The Entertainment Industry 8/27

Sirius XM
Clear Channel (iHeart Radio)
Bollywood
Sony
Google (YOUTUBE)
Spotify
Pandora
Comcast/TIme Warner
Verizon
Apple
ASCAP
BMI
SESAC
Def Jam
Disney
UMG/EMI
Viacom
TALENT AGENCIES
WME
CAA
UTA
ICM
Amazon
Recording Artist
Why pay a percentage when they can be salaried?
-MGR
Commission- 15%- (10-20%0
Net/ Gross (most commision starts on Gross)
Agent
10%
Exclusions for Commission

Any money spent on producing record

Live performance costs to promote- Sound/Lights
Video
Opening Acts
Features on Songs
Producers
UniLateral options
Manager Ageement TERMS
length of time for securing recording contract
Co-Terminous w/the record deal (however long it will take the record deal to end, thats the
length of the agrreement)
Sunset Clause- On the records the artist worked on the manager is paid 20% fr 3 yrs/ 5% another
three years. After 6 years its done.
2 years of "after term" for every 1 year of term
Commission every record artist releases in perpetuity
"Greatest Hits" clause*Album Cycles
1. Lawyers
2. Managers
3. Business Managers
4. Agents
5. Publicists
6. Creative Consultant
Stylists/ Hair&Makeup
7. Producer
8. Personal Assistsnt
9. Record Company

CLASS 9/3/14
When you hire a manager and they go in for you, its their face. Choose wisely.
Publicly traded company?

Chief competitors?
Risk in the future?
Business change with Internet?
Litigators: go to court
Transactional: Contracts
Canon of Ethics- Law for ATTORNEYS
Value BillingCBA- collective bargainig agreement
CTA- no xception like NY.
Manager can't procure employment for clients. RECORD DEAL OK.
Regional Agencies- 20%/15%
Hard tickets: Audience is comin specifically to see YOU
Soft tickets: County fair, Opening Act
NOTES 10/29
Option agreement-different options when a deal is signed. regarding price, length of agreement,
terms

CLASS 9/10
Filters
- Cheaper to record
- Sell less

- Competition (a lot more now)

Copyrights:
c in a circle: (underlying composition) ex Susan Gibson 1996 ASCAP/BMI
P in a circle- Phonorecord not created until 1972
Distribution
Connections
*Loans- Capital
Marketing
Record Company Departments
Artists and Repertoire
Finance
Marketing
Distribution
Business & Legal Affairs
MFG- Artwork, Press CD, Fabricate Jackets
Promotion
New Media
International
cross collateralization- record company has the ability to take revenue from anything youve
made to pay back your debt.
No Coupling
De-coupling
SEPTEMBER 17th 2014
Spec
50% of your publishing
Studio Musicians
Work for hire agreement
California #3423
Negative injuction for exclusivity
GROUP PROJECT

Who are they

business model
challenges in the industry
biggest clients
publicly trade?
video of artists

9-24 NOTES
*easy licensing
Geo Limit; ASCAP BMI, SESAC
Repititions - Short Playlists
Genre Driven

Unattributable money
% of Revenue 15%
only from the music page per stream rates
pandora started in 2005
ONLY NON INTERACTIVE- BY LAW from congress six skips per perf complement; 4 per
artist in 3 hr period.
9% of Rev
13%- 2017
25.8 mill subscribers Sirius XM- ppl pay $150 per mo
2
1995- DPRA-

10-1 Notes
ASCAP- formed in 1914; biggest revenue comes from movie theatres; As composers, Artists,
publishers. In the beginning very NY central
BMI------------ Issue Licenses - Users Radio, TV, Venues (Restaurants, Bars, Discos, Arenas, DR.
OFFICE), Schools REPRESENT RADIO. created in 1940

SESAC
1909 Copyyright Law
1848- SACEM- Victor Hugo/ plays in public
1911- SACEM comes to US
performers start ASCAP to prevent SACEM from getting money
Fairness in Licensing- 1998
3750 sq ft.- dont have to pay
Consent Decrees
Direct License
Sync License
PP
Reproduction
Sync Licensing- music in movies
1 year major commercial- U.S. only $250,000 sync
Writer share
Publishers Share
NOTES 10/29
Option agreement- negotiates the price, terms. Everything in this deal that is important
STEP UP Fee- EX- win an award, get more money.
Producers cut