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Daisy Grace Wakefield

10 June 2015

Areas of the music
industry
Unit 39


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Daisy Grace Wakefield
10 June 2015

Music Industry
Four Areas
There are 4 areas of the music industry which consist of;

Live performance;

Music publishing companies;

• Health and safety

• Finding songwriters/composers

• Tour management

• A&R

• Planning a live performance

• Promotion

• Promoting a live performances
• Event manager

Record companies;

• Merchandise

• Majors and independent

• Backstage roles

• Finding and signing artists

• Front Of House

• Recording studios

• Performing rights

• Retail and Distribution
• Internet sales

Artist management;
• Business management
• Sponsorship
• Tour management
• Artists’ and managers’ rights
• Merchandising

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Live Performance
Live performance is an important part of the music industry as this is now the main
way artists make their money. By buying tickets and merchandise you are investing in that
artist allowing them to carry on creating music.

Planning a Live Performance
To create a live performance there are several things to organise and prepare for
otherwise the event cannot go ahead. The first is booking a suitable venue for the artist/s
to perform in. Its no good trying to book the O2 arena for a local band with a fan base of
around 500 people. You will also need to book the venue either weeks or months in
advance so that staff, equipment can he hired and there is plenty of time to advertise the
event. You would also need to enquire about what staff they have available as you may
need to source your own.
Once you have booked the venue then you need to decide on ticket prices.
Depending on the venue this will help determine the ticket price as if its a well known
band such as The Rolling Stones, they will more than likely be booked to perform at the
O2 and therefore you would be able to charge a higher price for tickets than for example
a local band in a pub. You will also need to think about merchandise and what you will sell
and at what price. For a well known band, The Rolling Stones, you would have
merchandise such as t-shirts, posters, limited number of signed posters to bring in some
more money, wrist bands, CD’s, Autobiographies where as for a local band, you would
probably stick to posters, wristbands, CD’s and maybe t-shirts. Pricing these items will also
depend on their popularity as The Rolling Stones would be selling items between£10 for
wristbands and £200 for a signed poster but a local band would change £3 for wristbands
and £15 for t-shirts.
You need to think about hiring staff for the event. This also includes technical crew
who help set up the venue, make sure all runs smoothly during the performance and will
pack away all the equipment afterwards. Most large venues such as the O2 will have their
own staff available such as front of house and security which would be included in the cost
of hiring the venue where as if your venue is a local hall or pub, you will have to sort out
your own front of house staff and security.
Once you know that there will be enough appropriate staff, you can start
advertising for the event. You can use obvious methods such as posters, flyers, bus

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adverts, newspapers, television and radio. You could also go on social media and
advertise on there, ask the artist to talk about the event on social media, or you could go
wild, depending on the artists popularity and budget, you could hire a small aeroplane
with a banner attacked to the back advertising the event which would get people talking
about it and therefore causing some free advertising.
http://areasofthemusicindustry.blogspot.co.uk/2012/05/live-performance.html

Areas associated with live performance
Within the music industry, key areas that come under live performance are,
prompting live performances, health and safety, tour management, event management,
Performing rights, Backstage roles, merchandise, front of house and security.
If a band or artist is on tour, then its best to have a tour manager. If the tour is very
long, this role may be split between 3 or 4 different people focusing on a few particular
aspects of the job. This person is responsible for making sure the tour runs as smooth as
possible, the band and crew do not have any issues, bills are being paid and money is
being collected. They are responsible for booking all accommodation, transportation,
promotion, merchandise and crew involved with the tour. They travel with the band or
artist and solve any problems that happen during the tour. They will also act as the
accountant creating budgets, paying for potential hired equipment and other expenses. A
tour manager is usually freelance and they work on either a daily or weekly rate paid by
the artist or the artists management and the tour also pays for their accommodation, travel
and other expenses.
http://www.tourconcepts.com/what-does-a-concert-tour-manager-do/

Tour managers must call ahead of venues, around a week in advance to schedule
the loading in of equipment, sound check, walkthrough and creating a time table. They
will also work with staff from the venue to double check details such as who will be
arriving, merchandise sales and the venues cut, and what the band or artist requires back
stage before the show and after. The tour manager will also contact local radio stations,
and other promoters to help bring attention to the tour. As tours can span months, the
tour manager will be with you every step on the way dealing with the long stressful days
and thinking on their feet when a crisis strikes.
http://getinmedia.com/careers/tour-manager

The events manager and tour manager share the common role in insuring that the
event runs as smoothly as possible, but the events manager is slightly different to the tour

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manager in that the events manager looks for suitable venues for the event or tour,
establishing a budget, once a time and place is settled upon, they will work with those in
marketing by creating poster, flyers and other forms of advertisement to help draw
attention to their act. The events manager will also hire all necessary staff, equipment,
organise food and drink and any other necessities for the event making sure they cater for
the clients every need.
http://uk.music-jobs.com/blog/index.php/career-profile/events-manager/
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/

As said earlier, the events manager and tour managers are the ones who work on
promoting events. Promoting an event can come in a variety of different forms such as
posters, flyers, advertisements on the side of buses, radio, television, newspapers, social
media, artists website and it is the events managers duty to work with people in marketing
to make this happen and for the advertisements to be seen by as many people as possible
and also to be advertised in appropriate locations. There is no point advertising for a local
band performing in Kent in the middle of India. Also, depending on who or what you are
promoting will depend on what media forms you decide to use, for example, you may use
posters, flyers, radio, television ,newspaper adverts and social media to help promote
Reading festive for example or The Rolling Stones but for a local artist it would be more
appropriate to stick to posters, flyers, local radio stations and the local newspaper.
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://smallbusiness.chron.com/promote-music-concert-event-profit-4165.html

Essential people needed for a live performance include backstage roles such as a
lighting technician also known as a ‘spark’, who is in charge of all lighting and creating
appropriate lighting to compliment the music. They have to carry out lighting tests to
make sure all are working and are positioned correctly and keep track of bulb and filter
numbers. They work alongside the chief lighting technician who directs each individual
lighting technician and works with the rest of the technical crew and is an assistant to a
‘gaffer’ who is in charge of the lighting technicians and chief lighting technician and they
work closely with the lighting director who helps make big decisions on the lighting and
may also suggest specific lighting equipment. The lighting director is in charge of the
whole lighting team and they use their experience and knowledge to create suitable
lighting for the desired event. They are in control of all lighting activity and any plans
which show where each light should go.

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Moving onto the sound, a sound technician needs to make sure that all equipment
is working and is ready to be used for the event and that there is little or no undesired
sounds coming through. It is their job to make sure that all instruments on stage are
working and are in tune and that there are back up instruments available if anything
should happen to the ones on stage. The sound technicians can be supported by sound
trainees who act as runners for them and other small tasks.
http://www.allaboutcareers.com/careers/career-path/technical-production-crew-camera-lighting-sound

A sound engineer will make sure that the sound levels are of sufficient volume for
the venue and that each instrument is equal and that certain instruments are masked.
Venue acoustics and crowd volume must also be considered. There is also a stage
manager who's job it is to make sure that artist is in the right place at the right time. They
are also in charge of all technicians ensuring they are working effectively and that the
event runs smoothly.
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://www.prospects.ac.uk/theatre_stage_manager_job_description.htm

Merchandise sales from a tour or festival brings in a lot of money for the artist and
their team. Items that fall under merchandise include, posters, wristbands, foam fingers,
hats, t-shirts, CD’s, books, signed items and many more. If its a small band then members
of the band, their manager or a friend of the band will act as the seller and bring in the
money from these sales and either all of it goes to the band or is split between them and
their manager. If the artist is touring around venues then they might hire someone to be
their merchandise person to look after the merchandise and sell as much as they can. If
the artist becomes more popular then a merchandising company will want to work with
you to sell your merchandise and make some money.
“The company licenses the right to use your name and likeness on the merch they
produce” (http://musicians.about.com/od/playinglive/f/How-Does-Tour-MerchandisingWork.htm ) and the artist receives around 30% of the overall takings from merchandise
sales. The venue may also want a cut of the merchandise sale profit and this can also be
around 30%. Merchandise companies have started to put in ‘caps’ to their contracts as to
how much money from the sales the venue is entitled to. If the venue wants 35% and the
cap is 30%, the extra 5% come out of the artists cut.
http://musicians.about.com/od/playinglive/f/How-Does-Tour-Merchandising-Work.htm

“Performing rights provide artists with rights not dissimilar to copyright. Whilst
copyright protects music, lyrics and sound recordings, performing rights provide artists

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with protection for their performances or recordings of their performances. For example,
an artist who performs on stage or during a concert would usually benefit from
performing rights.”
http://www.soundcounsel.co.uk/legal-protections-for-musicians-performing-rights/

When a song is played in a public place, the artist the song belongs to is entitled to
a certain amount of money called a royalty. All venues which play live music will have a
PRS licence (Performing Rights Society). If that artists song is played and the song is
registered with the performing rights society and is copyrighted, they are entitled to
royalties. The Performing rights society was established in 1934 and they distribute fees to
performers and copyright holders for music that has been played in a public area or
broadcast. The PRS are responsible for distributing royalties to the songwriters/composers
of the songs played publicly. This means that the royalties for songs will be split, usually
50/50 between the artist and songwriter(s)/composer(s).
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://www.ppluk.com/About-Us/
http://www.makingmusic.org.uk/our-services/performing-rights/performing-rights-faqs/what-are-performing-rights
https://www.prsformusic.com/aboutus/Pages/default.aspx 


Health and safety is very important to think about when putting on an event or tour
as you want as little to go wrong as possible. It is wise to create a risk assessment sheet for
each venue to spot problems that could arise and find ways of dealing with them before
they happen or the best way to treat them if they can only happen during the event.
Things that could be prevented is tripping over by making sure all wires are covered or
taped down with bright coloured tape so that it is obvious where they are. Electrocution
can be prevented by prohibiting any water on the stage without a lid to avoid spillage and
fires from overheating equipment can be prevented by sourcing fans to keep the
equipment cool if they have to be on for long periods of time or turning off the
equipment when not needed. It is also important to make it aware to those coming to the
event if there is any strobe lighting as this could trigger an epileptic fit.
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://musicindustryguide.blogspot.co.uk/2007/10/health-and-safety.html

Front of house staff and security is important as these people are there to help
make sure things go to plan. Security is essential as they make people coming to events
feel safe, they make sure nothing goes into the venue that should not, turn people away
who are not, for whatever reason, suitable to enter, keep the artists safe, and escort

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people out of the venue. They are there to guide people to the right place, make sure the
venue does not go over capacity, also deliver first aid if the situation calls for it, and serve
food and water to those attending. Front of house also sell merchandise such as
programmes, make sure the venue is clean and tidy and answering questions from the
public. Without front of house and security, the show could not happen.
With a live performance, the negatives to putting them on, especially touring,
involve very long hours from early in the morning to very late at night. If people are
touring with an artist, then they can expect to be away from home for weeks and months
at a time and so are constantly working for days and maybe weeks without allocated days
off. due to the huge work load, people touring could become stressed if things keep
going wrong or they do not have appropriate breaks throughout the day and tour. The
main benefit to a live performance and touring involve the love that these people have for
music, the advantage for some to travel the world, and the money they receive in the end.
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://ccskills.org.uk/careers/advice/article/front-of-house
http://gallowglasssecurity.com/security/

Music publishing companies
Music publishing companies search for songwriters and composers and will help
to promote the music created by them. They make sure the work is copyrighted and that
they are paid royalties when played.
https://en.wikipedia.org/wiki/Music_publisher_(popular_music)

“In a nutshell, a music publisher owns or administers copyrights in songs, and
licenses them to companies and other entities that use music, such as record labels, radio
stations, filmmakers, and advertisers. The publisher then collects the license fee, keeps a
cut, and pays the rest to the songwriters or their heirs. Note that a music publisher controls
the song -- the words and music -- as opposed to any particular recording of the song.
Recordings are generally owned by recording artists and record labels.” http://
www.theodoramichaels.com/articles/publisher.php

Songwriters and composers sign over the copyright to the music publisher and
they then licence, give permission, for music to be used while obtaining the royalties from
its use and promoting their music through means such as radio, television and film. There

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are different kinds of royalties depending on what the music was used for. Mechanical
royalties are received by the songwriter or composer when their music is bought for
example digitally or in CD format and are paid by record companies. A synchronisation
licence is given to film or television companies for example when the music is used along
side a moving image and when their music is broadcast via a radio station or in a public
area, they are entitled to performance royalties collected by the Performing Rights Society
(PRS).
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/
http://www.mpaonline.org.uk/music_publishing
http://www.alankorn.com/article-publishing-1.html

Within music publishing you have A&R people. A&R stands for artist and
repertoire. These people are responsible for looking for a new singer or band. This
involves overseeing the artists career developing from being unknown to known and
acting as a bridge between the artist and the publishing company. They have to be aware
of the most popular music tastes today and have to be on the hunt for artists that will
flourish in the music industry.They also help the artist find the right record producer, find
the best songs to use or the best songwriters to write songs for them. An A&R person can
give out a record contract which creates a relationship between the artist and the record
company. Its the artists manager who hires lawyers to help create the final record contract
with the record company.
They also help with promotion for their artist. They help with deciding which songs
are best to use as singles, which songs would make the final cut on an album, help decide
what are the best methods of advertisement. In todays world, they mainly advertise
digitally through social media, websites, television and radio. Music publishers help to
advertise their musicians to anyone who broadcasts music such as television stations and
radio stations around the world. They use the internet to their advantage using websites
such as sound cloud, youtube and individual artists websites.
https://en.wikipedia.org/wiki/Artists_and_repertoire
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/

Record companies
A record company or record label is a company who works with many different
artists to help create singles and albums and sell them. Record companies also help with

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promoting the artist and merchandise with things such as music videos, t-shirts, posters,
wristbands, hats and much more.
When an artist has been signed, the company must allocate a reasonable amount
of studio time for the artist, songwriters and producers to create music which is
meaningful to the artist and will sell. If the artist is able to record and write in their own
home for example, this is slightly more desirable by the company as they do not have to
pay as much or anything for the studio time.
When an artist is signed and gets for example a £1,000,000 record deal, this does
not mean that this artist is suddenly worth one million pound. This means that the record
company will give you the one million to spend on things such as studio time, producers,
promotion, merchandise and touring. If you manage to make a profit from this then they
will keep helping you create music as you are making the company a lot of money but if
you fail to make any success or profit you will be dropped, but written into the contract it
will say that if his happens then the debt is wiped and this is a risk big record companies
make as it is estimated that one in 5 acts are successful.
https://en.wikipedia.org/wiki/Record_label#Vanity_labels
http://www.bbc.co.uk/news/entertainment-arts-10654380

There are 3 main record companies which are Sony Music, Warner Music Group
and Universal Music Group. EMI was part of the main 4 until it broke down in 2012. Some
of these companies own smaller record companies. These three work with artists with a
large fan base but do support smaller artists they see with potential.
An independent (indies), label deals with smaller and/or more obscure artists
who’s music is distributed on a smaller scale but sometimes do work with larger
companies to help promote an artist. As indies are smaller, they are happier with smaller
profits from their artists. The only issue is that anyone could start an independent record
label and the issue with this is that they could be a waste of your time or they could take
all the money for themselves and cut you off. The music industry could have people who
set up guidelines for people to follow if they want to be an independent record company.
Although independent labels are much smaller, some can still be very successful such as
4AD, PMR, LuckyMe, Glassnote, Warp Records helping to propel new artists into the
mainstream.
http://www.gigwise.com/photos/96433/21/the-best-independent-record-labels-in-the-world#gallery

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Finding and signing occurs with the A&R team, as said earlier, who search for new
talent and working with the artist and the record company to produce material for them to
release. The major 3 have an A&R team as well as teams in promotion, advertising, sales,
legal, finance, shipping and merchandising.
Record companies get their artists music on the shelves by using distributors. Their
goal is to publicise the artist and sell as many copies of their music as possible. This is
helped along with promoting the artist by using posters, listening stations in the store,
where the music is placed in the store, for example are they they first thing you see when
you walk in or are they right at the back behind other peoples music. Distributors buy the
music from the record company to sell to retailers who promote to the public. At each
stage of distribution the price increases, for example, the record company sell to
distributors for half the retail price, then the distribution company add a £3 charge which
retailers then sell to the public at the full retail price. Record companies are anchorage of
paying the shipping charges but the distributors do to pay the record companies until the
music has been sold or a large enough profit has been made.
The distributor needs certain pieces of information from the record company such
as;
• The record companies trademark name
• a special number for each release
• a specific bar code for that piece of music so sales can be tracked.

The record label, major or independent create a ‘One Sheet’ to help them sell their
music and this includes information such as;

“The label's logo and contact information

The CD title

The artist's name and band logo

The catalog number and bar code

The list price

The format

The date released to radio

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The street date, if different than the radio release date

A short description of the artist's background

Brief descriptive information about the music on the CD, including genre


the CD”

Selling points, such as discounts and marketing and promotional plans for

http://entertainment.howstuffworks.com/music-distributor2.htm

In todays market, those selling the music in stores are less likely to make a profit as
many people now decide to
download their music from online
retailers such
as iTunes.
Pie Chart - http://musically.com/2014/03/18/usthroughout
music-sales-down-in-2013-but-streaming-morethan-making-up-for-downloads-decline/
the last 5 years
or so, music

Table Chart - http://
www.ifpi.org/news/Global-

streaming and downloads are rapidly
increasing and physical CD sales are
decreasing. For record companies and artists
it would be better to spend more money in digital sales
and streaming than with in store CD sales as they will be
able to save a lot of money which can be used in other
areas such as touring, more promotion and merchandise.

digital-music-revenues-matchphysical-format-sales-for-firsttime

The illegal download of music causes significant losses to the music industry each
year. Despite places such as Spotify allowing free and paid streaming services and iTunes
delivering a cheap and easy way to download songs, there is still a large number of songs
being illegally shared. “The RIAA reports that music sales in the United States have
dropped 47 percent since Napster first debuted in 1999” and “ The availability of free
music has cost the music industry $12.5 billion in economic losses” ( http://
smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html).
There is clearly huge financial losses but this is not the only loss to the music industry. As
more and more songs are shared illegally, this means many people within the industry do

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not have jobs anymore as record companies just do not have the funds to pay them. “The
RIAA reveals that more than 71,000 jobs have been lost as a result of illegally
downloading music” ( http://smallbusiness.chron.com/illegally-downloading-musicimpact-music-industry-27748.html). They also cannot afford to invent in new talent and
therefore cannot give many people a chance to make it when many probably could if they
had the funds to do so.
http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html
http://www.ifpi.org/news/Global-digital-music-revenues-match-physical-format-sales-for-first-time
http://musically.com/2014/03/18/us-music-sales-down-in-2013-but-streaming-more-than-making-up-for-downloads-decline/
http://entertainment.howstuffworks.com/music-distributor1.htm
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/

Artist Management
roles and contracts
Merchandise is looked after by a specific member of the team sometimes referred
to as a “merchandise manager” and they are responsible for the boxes upon boxes of tshirts, posters, programmes, wrist bands, CD’s, DVD’s and set appropriate prices and
arrange the merchandise in a way that will grab people attention so they sell more. They
also help work out the percentage the venue gets from the sales, around 10% to 30%.
Again, the tour manger works alongside the artist and makes sure all goes to plan.
They also ring up the venue in advance, around a week, to schedule in a sound check,
moving of equipment, the personal needs of the artist and the guest list. They make sure
the tour stays on budget and is in charge of accommodation, food, transport to venues
and the days runs smoothly and deals with all issues that rise as swiftly as possible. Tour
managers are self employed and therefore work on a freelance basis moving from one
tour to another. From the beginning of the tour to the end, they are technically working
24/7 as at any point they could be called upon to sort out any issues but, a tour managers
usual hours are from early in the morning to late at night, while also working long
weekends.
A tour managers contract is between the artist and the tour manager where the
tour manager must provide services that come under their job description. As a tour
manager has to look after the artist and make sure everything is running smoothly, they

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may be under a lot of pressure and stress from the job, which might mean they do not
have as much time to relax and take their mind of the job which could mean that they do
not get enough privacy and sleep which could affect their performance as a tour manager.
Maybe it should be written into the contract that they are allowed a certain amount of time
a day to give the tour responsibilities to a number of people for the allotted time for the
tour manager to have a break and also have days off in-between shows. Benefits to being
a tour manager include accommodation along to tour as the record company pays for the
tour managers accommodation and other expensive so they can get the job done,
meaning the tour manager does not have to spend, what would be a considerable
amount of money, on essentials and other things to make the tour go to plan.
http://www.ehow.com/about_5421337_music-management.html

The Business Manager, usually an accountant, manages the income and expenses
of the artist. “Business managers handle everyday transactions for artists. From money
management, investments, benefits, bill paying, purchasing, book keeping, accounting
and payroll”.
http://www.ehow.com/about_5421337_music-management.html

“Other duties include negotiating with agents and/or representatives for contracts
and appearances or negotiating with union officials, TV Producers, motion picture studios,
concert halls, record companies, merchandising firms, publishing companies, and more”.
https://www.careersinmusic.com/business-manager/

Many artists are not well acquainted with the tax obligations that relate to their
performance, licensing, sponsorship, recording, and merchandise income; equipment
purchases and sales, business expenses, etc. Business managers help their clients
organise their money affairs while also assisting with investments, savings, and retirement
funds. “Business managers usually take care of making payments to musicians,
background singers, roadies, tour managers, etc., on behalf of the artist”.
http://www.artistmanagementresource.com/management-advice/for-managers/music-manager-roles

Business managers are either freelance or have longer contracts with certain
people. There are benefits that can be written into the contract between the business
manager and the artist/record company which include earnings. The business manager
can make sure that they are getting paid fairly and not underpaid. Their flexibility can also
be written in detailing how many days a week and for how many hours each day they work
for and when they can take holidays. Things like this can help with peoples work/life
balance making sure that they are not over worked and underpaid and can can still do

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their job effectively. Negatives can include the length of the contract. Most business
managers being freelance means they are not committed to a long term role, they could
see themselves trapped in a 3 to 5 year contract if they cannot find any other work.
Although this can be a benefit, holidays can be an issue as if there is a tour coming up and
people and bills need to be paid, they may have to wait months to even see if they can
take a holiday, so its not as easy and just asking and getting.
http://www.artistmanagementresource.com/management-advice/for-managers/music-manager-roles

The manager of the artist could be someone well known in the industry, a family
friend or someone who sees potential in the band and wishes to taken on a managerial
role with them. As the manager would have quite a lot of control over the artist, its
important to select the right person.
“A manager should have one of the following but ideally all:

Money – it can be expensive process getting the band known;

Experience – knowledge of how the industry works and how it is changing;

Contacts – he has to know the right people and be liked and/or respected;

Enthusiasm – if he doesn’t believe in you then how is he going to persuade
others?”

http://www.budivoogt.com/understanding-music-industry-artist-managers-booking-agents/

With the managers rights, you must check the contract and make sure that you are not
taking advice from the managers lawyer, as they will want to help their client and not you
and if the manager wants you to stay away from their lawyer, this is a bad sign. A
managers commission is 20% or lower, around 10%. If the percentage is higher than 20%,
there should be a good reason for this. Make sure the contract with the manager is not
one you are stuck in. When you first get a manager make sure that the contract, to start off
with, ends or can be renewed after 12 months. This is important as the artist does not want
to be stuck with someone for 3 years who does not deliver on the following;
• Getting the artist signed to a known and well established record label
• Obtaining a decent publishing deal

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• getting appropriate tour support
• a target amount of money by the end of the 12 month contract

Managers are also able to write in sunset clauses. This clause means that after the artist
and manager part ways, over a certain period of time, for example 4 years, the manager is
still entitled to a percentage which decreases each year until they are entitled to nothing.
So for the first year, they could ask for 15%, the second year 10%, the third year 5% and
the 4th year 2%. The year after this they will not be entitled to anything.
http://www.budivoogt.com/understanding-music-industry-artist-managers-booking-agents/

Organisations like the PRS and BMI help to uphold artists rights by making sure
royalties are paid and they get what they are entitled to. This could be though mechanical
rights, synchronisation rights and performance rights. If the artist is not paid at all or fairly,
then they can take the case to court where they will be able to receive a substantial
amount of money.
https://prezi.com/rzza-_rxlg4g/the-sound-and-music-industry/

For example, Youtube star Michelle Phan in 2014 had a lawsuit brought upon her after
using songs on her videos as backing music and breaching copyright. Ultra records has
said Phan had used around 50 songs that belong to them and did not try and obtain
permission for her to use them and asked for £88,000 per copyright infringement.
http://www.bbc.co.uk/news/technology-28418449
http://www.musicthinktank.com/blog/artist-managers-management-contracts.html

An artist might use a sponsor to help them by promoting that sponsor on their
merchandise and get money in return as there is less money in the music industry now
than there once was. Being a sponsor means that they are funding that specific person or
group to do what they want to do. Normally with the word sponsorship, it is associated
with giving money to someone to run for charity or some kind of charity event. Within
music this means that a company is prepared to fun the artist in exchange for the
promotion of their product or company. Whoever is sponsoring that particular artist might
have their logo on their merchandise such as the bottom of a t-shirt, a page in their
programme and even on the artists website. It is important that the artist chooses a

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suitable sponsor as if the artists target audience is for people aged between 10 and 18,
maybe a cigarette company is not the best sponsor for them.
http://www.artistmanagementresource.com/78-music-sponsorship

Contracts,
Copyright and royalties
Rights such as the performing rights society, mechanical rights, synchronisation
rights and others have been mentioned a number of times throughout. It is time to delve
a little deeper and explore other rights associated with copyright and royalties
Firstly, copyright is seen as a protection against other people from using your work,
whether that be music, a book, a poem, films etc. Anything with a copyright is a form of
intellectual property, intellectual property being something created by the mind. The
copyright of something lasts the life of the creator with an added 50 to 100 years after
their death. You have the power to let people do the following;
• make copies of your music, book, film
• distribute your work
• perform your work, i.e. a play or music
• display the work, for example a painting or poem
• create alternative pieces of work inspired by yours

It is illegal for anyone to use your work without your permission but some
exceptions in the UK includes education. If your work is being used in a school or
university for example then, in most cases, permission to use your work and pay royalties
are not necessary.
http://www.copyrightkids.org/whatcopyframes.htm
https://en.wikipedia.org/wiki/Copyright#Fair_use_and_fair_dealing

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A royalty is a sum of money paid to the owner of something that has copyright, for
example music, which when displayed publicly or used, the owner is entitled to payment
as, for example the music, was created by them and they want recognition for their work.
Organisations such as the performing rights society (PRS) help regulate this.
http://www.investopedia.com/terms/r/royalty.asp

There are three companies which are associated with the PRS for music. They are;

Performing Right Society Limited (PRS)

Mechanical-Copyright Protection Society Limited (MCPS)

PRS for Music Limited

The PRS are a group of people who represent songwriters, composers and
musicians, who have signed up to them, and retrieve royalties they are entitled to. If a
musicians song is played in a public place such as a hairdressers or supermarket, then
they have to pay money for the use of their music, which the PRS claim and distribute to
the correct parties. This is the same for television and radio stations. If that have been
played, then that musician deserves payment and recognition for their intellectual
property. If the music is played on a CD, or live, this does not matter as they are still
entitled to payment. From January 2014, they represent over 10,000 musicians and have a
repertoire of over 10 million songs.
http://www.prsformusic.com/aboutus/faqs/prsformusicfaqs/pages/default.aspx

The Mechanical Copyright Protection Society (MCPS) are similar to the PRS, but
they represent musicians, songwriters and composers when their music is being
reproduced for CD’s, Toys such as a babies mobile and digital downloads and represent
over 26,000 members. If someone intends to play someone else's music then they need
to obtain a music licence from “PRS for Music for the public performance or reproduction
of music in a business, venue or live event” (http://www.prsformusic.com/aboutus/faqs/
prsformusicfaqs/pages/default.aspx). In The Copyright, Designs and Patents Act 1988, it
says if you used copyrighted music in a public place, permission to use the music must be
obtained by the artists you wish to play.
“PRS for Music represents these copyright owners and so a music licence gives you
the legal permission to play any copyright music controlled by” them. “A music licence is
required regardless of whether you have bought any other type of licence”.

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http://www.prsformusic.com/aboutus/faqs/prsformusicfaqs/pages/default.aspx

Phonographic Performance Limited or (PPL) are like the PRS, but they deal with
licensing recorded music to businesses or for being broadcast and collects and
distributes the fees to its performer and record company. The PPl was established in 1934
by EMI and Decca when they took a coffee shop owner to court as they wanted fair
payment for the use of their music in his shop as the music was the reason the shop was
doing so well. The VPL is the PPl’s sister company issuing licences to play music videos in
public places or for being broadcast.
https://en.wikipedia.org/wiki/Phonographic_Performance_Limited#History

“Digital Rights Management, or DRM, is a class of technologies that allow rights
owners to set and enforce terms by which people use their intellectual property”. This
means that with digital media, such as DVD’s, CD’s and MP3 files, their data will become
encoded to scrambled and so this media can’t be shared or be burnt to a disk without the
appropriate codes or usernames and passwords. This is what stops people from
downloading DVDs to their computer and being sold illegally. CD’s with this technology
are classed as CD-ROMS as not all will play on computers and in CD players. This helps
against the illegal downloading and distribution of music. They also encode
downloadable music files so that they will not play on certain software, therefore helping
to stop illegal downloads and piracy.
https://en.wikipedia.org/wiki/Digital_rights_management#DRM_and_music

Within music there is also a synchronisation licence and fee. This licences is given
to film, video game and television companies fro example, by the owner of the copyright
saying that the music can be used alongside a moving image. To use the music for this
purpose the company must get in touch with the copyright holder, so the songwriter for
example and the record company to obtain permission. If the company has a small
budget, they can elect to use a cover version of the song. The fee can sometimes be free
or it could be tens of thousands of pounds depending on the artist and song.
https://en.wikipedia.org/wiki/Synchronization_rights
http://moneyterms.co.uk/synchronisation-fees/

It is very important to have organisations like the PRS and PPL in place as it is only
fair that musicians, songwriters, composers, record companies get paid for their hard

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work, talent and commitment to making music for everyone to enjoy. Without copyright,
royalties and these organisations, many would not be paid for their work, or paid fairly
and I highly doubt that many people would stick around in the music business and create
music for nothing. Having these organisation in place can only be a benefit in my eyes as
I'm sure, if people in other jobs for example only got paid for the work they did for one
day of every week, they would not see that as being fair and I doubt they would stay in
that job.

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