MUSIC INDUSTRY PORTFOLIO WEEK 2 THE RECORDING INDUSTRY
Oct 03, 2015
MUSIC INDUSTRY PORTFOLIOWEEK 2THE RECORDING INDUSTRY
AN IMPORTANT CONCEPT?
IN-HOUSE
OUT-OF-HOUSE
AN IMPORTANT CONCEPT?
IN-HOUSE - WORK UNDERTAKEN INSIDE A COMPANY
OUT-OF-HOUSE
AN IMPORTANT CONCEPT?
IN-HOUSE - WORK UNDERTAKEN INSIDE A COMPANY
OUT-OF-HOUSE WORK UNDERTAKEN OUTSIDE A COMPANY BY OTHER PEOPLE/COMPANIES
RECORD COMPANIESWHAT DO THEY DO?
A + R (ARTIST AND REPETOIRE) - ACQUIRE TALENT (FIND AND SIGN ARTISTS, MANAGE THE RECORDING PROCESS (CREATIVE DIRECTION/BUDGETING.
PROMOTION + MARKETING PRESS PROMO, RADIO/TV PROMO, ON-LINE PROMO, PAID ADVERTISING, VIDEO.
DISTRIBUTION MANUFACTURE, SELL AND SHIP PHYSICAL PRODUCT TO RETAILERS. ON-LINE OUTLETS.
BUSINESS ADMINISTRATION ADMIN, LAWYERS, ACCOUNTANTS
MAJOR LABELS
MAJOR LABELS
MAJOR LABELS
WHAT DEFINES A MAJOR LABEL?
MDADMINA + R
PRESS PROMORADIO/TV PROMOONLINE PROMO
DISTRIBUTIONLEGALACCOUNTS
WHAT DEFINES A MAJOR LABEL?
MDADMINA + R
PRESS PROMORADIO/TV PROMOONLINE PROMO
DISTRIBUTIONLEGALACCOUNTSIN- HOUSE STAFF (SALARIED EMPLOYEES)
WHAT DEFINES AN INDIE LABEL?
PRESS PROMORADIO/TV PROMOONLINE PROMO
MDADMINA + R
DISTRIBUTIONLEGALACCOUNTS
WHAT DEFINES AN INDIE LABEL?
OUT OF HOUSEPRESS PROMORADIO/TV PROMOONLINE PROMO
INDIE LABELMDADMIN A + R
OUT OF HOUSEDISTRIBUTION LEGALACCOUNTS
MAJOR LABEL EMPLOYS LARGE NUMBER OF SALARIED STAFF MD, ADMIN, A+R, PRESS PROMO, RADIO/TV PROMO, ONLINEDISTRIBUTION, LEGAL, ACCOUNTS
INDIE LABEL -EMPLOYS SMALL CENTRAL STAFFMD, ADMIN, A+R
UTILISES FREELANCE OUT OF HOUSE COMPANIES AS NEEDEDPRESS PROMO, RADIO/TV PROMO ( PER MONTH)DISTRIBUTER (COMMISSION ON SALES 20 %)LEGAL/ACCOUNTS (PER HOUR)
MAJOR LABEL EMPLOYS LARGE NUMBER OF SALARIED STAFF MD, ADMIN, A+R, PRESS PROMO, RADIO/TV PROMO, ONLINEDISTRIBUTION, LEGAL, ACCOUNTSFIXED COSTS PER MONTH (SALARIES)REGARDLESS OF RECORDS RELEASED OR SOLD
INDIE LABEL -EMPLOYS SMALL CENTRAL STAFFMD, ADMIN, A+R
UTILISES FREELANCE OUT OF HOUSE COMPANIES AS NEEDEDPRESS PROMO, RADIO/TV PROMO ( PER MONTH)DISTRIBUTER (COMMISSION ON SALES 20 %)LEGAL/ACCOUNTS (PER HOUR)FLEXIBLE COSTS PER MONTHCAN EMPLOY OUT OF HOUSE SERVICES ONLY AS REQUIRED
OPPOSITESUNIVERSAL MUSIC EMPLOYS 130,000 PEOPLE WORLDWIDE WORKING IN ADMIN, A+R, MARKETING, PRESS PROMO, RADIO/TV PROMO, DISTRIBUTION, ACCOUNTS, LEGAL.
OPPOSITESUNIVERSAL MUSIC EMPLOYS 130,000 PEOPLE WORLDWIDE WORKING IN ADMIN, A+R, MARKETING, PRESS PROMO, RADIO/TV PROMO, DISTRIBUTION, ACCOUNTS, LEGAL.
MY NEW LABEL BUMGRAVY RECORDINGS.
OPPOSITESUNIVERSAL MUSIC EMPLOYS 130,000 PEOPLE WORLDWIDE WORKING IN ADMIN, A+R, MARKETING, PRESS PROMO, RADIO/TV PROMO, DISTRIBUTION, ACCOUNTS, LEGAL.
MY NEW LABEL BUMGRAVY RECORDINGS.
I WILL ACT AS MD, CARRY OUT A + R, ADMIN DUTIES.
OPPOSITESUNIVERSAL MUSIC EMPLOYS 130,000 PEOPLE WORLDWIDE WORKING IN ADMIN, A+R, MARKETING, PRESS PROMO, RADIO/TV PROMO, DISTRIBUTION, ACCOUNTS, LEGAL.
MY NEW LABEL BUMGRAVY RECORDINGS.
I WILL ACT AS MD, CARRY OUT A + R, ADMIN DUTIES.
I WILL EMPLOY PROMO AND DISTRIBUTION COMPANIES, ACCOUNTANTS AND LAWYERS AS AND WHEN I NEED THEM.
A CASE STUDYTHIS WEEK..
A CASE STUDYTHIS WEEK..
LAWRENCE B
ABOUT 15 YEARS AGO LAWRENCE DECIDED HE WANTED TO START A SMALL RECORD LABEL IN HIS SPARE TIME TO RELEASE SOME WEIRD SHIT HE KINDA LIKED.
ABOUT 15 YEARS AGO LAWRENCE DECIDED HE WANTED TO START A SMALL RECORD LABEL IN HIS SPARE TIME TO RELEASE SOME WEIRD SHIT HE KINDA LIKED.
HE WAS WORKING AT SNAPPY SNAPS AT THE TIME
ABOUT 15 YEARS AGO LAWRENCE DECIDED HE WANTED TO START A SMALL RECORD LABEL IN HIS SPARE TIME TO RELEASE SOME WEIRD SHIT HE KINDA LIKED.
HE WAS WORKING AT SNAPPY SNAPS AT THE TIME
STARTED RELEASING 1000 CD ALBUMS PER ACT ON A STRICT BUDGET.
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORK
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED CDS TO SPECIALIST RADIO PRODUCERS
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED CDS TO SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED CDS TO SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TOTAL COST OF RELEASE = 4200
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED CDS TO SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TOTAL COST OF RELEASE = 4200
DEALER PRICE IS THE PRICE YOU SELL AT TO SHOPS = 6.90
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TOTAL COST OF RELEASE = 4200
DEALER PRICE IS THE PRICE YOU SELL AT TO SHOPS = 6.90PIAS TAKES 20% (1.38) OF EACH SALE LEAVING 5.52 PER CD
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TOTAL COST OF RELEASE = 4200
DEALER PRICE IS THE PRICE YOU SELL AT TO SHOPS = 6.90PIAS TAKES 20% (1.38) OF EACH SALE LEAVING 5.52 PER CDBREAK EVEN LEVEL OF SALES =
TYPICAL BUDGETSIGNED HOME OR FINISHED RECORDINGS ONLY NO RECORDING BUDGETPRESSED 1000 CD ALBUMS @ 1200 INC BASIC 2 COLOUR ARTWORKEMPLOYED A SPECIALIST PRESS PR COMPANY FOR 1 MONTH = 3000MAILED SPECIALIST RADIO PRODUCERSEMPLOYED A LARGE INDEPENDENT DISTRIBUTOR (PIAS) AT A COST OF 20% OF DEALER PRICE
TOTAL COST OF RELEASE = 4200
DEALER PRICE IS THE PRICE YOU SELL AT TO SHOPS = 6.90PIAS TAKES 20% (1.38) OF EACH SALE LEAVING 5.52 PER CDBREAK EVEN LEVEL OF SALES = 760 CDS
ONE DAY.
ONE DAY.LAWRENCE RECEIVED A DEMO TAPE FROM A FRIEND OF A FRIEND.A DEMO TAPE NOT QUITE AS WEIRD SHIT AS THE STUFF HE USUALLY PUT OUT.SOMETHING HE WAS CERTAIN COULD SELL MORE THAN 1000 CDSAS AN INDEPENDENT LABEL HE WAS ABLE TO BE FLEXIBLE IN HIS APPROACH.SO HE DID SOMETHING MAD
LAWRENCE TOOK A BANK LOAN OF 90K
LAWRENCE TOOK A BANK LOAN OF 90K
USING HIS HOUSE AS SECURITY
LAWRENCE TOOK A BANK LOAN OF 90K
USING HIS HOUSE AS SECURITY
HIS WIFE LEFT HIM
BUDGETRECORDING BUDGET
BUDGETRECORDING BUDGET 15,000
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
TOTAL =
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
TOTAL = 76,500
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
TOTAL = 76,500
REVENUE PER CD = 6.90 LESS DISTRIBUTION COMMISSION (20%) = 5.52
BUDGETRECORDING BUDGET 15,000MANUFACTURED 10,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
TOTAL = 76,500
REVENUE PER CD = 6.90 LESS DISTRIBUTION COMMISSION (20%) = 5.52
BREAK EVEN NUMBER OF CD SALES =
BUDGETRECORDING BUDGET 15,000MANUFACTURED 15,000 CD ALBUMS IN FULL COLOUR ART 8500PRESS PROMO AGENT 3 MONTHS @ 3000/MONTH = 9000RADIO/TV PLUGGER 3 MONTHS @2500/MONTH = 7500VIDEO X 2 @ 9000 EACH = 18,000TOUR SUPPORT = 12,000PAID ADVERTISING = 6500
TOTAL = 76,500
REVENUE PER CD = 6.90 LESS DISTRIBUTION COMMISSION (20%) = 5.52
BREAK EVEN NUMBER OF CD SALES = 13900
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVEN
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?FRANZ FERDINAND
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?FRANZ FERDINANDUK SALES?
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?FRANZ FERDINANDUK SALES?1,500,000
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?FRANZ FERDINANDUK SALES?1,500,000SALES REVENUE?
NEEDED TO SELL 13900 COPIES @ 5.52 TO BREAK EVENTHE BAND..?FRANZ FERDINANDUK SALES?1,500,000SALES REVENUE?8,280,000 (5.52 X 1,500,000)
WHAT DID HE DO WITH THE MONEY?
WHAT DID HE DO WITH THE MONEY?
HE SIGNED ANOTHER BAND
WHAT DID HE DO WITH THE MONEY?
HE SIGNED ANOTHER BAND
CALLED.. ARCTIC MONKEYS
WHAT DID HE DO WITH THE MONEY?
HE SIGNED ANOTHER BAND
CALLED.. ARCTIC MONKEYS
CURRENT ALBUM SALES 6,200,000
WHAT DID HE DO WITH THE MONEY?
HE SIGNED ANOTHER BAND
CALLED.. ARCTIC MONKEYS
CURRENT ALBUM SALES 6,200,000 x 5.52
WHAT DID HE DO WITH THE MONEY?
HE SIGNED ANOTHER BAND
CALLED.. ARCTIC MONKEYS
CURRENT ALBUM SALES 6,200,000 x 5.52
REVENUE APPROX 35 MILLION
HE NO LONGER WORKS IN SNAPPY SNAPS
HE NO LONGER WORKS IN SNAPPY SNAPS
YOUR RECORD LABEL
YOUR RECORD LABEL
RECORDING COSTS
PROMO (ONLINE, PRESS, RADIO)
DISTRIBUTION
YOUR RECORD LABEL
RECORDING COSTS
PROMO (ONLINE, PRESS, RADIO)
DISTRIBUTION
BUMGRAVY RECORDINGS
BUMGRAVY RECORDINGSRECORDING COSTS = 0 (COLLEGE STUDIOS)
BUMGRAVY RECORDINGSRECORDING COSTS = 0 (COLLEGE STUDIOS)PROMO = 0 (VIRAL VIDEO YOUTUBE, SOCIAL NETWORKS, RADIO PRODUCERS)
BUMGRAVY RECORDINGSRECORDING COSTS = 0 (COLLEGE STUDIOS)PROMO = 0 (VIRAL VIDEO YOUTUBE, SOCIAL NETWORKS, RADIO PRODUCERS)MANUFACTURE = 0 (DOWNLOAD ONLY)
BUMGRAVY RECORDINGSRECORDING COSTS = 0 (COLLEGE STUDIOS)PROMO = 0 (VIRAL VIDEO YOUTUBE, SOCIAL NETWORKS, RADIO PRODUCERS)MANUFACTURE = 0 (DOWNLOAD ONLY)DISTRIBUTION (COMMISSION VIA ITUNES, TUNETRIBE)