Final music biz test

The job of the artists' personal manager is to

b. Advise, guide, direct and counsel the artist career

Artist personal managers pay is usually based on a:

c. A percentage of the gross revenue generated by the act

In scaling the house what percentage below the average ticket price do promoters usually establish for the worse seats ticket prices?

5. It depends on "what the traffic will bare" which is often between 25%-50% off the average ticket price.

In scaling the house what percentage above the average ticket price do promoters usually establish for the "best" seats ticket prices?

c. It depends on "what the traffic will bare" which is often between 25%-50% above the average ticket price.

At the end of the artist management deal a post-term committment may be as long as; (think of the contract shown in class)

a. A total of 15 years (15% for 5 years, 10% for 5 year and 5% for 5 years)

What gives the personal manager the legal "authority" to manage an artist's career?

c. A Power of Attorney clause in their contract

Event/Concert Promoters are- (select all answers that are correct)

a. Research experts on acts and consumers "wants and needs" in their own zip code areas
b. Often seen as risk takers
c. Opportunity seekers
d. Often Entrepreneurial companies

Personal Artist Managers may only represent (manage) one act exclusively at a time.

False

Artists may have several Personal Managers at a time.

False

The two largest concert promotion companies (amount of money grossed) in the United States are (more than one answer is possible)

1. AEG Live
5. Live Nation

Match the following types of artist representation to their job description;

Personal Manager

Booking Agent

Talent agents representing SAG-AFTRA and Equity

Tour or Road Manager

Business Manager

1. Give advice, guidance and approval (concent)

6. Find and book concert tours, live shows and personal appearances for recording artists, personalities, and musicians

2. Represent the act, artist, for films, TV shows, and theater

7. In charge of act and support touring personal during an actual tour

5. Account for all the money earned and pay bills

Connect/match the type of representation with their licensed union or guild. (Select only the answers that apply)

Equity

AF of M

IATSE

SAG-AFTRA

f. Theater/Stage actor

d. Booking Agent who book union musicians and musical acts on tours

b. Stage hands, audio, and lighting experts

a. Vocalists, singers, radio, film and television actors

Who hires the personal manager?

c. The "Artist"

As a promoter your job is to find the best act for the lowest cost that will draw the largest number of ticket buyers possible. To determine the total cost of the event promoter's often use a:

c. Bid Sheet

Other than superstars, what percent of concert seating sold should promoters use to figure a break-even point that will give them the most profit?

b. 50%

What is the highest percent (or break-even point) of the tickets sold (seats) do concert promoters sometimes have to provide to superstar acts?

c. 90%

Which "trade magazine" best details the concert business.

a. PollStar

A "rider" is-

a. An addendum to a booking agent's contact with a concert promoter that provides detailed instructions on how to stage a concert for a specific artist.

The "best" type of concert promoter "deal" for an act is-

d. Guarantee, plus a bonus

The National Academy of Recording Arts and Sciences (NARAS) is the organization that present the "Grammy Awards."

True

You are a student who decides to put on a concert at the 5,000-seat Event Center. The total cost of the show (including the talent) is $100,000. What should the "average" ticket price be for a financial break-even at 50% of seats sold?

b. $40.00

As a new promoter, how much of the "accepted final bid's offer" will you have to send to the booking agent (who will put it into an interest bearing account for the manager) if your "bid sheet" expenses are $200,000 with the cost of the act being $100,000.

e. $100,000 or 100% of the cost of the act

The Personal Manager handles all the money and financial income for the artist

False

The Billboard 200 Chart lists-

The top selling 200 albums

IEBA is-

a. An organizations that brings buyers of talent (promoters) and the managers and acts together to help set up tours.

The "net" is the amount of money paid to the artist-

d. After all of the concert expenses, band touring expenses, and management expenses (including the personal manager, business manager, and booking agent fees) have been subtracted from the total income of the event.

Where does the money to pay for the following come from? (Answers may be used more than once or not at all).

The Personal Manager

The Business Manager

The Booking Agent

The Talent Agent

The Road Manager/Tour Manager

The Tour Musicians

The Road Crew/security

The Back Up Vocalists

The Concert/Event Promoter

The Recording Producer in the recording studio for a album project.

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

a. Paid out of the gross income of the artists

b. Create the revenue for themselves by profiting from the events they create and fund.

c. Paid by the label from the recording artists fund at the label when the act is a signed artists with a major label

A band performs at a show grossing $100,000 for the 45 minute show. How much did the following receive?

The personal manager

The booking agent

The business manager

The band

a. $20,000

i. $10,000

b. $3,000-5,000

c. $65,000-$67,000 before taxes

The trade magazine that represents the music industry with charts and business news is

2. Billboard Magazine

How many streams equal the sale of 1 single sale.

a. 150 streams

How many streams equal the sale of 1 album sale.

a. 1500 Streams

A band with a 360 deal performs for $100,000 for a 45 minute show. What is their net after paying for the personal manager, business manager (5%), booking agent, and label, which gets 20%? Add "the show" cost of the musicians, tech, and roadies at $20,000.

$25,000

If you're an indie act or band who wants to launch your career, you'll probably have to "play the role" of a personal manager, booking agent, and business manager youself.

True

As a new indie act or band the first thing you need to do (according to Passman) is;

a. Accept that you're in business so "deal with it."

In an recording and performance artist career, the business managers job is to;

e. Control all the revenues being made by the artists

The most important reason a new act or band should want to play clubs, etc., is to;

d. Seek "exposure" in order to get a fan base started

As a concert promoter, the cost of renting a venue often starts at;

e. A dollar a seat

Concerts and events are organized, funded, and promoted by clubs and promoters to monetize consumers emotional connection to the artist's personae and thus, to make a profit off of booking the act.

True

For an indie act performing in a night club, the "minimum guarantee" is the amount of money provided to the act that is not provided by the split at the door

True

For an indie act just launching or starting their career, the best want to connect with an act is through local radio station and the printed press.

False

The best way for a local act to "get noticed" by the head of A&R is to develop a fan base and unique sound.

True

With the live ticket (concert business), besides the act and the customers, who is the most important person or company?

b. The concert promoter

Booking agents usually receive 10% of the artist gross from all revenue stream at an event or show including the merchandise, branding, and corporate sponsorship royalties.

False

Booking agents that typically book major label artist into concerts and shows are usually franchised by;

e. The American Federation of Musicians (AF of M)

A concert promoters typical "Bid Sheet" includes; (More than one answer is possible)

a. Post-show expenses
b. Production expenses
c. Show expenses
d. Pre-show expenses

The "asking price" or what the booking agent says an act or band will cost a concert promoter to book is;

d. The cost of putting on a show

Most major label artist are now receiving royalties from the streaming licensing royalties collected from companies such as Spotify.

a. True

b. False

b. False

What percentage of the suggested retail list price of a "unit" for sale do label receive through Brick & Mortar sales?

a. 80%

b. 60%

c. 40%

d. 30%

e. 100%

f. 20%

g. 70%

c. 40%

What items/issues (expenses) make up the all in's in an artists' recording budget tied to their deals? (More than one answer possible)

a. The recording budget

b. Publicity

c. Digital downloads such as iTunes

d. Distribution to brick & mortar retail
stores and digital distribution through providers such as iTunes

e. The Mechanical License, legal, and unit (cds) pressings, digital storage expenses

f. Touring also known as the live ticket

g. The artist advance for signing the deal

h. Promotion

i. Multiple Right Options

a. The recording budget

e. The Mechanical License, legal, and unit (cds) pressings, digital storage expenses

g. The artist advance for signing the deal

Overdubbing in the recording studio process is when; (More than one answer is possible)

a. When the producer and audio engineer "mix" to recorded tracks down to two tracks.

b. When an act records a scratch vocal and musicians record basic instruments such as the bass, guitar, drums, and piano.

c. When the record heads on the tape recorder (on previously recorded tracks) are placed into a playback mode (sel sync).

d. Additional instruments or vocals are added to previously recorded tracks

c. When the record heads on the tape recorder (on previously recorded tracks) are placed into a playback mode (sel sync).

d. Additional instruments or vocals are added to previously recorded tracks

By signing a major label deal the artist (who plays musical instruments and also sings) will be required to join the following unions. (More than one answer is possible)

a. The Writers Guild of America (WGA)

b. Equity

c. The Songwriters Guild of America

d. The Society of Motion Picture & Television Engineers (SMPTE)

e. IATSE

f. The American Federation of Musicians (AF of M)

g. The Screen Actors Guild-The American Federation of Television and Radio Artists (AFTRA/SAG)

h. The Audio Engineering Society (AES)

f. The American Federation of Musicians (AF of M)

g. The Screen Actors Guild-The American Federation of Television and Radio Artists (AFTRA/SAG)

What percentage of the suggested retail/wholesale list price of a "unit" for sale, do label receive on digital sales through iTunes and Amazon.com?

a. 100%

b. 60%

c. 40%

d. 70%

e. 30%

f. 20%

g. 80%

d. 70%

How much money (from the label's investment in the act) does the act owe or have to pay back to the labels if the artist fails to make money?

a. Management Fees

b. 100% of the Total Label Expenses for marketing and promotion

c. The remaining debt on the account for a shortage of album sales by the label to recoup all of its investment.

d. Zero

e. Limited to 100% of the all in's.

d. Zero

What type of Recording Deals do most labels/music companies now offer recording artists?

a. An Indie Deal

b. A Major (label) Deal

c. 360 Deal

d. A Shark Deal (you pay them)

e. A Master Recording/Tape Lease Deal

c. 360 Deal

A major record label signs a new recording artist. What is the total of the all ins if; the label provides an advance of $100,000 for signing the deal, the recording budget is not to exceed $200,000 and the label will press/digitally distribute sale 100,000 albums (at the licensing cost of $1.00 per-unit). In addition the label agrees to provide 17 points to the act on a suggested retail list album of $18.95, with a 15% package/storage fee and 3 points to the producer.

a. $16.11

b. $400,000

c. $2.25 per unit sold

d. $1,000,000

b. $400,000

Select the world-wide major labels that have hundreds of labels under their name banner. (More than one answer is possible)

a. MCA or Music Corporation of America

b. Bertelsmann AG

c. Warner Music Group

d. Rounder Records

e. Def Jam

f. Universal Music Group

g. RCA Records

h. Tidal Records

i. Sony Music/Entertainment

c. Warner Music Group
f. Universal Music Group
i. Sony Music/Entertainment

The type of union recording session that does not allow the recordings to be sold is,

a. Limited Pressing Session

b. Demo Session
under their name banner. (More than one answer is possible)

a. MCA or Music Corporation of America

b. Bertelsmann AG

c. Warner Music Group

d. Rounder Records

e. Def Jam

f. Universal Music Group

g. RCA Records

h. Tidal Records

i. Sony Music/Entertainment
c. Master Sessionunder their name banner. (More than one answer is possible)

a. MCA or Music Corporation of America

b. Bertelsmann AG

c. Warner Music Group

d. Rounder Records

e. Def Jam

f. Universal Music Group

g. RCA Records

h. Tidal Records

i. Sony Music/Entertainment

d. Low Budget

e. Right to work state arrangement

b. Demo Session

How much money do royalty artist receive from the labels for their recordings being streamed on providers such as Spotify?

a. $00.006

b. $00.10

c. $00.25

d. $00.01

e. Zero

e. Zero

Match the following "tasks" (number) to the corresponding record label departments (letter) (answers may be used one time, more than once or not at all)

Tasks
1. Find and sign a new artist and/or song to the label and it's corresponding music publishing company

2. Approves the recording budget

3. Distribution of "units" (albums and singles) to brick & mortar, streaming, and digital outlets.

4. Reports from Soundscan and other companies used to determine the actual number of album/record sales at retail.

5. Reports from Broadcast Data Systems (BDS), and other similar companies to determine radio station broadcast airplay.

6. Shameless self-promotion interviews on radio and TV shows (late night TV as an example)

7. Stories "planted" in Billboard Magazine and the popular press

8. Teaching the act to dress, wear makeup, be an actor, answer interview questions, write songs, and perform live.


Department
a. Department of Promotion & Publicity

b. Artist Development which is sometimes
located in the Department of A&R

c. The Department of A & R

d. Department of Sales & Marketing (distribution)

e. Booking the act on tours

f. Managing the Act's career

1. c

2. c

3. d

4. d

5. a

6. a

7. a

8. b

The record label that signs an act also hires the recording session producer.

a. True

b. False

b. False

Record label "promotion" consist of- (More than one answer is possible)

a. Interviews on radio and TV shows

b. Advertisements in the mass and social media.

c. Advertisements of the act, their music, and corresponding merchandise/branded products for sale in the mass and social media, popular press, and trade magazines.

d. Radio Station Airplay

e. The backstory of the act tied to the image and brand.

f. Stories about the act in the mass and social media.

g. Music Video's on www.youtube.com and other social media sites.

h. Advertisements about the act on streaming sites.

b. Advertisements in the mass and social media.

c. Advertisements of the act, their music, and corresponding merchandise/branded products for sale in the mass and social media, popular press, and trade magazines.

d. Radio Station Airplay

g. Music Video's on www.youtube.com and other social media sites.

h. Advertisements about the act on streaming sites.

Free goods are albums and singles distributors provide free to a retail outlet (for the purpose of getting a new or unknown act's product into a store). They may be given away or sold with all the money going to the retail outlet.

a. True

b. False

a. True

the type of union recording session that limits the recording budget to $99,000.00 is,

a. Low Budget

b. Demo Session

c. Master Session

d. Right to work state arrangement

e. Limited Pressing Session

a. Low Budget

The artist and label split the cost 50%/50% of creating merchandise, branding, and other tour products that are placed on sale at the web site and at concerts. The cost of a t-shirt is $4.00 to make and $1.00 to sell. The shirt will sell for $20.00. On the sale of a t-shirt (merchandise) how much money does the label make?

a. $15.00

b. $7.50

c. $5.00

d. $2.50

e. Zero

b. $7.50

In a 360 record deal, a label provides a promotion budget of 100% of the all ins for the act that includes the web site expenses such as construction, licensing, and maintenance, PLUS music videos, podcast, music, and advertisements, through mass and social media. The label and artist split all expenses of this type of promotion 50%/50%. If the all ins are 500,000, how much will the label charge to the acts' account at the label for recoupment?

a. $500,000

b. $75,000

c. $250,000

d. $400,000

e. Zero

c. $250,000

How much money (royalties per-unit) will each of the following receive for every unit sold through traditional full priced retail outlets sales (once the label has recouped); if the deal is 17 points on a suggest retail list price of $18.95, with a 15% packaging/breakage/server fee, and a deduction of 3 points for the producer/production royalties? (Answers may be used more than once or not at all) (Match the Number to the Letter)

Number
1. Label (if sold through traditional brick & mortar retail) and before artist royalty are subtracted?

2. Label, if sold through digital outlets on-line for $10.00 (such as i-tunes) and before artist royalties are subtracted?

3. Producer for traditional brick & mortar sales after recoupment by label? Taken out by label and then paid to artist who then pays the producer if the act breaks-even (label recoupment)

4. The recording musicians?

5. The recording BGV's?

6. The Royalty Artist after recoupment by label?

7. The Royalty Artist before recoupment by label?

8. Label when sold through traditional brick & mortar retail and after deducting artists royalties.


Letter
a. Zero

b. $2.26

c. $7.00

d. $12.05

e. $00.48 per-unit sold

f. $7.58

g. $5.32 per-unit sold

h. $16.95

i. $00.30

j. $18.95

k. $16.11

1. f

2. c

3. e

4. a

5. a

6. b

7. a

8. g

The royalty base is $16.11 for each unit (album) sold through traditional full priced retail outlets sales (once the label has recouped) on a deal, if there are 17 points on a suggest retail list price of $18.95, with a 15% packaging/breakage/server fee, and a deduction of 3 points for the producer/production royalties.

a. True

b. False

a. True

Successful record labels need to do five things to generate profitable revenues. Match the 5 things with their corresponding "cost" or expense to the label.

Things
1. Find & sign great acts/talent

2. Record an album (or singles) in the studio

3. Promotion

4. Publicity

5. Distribution


Costs
a. Blanket licenses revenues

b. The recording budget

c. Free goods

d. An advance (Money paid to the artist for signing the deal)

e. Promotional copies provided to media

f. Provides the act's "backstory" (who he or she is) to consumers based on the act's image, which leads to branding.

g. Provide a sample or way for consumers to "discovery" the new act and their recordings through radio station, streaming, and videos on Internet providers

h. Where the label actually makes money by selling hard copies and digital downloads to retail outlets, plus streaming, concert ticket sales, and merchandise.

1. d

2. b

3. g

4. f

5. h

In a typical recording contract what does "initial period" mean? (Select all that are correct)

a. One album or a number of single song recordings within the first year depending on the deal
b. One year of financial commitment from the label
c. Seven years, seven albums
d. The amount of money based on a "formula" that will determine future album release advances.

a. One album or a number of single song recordings within the first year depending on the deal

b. One year of financial commitment from the label

In a typical major record deal the artist usually has to invest money equal to 50% of all expenses.

a. True

b. False

b. False

Record label "Publicity" consist of- (More than one answer is possible)

a. Music Video's on www.youtube.com and other social media sites.

b. Advertisements about the act on streaming sites.

c. Advertisements of the act, their music, and corresponding merchandise/branded products for sale in the mass and social media, popular press, and trade magazines.

d. The backstory of the act tied to the image and brand.

e. Radio Station Airplay

f. Advertisements in the mass and social media.

g. Interviews on radio and TV shows

h. Stories about the act in the mass and social media.

d. The backstory of the act tied to the image and brand.

g. Interviews on radio and TV shows

h. Stories about the act in the mass and social media.

Match the following "mega entertainment corporations" to their "host" countries. (Answers may be used more than once).

Mega Entertainment
1. Sony Music

2. Time Warner Group

3. Disney Music/Entertainment

4. Universal Music Group


Host Country
a. Germany

b. Japan

c. England

d. China

e. France

f. United States

1. b

2. f

3. f

4. e

Which "unions" are the following artists required to be a member of, if the recording session is connected to a major record label?

Artist
1. Session Producer

2. Audio Engineer

3. Royalty Artist/Singer and BGV's

4. Musicians


Union
a. The Harry Fox Agency

b. The American Federation of Musicians (AF of M)

c. None

d. The International Federation of the Phonographic Industry (IFPI)

e. BMI, ASCAP and SESAC

f. The Screen Actors Guild-American Federation of Television & Radio Artists, (SAG-AFTRA)

g. The Recording Association of America (RIAA)

1. c. 2. c 3. f 4. b

In a typical recording budget how is the studio rented and the members of the recording team hired?

Team Member
1. Audio engineer

2. The producer

3. Musicians

4. Royalty artist (who signed the label deal) and BGV's

5. Renting of the Studio


Answer
a. By the hour, session, day, or project

b. By the number of copyrights owned & registered

c. By the session call which is usually a 3 hours

d. By the hour or number of songs sung in an hour

e. By the side

f. By a percentage of the labels' profits on the project

1. a

2. e

3. c

4. d

5. a

The artist and label split the cost 50%/50% of creating merchandise, branding, and other tour products that are placed on sale at the web site and at concerts. The cost of a t-shirt is $4.00 to make and $1.00 to sell. The shirt will sell for $20.00. On the sale of a t-shirt (merchandise) how much money does the label charge against the artist account for recoupment?

a. $7.50

b. $15.00

c. Zero

d. $2.50

e. $5.00

d. $2.50

An artist is paid $200,000 (gross) for a show at the Bridgestone Arena. If the act is in a 360 deal and owes 20% of their gross revenues to the label, then they will really end up making $160,000 for the show as they have to pay $40,000 to the label.

a. True

b. False

a. True

Why have labels moved toward 360 deals? (More than one answer is possible)

a. The label reduces it "risk of doing business" by receiving 10%-15% of the artist gross revenues.

b. Labels can now provide manage and bookings (jobs) for the act.

c. Labels are finding it more difficult to make a return on their investments (money) due to the technology that allows consumers to acquire music free.

d. Labels are now involved into fulfilling merchandise and branding to increase their revenues (which are called multiple rights) to decrease their losses from the decline in single and album sales

a. The label reduces it "risk of doing business" by receiving 10%-15% of the artist gross revenues.

c. Labels are finding it more difficult to make a return on their investments (money) due to the technology that allows consumers to acquire music free.

d. Labels are now involved into fulfilling merchandise and branding to increase their revenues (which are called multiple rights) to decrease their losses from the decline in single and album sales

In a 360 record deal, a label provides a promotion budget of 100%-200% of the all ins for the act that includes the web site expenses such as construction, licensing, and maintenance, PLUS music videos, podcast, music, and advertisements, through mass and social media. The label and artist split all expenses of this type of promotion 50%/50% and the promotion budget is set at 200% of the all ins. However, the act does not have their share of the money to pay for the promotion cost and the label also provided tour support money for the act to get on a road tour. If the all ins are 500,000, how much will the label charge the acts' account at the label for recoupment?

a. Zero

b. $500,000

c. $75,000

d. $250,000

e. $400,000

b. $500,000

The "cost" of publicity for a typical record label album release is

a. 50% - 100% of the all in's

b. A sum of money equal to the "advance"

c. 100%-200% of the all in's

d. 70% of the Suggested Retail List Price

e. The Formula Amount

a. 50% - 100% of the all in's

In many major label deals the artist is required to submit to the head of A&R a recording budget before any approval by the label may be granted.

a. True

b. False

a. True

The "cost" of promotion for a typical record label album release is

a. 50% - 100% of the all in's

b. 70% of the Suggested Retail List Price

c. The Formula Amount

d. A sum of money equal to the "advance"

e. 100%-200% of the all in's

e. 100%-200% of the all in's

On a union recording session what is the term of the payment for each of the following:

Question
1. An AF of M side musician (American federation of Musicians)

2. The Af of M leader/ lead musician

3. The royalty artist

4. The contractor/for the SAG-AFTRA background singers BGV's

5. The BGV's (background vocalists) on a SAG-AFTRA union call of three or more singers.


Payment Method
a. SAG-AFTRA Base scale (total being determined by the number of songs performed in one hour or the number of hours it takes to record one song).

b. Paid AF of M union recording scale based on a three hour recording session call

c. SAG-AFTRA base recording scale plus $56.00 per-hour or song.

d. Paid double AF of M recording side musician scale

e. By whatever the verbal agreement is

f. By the per-day rate.

g. For singing SAG-AFTRA (Screen Actors Guild-American Federation of Television, Radio, Artists), are paid the recording scale per-hour (times) three hours of the session call, (times) three for triple scale for one three hour session

1. b

2. d

3. g

4. c

5. a