Part 1: Setting the Stage
Chapter 3
Start Thinking. . .
What areas of expertise are required to get a song to
market?
2. What is your particular area of interest/talent in the
music business industry?
1.
Chapter Goals
 Understand that the music business is a system composed of
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subsystems, each of which submits to rational analysis.
Learn how a song gets through “the maze”—how it travels
through the system to the bank.
Grasp the significance of the “information age” and how to deal
with it today.
Understand that the music business is largely based on the star
system—that only individuals with strong talent and motivation
can expect to persuade others to invest in their potential for
commercial success.
Understand that performers often can’t gain or sustain success
without a fully staffed support system.
Learn the four factors contributing to the success of those who
“win” in the music business.
Defining the Business of Music
Two essential elements:
 The Musician
 The Audience
Drawing them together is the business of music
How this is done has changed dramatically as a result of
the Digital Millennium
Getting Through the Maze
Two ways to view/analyze the industry
 Flowchart – Figure 3.1 on page 25
 Sequence of events that occurs when a new song
finds it’s way to market:
 The sequence is quite common although there are
countless variations on the scenario
Getting Through the Maze
 How a song gets to market:
1. The composer—who sometimes is also the performing
artist—writes a song and signs with a publisher.
2. The publisher persuades an artist (or that artist’s producer)
to record the song.
3. Lawyers (at several stages) negotiate contracts between
parties and specify terms for varying forms of usage and
exploitation, such as mechanical rights and synchronization
licenses.
4. The record company produces a recording and, possibly, a
video version of the song.
5. Promoters persuade programmers to broadcast the audio
recording and the video.
Getting Through the Maze
6.
7.
8.
9.
10.
11.
The record company uploads the song for online sale and
ships the merchandise to distributors, who sell it to
retailers.
If the song becomes popular, a second wave of exploitation
can occur—licensing of ringtones and merchandise
connected to the song and/or artist.
A talent agency contacts promoters and books a concert
tour.
Concert promoters enlist cosponsors and sell the tickets.
The road manager moves the people and the equipment.
The concert production manager dresses the stage, lights it,
reinforces the sound.
Getting Through the Maze
12. The artists perform.
13. The government collects the taxes.
14. The performing rights organizations collect performance
royalties.
15. The accountants count the money; the participants pay
their bills.
Show Me the Money
 Music is not simply about an artist performing a catchy
tune.
 The music industry has mushroomed into an
interconnected series of segmented, multi-billiondollar businesses including:
 live concerts
 sale of musical instruments and equipment
 cell phone ringtones
Show Me the Money
Tools of the Trade: Everybody’s
Gotta Learn Sometime
Absolutely essential to keep informed about new
developments in the industry in order to be
marketable and to capitalize on new methods of
licensing, marketing, etc.
Amazingly, many composers, performers, business
people and educators don’t really understand how it
works. Worse yet, much of what they believe they
know is either out of date or incorrect.
Tools of the Trade: Everybody’s
Gotta Learn Sometime
The results of this pervasive ignorance about the business
has been tragic:
 Only 15% of AFM members work steadily in music
 Top graduates of conservatories fail to get their careers
started
 Aspiring business-side candidates lack the big-picture
smarts and specialized savvy to succeed in a
competitive label environment
 Musicians navigating the DIY waters fall victim to
sharks
Tools of the Trade: How do you
get the important information?
 Take time to regularly read about developments in the
business – wealth of info online (not all good)
 Bookmark sites that consistantly deliver good info
 Professional meetings – most organizations have
websites (see back cover of textbook)
 Books on specialized topics: copyright, songwriting
 Blogs – ask around – fellow musicians
 Study at accredited college or university with
specialized programs in music industry studies
The Musician-Entrepreneur:
Prospering by Constantly Adapting
 Gene Perla – see pages 29 & 30 of text and class notes.
 Closing statement of this chapter:
Only a limited number of performers can attain star
status, so it is fortunate that the music business system
offers many opportunities for individuals needed to
help make the system function. No performer today
can ascend to stardom and stay there without an array
of qualified support personnel.
Whether as a star or support personnel, many do make it. Why:
Luck? Timing? Education? Networking skills? These factors have all
played a part in launching music business careers. Four other
factors contribute to the success of those who “win” in the music
business
 Four factors of “winners” in music business:
1. They are strongly motivated; they really want to win.
2. They are talented—and they surround themselves
with talented associates.
3. They persevere; they hang in there until they succeed.
4. They get the important information.
 #1 – #3 depend on you
 #4 is offered in this course
For Further Thought. . .
1.
What would you consider to be the essential factor(s)
for “winning” in the music business?