Areas of the industry
Record Companies:
There
are 3 different types of record companies: major (mainstream), independent and
subsidiary (a label that is owned by a major record company that specialises in
a specific genre). These different types of label work similarly – they have
A+R’s who find the talent; the Label then offer the artist an allowance of
money in order to pay for the production of their music by paying for a studio,
producer and on top of that, living costs(however, in different labels there are different terms and deals) . The record label makes this
allowance back by recouping it through record, merchandise and ticket sales. Major
labels have artists who perform and produce many different genres. Where as
indie labels major in one specific genre of music. Subsidiary labels started
off as independent labels; they then got bought out by major record labels. For
example, when Def Jam was bought out by Island, then Island being bought out by
Universal. Record companies provide artists with producers, engineers,
pluggers, agents and managers so their artists can become recognised and be
managed under their rules. Record labels main role is to deal with the
distribution and production of music – and also the social reputation of their
artists by getting them agents to organise tours abroad to spread their music
personally around the world in order to build their fan base. However,
depending on the deal, their services vary. For example, a licensing deal would
be given if an artist has already recorded their tracks, as the record company
will just have to pay for manufacture and distribution.
Considering
the fact that people now stream and download their music for free online –
record sales have decreased, which ultimately leaves record companies – in my
opinion – useless as their distribution of music to make an income for a new
artist would be low. However, they do generate profit from organising live
performances, manufacturing and selling merchandise. On the other hand, this could
be organised single handed. Due to low record sales – a 360 deal has been
introduced which allows the record company to take a percentage of every
aspects of the artists’ income in order to recoup the allowance given to them.
The cons of being under a label usually is the fact that a label gets a lot of say as some artist who sign their rights over to a label get told how to dress and how their music should sound. An example of a label that did this was Motown. However, the pros of being under a label would be the support an artist would have as labels have a lot of contacts and deals that are not music related can be made - such as advertising, which is where a lot of artists make an income. Artist management:
The
artists manager will be the brains of the operation, as he/she will be the one
organising deals with other individuals, record companies or publishing
companies. The manager too should have a business head and be able to the
advise the artist accordingly – whether that be how to promote themselves, what
deals to sign to, keeping the artists income balance, setting a career plan and
striving to achieve the goals set and tending to the artists personal needs.
Although a manager does all of these jobs – he/she does not have to look for
employment for the artist – only hire the right people to do so. Also, the
manager does not produce the artists music for them, they hire a studio and
producer for the artist. The manager and the artist, before working with
each other, must negotiate the percentage the manager gets out of the artists
income. I personally believe the business deal between artist and manager is
the best deal that can be formed in the music industry as for the manager to
inherit a high salary they must work their hardest to ensure their artist gets
an even higher income. This deal is the securest deal as both parts will be
willing to make a successful career by using each other equally. Mangers and
artists should have a good personal relationship as a manager and artist
contract lasts for 3 years and during that time they will have to work close
together. In my opinion, I believe having an artist manager would save an
artist a lot of time and stress. It would also allow them to fully focus on
their music – for example, live performance as this is where most of their
income can be made and if they are a successful performer they will bring in
larger crowds which means more ticket sales. However, some managers are issued
to artists by record companies and follow the record labels instructions on
what to do for the artist.
Music publishing:
Music
publishing is when a publishing company exploit the copyrighted music that they
have been given by an artist, by issuing a music publishing agreement with other
companies for money. If the artist has publishing rights they get a percentage
of the money made as they wrote the song – and the publishing company get a
share as they distributed it to make and income of of it. In the contract
between the artist and publishing company, it states the allowance that the
artist will receive – the percentage the company get from their record
distributions. Like most record companies, the advance is recoupable and the
artist will not recieve their royalties until all of the money is paid back.
Music publishing is, personally, one of the best ways for an artist to start
getting recognised and making an income for themselves before signing to a
major/indie label. Music publishers keep track of when and where an artists
music is being played and collects the rights for every time it is. There are
many different rights that music publishers control the main one being PPR.
Without a music publisher it would be impossible to keep track of details such
as this, which would cost the artist to miss out on a lot of their income.
However, like a manager, If an artist has the experience of dealing with the
business side of the music industry, then signing to a music publisher would
not be needed, and would save them money.
Live performance:
Live
performance, in my opinion, is the biggest aspect of the music industry as this
is where artists make a name for themselves. This is also where artists are
found by A+R’S who work for record companies. Live performance allows the artist
to build their fan base and connect in person with their fans by performing
their songs to them – not to be put onto a CD or bounced down into an MP3 or
heard through another source. To a certain degree, where an artist performs
determines how successful they are in their career as certain places, such as
Maddison Square Gardens, in New York, would only be where the really famous and
successful perform. Nowadays live performance, involving tours, is the best way
to make an income as ticket sales can be up to the equivalent of over 3 record
sales (if you are just starting out).
In
conclusion, these 4 areas of the music industry link very closely. Managers
provide the business means for an artist to organise live performances which
can then lead to getting signed to a label by being noticed by an A+R who works
for one. Music publishing companies and record companies link closely, however
in roles – as record companies would too keep tabs on where/when their artists
songs are being played – and they recoup the money for them. Publishing
companies are most useful to an artist who is independent and needs extra help,
alongside their manager, with the business side of the industry.
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