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Sound Recording

Chapter 8

© 2009, The McGraw-Hill Companies, Inc. All rights reserved.

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CHAPTER OUTLINE

• History• Sound Recording in the Digital Age• Defining Features of Sound Recording• Organization of the Record Industry• Ownership in the Recording Industry• Producing Records• Economics

• Feedback

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HISTORY

• Phonograph: Thomas Edison– For dictation

• Graphophone: Bell & Tainther

• Gramophone: Berliner

• Nickelodeons

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Rivalry

• Victrola: Berliner– Disc player designed to look like furniture– “His Master’s Voice”

• By 1914 record players were common– National dance craze– Jazz Age

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The Impact of Radio on the Recording Industry

• By 1924, radio cut into sales of record players– Sales down 50%– Record companies improved quality of

recordings– Record companies marketed combined radio-

phonographs– RCA & Victor merged in 1929

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The Great Depression

• Jukebox: coin-operated music player– Installed in bars, diners, drugstores– Boosted record sales about 500% by 1939

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World War II and After

• Shellac declared defense commodity• Musicians strike, 1942-1944• Capital Records sent free records to radio

stations• Columbia introduced 33-1/3 rpm LP (albums)• RCA introduced 45 rpm (singles)• Stereo players introduced in 1950s• TV affected both radio and recording industries

– Playing Top 40 songs became popular

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The Coming of Rock and Roll

• Rock’s roots in black rhythm and blues, commercial white popular music, country & western, jazz

• Popular new singers: Elvis Presley, Bill Haley, Buddy Holly, Little Richard, Chuck Berry, etc.

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Rock Goes Commercial

• Most original rock stars left scene by 1959

• Payola scandals

• Early 1960 industry cleaned up its image– Wholesome, clean-cut American singers

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The British Invasion

• The Beatles, 1964

• Rolling Stones, Animals, other British groups

• American Genres– Folk– Soul

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Transitions

• Late 1960s into 1970s

• Social experimentation and cultural transition– Country rock– Rock opera– Blend jazz, rock, classical– Heavy metal

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Industry Trends: 1970-1990s

• Disco

• Michael Jackson’s Thriller

• CD format dominated in 1990s

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The Contemporary Sound Recording Industry

• iPod and other portable MP3 players– By 2007, a billion downloads from iTunes– Slowdown in sales, increase in downloading– Retail arm of industry has problems– Industry fights against illegal file-sharing

• Recording industry more consolidated than ever– Encourages predictable and formulaic music

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SOUND RECORDING IN THE DIGITAL AGE

• Digital technology makes the recording industry vulnerable.

• Industry was not prepared for the digital age

• Illegal file-sharing changed music industry forever

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The Rise of the iPod

• iPod led to varied developments• New business model• New cottage industry (iPod accessories)• Cultural impact (iPods at clubs)• iPod jacking (listen to others’ music)• Podcasts (downloadable programs)• New radio format (“Jack FM” or “Dave

FM”)

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The Decline of the CD

• Record companies packaged collections of songs (albums) on CDs

• People want to buy only the songs they like– Abandoned album format– CD sales declining since 2000

• Legal downloads generate revenue– Not as much as lost from decreased CD sales

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New Products

• Recording industry developing symbiotic relationship with cell phone industry

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Mobile Music

• iPod allows people to take music with them (continuing Sony Walkman tradition)

• MP3-equipped cell phones– Music industry charges wireless providers

more than it charges online services

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User-Generated Content

• Artists produce content and post on social networking sites

• Important to industry and individuals

• Artists, wireless providers, recording industry are all interested in using these sites effectively

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DEFINING FEATURES OF SOUND RECORDING

• Cultural force: characterizing social groups, defining movements and trends – helps shape modern culture

• International

• Unique blend of business and talent

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ORGANIZATION OF THE RECORD INDUSTRY

• The recording industry can be divided into four major segments.

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Talent

• Singers, musicians, songwriters, arrangers, lyricists

• Try to break in to industry by performing at local clubs, or posting videos on sites such as YouTube, Facebook, MySpace

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Production

• Recording the songs at the recording studios, using elaborate multi tracking equipment

• When singles/albums are released, label begins– Promotion, advertising, merchandising,

packaging

• Four major firms dominate the industry, though many small companies exist

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Distribution

• Direct retail

• Rack jobbers

• One-stops

• Direct consumer sales

• Online sales

• Direct download

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Retail

• Traditional record stores facing stiff competition– Mass market stores (Wal-Mart, Target)

• 2006: 65% of CD and tape sales

– Online music sites• Some electronic retailers are starting music

download businesses

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OWNERSHIP IN THE RECORDING INDUSTRY

• Recording industry is one of the most concentrated of all media industries

• Four firms account for 85% of all sales– Universal Music Group, Warner Music, Sony

BMG, EMI

• These are multinational conglomerates with interests in many different industries

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PRODUCING RECORDS

• Artists and repertoire (A&R)

• Sales and distribution

• Advertising and merchandising

• Promotion

• Business

• Publicity

• Artist development

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Making a Recording

• Artists must gain attention of the industry– Produce demo– Post videos– Contact A&R department

• If signed, go to recording studio– Multitrack recording– Players need not be present at same time

• After recording, mix down to two tracks (stereo)

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ECONOMICS

• Economic issues are of concern to the industry as a whole and to individual musical acts

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Economic Trends

• Profits declining since 2000– File-sharing programs became popular

• Legal downloading services are booming

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Rock Performers: The Bottom Line

• Royalty rates – CDs: roughly 9% to 20% (for superstars)– Downloads: royalty rates run about 9%

• Artist income sources– Royalties– Personal appearances, overseas sales,

merchandising

• Must pay all expenses from income– Very few acts generate large sums– Only about 10% of new recordings are profitable

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FEEDBACK

• Feedback in the sound recording industry has been concerned more with sales and exposure than with audience composition

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Billboard Charts

• Billboard magazine prepares weekly ratings charts based on sales and exposure– Nielsen SoundScan provides sales figures– Nielsen Broadcast Data Systems provides

exposure

• Radio stations monitor Billboard to see what they should be playing

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Sound-Recording Audiences

• Demographic profiles not common; industry not supported by advertising– People over 30 account for 55% of sales– Spending by people 19 and under declined to

21%