Introduction to Music Business: Industry History, Key Roles, and Revenue Streams

Foundation of the music industry

Relied on the creation of a single song and built from there.

Music business components

Live performances, compositions, and recordings.

Primary revenue source for music industry

Live performances.

Gutenberg printing press

Allowed for mass production of sheet music in 1439.

Sheet music introduction year

1437.

Tin Pan Alley

Mid 1800s music publishing area where songwriters worked.

Edison Cylinder Phonograph

First device capable of both recording and reproducing sound, introduced in 1877.

Flat phonograph Berliner Volta Lab

Introduced in 1887, better technology for shipping and production.

Record sales in 1897

250,000 records sold.

Record sales increase by 1899

2,800,000 records sold.

Victrola introduction year

1906.

First Radio Broadcast

KDKA in 1920.

The Jingle

Commercial music rises in 1923.

Record sales in 1927

Hit 140 million, a record high.

78 RPM records

Determined how much data a physical record holds from 1920s to 1940s.

Great Depression impact on music industry

Unemployment and huge losses from 1929 to 1939.

Musicians Strike year

1942.

PVC vinyl introduction year

1944.

Introduction of 45 RPM records

Introduced by RCA in 1949.

Alan Freed's contribution

Coined the term Rock n Roll in 1951.

Beetlemania

Began in 1963, dominated billboard charts.

First mega music festival

Monterey Pop Festival in 1967.

MTV launch year

1981.

Global Release Day

Established in 2015 to combat music piracy.

Digital Audio Tape introduction year

1989.

Napster launch year

1999.

Pandora launch year

2000.

iTunes launch year

2003.

Spotify launch year

2008.

Apple Music launch year

2015.

Covid impact on live music revenue

Damaged revenue from 2020 to 2021.

Gross vs Net

Gross is total income; net is income after expenses and taxes.

Key Person Clause

Specifies that artist relationships may be terminated if a key person leaves.

Leaving Member clause

Allows record companies rights to individual members as solo acts.

Closest person to artist

Coordinates team and fields offers.

Creative advisor

Sometimes provides creative guidance to the artist.

Buffer

Shields artist from external pressures to maintain creativity.

Crisis management

Handles emergencies 24/7.

Artist manager pay

Gets paid 15-20 percent of artist gross from various revenue streams.

Sunset Clause

Contractual item stating how commissions phase out when a team member ceases working for an artist.

POLCA

Planning, Organization, Leadership, Control, Adaptability.

Business manager duties

Handles artist finances, pays bills, receives and distributes royalties.

Booking agent role

Arranges live musical performances and books tours.

Publicist roles

Communicates with press for reviews, previews, features, and interviews.

Attorney roles

Handles contractual details and negotiates contracts.

Exclusivity in contracts

Refers to whether an artist can work with multiple agents or managers.

Negotiated leave

May be under a sunset clause.

Planning a tour

Manages everything related to the tour, develops a general plan with the agent.

Crisis management in attorney roles

Handles emergencies related to contracts and artist representation.

Business manager pay

Gets paid either 5 percent of artist gross income or a monthly fee.

Common reasons for termination of business manager

Need for someone more equipped or disagreements in philosophy.

Planning a tour by booking agent

Gets venues and ensures all money is agreed upon.

Publicist pay

Paid a monthly retainer fee for the duration of a PR campaign.

Touring and publicist role

Tries to get press coverage for performances.

Key person in management

Refers to whether a specific individual is essential to the role.

Agent's commission

Gets paid 10 percent of artist performance fees.

Manager's goal

To build a long-term career for the artist.

Understanding artist brand

Comprehensive understanding of the artist's brand and personality.

Negotiating contracts

Attorneys negotiate contractual details in record contracts.

Crisis management for publicists

Gets in front of the story to manage public relations.

Role of a booking agent

Routes and books tours, ensuring reasonable order of performances.

Artist manager responsibilities

Involved in all major business decisions and oversees artist careers.

Creative and informed decisions

Helps managers make better choices for the artist.

Handling artist finances

Business managers pay bills and manage royalties.