Professional Documents
Culture Documents
Music Business Journal: in On Its Head: Amazon in The Cloud
Music Business Journal: in On Its Head: Amazon in The Cloud
Mission Statement
In On Its Head:
The Music Business Journal, published
Amazon In The Cloud at Berklee College of Music, is a student
publication that serves as a forum for intel-
By Athena Frost
lectual discussion and research into the var-
ious aspects of the music business. The goal
is to inform and educate aspiring music pro-
fessionals, connect them with the industry,
and raise the academic level and interest in-
side and outside the Berklee Community.
Much is written in textbooks about performance rights, but Fred Choquette focuses on the collec- Law Section
tions and distributions of ASCP and BMI. How should artists choose among them? In the meantime,
as the industry continues to evolve, innovative ways of doing business flourish. I’ve contributed an PROs Finances........................................6
article detailing the strategic and well meant plans of a new type of record label, tinyOGRE.
Interview
Rebecca Black’s “Friday” merits discussion, if only for the remarkable exposure she has had on Tom Jackson............................................8
YouTube’s platform. Nick Susi doesn’t hold his punches, but this a reflective piece for musicians.
For them too, the MBJ team is featuring the results of a salary study that was conducted by Berklee’s Music and Society
Career Center on industry-wide jobs; we report on business positions, but the reader can look up the
The Earthquake in Japan.......................16
entire study online.
MBJ Editorial
Finally, Mariana Ramirez, a Boston University student, discusses, in an interesting submission,
the special ethical dilemma posed by Mexican music piracy. Also looking abroad, Jamie Anderson
Mission Statement...................................1
writes about the recent tragedy in Japan and the reaction of US musicians.
Editor’s Note...........................................2
It gives me great pleasure to present this issue. Be sure to check out our brand new website at Upcoming Topics...................................16
www.thembj.org.
Sponsorship
Management
Editor-in-Chief...................................................................................................................................................................Evan Kramer
Content Editor...................................................................................................................................................................Nicholas Susi
Webmaster..................................................................................................................................................................Itay Shahar Rahat
Faculty Advisor and Finance.....................................................................................................................................Dr. Peter Alhadeff
Layout Editor..................................................................................................................................................................Lau Meng Wai
PR Managers.........................................................................................................................................Ben Scudder, Micah Deterville
Contributors
Editor’s Note.....................................................................................................................................................................Evan Kramer
Business Articles...............................Jamie Anderson, Athena Frost, Minden Jones, Evan Kramer, Nicholas Susi, Mariana Ramirez
Law Section..............................................................................................................................................................Frederic Choquette
Interview......................................................................................................................................................................Micah Deterville
Staff..................................................................................................................................................................Kerry Fee, Ben Scudder
Staff (cont).....................................................................................................................................Dahyun Ed Jeong, Micah Deterville
Business Articles
Amazon in the Cloud (cont.)
from the hosting site. The player is relatively It is not the first time cloud technol- If people can access their music
simple in its design, but has play, pause, and ogy has come under legal scrutiny, though it files from anywhere, what is to stop them
skip buttons. It also allows for the user to has never occurred before that two heavy- from sharing with their friends? Amazon,
create playlists, which will exist on all com- hitters in the music industry have come has not yet addressed this issue directly.
puters you might use to access the cloud, head-to-head over such an issue. In 2007, Craig Pape, director of music at Amazon
and all Smartphone’s with Google’s android EMI sued MP3tunes.com over a similar file seems confident that the service will drive
operating software. It does not have com- hosting technology. Although the 2007 legal more purchases of digital music, by encour-
patibility with the iPhone and other Apple battle tipped in favor of those opposing cloud aging people to purchase music files on the
products. This could be due to Apple’s own technology, Michael Robertson, founder of go or from secondary computers. “At the
plans to launch a cloud service. Both Apple MP3tunes, feels confident that record labels end of the day we’re trying to delight cus-
and Google seem to have cloud projects in the cannot halt the advancement of the music tomers, but we’re trying to sell more music
making. tech world any longer. “The labels have en- too,” says Pape.
gaged in a legal terror campaign over the last
While many bloggers and tech en- 10 years using litigation to try and slow tech- Experts in the industry are hope-
thusiasts have been praising the cloud drive nology progress.” ful that when the licensing discussions will
technology, there has also been backlash from come to a close, Amazon and other compa-
record labels, claiming that Amazon does not If anyone can take on the majors nies will be able to slowly refine their new
have the appropriate licensing rights for what in this battle it would be one of the three technology. It is unclear how long the li-
the music locker service allows. And another Internet Superpowers: Amazon, Apple, or censing discussions will last, but it is almost
issue that Record Labels have with this sys- Google. The licensing agreements decided certain that locker services will become more
tem is that it is impossible for Amazon to in the current discussions with Amazon could important in time and redefine access to mu-
distinguish between uploaded files that were affect the future of all corporations that have sic yet again.
purchased legally and ones that were illegally plans to implement cloud technology of their
downloaded. Amazon did not even address own. Both Google and Spotify have a tem-
the issue of licensing until after the new items porary hold on introducing similar services Souces
had been launched, scheduling a negotiation while they negotiate with the music publish-
http://bits.blogs.nytimes.com/2011/03/29/amazon-intro-
meeting only after an outcry from Sony Mu- ers and labels. The record label executives
duces-a-digital-music-locker/
sic. are smart--they know that whatever bargain
they strike with Amazon will be expected by http://blogs.barrons.com/techtraderdaily/2011/03/29/ama-
“I’ve never seen a company of their all other parties too. In short, it may all come zon-music-locker-shows-cloud-rush-is-on-says-lazard/
size make an announcement, launch their ser- down to the outcome of this exchange.
vices, and simultaneous say they’re trying to http://www.reuters.com/article/2011/03/29/us-amazon-
get licenses,” said an executive at the sched- Despite the adversity brought on idUSTRE72S13H20110329
uled discussions who asked to stay anony- by Sony and other labels, the music locker
http://sanfrancisco.cbslocal.com/2011/03/29/tech-watch-
mous. service has wielded great results. On Nas- amazon-introduces-a-new-music-locker-beating-apple-
daq, Amazon rose 3.1 percent, closing at and-google/
Craig Pape, the director of music at $174.62, while Apple fell 0.2 percent. This http://www.billboard.biz/bbbiz/industry/digital-and-
Amazon, has been doing his best to stave off may not seem like much, but Amazon has mobile/amazon-labels-to-meet-for-locker-talks-sourc-
the allegations. “We don’t need a license to been sitting on the sidelines for years now es-1005132532.story
store music,” he argued in an interview with while Apple has been ruling the digital music http://www.businessweek.com/magazine/content/11_15/
b4223043644684.htm
New York Times. “The function is the same world. “Amazon needs to establish a strong
as an external hard drive.” post-CD role for its music customers, [and] http://www.pcmag.com/article2/0,2817,2382779,00.asp
this smartly positioned locker service is an
At this point, people are unsure of important first step in building a future role,” http://www.thestreet.com/video/11066093/amazons-mu-
who is in the right. With each new music stated Mark Mulligan, a Forrester research sic-locker-is-good-business.html
technology that is introduced, the legalities analyst. “As logical a next step in the digi-
are less defined. For obvious reasons, mu- tal music market as locker services might be, http://news.cnet.com/8301-31001_3-20047303-261.html
sic publishers and record labels would prefer they’re not an innovation in the music prod-
http://techcrunch.com/2011/03/29/founders-of-mp3-com-
that listeners buy a new copy of a song for uct. They’re simply giving people access mspot-on-amazons-music-locker-all-eyes-on-the-labels/
each system that they would use to listen to it. to the music they have on the devices they
Most experts have been describing the situa- own.”
tion as being legally ambiguous. Either way,
when an idea is as potentially profitable as It is true, the cloud drive service
streamlining cloud technology, record com- isn’t revolutionizing the future of technol-
panies are going to want a piece of the pie. ogy, but it is giving people the convenience
“We hope that they’ll reach a new licensing of having their full music catalogue at their
deal,” commented Sony Spokeswoman, Liz fingertips wherever they go. There is some
Young. “But we’re keeping all of our legal worry about whether the music locker tech-
options open.” nology will also lead to a new variety of pi-
racy.
Business Articles
Business Articles
Financing the Cloud: In The Air
By Minden Jones
With all the recent activity in the more interactive than the usual radio format. nia who later sold the company to Niklas
digital music world, it is no surprise that in- Users have the ability to create playlists and Zennström and Janus Friis, the founder of
vestors have been attracted to the concept of access other users’ published playlists to Skype and Rdio. The company was finally
cloud-based services. According to the New discover new music. MOG has not released sold to Atrinsic, an Internet marketing firm
York Times, venture capitalists have put $57 how many users subscribe to their service that sells subscription services, including
million dollars into the digital music busi- but some estimates suggest around 40,000 a music subscription service that allows
ness. Investors are looking for companies subscribers with a projected revenue around subscribers to download music files. Kazaa
who have great service and a substantial $14 million. In February 2010, the com- began as an illegal peer-to-peer file sharing
portfolio of subscribers. Venture capitalists pany raised $10 million and plans to raise application but it is now a licensed music
have confidence that the music business, an additional $25-$30 million in 2011. The subscription service with approximately
with consumers spending approximately $8 company has attracted loyal investors like 60,000 users. Atrinsic is worth approxi-
billion on recorded music, will only become Menlo Ventures, Balderton Capital, Simon mately $19 million but revenue has been
more profitable in the coming years with the Equity Partners, Universal Music Group and shrinking since 2008 when Andrew Stoll-
integration of music subscription services. Sony Music. Additionally, MOG recently man became the new president. On Feb-
recruited high-profile producer Rick Ruben ruary 4, 2008, Atrinsic’s share price was
Most venture capitalists and bank- to serve on their board of directors. Investors $18.08 and by the time Stollman left his
ers would not invest in a company that is see potential in MOG and continue to invest position on February 28, 2011, the share
valued for less than $25 million; however, in their success. price was at $2.99. As a result, the com-
new start-up streaming music services seem pany continues to struggle due to not having
to have become a popular investment. When Rdio, another heavily funded com- the strong ties with the record labels. It has
investors evaluate a digital music company, pany, is a US streaming music service start- announced a future IPO (an intial offering
they typically inspect the service, earnings, up founded by Janus Friis and Niklas Ze- of stock to the public at large)—but under
management and potential of a company. The nnstrom, who were also founders of Skype. the circumstances, it may wait for better
investors envision that streaming services are Rdio has created a streaming service that in- times. It may even have to change leader-
the new method for people to consume mu- tegrates music streaming into a social media ship. In fact, the company also suffers from
sic and, as will be shown, have deemed them format. Users can “follow” other users’ mu- accountability concerns. Thomas Plotts, the
worthy investments. sic playlists and “share” music with others Chief Financial Officer of Atrinsic, Inc. and
in their Facebook network. Rdio is currently VP of Finance & SEC Reporting, failed to
Confidence can largely be attrib- funded by Janus Friis, Atomico, Mangrove submit SEC filings for Q1 on time, drag-
uted to the Swedish music streaming service Capital Partners, and Skype. Recently, the ging Kazaa’s name down further.
Spotify, which allows users to stream songs VC firm Mangrove Capital Partners has in-
from the catalogs of Sony, WMG, EMI, The vested an additional $17.5 million and ex- In the meantime, the growing po-
Orchard and Universal. Spotify was founded ecutives have said that “the funding will be tential of cloud-based investment is likely
by Martin Lorentzon and Daniel Ek and has used for aggressive expansion of the Rdio to grow. The biggest challenge that these
become a major music company in the UK platform in 2011.” Warner Brothers Records digital music companies face are the licens-
with approximately ten million subscribers. Chairman and Grammy-nominated producer ing fees they have to pay to record labels
Currently most of the users have the free Rob Cavallo is also joining the board of di- and publishers. An early agreement can-
subscription, which has a limited amount of rectors at Rdio. Rdio has not released the not be ruled out, but it will depend on how
streaming time per month with advertising. amount of users they have accumulated but the court system will on streaming dues—
Approximately 1 million subscribe to the it is believed to be fairly low. Despite the which will itself depend on how eager the
paid service, which allows users to stream low number of current users, Rdio has strong old music guard will be to leverage content
music with no restriction on usage and with- relationships with major labels EMI Music, at lower prices.
out advertisements. Recently, the Russian Sony Music Entertainment, Universal Music
based investment firm DST, valued at $2.5 Group and Warner Music Group and Merlin References
as well as thousands of indie labels. These http://www.dmwmedia.com/news/2011/03/22/report-dig-
billion dollars, tentatively made a deal with ital-music-service-mog-raising-2530-million
Spotify to finance $100 million in exchange relationships promise successful negotitions http://digitalmedia.strategyeye.com/article/vCbmg5UT-
for a 5% stake in the company. This invest- over liscening conditions and make inves- suk/2011/04/18/apple_levy_will_make_position_unten-
ment makes Spotify’s estimated value ap- tors feel more confident about the compa- able_says_rdio_ceo/
proximately $2 billion dollars. ny’s growth. The agreement over licensing http://musically.com/blog/2011/01/31/rdio-gets-new-
concerns with major labels continues to be funding-from-mangrove-capital-partners/
http://www.digitalmusicnews.com/stories/012811rdio
Like Spotify, MOG, founded in a battle with Spotify, Google and the newly
http://www.crunchbase.com/company/rdio
2005 by CEO David Hyman, is an innovative released Amazon Cloud Drive. http://techcrunch.com/2011/02/03/exclusive-social-mu-
digital music subscription service that gives sic-startup-rdio-raises-17-5-million-adds-rob-cavallo-to-
users on-demand streaming access to its en- Although many companies have board/
tire catalog for a $5 monthly subscription received a substantial amount of investment, http://www.businessinsider.com/blackboard/spotify
fee. The format is similar to an online radio not all streaming services are attracting in- http://finance.yahoo.com/q/ks?s=ATRN
http://seekingalpha.com/article/260404-should-atrn-spin-
station, like Pandora, except the features are vestors. Kazaa music streaming service was off-kazaa-in-an-ipo
originally created by programmers in Esto-
May 2011 www.thembj.org 5
Volume 6, Issue 6 Music Business Journal
Law Section
The Returned Value of PROs
By Frederic Choquette
Performing Rights Organizations publishers, each elected by the members for logue for a set period of time, at the end of
(PRO) should be regarded as any artist/ two-year terms. Their president is also elected which the fee is usually renegotiated, making
songwriter’s best friends. Societies such as by the membership and has “traditionally been adjustments when needed. These are issued
ASCAP, BMI and SESAC are responsible a writer” himself. This means that the people at to most radio stations, television networks,
for collecting all performance royalties and the head of this company aren’t isolated from bars, clubs, and pretty much anywhere music
distributing them to their members, which the creative side of the business and share com- is publicly performed. It is also important to
include songwriters and publishers (but not mon goals with most of their members. BMI, note that these Performance Rights Organiza-
the record labels). The income generated on the other hand, stands for Broadcast Music, tions do not have the right to license dramatic
by these licensing deals is crucial for music Inc. and was originally formed by members of works, i.e. musical plays, operas, ballets, mu-
creators. In the United States, ASCAP and the broadcasting industry. Their board of direc- sical comedies, etc. This is an important dis-
BMI are by far the largest of the three orga- tors is different from ASCAP’s in that instead tinction because these types of works contain
nizations, collecting a combined 96-97% of of consisting of a mix between writers and what are called grand rights and are usually
all performance royalties. SESAC, the only publishers, it is made up of 13 people closely licensed by “the composer or the publisher of
other PRO in America, is much smaller and affiliated with various broadcasting industry the work.”
takes prides in being selective as to whom its corporations. The first thing that comes to
members can be. This explains why its share mind when one hears about BMI’s affiliations The other major type of license is-
of the performance royalty collection mar- is that there might be a conflict of interest, con-sued is called the per-program license and
ket is so much smaller than the other two, as sidering that BMI is collecting licensing fees in a way has been the Achilles’ heel of the
ASCAP and BMI are open to almost any art- from the same broadcasting companies repre- PRO’s economic power. A per-program li-
ist having a commercially released recording, sented on their board of directors. Many critics cense, simply put, is issued on a per-program
a published printed sheet music, or claimed also point to the fact that BMI has many more basis, meaning that a different license needs
“evidence of a performance of the composi- members than ASCAP, 460 000 compared with to be obtained every time a television station,
tion.” SESAC is also privately owned, mean- 330 000, but collects and distributes almost for example, uses music that is part of either
ing it is not obligated to publicly divulge any $100 million less than ASCAP in royalties. ASCAP, BMI, or SESAC’s catalogue. Logi-
of its financial statements or internal proce- However, although these issues aren’t com- cally, these licenses are much cheaper than
dures relating to royalty collection and distri- pletely unfounded, many factors must be taken blanket licenses, and in turn tend to reduce the
bution. It is for those reasons that this article into account when assessing the reasons for revenues collected by these companies. Many
will focus on ASCAP and BMI. this apparent discrepancy in licensing monies types of broadcasting mediums who previous-
Collections collection. ly used blanket licenses have begun to make
the change towards per-program licensing,
Collections First of all, a larger pool of mem- which partly explains the $65 million drop in
bers does not necessarily translate into more revenue collected by ASCAP from the 2009 to
ASCAP collected $935 million money from performance royalties, as not all 2010.
in royalties worldwide for 2010, a 6% drop of the members’ materials are commercially
from their record high $995 million in 2009. successful. We must keep in mind that being a It is also important to note that al-
BMI on the other hand, collected $917 mil- member of one of these societies has no effect though artists and publishers typically rely on
lion, just a slight increase on 2009. Although on whether an artist’s music will be played or the performance rights organizations to handle
for both societies the amount distributed is not, especially since they almost exclusively most of their public performance licensing
usually around $100 million lower than what focus on collecting licensing fees and have matters, the agreements signed with ASCAP
is collected, these two organizations distrib- very little to do with artist promotion. That be- and BMI are non-exclusive. This means that
uted a combined $1.684 billion to their mem- ing said, it is more than likely that the ratio of the writer and publisher of a specific work are
bers in 2010. Deductions are meant to cover artists whose music is publicly performed in free to license the song to third parties at any
operational costs, which seems fair when BMI’s member pool is smaller than at ASCAP, time, as long as they give proper notification
taking into account the massive amount of explaining how they could have more mem- to their PRO. Nonetheless, a writer can only
computational power it takes to keep track of bers all the while collecting less money. Fur- be a member of one Performance Rights Or-
their enormous catalogues worldwide--and thermore, more members do not necessarily ganization at a time. This is explained by the
that’s not even including all of the litigation translate into larger catalogues. ASCAP has fact that if a writer were to be a member of two
efforts deployed to protect those very same a higher average of songs per member, mak- or more PROs, he would be getting paid mul-
catalogues from unscrupulous use. However, ing their catalogue larger than BMI’s and once tiple times for the same use of his song, which
the way these outlays are calculated vary again explaining why they would collect more would count as fraud. Similarly, the writer and
slightly between the companies. money. publisher of a work must be part of the same
PRO. Although this may seem complicated,
ASCAP stands for the American Regarding public performance, there all major and indie publishers have to create
Society of Composers, Authors, and Pub- are blanket licenses, which are the most popu- three separate income entities, one for each
lishers and the name describes exactly who lar type of license issued by a PRO. A blanket organization (again, a song can only be part
actually runs the company. Their board of license in effect gives the licensee the right to of one PRO’s catalog, or else it would receive
directors is comprised of 12 writers and 12 play any music that is part of the PRO’s cata- double or triple the payments).
(Continued on Page 7)
6 www.thembj.org May 2011
Volume 6, Issue 6 Music Business Journal
Law Section
(From Page 6)
These payments can be a significant on the aforementioned airplay categories. These two companies also differ in
source of income for even marginally success- Another important aspect of BMI’s payment the way that they calculate airplay time earned
ful songwriters. In Music Money and Success, plan, generally 30-40% of all royalty state- for each specific song. Monitoring the roughly
Todd Brabec, ASCAP’s former Executive ments, is called the voluntary add-on method. 10,000 radio stations in America would be
Vice President and Director of Membership, After much research and multiple phone calls close to impossible, so the two have come up
discusses the specific amounts a writer and to BMI, the calculation method used for these with rather ingenious ways of using represen-
publisher can expect to collect in various cir- voluntary add-ons remains nebulous even tative samples of the total airplay during a
cumstances. One of his examples, although though they represent a significant chunk of quarter, to calculate how many times a song
slightly outdated, is for the number one song the artist’s royalty statements. has been publicly performed. Television track-
of the year on the Billboard pop charts; art- ing, on the other hand, is much easier since
ist and publisher earnings were each, respec- Thus, the payment methods em- television stations produce logs for every sin-
tively, about $2 million a year. Other examples ployed by the two companies are dissimilar gle song, whether it is the theme to a show or
look at a theme song on a hit television series, and should definitely be taken into consider- simply a background jingle that appears during
which can earn $500,000 for a five year period ation when one is looking to sign with a PRO. a program. These are then compiled and stored
or for a hit song’s lifetime earnings which can in gigantic databases before being used to cal-
average $7.5 million. These figures represent More Benefits culate royalty payments.
an important share of a writer’s income, there-
fore explaining the importance of signing with It should be noted as well that total A music writer or publisher should
one of these companies. revenues include foreign sources of income. exercise due diligence in choosing either. Even
ASCAP and BMI, through the help of affili- SESAC, of which little reference has been
Distributions ate international PROs, collect royalties for made here, can be advantageous if its serves
performances across the world. ASCAP’s well a niche market in the writer’s genre of
This once again opens the debate as international revenue for 2009 was posted at choice—like, for instance, SESAC does Latin
to which PRO is best and leads us to another $301.7 million, roughly 30.5% of their total music songwriter. Ultimately, the PROs are a
major difference: the distribution of their col- income for the year. Similarly, in 2009 BMI practical response to enforce the collection of
lections. The two organizations in fact use very reported that of the $905 million collected, performance rights in a variety of old and new
different methods of distributing royalties. $258 million came from international royal- media outlets, clubs eateries, and larger enter-
ties. A chart included in the 2009 issue of Mu- tainment venues—and not just nationally, but
ASCAP uses an extremely complex, sic & Copyright showed that the large majority internationally.
yet efficient, way of calculating artist royalty of the international royalties collected came
statements by attributing each writer a cer- from Western Europe (68.8%). Asia Pacific
Sources
tain amount of credits based on the different came in a distant second with 13.6%. During
types of airplay each respective song got for a a recent visit at Berklee College of Music, 1) Brabec, Todd. Brabec, Jeffrey. Music Money and Success,
specific quarter. The weight attributed to each Seth Saltzman, ASCAP’s Senior VP of Mem- Sixth Edition. Schrimer Trade Books, New York, NY, USA.
play depends on the combination of the type ber Management, was quoted saying that the p. 286.
of use, the licensee weight, the “follow the Asian market was one of the great, untapped
dollar” factor, the time of day when the song resources of the various performance rights or- 2) Music & Copyright, Issue 433. April 06, 2011.
was played (for television), and the general ganizations and that with their rapid rate of in-
3) Brabec, Todd. Brabec, Jeffrey. Music Money and Success,
licensing allocation. All of these factors are dustrialization and population growth, a large
Sixth Edition. Schrimer Trade Books, New York, NY, USA.
multiplied together to give us a certain num- increase in revenues collected from these areas p. 285.
ber of credits, which are later multiplied by a should be expected in upcoming years.
credit value in dollars, finally arriving at a dol- 4) Ibid. p. 285.
lar amount to be paid out to the writer. There Other differences between ASCAP
are also “premium credits”, which ASCAP and BMI include areas such as the writers’ and 5) http://www.ascap.com/licensing/termsdefined.html. April
attributes to songs having reached a certain publishers’ involvement with the organization. 18, 2011.
threshold of plays on radio or for songs used ASCAP, being a membership organization, is
6) Music & Copyright, Issue 433. April 06, 2011.
as themes or underscores on “highly rated net- very focused on membership involvement in
works and television series.” It is also impor- many activities such as voting for the board 7) http://www.ascap.com/members/payment/royalties.aspx.
tant to note that with the arrival of new public of directors and selecting the president of the April 18, 2011.
broadcasting mediums, ASCAP has tailored company. BMI is a corporation and does not
the above calculation methods in order to ac- rely on its members for the selection of the 8) Ibid
curately represent their market share of the board of directors or president. Arguments
broadcasting industry. for both methods can be made--proponents of
ASCAP stating that it is essential for member’s
At the other end of the spectrum, voices to be heard in order for the company to
BMI has come up with dollar figure amounts keep in line with writer’s and publisher’s best
for specific types of plays, which also vary interests, while proponents of BMI say that
depending on the type of use, time of day, du- most songwriters have very limited business
ration of use, etc. They basically calculate the knowledge and that most decisions pertaining
amount of plays received for a certain song and to the health of the business should be made
then multiply that number with the rate based by professionals specializing in these specific
areas.
Interviews
Interviews
(From Page 8)
to your first question—“ Where did it all be- MBJ: When you spoke about this at the TJ: Learn everything you can and play your
gin? “ If you have a song that just completely New Music Seminar, you were talking brains off. But just because you went to a
rocks, it needs movement. It is like an action about the spontaneity of a performance and prestigious college doesn’t guarantee that you
scene in a movie. You wouldn’t in a mil- especially in regards to the intro, you were are going to get a gig. In fact, there are prob-
lion years during a movie think about guys talking about “hanging on the one”. I was ably forty Berklee alumni I know right here in
shooting up guns and blowing up things in curious, what should be planned and what Nashville, and seven of them are doing dry-
a kitchen. And then again, you would never should be spontaneous in the arrangement wall. That is why I think what I have to of-
think of a love scene being in a car driven of a song? fer, and I don’t mean to sound arrogant, is so
80 mph with guys shooting. The dynamics important. Great artists pour themselves into
clearly depend on the scene. TJ: A song is like a football play. We dia- a show and what the audience responds to is
gram the play, meaning that in rehearsal we not just the music.
MBJ: What is the difference between a rearrange a song, we have a form but we have
live performance arrangement of a song certain places for spontaneity in it and we Musicians are probably thinking that this is
and its studio production? know where those places are. not what they are about. I can certainly sit
and listen to Pat Metheny all day long. But
TJ: Look at the rules for radio: Intro, verse, Are we the artist/band dating our audience or the attention span of the general public is quite
chorus, verse, chorus, bridge, chorus. This the artist/band married to it? It makes a huge different, and the music is only one of their
has been the form for the last fifty years. A difference. If we are dating the audience, all interests. Luckily, Pat is so good that every
song will be anywhere from 2:45 to 3:45. that happens in the first fifteen seconds is musician on the planet loves him and he sells
And here is the deal: as musicians, if you that, as we start playing, people will turn their enough records to keep that going. My rec-
don’t want to follow this constraint, you’re heads and try to figure out whether they like ommendation is to learn how to pour yourself
not going to get played on radio. Goethe says us or not. If you are dating someone, your re- into your show, so that when you get called
that when “working within limits, mastery lationship with him or her is different so the to an audition, you are more than just a great
reveals itself.” approach to the show needs to be different. player (there are too many of them around).
On radio, you can only develop a vocal line And you have to know what to listen to, and You also need more than the music when the
and a hook up to a point. Live, those rules what not to listen to, just like when you are on next platform of the business is playing shows
aren’t there. So you have the ability to devel- a date. You might use something as a hook, live.
op the themes and the characters (the play- to see if the girl is still with you. You look
ers on stage) way more than the three and for little signals, little touches, and little things
a half minute song that people listen to on that give you clues on whether you are on the
the radio. right track. If you are, you might open up a
bit more, if they are not, you try a little harder.
A couple years ago The Simpsons came out Re-arranging a song is key and you should
with a movie. The Simpsons play a 22- min- leave space for spontaneity.
ute sitcom (with 8 minutes of commercials). MBJ: What are your experiences with col-
But when you walk into a movie theatre, lege bands and what advice do you have for
your expectations are different to when you them?
are sitting in front of your TV set at home.
You are used to going to a movie with a set
of expectations. If those expectations are not
met, people walk out saying “that wasn’t a
great movie.” Now if they exceed those ex-
pectations, people say, “great movie.” The
same thing holds true with live songs. So,
my whole theory is built around rearranging
the songs for live performance. An intro on
radio is, 5-12 seconds at the most, because
if it goes on for too long, people will change
the station. That is not the case with live mu-
sic. In fact, an intro needs to be absolutely
compelling so that when you start singing the
verse, the audience is with you. Too many
people play their old intros (the intro that is
on radio) to an audience that doesn’t know
them, and the audience does not even catch
up to the song until maybe the second verse
or second chorus because they are paying at-
tention to other things. They are watching,
not just listening. So the idea is to develop
the characters and the themes within the song
to create a live music experience full of mo-
ments.
May 2011 www.thembj.org 9
Volume 6, Issue 6 Music Business Journal
Business Articles
Business Articles
Business Articles
The New Music Seminar LA is a cords), Ron Fair (Geffen Records) and Craig were once with a major label and eventually
forum for music business professionals and Kallman (CEO of Atlantic Records). The pan- broke their ties to work independently. Cha-
artists to discuss the changing industry and el gave insight into how record labels discover millionaire broke into the industry with his
the tools that can help musicians engage their new talent in this era. Continuing the enthusi- huge hit “Ridin’,” and was quickly signed to
fans. The event welcomes the changes to the asm of the first movement, the panel noted that a major label with the sole intention of mon-
industry with a sense of optimism and honesty music has never been as consumed as much as etizing his success. He said that ultimately,
rarely seen in most music business seminars. it has in the current climate. Artists must find his fans were the only ones who truly cared
As Roland Swenson, the managing director of new ways to monetize this consumption and about him and his music.
SXSW said, “The New Music Seminar led an maximize the experience for the customer. In
insurgency that ushered in a new generation this way, the music business is becoming like * * *
of music business leaders. The 21st century every other business, with its primary focus on
music business sorely needs that spirit again. customer service. The panel discussed that re- The New Music Seminar was an
The first NMS showed us how to hotwire the cord labels have been too focused on their own innovative environment for artists and busi-
family Cadillac. The next NMS will show us profits, making products that are over-priced, nessmen to connect and discuss how to make
how to choose the best hybrid on the lot.” The leading the consumer to find alternative ways the industry a fair and prosperous enterprise.
industry is changing, and the New Music Sem- to access music. Consequently, the label and Contrary to the attitude of many other music
inar strives to make this change one for the bet- the artist have lost the ability to connect with seminars, NMS views this change as a revo-
ter. fans. In a parting note, the panelists stressed lution. It is a chance to make the industry
that no amount of marketing can substitute better and more efficient. The focus will be
The Triumph of Hope great music that is unique and engaging. shifted towards the fans and the artists, not
the labels and album sales. Music is only
New Music Seminar LA 2011 was 100 Artists On The Verge getting more popular, and the revolution be-
broken into five different movements that gins now.
highlighted various key topics. The first The third and fourth movements di-
movement set the tone of the seminar and was rected the conversation towards the artist and
aptly named: “The Music Industry Isn’t Over: the music that they create. The highlights of
It’s Just Beginning.” The key players in this these panels were from Tom Jackson (OnStage
movement were Michael Doemberg (founder Success), RuPaul, and Moby, and their focus
of ReverbNation), Eric Garland (founder of was on marketing, branding and how business
BigChampagne) and Courtney Holt (former affects the creative process. The New Music
president of MySpace Music). They were all Seminar believes that there is much talent out
very enthusiastic about one component that in the marketplace, and they strive to find the
was ignored in the old music business: the artists about to break. They call this process
fans. They argued that the growing digital mu- “The 100 Artists on the Verge.” The bands
sic platforms and social media outlets enable that made these charts were ranked for hav-
fans to be involved with music and the artists ing a strong base in ticket sales, music sales,
creating it. They also argued that labels must video views, music listens and social media
return to focusing on artist development. This attention. With the help of BigChampagne,
will make a stronger partnership and bond NMS created one of the most extensive charts
between the artist and the label, ensuring that dedicated to rising talent. The top three bands
both parties are maximizing profits. Garland from this chart had the opportunity to perform
noted that fans are the new currency to gauge at NMS, and they received constructive feed-
success in the industry. Bands can better con- back from the creative panels. The band that
nect with their fans through branding and un- won the Artist on the Verge competition, The
derstanding their niche. Fans don’t have a re- Daylights, received a packaged prize worth
lationship with the album that is released; they $50,000. The Daylights were a prime example
have a relationship with the artist. Garland of great talent in America, waiting to be dis-
also noted that a band must be patient for suc- covered and matured, and NMS capitalized on
cess, slowly building up their brand and finally that opportunity.
receiving the hard-earned gratification in the
end. Breaking Away From The Majors
Artist Discovery and Customer Service The New Music Seminar closed
with the final movement called “The Breaks,”
The second movement was entitled featuring successful artists like Chamillion-
“A&R in the Music Business.” Here, the aire and Moby. All of the artists had varying
panel was filled with record industry celebri- stories, all with different perspectives on what
ties James Diener (CEO of A&M/Octone Re- it means to be successful. They all, however,
12 www.thembj.org May 2011
Volume 6, Issue 6 Music Business Journal
Business Articles
Music and Poverty in Mexico
By Mariana Ramirez
Business Articles
The vision and core values of senior ists that are relatively undeveloped. “In our began making a large sum of money, the
players in the record industry can hardly stand model, the manager is a quarterback, and we arguments over exploitation and ownership
out in the recent history of mergers, chronic work together to build a team,” Cooperman began. Allegedly, AMF never transferred
restructuring, changes in executive staff, and, says. “We pull together these teams looking the rights of the master recording to Black.
above all, the overriding need to preserve out- for the best-of-breed on a project-by-project AMF is being accused of exploiting Black
dated business models. As the Big Four be- basis.” With that in mind, the approach be- across the Internet and creating a “Friday”
come increasingly more rudderless, there is an comes somewhat reminiscent of the 1960’s, ringtone without Black’s consent. Of course,
ever-growing disparity between the services a time when the record company and A&R Wilson denies the allegations claiming that
they offer and the needs of the individual art- reps sided with artists for long term partner- the original agreement holds true – Black
ist. tinyOGRE, a new label, seeks to fill some ships that aimed to strategically build lucra- retains 100% ownership and control of the
of this void offering a value-based partnership tive and sustainable careers…The notion is master recording and video. Still, these dis-
model for artists. [that we] want to pursue avenues of enter- putes over “Friday” have placed a 13-year-
tainment and creativity with our artists be- old at the center of intense litigation.
Its CEO, Steve Lerner, spent four- yond the traditional recording, publishing,
year doing his own introspection about the or merchandising sense. We want to use our As for the entire industry, “Friday”
business, after leaving Wind-Up Records’ network of contacts to give [artists] opportu- raises the debate over the consequences that
chief executive office in March of 2007. He nities,” says Cooperman. the Internet has on music. Granted, YouTube
had witnessed the dissatisfaction of artists and and several other online mediums are great
the financial shortcomings of a major. He de- For the time being, tinyOGRE has resources for exposure. They increase the
cided he would realign his focus on what he no plans to push for any sort of expansion potential for management and label deals
considered to be the core asset of a music busi- past the small-sized startup that it currently that would not have been obtained other-
ness --the art itself. He built the new label on is- -and for a good reason. While overhead wise. However, the most complicated prob-
the principles of trust, transparency, and steady budgets are tight, Lerner’s believes, again, in lem with the Internet is that there are little to
alignment (of interests) between the label and his original mission; i.e. the building of long- no filters- allowing anyone to upload a song
its artists. term trust with the artist, the offer of more to YouTube, Facebook, blogs, etc. Conse-
accountability and transparency, and the rec- quently, the standards for music have been
In fact, tinyOGRE works on a much ognition of an interest shared in common. lowered significantly. There is a vast differ-
more intimate level with its clientele. It forms Revenue growth, for the moment, is taking ence between someone covering a song and
separate corporate entities with each artist-- a backseat. The philosophy is well suited to posting it to YouTube, and a professional
usually in the form of a Delaware-registered develop talent too. “We’re not in a position artist trying to make a living playing their
LLC. These are actual business partnerships where we want to sign an [established] bid- music as their sole career. Unfortunately, it
that are structured as a 50/50 split, giving the ding-war artist,” he says. “We want to find would seem the two sides of the spectrum
option to the artist of buying back, at the end great, talented career artists…get to them are being smeared together and confused.
of the contract, the tinyOGRE half of master early” and build them. And it is no wonder that the value of music
recording, as well as the publishing rights . Given the uncertain future of the traditional is plummeting—for, in the marketplace, the
“We are really partners with the artist,” says record industry, along with the recent surge work of a professional artist, with a team of
Jim Cooperman, COO/General Counsel at tin- of online music career-building do-it-your- managers and agents, seems now equivalent
yOGRE. “We’re business partners, and we’re selfers, the idea of a management partner- to the efforts of a hobbyist. This is a contrib-
partners on virtually everything the artist does ship service like tinyOGRE seems to fill a uting factor to why less than 30,000 musi-
in the entertainment industry.” logical void. As the Internet continues to cians are making a full living, a statistic pro-
enable worldwide promotional exposure to vided by Topspin creator Ian Rogers.
tinyOGRE has partnered with four independent artists, demand for professional
artists, including the Klaxons and Ian Axel, services on career planning, strategy, organi- By no means should the industry
whose debut albums Surfing the Void and This zation, and finance will become higher than double back to save itself. Quite honestly,
is the New Year were released, on January 18th ever. tinyOGRE may demonstrate over time there is nothing to save – rather, the industry
and February 15th respectively. Ian Axel has that artists and business professionals can is evolving and moving forward. Taking a
already secured placement of his title track on work side-by-side to produce a truly mean- conservative approach and refusing to adapt
MTV’s latest reality show, I Used to be Fat. ingful and valuable music product. will surely leave any business in a similar
More recent signees, Motopony and The Wil- financial debacle as the major labels. The
derness of Manitoba are scheduled for releases Internet has so much potential for music, but
later this year. higher standards and stricter filters must be
reinstated. Music like “Friday” that is “silly”
The tinyOGRE model represents a or “average” made by an inexperienced artist
paradigm shift back to a more wholesome and has its place, but that place is not on a pedes-
meaningful motivation for selling music. The tal amongst serious musicians.
company pairs management services with art-
Upcoming Topics
Topics in the next issue:
Visit the MBJ online!
www.thembj.org Copyright in Europe