Recorded Music l2 Edit

8/11/2019 Recorded Music l2 Edit

http://slidepdf.com/reader/full/recorded-music-l2-edit 1/60

MUSIC BUSINESSTHE RECORDING INDUSTRY



WHAT WOULD BE YOUR TOP 5 JOBS IN THE MUSICINDUSTRY?



RECORD COMPANIES

WHAT DO THEY DO?



A + R (ARTIST AND REPETOIRE) - ACQUIRE TALENT (FIND AND SIGN ARTISTS, MANAGE THE RECORDING PROCESS(CREATIVE DIRECTION/BUDGETING.

PROMOTION + MARKETING – PRESS PROMO, RADIO/TVPROMO, ON-LINE PROMO, PAID ADVERTISING, VIDEO.

DISTRIBUTION – MANUFACTURE, SELL AND SHIPPHYSICAL PRODUCT TO RETAILERS. ON-LINE OUTLETS.

BUSINESS ADMINISTRATION – ADMIN, LAWYERS, ACCOUNTANTS



AN IMPORTANT CONCEPT?

IN-HOUSE

OUT-OF-HOUSE





AN IMPORTANT CONCEPT?

IN-HOUSE - WORK UNDERTAKEN INSIDE ACOMPANY

OUT-OF-HOUSE – WORK UNDERTAKEN OUTSIDE ACOMPANY BY OTHER PEOPLE/COMPANIES



MAJOR LABELS



MAJOR LABELS



In Groups

Discuss and make a list of the different job roles within arecord company.



In Groups

Discuss and make a list of the different job roles within arecord company.

What other areas of the music industry work alongsiderecord company?



WHAT DEFINES A MAJOR

LABEL?

MD ADMIN A + R

PRESS PROMO RADIO/TV PROMO ONLINE PROMO

DISTRIBUTION LEGAL ACCOUNTS

IN- HOUSE – STAFF (SALARIEDEMPLOYEES)



WHAT DEFINES AN INDIE LABEL?

OUT OF HOUSE

INDIE LABEL

MD/ ADMIN/ A&R

ACCOUNTSLEGALDISTRIBUTION

PRESSPROMO

ONLINEPROMO

RADIO/TVPromo



MAJOR LABEL – EMPLOYS LARGE NUMBER OF SALARIED STAFF

MD, ADMIN, A+R, PRESS PROMO, RADIO/TV PROMO, ONLINE

DISTRIBUTION, LEGAL, ACCOUNTS

INDIE LABEL - EMPLOYS SMALL CENTRAL STAFF

MD, ADMIN, A+R

UTILISES FREELANCE ‘OUT OF HOUSE’ COMPANIES AS NEEDED

PRESS PROMO, RADIO/TV PROMO (£ PER MONTH)

DISTRIBUTER (COMMISSION ON SALES – 20 %)

LEGAL/ACCOUNTS (PER HOUR)



MAJOR LABEL – EMPLOYS LARGE NUMBER OF SALARIED STAFF

MD, ADMIN, A+R, PRESS PROMO, RADIO/TV PROMO, ONLINE

DISTRIBUTION, LEGAL, ACCOUNTS

FIXED COSTS PER MONTH (SALARIES)

REGARDLESS OF RECORDS RELEASED OR SOLD

INDIE LABEL - EMPLOYS SMALL CENTRAL STAFF

MD, ADMIN, A+R

UTILISES FREELANCE ‘OUT OF HOUSE’ COMPANIES AS NEEDED

PRESS PROMO, RADIO/TV PROMO (£ PER MONTH)

DISTRIBUTER (COMMISSION ON SALES – 20 %)

LEGAL/ACCOUNTS (PER HOUR)

FLEXIBLE COSTS PER MONTH

CAN EMPLOY OUT OF HOUSE SERVICES ONLY AS REQUIRED



A CASE STUDY

THIS WEEK..

LAWRENCE BELL



ABOUT 15 YEARS AGO LAWRENCE DECIDED HE WANTED TO START A SMALL RECORD LABEL IN HISSPARE TIME TO RELEASE SOME WEIRD SHIT HE

KINDA LIKED.




KINDA LIKED.

HE WAS WORKING AT SNAPPY SNAPS AT THE TIME




KINDA LIKED.

HE WAS WORKING AT SNAPPY SNAPS AT THE TIME

STARTED RELEASING 1000 CD ALBUMS PER ACT ON ASTRICT BUDGET.



TYPICAL BUDGET

SIGNED HOME OR FINISHED RECORDINGS ONLY – NORECORDING BUDGET

PRESSED 1000 CD ALBUMS @ £1200 INC BASIC 2 COLOUR ARTWORK



TYPICAL BUDGET



EMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH =£3000



TYPICAL BUDGET




MAILED CDS TO SPECIALIST RADIO PRODUCERS



TYPICAL BUDGET





EMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT ACOST OF 20% OF DEALER PRICE



TYPICAL BUDGET

SIGNED HOME OR FINISHED RECORDINGS ONLY – NO RECORDINGBUDGET


EMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = £3000


EMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COSTOF 20% OF DEALER PRICE

TOTAL COST OF RELEASE = £4200



TYPICAL BUDGET

SIGNED HOME OR FINISHED RECORDINGS ONLY – NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ £1200 INC BASIC 2 COLOUR ARTWORK



EMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OFDEALER PRICE


DEALER PRICE IS THE PRICE YOU SELL AT TO SHOPS = £6.90



TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY – NO RECORDING BUDGET



MAILED SPECIALIST RADIO PRODUCERS

EMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE



PIAS TAKES 20% (£1.38) OF EACH SALE LEAVING £5.52 PER CD











BREAK EVEN LEVEL OF SALES =











BREAK EVEN LEVEL OF SALES = 760 CDS



ONE DAY…. LAWRENCE RECEIVED A DEMO TAPE FROM AFRIEND OF A FRIEND.

A DEMO TAPE NOT QUITE AS ‘WEIRD SHIT’ AS

THE STUFF HE USUALLY PUT OUT.SOMETHING HE WAS CERTAIN COULD SELLMORE THAN 1000 CDS

AS AN INDEPENDENT LABEL HE WAS ABLE TOBE FLEXIBLE IN HIS APPROACH.

SO HE DID SOMETHING MAD…



LAWRENCE TOOK A BANK LOAN OF £90K




USING HIS HOUSE AS SECURITY




USING HIS HOUSE AS SECURITY

HIS WIFE LEFT HIM



BUDGET

RECORDING BUDGET



BUDGET

RECORDING BUDGET £15,000



BUDGET


MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART £8500



BUDGET



PRESS PROMO AGENT 3 MONTHS @ £3000/MONTH = £9000



BUDGET




RADIO/TV PLUGGER 3 MONTHS @£2500/MONTH = £7500



BUDGET





VIDEO X 2 @ £9000 EACH = £18,000



BUDGETRECORDING BUDGET £15,000

MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART£8500


RADIO/TV PLUGGER 3 MONTHS @£2500/MONTH = £7500 VIDEO X 2 @ £9000 EACH = £18,000

TOUR SUPPORT = £12,000



BUDGET





VIDEO X 2 @ £9000 EACH = £18,000


PAID ADVERTISING = £6500







VIDEO X 2 @ £9000 EACH = £18,000



TOTAL =







VIDEO X 2 @ £9000 EACH = £18,000



TOTAL = £76,500







VIDEO X 2 @ £9000 EACH = £18,000



TOTAL = £76,500

REVENUE PER CD = £6.90 LESS DISTRIBUTION COMMISSION (20%) = £5.52







VIDEO X 2 @ £9000 EACH = £18,000



TOTAL = £76,500


BREAK EVEN NUMBER OF CD SALES =







VIDEO X 2 @ £9000 EACH = £18,000



TOTAL = £76,500


BREAK EVEN NUMBER OF CD SALES = 13900



NEEDED TO SELL 13900 COPIES @ £5.52 TO BREAKEVEN




THE BAND..?




THE BAND..?

FRANZ FERDINAND




THE BAND..?

FRANZ FERDINAND

UK SALES?




THE BAND..?

FRANZ FERDINAND

UK SALES?

1,500,000




THE BAND..?

FRANZ FERDINAND

UK SALES?

1,500,000

SALES REVENUE?




THE BAND..?

FRANZ FERDINAND

UK SALES?

1,500,000

SALES REVENUE?

£8,280,000 (£5.52 X 1,500,000)



WHAT DID HE DO WITH THE MONEY?




HE SIGNED ANOTHER BAND





CALLED.. ARCTIC MONKEYS






CURRENT ALBUM SALES 6,200,000






CURRENT ALBUM SALES 6,200,000 x £5.52






CURRENT ALBUM SALES 6,200,000 x £5.52

REVENUE APPROX £35 MILLION



HE NO LONGER WORKS IN SNAPPY SNAPS



HE NO LONGER WORKS IN SNAPPY SNAPS

Documents

Recorded Music l2 Edit