Music Business Flashcards

Vocabulary flashcards for review of the music business lecture.

What is technology's impact on the music industry?

it has improved the ability to produce new sounds, but it has also disrupted the established economic order.

Digital Technology in Music is?

It's a double-edged sword, improving production but also disrupting the economic order.

The reasons as to so many DIY artists?

Decreased recording costs & digital marketplaces make it easier and cheaper for these artists to release music.

Ways to Learn the Music Business

Attend college, read trade publications, attend conferences, read books, listen to podcasts, or join guilds.

There are three primary revenue streams in the music industry. What are they?

Live Performances, Music Publishing, and Sound Recording

RIAA stands for?

Recording Industry Association of America.

Percentage of Americans who play an instrument

20% (1/5)

What was the first Sector of Music Industry to Develop?

Performing and Live entertainment.

How much of the US recorded music revenue is generated by streaming?

Over 83%

In 2019, how roughly how many of the events were operated by Live Nation in North America?

Live Nation operated over 28,000 events in North America.

What was the early perception of Music as a profession?

It was not considered a respectable career.

Inventor of the Phonograph?

Thomas Edison.

P2P stands for?

Peer-to-peer.

What was Impact of Early P2P Networks?

It contributed to a nearly 50% drop in global recorded music sales.

Is there a regulation of booking agents? How so?

Booking agents are regulated heavily in many states.

What’s Manager's Role?

Can negotiate employment for their artists and wear multiple hats.

What are the two services entertainment attorneys provide?

Transactional and litigation services.

Why are individuals in contract negotiations considered adversaries?

Because both parties are entering a negotiation with opposing goals

What are some influential music unions

AFM (Instrumentalists) & SAG-AFTRA (Singers)

Collective Bargaining Agreements address what?

Topics like minimum pay, employment conditions, and employer contributions toward health and retirement benefits.

Guilds are?

Organizations for a specific class of artists with similar creative interests.

Unions generally do not prohibit what?

Their members from working for nonunion employers.

What is Cartage?

Compensation for moving instruments.

Doubling is?

Playing more than one instrument at a gig.

What is scale known as?

The industry term for the pay rate of musicians.

Employer arrangement requiring union membership is known as?

Closed shop.

What is a Step Out?

Term used for when a vocalist is either featured or sings more than one part.

Roughly what is an artist manager’s commission rate?

Typically earns a commission of 10-25%.

What is the manager's role?

They guide an artist in all of the artist’s creative and business activities throughout the entertainment industry.

Booking Agent Commission rate?

Typically receives 10% gross of the money an artist makes through live performances.

EPK means?

Electronic press kit.

"Big Three" Talent Agencies are called?

Endeavor, CAA, and UTA.

Carve Outs

Exceptions in legal contracts, such as excluding music publishing rights.

TEA means?

Track Equivalent Album.

SEA means?

Streaming Equivalent Album.

Typical Negotiated Contract Agreements

Composer & Publisher; Performer & Manager; Producer & Artist; and Artist & Record Label

What does it mean to lose a bullet?

A single has decreased in spins from the previous week.

Pollstar

The chart most focused on live music performances.

The first US Copyright Law was passed in what year? What did it apply to?

Passed in 1790, applied to books, maps, and charts.

What does Copyright extend to?

Does not extend to ideas themselves, but only to new specific expressions of ideas.

The Bundle of Rights include?

The five exclusive rights granted to the copyright owner - right to reproduce, distribute copies, perform publicly, display publicly, and prepare derivative works.

Fair Use Doctrine entails?

Permission granted by the courts to allow the fair use of copyrighted works in educational, non-profit, and scholarly settings

MMA means?

Music Modernization Act.

Copyright Law Areas Impacted by MMA?

Compulsory mechanical licensing for digital uses, pre-72 sound recording performances via digital transmission, and music producers and other creators involved in the recording process.

What is the difference? Copyright vs Trademark/Patent.

Copyright protects original works of authorship, such as music, while trademarks protect brand identifiers like names and logos, and patents protect inventions or processes.

First General Revision of Copyright Act occurred in what year? And entailed what?

1831 which revised the law to add the protection of musical compositions

How is a Musical Work is defined in this industry?

A melody, rhythm, and/or harmony which can be expressed in a system of musical notation and accompanying words or lyrics if any.

Sound Recording is the term for?

Industry term for a work that results from the fixation of a series of musical, spoken, or other sounds

The Requirements for Copyright are?

Original and fixed in a tangible medium of expression.

A Work Made For Hire owner is?

The record label is the author of the work and the owner of the sound recording.

What is the most Essential Ingredient in Recording Industry?

The songwriter.

The Songwriter can expect to?

A songwriter can expect to spend as much time promoting songs as writing them.

Mechanical Royalties Payment are paid to?

Typically, mechanical royalties are only paid directly to the publisher.

Publisher will do what after they get their mechanical royalties payment?

Once the songwriter has recouped their publishing contract, the publisher will then distribute payment to the songwriter.

HFA stands for?

Harry Fox Agency.

MLC means?

Mechanical Licensing Collective.

What is HFA & MLC Function?

Responsible for collecting mechanical royalties.

In Early 20th Century Music Industry, which group of people in the industry was the most powerful?

Music publishers were the most powerful organizations.

Subpublishers are?

In foreign territories help the primary publisher maximize royalties from overseas sources.

In a co-publishing agreement, what is the typical operational status of the songwriter’s personal music publishing company?

The songwriter does not maintain a separate staff or offices, and exists mainly for legal and tax purposes.

Largest Income Source for Songwriters/Publishers

Performance licensing.

Mechanical License Requirement

Interactive streaming, digital downloads, and physical products like vinyl and CDs.

What are Non-interactive Streaming Payments?

A significant source of revenue for labels and recording artists paid through SoundExchange.

Clearing Rights to Samples/Remixes require what?

Usually requires the help of a licensing specialist and can be expensive.

What is a Creative Commons License?

An alternative to clearing rights to samples/remixes.

Statutory Rate is what?

The royalty rate paid under a compulsory license.

Blanket License grants what?

Grants permission to all the works owned or managed by the licensor.

What is the Copyright Duration for a Song?

Life of the author + 70 years.

What is the Copyright Duration for a WMFH?

95 years from publication OR 120 years from creation – whichever is shorter.

What are the Big 3 Performing Rights Organizations (PRO)s?

BMI, ASCAP, and SESAC.

What are the Main Songwriting Income Sources?

performance royalties, mechanical royalties, and sync fees.

What is a Demo?

A songwriter’s demonstration recording of their song.

What does a Song Plugger do?

Plays demo for A&R staff, hoping label artist records it.

What are the two Copyrightable Elements?

the song/musical work/composition, and the master/sound recording.

What are the 4 Key Components of the Publishing Revenue?

songwriter/publisher, Performing Rights Organization (PRO), broadcaster, and consumer.

What are the 5 Key Components of the Recorded Music Revenue?

artist/producer, label, distributor, retail, and consumer.

What are the 6 Key Components of the Live Entertainment Revenue?

artist, manager, booking agent, promoter, venue, and consumer.

What are the 4 Common Music Publishing Agreements?

Exclusive Songwriting Agreement, Single-Song Agreement, Multi-Song Agreement, Co-Publishing Agreement, and Administration Agreement.

What is the Performance grand right?

The right to produce a dramatic musical work such as an opera or musical

What has happened to the Major Record Label Groups over time?

Consolidated over time into 3 major record label groups.

SoundExchange Payments do what?

Pays the record label a performance royalty for the use of sound recordings in non-interactive streaming

What is the primary way Record Labels generate revenue?

Exploiting audio and video recordings and other artist-related activities.

What are some Core contract topics go over in the music buisness?

Minimum delivery of tracks/sides/albums and copyright ownership and usage rights

Why would it be useful to hire an attorney in the music industry?

It is wise and represents the best practices to use an attorney when negotiating contracts in the music industry.

Typically, most recording deals remain unrecouped. Why is this?

The label hasn't made any profit back with the money they’ve spent on the artist,

Multi Rights Deals do what?

Give the record label the right to earn revenue from and sometimes actively participate in other activities in which the artist is engaged.

SAG-AFTRA and AFM agreements have what?

Their own collective bargaining agreements that cover the creation and use of sound recordings by both featured and non-featured artists.

If a Demo Upgrade to Master, what must happen?

If a demo is upgraded to a master, the label must pay the appropriate union scale to any participants, retroactively.

Producer Responsibilities include?

Scheduling all aspects of recording and keeping the project on budget.

Project Studios are often far less expensive than commercial recording studios. Why?

They typically require lower overhead costs and may be run by independent producers with a less complicated setup, making it more affordable.

Top record producers negotiate compensation that includes another thing, what is it?

Receiving royalties.

The five Stages of Record Production are?

budget and planning; tracking; editing; mixing, and mastering.

Vertical Integration is?

When a record label purchases a distribution company, this gets them closer to the consumer.

Horizontal Integration is?

When a record label merges with another record label, this makes them bigger

What is the Leading Physical Music form of consumption?

Vinyl records are the leading form of physical music consumption.

Why is our economic model that we use in class NOT the same for digital downloads?

The economic model is NOT the same for digital downloads as it is for on-demand streaming.

What is the Primary Form of Recorded Music Consumption? And how is it changing?

It’s moving from ownership to on-demand streaming.

Streaming Royalties are now?

lower than the traditional mechanical and performance royalties were in the past

What is the goal of Market Research?

To reach conclusions which will guide allocation of resources for future marketing programs.

POS means?

Point of Sale when considering music consumption.