Belmont O'Brien Music Business Test 4

AF of M (AFM)

Union that represents studio musicians

AFTRA (SAG-AFTRA)

represents studio singers

AF of M basic session master scale pay for side and leader musicians.

$502.56 for each musician and $978.12 for leader (leader gets double pay scale plus health & welfare plus 12.81% pension)

AFTRA master scale pay for session singers (soloists and duos).

$236.25 per hour or song per singer plus 12.75% for health and pension

Reason group members are signed to label individually and corporately

means that if a member leaves, they are still under contract to the label

How unrecouped expenses for group and leaving member are split

label can recoup the deficit from a member's successful solo record sales or the label can recoup the losses from the flop of the solo album from the group's successful album or group can ask for the label to pro-rate the deficits and recoup solo artists album from their royalties.

Label contract terms for leaving member

stated in the groups deal and is less favorable than the group's deal...

Most common corporate arrangement for groups

Limited Liability Company (LLC's)

Advantages of an LLC

less expensive to set up and run than corporations but provide the tax benefits and protections of a corperation

Conflict of interest as it applies to groups and their attorney

Attorney can advise the members of the issues and the conflict of interest and let the members decide on an agreement on their own. Requires signing a conflict waiver

How rights to a group's name are obtained

you get rights by using it

How rights to a group's name are protected

service mark

Team member in overall charge of an artist's tour

Personal Manager

A deposit

50% of guarantee paid in advance of the show. Insurance policy that artist won't get completely stiffed by an unscrupulous or inexperienced promoter. Held by the agent and paid after the show is performed (minus their commission)

Team member who collects and holds deposits for tour dates

Agent

Team member responsible for smooth operation on the road

Tour Manager

Four responsibilities of the promoter

book the hall, pay the rent, pay for advertising, and supervise the running of the show

Percentage of concert ticket sales over the Internet

80%

Hall fee and how it is typically negotiated

amount charged by the building (or venue) for the sale of merch at the concert. Percentage of gross sales. negotiated down with clout.

A rider

A list of rights and requirements that are agreed to by signing the appearance contract

Tech rider

sound, stage, equipment, dressing room, sound check, security requirements

Merchandising

selling products with an artist's name or likeness on it

How sales success of tour merchandise is measured

per head sales (total sales divided by the number of people attending the show)

Tour merchandise royalties/advances and their conditions

percentage (30-40%) of gross sales. Merch royalties might have to be paid back if sales are less than projected, or artist doesn't play in front of a minimum number of people.

Bootleggers

those who manufacture and sell unauthorized merch with an artist's name and likeness on it

Typical characteristics of t-shirts sold at concerts

has tour dates on it and is sold at much higher prices

Retail merchandising

non-concert ways of selling merch

Merchandising sublicensing

artist's retail merchandiser makes deal with sublicenser, keep 15-25% of income from the deal and pay the artist 75% to 85%. It is for more specialized items

Creative control for merchandise

Approval of design and actual product

Production person in charge of placing music in films

Music Supervisor

Rights required for a song to be used in a film

1. Acquisition of rights for the film - the deals to put music in the picture made with:

• Performing artists

• Songwriters, composers, publishers

• Record producers

• Record companies - for existing masters and for new recordings of their artists in the film

2. Licenses of the rights from the picture company to others:

• A deal with a record company to release a soundtrack album

• Licensing film clips for music videos

• Possibly a publishing administration deal

Synchronization license

license to put music in a movie

Label/artist profit split for use of master recording in film

50/50

Entrepreneurship in the music industry

keeps the industry running

How opening acts typically obtain slots on major tours

they pay their way into it

Free concert attendees and how they relate to merchandise sales

only paid attendees count for per-head calculations

Fan club merchandise sales

part of retail merchandising

Per-head calculation of tour merchandise sales

total sales divided by the number of people attending the show

Five potential entrepreneurial careers in the music industry

songwriters, publishers, financiers, publicists, managers, promoters, recording engineers, studio owners, video producers

Business managers' responsibilities as they relate to touring

forecasting the potential profit/loss aspects of the tour before hitting the road; managers are responsible for making sure that everyone gets paid and all bills are paid

Issues to address in an internal group agreement

who is in the band and who owns the name

Amount AFM session leaders make in relation to other players

double