The_Magical_Music_Industry.pptx

The_Magical_Music_Industry.pptx - Acquires a MASTER...

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The Magical Music INDUSTRY
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Controlling the Music 1. MUSIC PUBLISHING 2. RECORDING INDUSTRY 3. CONCERT TOURS
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1. PUBLISHING I write the songs. .. Music + Lyrics = © = $$$ Artist sells © to publishing company Publisher gives advances, acts as a promoter Revenues come in…
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Song Royalties Mechanical royalties Performance royalties Synchronization royalties
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You ve got a hit! Mechanical Royalties   +   the single (500k x 5.2 cents) 26,000   +   the album (500k x 5.2 cents) 26,000     -   Harry Fox Agency fee (3.5%) 2,000        NET 50,000        Songwriter will get 50% … $ 25,000 Sheet music royalties: 80,000 copies x 10 cents 8,000 Subtract 52 weeks x $300 of advance royalties 15,600 Publisher owes songwriter … 17,400 Performance Royalties (PRO pays songwriter directly) 140,000 TOTAL ROYALTIES AFTER ADVANCE PAID BACK: $157,400
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2. RECORDING Wanna be a rock star? The record label …
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Unformatted text preview: Acquires a MASTER RECORDING © Markets the album Distributes the album A&R Risk Minimizers Live performances Personal managers Good demos Publisher relationships Sounds like “the hot thing” A weak bargaining position Big commitment obligations for artist Lack of commitment by label Gold record, bounced check Advance $50,000 Units sold (85%) x sales royalty 425,000 x $1.08 = Gross royalties of $459,000 Less reserve (35%) - 160,650 Less recording/marketing costs - 300,000 Net due artist $1,650 We only recoup our costs on 20% of our recordings! pre-recoup post-recoup Wholesale price 10.50 10.50 Manufacturing costs-2.00-2.00 Artist/producer royalties-0.00-2.00 Mechanical royalties- .70- .70 Distributor charges-1.50-1.50 Gross margin 6.30 4.30 Do labels make MONEY? 3. RECORDING O n the road again Artist Personal manager Talent agent Promoter Venue...
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This note was uploaded on 10/07/2011 for the course MC 2000 taught by Professor Freeman during the Spring '08 term at LSU.

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The_Magical_Music_Industry.pptx - Acquires a MASTER...

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