Music Business Final Exam Flashcards

The music business is currently structured as an

oligopoly

Today there are _ # of major record labels

3

A loan based on royalties that will be earned normally from a record label to an artist

advance

A label that commands a high percentage of the annual sales of records, AND has its own distribution system

major

A place where forces of demand and supply operate

market

A label that has a low percentage of industry sales of records, AND needs a distribution system outside of the label

independent

A person or group that risks their capital in order to gain financial returns is a

investor

The funding of a tour or album by raising money from fans in exchange for rewards via the Internet

Crowd Funding

Studying past historical data to research potential trends

Analytics

A dollar today with worth more than a dollar tomorrow

time value of money

Economic term describing the nature of obstacles that prevent new competitors from entering an industry

barriers to entry

The move from concept to the customer is

marketing

Products used to promote a particular brand that are sold on tour and at retail

merchandise

In the SWOT analysis and deal with internal aspects of a business

strengths; weaknesses

In the SWOT analysis and deal with the disadvantages of a business

weaknesses; threats

In the SWOT analysis and deal with advantages of a business

strengths; opportunities

In the SWOT analysis and deal with external aspects of a business

opportunities; threats

Someone who initiatives and organizes a new business is a ____ . These types of individuals are typically not motivated by _____ .

Entrepreneur; money

______ is the front of the magazine (and free) while _____ is the back of the magazine (and paid for)

publicity; advertising

______a song is like a Netflix subscription while _____ a song is like purchasing the movie for your cloud

Streaming; downloading

The PRO started by radio stations

BMI

The privately held PRO

SESAC

______ is the income generated from sale of goods or services

Revenue

Unclaimed royalties

Blackbox

Money paid for using one of the exclusive rights of copy

royalty

The employment agency for a touring artist

booking agent

An agreement between a music user and the owner of a copyrighted composition (song), that grants permission to release the song in a video format

Synch

A weekly or monthly sum of money paid to a staff songwriter by a publisher

draw

The spin–doctor or spokesperson for an artist

publicist

An increase in the value of an asset

capital appreciation

Part of a law or contract that states when it will end, or the conditions under which it will end

sunset clause

An element of a contract outlining certain individuals as vital to the continuance of the contract

key man clause

A sum of money paid to an employee upon completion of a task

commission

_____ is income before expenses while ____ is income after expenses

Gross; net

A lets an artist record (and sell) a rendition of a previously recorded song by paying royalties to the original composition artist who is the legal copyright holder of the work.

compulsory license

The creator of the original expression in a work

author

The handle all of the artists money and advise on all investment decisions

business manager

The most important member of the artist team. Paid 15–20% of the total gross income of the artist

artist manager

Label department that promotes to radio and streaming services

Promotion

Label department that used to get records into stores, now what stores??

Sales

Label department that handles contract details

Legal

The research and development division of a record label

A&R

A company supplies inventory to retailers

wholesaler

Most successful independent labels operate in a ______ instead of taking major labels head on

niche

Two things major labels have that independent labels and artists struggle with is _____ and _______

money; connections

______ music used to be known as MOR or middle of the road. There is not a particular sound associate with this type of music but it is whatever is the flavor of the day and is, therefore, a major label genre.

Pop

______ labels are lean and quick to adapt while ______ move slowly

independent; major

A wholesaler who merchandises goods on racks in retail shops

rack jobber

A ______ license is a license which allows the music user to perform any or all of the millions of works in the PRO repertory

blanket

The form of permission that authorizes one to use pre–recorded material on a CD, cassette, video, etc.

master use

The form of permission that authorizes one to make mechanical reproductions … accompanied by a motion picture

Synchronization

For performances in a dramatic setting such as ballet, Broadway shows, or opera a __ license needs to be obtained

grand rights

A music publishers primary objective is to get a song

exploited

A publishing companies _______ department will audit the writer’s share of performance royalties

Copyright

Large publishing companies administer ______ of songs

millions

_______publishers are only responsible for copyrighting songs… they do not promote or plug songs or writers.

Administrative

The Harry Fox Agency (HFA) was purchased by which PRO?

SESAC

Radio stations that regularly submit their playlists to entities such as trade publications are called

reporting

A group of recordings that is put together by assembling previously separate recordings

compilation album

The executives at larger record labels are known as _______.

Product manager

_____ know more about niche genres and are able to have a closer relationship with their artists

Independent Labels

The overall content broadcast on a radio station

Format

A ­­­___ song is a song that is never cut, and thus, never earns any royalty money

Unexploited

Provides rights management, collection, and distribution of mechanical license fees

HFA (Harry Fox Agency)

A _______ is a person or company taking responsibility for administering, exploiting and protecting songs

publisher

A ______ in the music industry is the illegal practice …

payola or bribe

This division of a record label coordinates release of records worldwide

international

Which statement is applicable for a local radio station broadcast of a hit record not provided by a radio syndicator?

A census technique (actual logging) is used.

A _____ is an Association of professional persons with similar interests

Guild

In the United States 1 million albums sold would be certified as

platinum

The ____ is the industry group that certifies album sales

RIAA

In the United States 10 million albums sold would be certified as

Diamond

A clause in a contract that states as sales increase so does the % of payment

escalations

When an artist is given a fixed amount of money to deliver an album …

Fund

A ____ deal is often the best fee structure option for an up and coming artist

flat fee

A ____ deal is the best performance fee structure option for an established artist

Guarantee + %

The is responsible for all financial aspects of the tour

business manager

The ____ handle logistics for buses, airlines, hotel room check–in, security, meet and greets

tour manager

Someone who starts, organizes, and operates a business

entrepreneur

A ____ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage

Strategy

A ________ is the capacity for a set of resources to perform a task

Capability

Being ______ is achieving maximum productivity with minimum wasted effort

Efficient

_______ is being successful in producing a desired or intended result

Effective

Real ______ was about finding ways to make other people more successful

Networking

Performers in some venues classified as independent contractors, provision in the ______ act

Taft–Hartley

In an deal, producer’s royalty comes out of the artist’s royalty

all–in

No matter how bad an album fails the artist does NOT have to return…

money spent recording or promoting the album

They who takes on the ____ with their money gets to make the _____ on the product

risk; decision

give concert promoters the highest profit margin

Festivals

The ____ not the ______ is responsible for paying PROs for music used at a concert

venue; artist

The financial report is known as…

income statement

In the music industry three job types where a college degree is absolutely mandatory are

Attorney; School Teacher; Music Therapist

After the United States, the second–largest market for recorded music is

Japan

Experts forecast digital revolution would bring revenue but didn’t because of…

the lack of infrastructure and caution by record labels