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MUC109 LEC 1. Overview of the Commercial Music Industry
1.
Music Business Essentials Overview: The
Commercial Music Industry Ā© 2006 musicbizclasses.com
2.
MUSIC INDUSTRY SECTORS ā¢
The Music Industry is not just the Record Label Business ā¢ The Music Industry is comprised of many vibrant āsectorsā: sectors : Business Sector= economic category or area ā¢ These Sectors include: ā¢ Radio ā¢ Live Performance ā¢ P bli hi Publishing ā¢ Technology Development ā¢ Recorded Music Ā© 2006 musicbizclasses.com
3.
MUSIC INDUSTRY REVENUE Source:
IFPI research report, 2006 Ā© 2006 musicbizclasses.com
4.
INDUSTRY SECTORS KEY
FUNCTIONS: A. A Recorded Music ā¢ Product- New releases; Back catalog; Specialty Products/Private-Label; ā¢ Marketing and Promotions Promo Promotions- Events, Press, Sponsorships ā¢ Production Creative (Producers); Production- Technical (Engineers) ā¢ Distribution- Bricks and Mortar; Internet; Mobile ā¢ Licensing & Reproduction- Sound Recording Exploitation Ā© 2006 musicbizclasses.com
5.
Revenue Sources Recorded Music- ā¢
%Sales Revenue; wholesale and retail ā¢ % of some artist promotional and sponsorship p p p revenue ā¢ Creative and product fees ā¢ R Royalties and li lti d licensing f i fees (mechanical & performance) ā¢ Work for Hire fees Ā© 2006 musicbizclasses.com
6.
INDUSTRY SECTORS KEY
FUNCTIONS: B. Music Publishing ā¢ Song Exploitation ā¢ Sub ā¢ Sheet music C. Live P f C Li Performance ā¢ Concerts- Tours, Performing Arts ā¢ Events- Festivals; Fundraisers; Corporate C Ā© 2006 musicbizclasses.com
7.
Revenue Sources Music Publishing ā¢
Sheet music--%retail sales music %retail ā¢ Royalties- Songs, Lyrics ā¢ Licensing fees & Sales fees for royalty g y y free collections Live P f Li Performance MusicM i ā¢ % of Ticket Sales ā¢ % of Door ā¢ Contract fees; salaries ā¢ % of Corporate sponsorships Ā© 2006 musicbizclasses.com
8.
INDUSTRY SECTORS KEY
FUNCTIONS D. Music in Broadcast ā¢ Film- Soundtracks, Promos ā¢ TV- Music Videos, Soundtracks ā¢ Video Games- Soundtracks, Ambient ā¢ Advertising- Jingles Sonic Branding Advertising Jingles, ā¢ Radio- Internet; Digital; Analog ā¢ Corporate & Retail- Background Music Services; Videos Ā© 2006 musicbizclasses.com
9.
Revenue Sources Music in
Broadcast ā¢ Advertising Revenue ā¢ Royalties ā¢ Marketing development fees ā¢ Work for hire fees ā¢ Monthly subscription fees Ā© 2006 musicbizclasses.com
10.
INDUSTRY SECTORS KEY
FUNCTIONS E. Music Instrument & Equipment Sales ā¢Manufacturing ā¢Retail/Merchandising R t il/M h di i ā¢Rental and Services F. Music Technology Products & Services ā¢Software & Hardware- iPod, iTunes ā¢Online services MySpace YouTube services- MySpace, G. Music Merchandise ā¢Additional Products-t-shirts; posters H. H Music Education & Therapy ā¢Client Services Ā© 2006 musicbizclasses.com
11.
Revenue Sources Music Instrument
& Equipment Sales ā¢ Sales Revenue; wholesale a d retail Sa es e e ue; o esa e and e a ā¢ Rental Revenue Music Technology Products ā¢ Retail Sales Revenue ā¢ Advertising revenue ā¢ Subscription fees ā¢ Licensing fees Ā© 2006 musicbizclasses.com
12.
Revenue Sources Music Merchandise ā¢
Royalties ā¢ % of Manufacturing income Music Education & Therapy ā¢ Session fees ā¢ Consultation fees ā¢ S l i Salaries Ā© 2006 musicbizclasses.com
13.
The Artist Ecosystem
PRODUCER BIZ MNGR Self-Licensing Artist Record Label Self-Distribution Ā© 2006 musicbizclasses.com
14.
Key Industry Functions Key
Functions in the artist ecosystem can be divided into two main categories: g ā¢Artist/Creative ā¢Product/Marketing P d /M k i Ā© 2006 musicbizclasses.com
15.
Artist-Centered Main focus=Creativity Who they
are- ā¢Musicians ā¢Performers ā¢Songwriters/Composers ā¢Producers Producers ā¢Photographers/Videographers Ā© 2006 musicbizclasses.com
16.
Product-centered Main focus=Marketing and
Sales Who they are- are ā¢Record Labels ā¢Managers- P M Personal, b i l business ā¢Promoters ā event, PR/Publicist ā¢Producers ā¢Distributors/Merchandisers ā¢Publicists ā¢Booking age ts oo g agents Ā© 2006 musicbizclasses.com
17.
Key Take-Aways: The Commercial
Music Industry is much broader than the Recorded Music Industry (Record Labels) Labels). The Commercial Music Industry includes: Recorded Music Live Performance Music Publishing & Licensing Music Instrument and Equipment Sales Digital and Electronic Music Services Merchandising g Music Education and Therapy Ā© 2006 musicbizclasses.com
18.
Key Take-Aways: ā¢ M
i I d t t Music Industry top revenue sectors (annually): t ( ll ) ā¢ Recorded Music=$20-25 Billion ā¢ Musical Instruments/ Equipment= $19-23 Billion ā¢ Live Music= $17-20 Billion Music $17 20 ā¢ The traditional record label business may be declining, but the overall industry is very vibrant ā¢ There are many, exciting opportunities for f creative, technical, b i ti t h i l business and d legal thinkers in the Music Industry Ā© 2006 musicbizclasses.com
19.
For Educational Use
Only Please do not copy or distribute This slide presentation is p p part of the Music Business Essentials series. Contact C t t info@musicbizclasses.com for more information Ā© 2006 musicbizclasses.com