 with larger to the artist

What is a facilities fee

fee on tickets that goes to the owner of the theater with deal sweetness.

What are back times?

Before digital music and streaming

How to market the concert?

Social Media, Radio and Tv- shows the 30-60 second advertisement fees

channel cluster- local cable networks

direct mail and email

print media

postering and street teams

sponsorship and soft dollars

What is block booking?

Booking multiple tickets at once.

Future of concerts

Virtual and private performances

What are some types of values

Stadiums: Seating of 30,000+

Amphitheaters: 5,000-30,000+

Festival Sites: 10,000-130,000 patrons

Arenas: 20,000

Theaters: 300-2,000

Concert Halls/Performing arts centers: 1,000-3,000

mid size music venues

small size music venues

What are some considerations in agreements with venues?

Rentals- installments and rental fees

venue services and equipment offered

merch sales

hall fee- cover the cost that venue incurs to make a sal 25-30%

What per cap mean?

Per capita or per season

What is non fungible token?

blockchain-based tokens that each represent a unique asset like a piece of art, digital content, or media

What are naming rights?

Corporate sponsor rights to large venues - events may have their own sponsors

What are performance licenses?

Public performance triggers an obligation to pay songwriters and music publishers a fee collected by PRO, venues have to have a public performance license

How to manage risk

You need security, Learn about outdoor events- crowd control, financial risk - force majuere

What to know about ticketing?

Ticketer deducts a service fee

Deadwood

unsold tickets

Paper the house

Give away tickets

Scaling the house

Decide what will be sold at what is

Dynamic Pricing -

adjust price based on customer behavior

General admission

No specified seats

VP tickets

very important person

What is the impact of technology

Created a secondary ticket market- scalpers and scale, Digital infrastrutcture and wifi and apps, cashless, geofencing

What are departments in major venues

Operations- oversees venue as a business making sure they communicate and function as a team

Marketing and event production- campaigns with promoters

security

food and beverage

Companies to know

The international association of venue managers

What is a music License

An agreement memorialize in writing granting one party permission to use something the other party controls (IP)

What you need to know when licensing music?

The name of the licensor - party who owns or manages the rights.

The name of the licensee- party who is seeking permission to use the IP

Description of the IP - name and identifying details

How the IP can be used

How the licensor will be compensated

What are some composition options

License fee or reoccurring payment based on usage called a royalty

if there is a royalty there is usually an advance

Who owns the copyright of a musical composition or song

composer

Who owns the sound recording

record label

Blanket License

Licensor grants permission to all the work they own

Work by work

only use specific work

Voluntary

Licensee has to request permission

Compulsory rate

Law grants permission to use the work

Statutory rate

royalty rate created by the copyright royalty board right to use the work by law

What is Creative commons

A place that people make their music available in , non profit, note is a work of derivative or adaptation - title - attribution

What does a CC license require

Attribution of the original author, works title or name

What are some other PRO licenses?

A direct license - or pass through from the party who has secured the rights from the copyright owner

What do the big three do?

ASCAP and BMI - 10% of gross receipts to cover overhead

How do they calculate the weight of a performance

How the music is used, where it is performed, how much the licensee pays, time of tday of the performance, premium credits

What is CMO

Blockchain usage

Standardized identifiers?

Interested party information number, affiliate, international standard musical work code.

Regulation of PRO

content decree- court approved

Mechanical license

interactive streaming

Eligibility for compulsory license

Violation = infringement but violation of voluntary is breach of contract

Musical work - non dramatic nature

previously reproduced and dist4ributed

no change to basic moldy

must make or distribute physical or digital

Voluntary License

Controlled composition - grants label first use mechanical license for any compositions that the artist or producer writer

What is notice of intention

?

Mechanical royalty rates

gather and total these values:

Revenue collected by the digital service for the month for a particular offering (subscriptions or ad suported), number of subscribers of the service in the month, number of streams in the month, amount of money paid by the srervice to the record labels for use of their recordings, amont of money paid to PRO for the performance of the musical works - use the formula to arrive at per stream royalty rate = each song streamed multiply number of treams by the per stream royalty rate

What are some other licenses and their purposes

sample and remix

audio and transcription

dramatic music rights

Advance

From the moment the deal is signed until the show is played

What are some different deals on personal appearances

guarantee (flat fee deal) - you show up I pay you a certain amount of money

Percentage deal- a percentage of gross box office receipts -GBOR

percentage versus deal - certain amount of money or 50% of gross box office receipts or whichever is greater

percentage plus deal - (fixed figure + %)/10,000 (split point)

What is the score

instrumental muic behind action - good for markeitng and sets mood

What is a music supervisor

•  read script and think what song would work well in this scene

What is a master use license

covers the master recording

What is a synch

cover musical compositions - not obligated to grant

How does music supervising work

• Music supervisor will put together a brief indicating what is needed - is this background, is it featured, is there vocal, is it going to be the full length of the song or 30 seconds of the song 

• In most cases if there is a certain amount of money budgeted for a specific scene it will be divided equally 

• Movie producers will hire someone to sing the song in the scene of the movie pay on buyout 

• Music supervisor would look to the publisher 

• Sign off an advance or retain all rights - clear music and recording good to go and very quickly

If you are taking a copyrighted piece of music and adding something to it then…

• you need consent this is called creating a derivative work and that needs permission 

What are copyrights

• Cover original literary and artistic expressions (original creativity) 

• Ex: musical compositions, books, paintings, plays, movies, software

• Protects against unauthorized use or copying- rewards creative expression and originality 

• Term: Go for the life of the author + 70 years 

• copyright.gov - in order to get copyright protection the work needs to be fixed intangible form 

• You can not copyright a title 

What does fixed intangible form mean

• Wrote out or recorded 

• Not singing out loud 

• PA- composition 

• SR- recording  

What are trademarks

• Commercial identification -commerce

• Ex: words, slogans, phrases, logos 

• Protect against market confusion 

• Demonstrate continued use 

• Federal copyright- use it interstate 

What are patents

• Scientific inventions or innovation rewarding novelty and utility 

• Keep others from marketing or selling it

• uspto.gov

Issues in band agreements

• Song writer getting paid more

• Leaving Member clause 

  • New member 

  • Income splits 

• Expectations for each member 

  • Responsibilities 

• How decisions are made - unanimous/majority 

• Who has the trademark

Elements for a live show to work

• Rehearsal

  • Harder for bands - have to coordinate and get space 

  • Mirror , tools etc 

• Booking agent 

  • Find work and employment 

Touring negotiation

By the promoter and artist representation (agent) deal struck include advance and budgeting

What is the advancing process

• Somebody from the promoter venue side and the artist side will begin regular frequent communication to stay in touch until the show is played, making sure everything is in order

Budgeting - promoter + artist

Always have more control over your expenses than you do over your income

What is the settlement process

• during or after the show

  • When the artist gets paid 

  • Large- during the show

  • Money is designated to be paid to be paid 

  • Calculation not negotiation

What do you have to budget for

talent and venue costs

Artist budget

• Transportation of people and equipment

• Even if you pay people on the road 

• Artists team 

• Contingency fund 

What is included in live show paperwork

• Contract 

  • Better if its in writing 

  • Factors to include in the personal appearance contract

    • Where it is

    • when 

      • Date time and duration 

    • Who are the parties 

  • Radius clause - that artist can not perform for a certain period of time before of after that show within a certain radius 

  • Does it have to be cash or check 

  • Rule with photographers 

• Rule with photographers 

• Force majeure 

  • If labor shortage or any emergencies 

• Indemnity 

  • One party legal liability then caused problem will be responsible for whatever it caused the other party 

• International issues 

  • Currency and exchange rates 

• Rider

• tech , hospitality, security, mech 

• Tech rider- specifications for what that artist needs - sound equipment, lighting etc 

What is force majeure

• If labor shortage or any emergencies 

What is idemniy

• One party legal liability then caused problem will be responsible for whatever it caused the other party 

What is a rider

?