MBUS 3010 Test 3

Tracking

Recording of basic track with the band; creation of the beat

Overdubs

Adding additional instruments and vocals (harmonies)

Mixing

Blending all of the sounds. Adding effects such as EQ, reverb, echo, and compression

Mastering

Creation of the final master copy from which other versions are made (vinyl, cd, files for uploading to streaming). Inserting meta-data such as ISRC, song titles, artist name, other credits.

What are the Manufacturing process for music production

CD - Replication

CD R - Duplication

Vinyl - Pressing

Cassettes - Duplication

What is true about CD manufacturing?

CDs are always replicated NEVER duplicated

What are the stages of making a record?

1. Lacquer

2. Metal Master (plating)

3. Metal Mother

4. Metal Stampers

5. Pressing

What are royalties in music?

Artists earn a percentage of the money that their record label makes from the distribution of their music. This includes sales, streams, and licensing. The artist's percentage is known as a royalty

What are the types of royalties?

1. Artist

2. Performance

3. Mechanical

4. Streaming Mechanical

Explain the artist's royalty

Paid By: Label

Paid to: Artist

Paid for: Sales, streams of a recording.

Explain the Performance royalty

Paid By: Performing Rights Organizations (United States: BMI, ASCAP, SESAC, GMR)

Paid to: Songwriter and Publisher

Paid for: Public Performance of a composition

Explain the Mechanical royalty

Paid by: Label

Paid to: Publisher who pays Songwriter

Paid for: Sales of a reproduction of a composition

Explain streaming mechanical royalties

Paid By: DSP pays Mechanical Licensing Collective

Paid to: Publisher who pays Songwriter

Paid for: Interactive Stream of composition

What types of royalties deal with the SALE of Vinyl Record, cd, downloads?

Artist royalty to artist AND Mechanical Royalty to Songwriter

What types of royalties deal with on-demand STREAMING?

Artist royalty to artist; Mechanical Royalty to Songwriter, AND Performance Royalty to Songwriter

What types of royalties deal with radio broadcasts?

Performance Royalty to SONGWRITER. NO royalty to the artist

What is a term and how long is it?

Length of deal. Typically # of albums, NOT years.

What are masters?

Recordings. Multi-tracks OR Mixes

What is Re-recording Restrictions?

Contractual clause stating a time period during which an artist may not release any new recordings of songs already recorded for the label.

Advance

Label pays artist an advance payment of future royalties.

Recoupment

Artist will not receive any royalty payments until after all advance monies on deal have been recouped by artist royalties.

Non-Returnable

If advance is unrecouped, artist does NOT have to repay label.

Cross-Collateralization

On a multi-album deal, all advances MUST be recouped before ANY royalties are paid.

what is true about advances and royalties?

An artist only receives royalties after their advance is recouped.

How does distribution work in the music industry?

1. Labels get their music to consumers through a distributor.

2. Physical media is sent from the distributor to record stores.

3. Digital media is sent to the music streaming services all over the world.

Types of record Labels

1. Major

2. Independent

What are the three major labels?

1. Sony

2. UMG (Universal)

3. WMG (Warner)

What are the major owned Independent labels?

The largest independent distributors are owned by the majors. ADA (Warner); The Orchard (Sony); INgrooves/Fontana,Caroline (Universal)

What is an independent label?

No major affiliation. Formed to streamline operations. Can share services that are not related to artistic or aesthetic decisions

What are examples of true independent labels?

Darla, Red Eye, The Beggars Group

What are digital aggregators?

Independent distributors that are available to anyone. Supply digital music outlets - download retailers, streaming services.

What are examples of digital aggregators?

The Orchard; TuneCore; CD Baby, Distro Kid

How do digital aggregators charge?

1. Monthly Fee

2. Annual Fee

3. Per Release Fee

4. % of Revenue Generated by Streams

What is a Rack Jobbers?

Operate the Music Departments of Big Box retailers. Supply big box retailers like Target, Walmart, Urban Outfitters, etc.

What is Farm to Table?

How music gets from the artist's brain to the consumer's ears.

What is table to farm?

How the consumer's dollars get to the artist's bank account.

What is DSP?

Digital Service Provider: any music streaming service.

What is ISRC?

International Standard Recording Code. A unique ISRC code is created and assigned to every song that is released and ensure payment of royalties.

What is Metadata?

The information embedded in a digital recording that tells the name of the song, album, artist, as well as ISRC. Added during mastering

What is the RIAA Awards?

Recording Industry Association of America Awards

Gold Record

500,000 sales or TEA or SEA of 1500 streams = 1 sale

Platinum Record

1,000,000 sales or TEA or SEA of 1500 streams = 1 sale

Diamond Record

10,000,000 or TEA or SEA of 1500 streams = 1 sale

S.E.A. and T.E.A.

Billboard Charts use SEA/TEA to determine chart rankings now

What does S.E.A stand for?

Stream Equivalent Album.

1. For billboard: 1250x streams = 1 album

2. For RIAA: 1500 On-Demand Audio and/or Video Streams

What does T.E.A. stand for?

Track Equivalent Album - 10x download = 1 album

Billboard Hot 100

Singles chart

Billboard 200

Album chart

Album Cycle

18-36 month period after the release date of an artist's album

Catalog

Billboard definition: More than 18 months old AND fallen below position 100 on the Billboard 200.

What is the function of an A & R?

Artist and Repertoire. Scout talent, sign artists

What is the function for Sync or Film/TV/Games?

license recording for sync use

What is the function of production?

collect different versions, delivery to DSP's; vinyl/cd mfg; ensure credits correct; collect final edits; etc.

What is the function of finance?

compute and pay royalties

What is the function of business affairs?

Handle all legal affairs

What is the function of international?

Handles everything overseas

What is the function for graphics?

all graphic design (cover art, posters, logos, etc)

What is the function of promotion?

Radio

What is the function of Public Relations?

in house PR. Sometimes supplemented with independent PR

What is the function of Sales/Marketing/Digital Marketing/Digital?

Create campaigns around new releases

What is the function of Strategic Marketing?

brand partnerships, endorsements, sponsorships

What is the function of Product Mgmt?

Handle logistics...coordinate it all

What is a PPD Deal?

Artist earns a % of Published Price to Dealers

What is a SLRP Deal?

Artist earns a % of Suggested List Retail Price

What is Profit Split?

Artist and label split the profits after the label has recouped their expenses.

Which artist royalties for sales is most common?

PPD Deal

Base Rate

The basis from which a royalty is calculated

Penny Rate

The actual monetary amount an artist gets paid in royalties per transaction

Base rate v. Penny rate

If you had a 10% royalty on a sale with a BASE RATE of $1.00, your PENNY RATE is 10¢.

Which side earns more per stream, the recording or the song

The recording (artist)

Streaming

1. Artist sends mastered recording to label.

2. Label sends to Distributor or Digital Aggregator

3. Distributor or Aggregator uploads to Streaming Services

4. Streaming Services pay Distributor/Aggregator

5. Distributor/Aggregator pays Label

6.Label Pays Artist

Retail Outlets

1. Artist sends mastered recording to label.

2. Label sends to Distributor.

3. Distributor sells to Retail Outlets.

4. Retail Outlets pay Distributor

5. Distributor pays Label

6. Label Pays Artist

Radio

1. Artist sends mastered recording to label.

2. Label promotes the artist's music to radio programmers.

3. Radio Stations play music.

4. Radio Stations pay blanket license fees to Performing Rights Organizations (ASCAP,BMI, SESAC, GMR).

5. Performing Rights Organizations pay Songwriters and Music Publishers.

6. Artists and Labels do NOT get paid for radio broadcasts of recordings.

Direct to Consumer (D2C)

1. Record Labels and Independent Artists have a website.

2. Market offerings to the public.

3. Fans order from websites through Payment Processor (CC, Venmo, PayPal)

4. Payment Processor sends money (minus service charge) to artist or label.

5. Orders are shipped in one of two ways:

-> Directly from the artist or label

->Fulfillment company

What is an ownership deal?

Label owns masters forever

What is a license deal?

artist, producer, or production company owns masters and licenses them to label for a set time

What is more common a license deal or ownership deal?

Most major label deal are ownership deals.

What are the delivery requirments?

1. Technically Satisfactory

2. Commercially Satisfactory

3. Minimum Songs/Running Time

3. Studio Recordings

4. Recorded during the term

5.No copyright-infringing material

6. Artist is performer

What are the most important delivery requirements?

Commercially satisfactory and no copyright infringing material