MODERN MUSIC

BUSINESS
MUSIGA ACADEMY
NAFTI
DECEMBER, 2016

CONTENTS
Origins of music
Overview of Ghana
music business
Components of
Management
Traditional Value Chain
Current Value Chain
Branding
Role of Social Media
Way Forward
Making Money

BRIEF MUSIC HISTORY

Religious origins
Lucifer, Nimrod
Ancient origins
Contemporary from
early brass bands to
current trends
Genres traditional,
neo-traditional,
highlife, hiplife,
gospel, reggae,
fusions etc

MUSIC BUSINESS MODELS

COMPONENTS OF THE BUSINESS

The Song / Artiste

Artiste Management
Project Management (recording,
tours)
Talent Management
Tour Management
Financial Management (Industry
partnerships, licensing)
Brand Management (Personal
branding, brand awareness,
Sponsorship)
Public Relations

Strategic Planning
Business Plan
Marketing Plan ( online marketing,
merchandising, promotions)

BUSINESS PLAN
VISION & MISSION STATEMENT
EXECUTIVE SUMMARY
COMPANY DESCRIPTION operations,
personnel etc
INDUSTRY ANALYSIS competition etc
MARKETING & PROMOTION marketing
plan, trends, sales strategy etc
MANAGEMENT TEAM
FINANCIAL PLAN

BASICS

MUSIC BUSINESS IN GHANA / REVENUE

SUMMARY OF REVENUE

AMOUNT
/GHC

PERCENTAGE

Sales of CDs & cassettes

28,350,434

15 %

Live shows

74,598,240

39 %

Digital sales

7,254,000

3.8 %

Royalties

700,000

0.4 %

Merchandizing & Advertisements

1,032,756

0.5 %

Sponsorships

232,088

0.1 %

Instrument manufacturers

39,484,287

20.9 %

Spinners

27,223,596

14.4 %

Traditional Performance

8,986,567

4.8 %

Public bands

834,251

0.4 %

TOTAL

188,696,179

100 %

CLASSIC VALUE CHAIN

Creation
Financing
Production
Recording
Editing
Publishing
Marketing
Distribution
Promotion

Credit: Comprehensive Study of Music Industry

in Ghana by KPMG (2014)

TRADITIONAL VALUE CHAIN

Songwriting / Publishing
Getting a deal
Recording
Artiste Management
Distribution via bricks and mortar

Songwriting

Getting a
deal

Recording/
publishing

Promotion /
distribution

CURRENT VALUE CHAIN

Songwriting
Getting a deal
Recording
Artiste
Management
Distribution via
bricks and mortar;
clicks and
followups

Songwriting
/ recording

distribution

EVOLVING MODEL

TODAY

BRANDING
Origins of branding
Importance of branding
Music brands
Brand building elements
eg name, style,
personality, brand
management
Leveraging your brand
brand extension

THE ROLE OF SOCIAL

MEDIA

ICT in music
Social media eg
Facebook, Twitter,
Linkedin, Reverberation,
Vobolo
Role in building your fan
base
Role in distributing your
work
Creative commons
Product development

SOME TIPS ON PROMOTING

YOURSELF
Who

are your audience? How do you reach them?

Promotional tools:
CV, showreel, list of credits, press kit
Business cards
Flyers
Your website as an online business card keep it simple
Social media: Facebook, Twitter, MySpace

Be

creative.
Brands.
Partnerships.
Merchandise.
Fan funding.

MAKING
MONEY
Live shows

Music sales physical (eg C.Ds, DVDs)

and digital (eg downloads, pen drives etc)

Product placements in clips

Brand extensions eg venturing into other

businesses like Rockstones Office, Tic
Tacs Lounge, Rocky Dawunis Afro-Funke
Club, Kojo Antwis Breeze, Saminis
Danstardam

Endorsements eg Telco, Beverage product

ambassadors

Leveraging your social media presence eg

Youtube, Vobolo, Facebook pages

COL. TOM PARKER

BRIAN EPSTEIN
Trained as an
actor and managed
family store till he
heard Beatles and
became their manager

ALLAN KLEIN
Worked for Rolling Stones in 1965
and Beatles in 1969.
Trained as an
accountant .

ANDREW OLDHAM LOOG

Worked as a fashion designer
Clothes, music, film,
and those that you hero
worship or idolize help
you get your identity
more than school does.

JOHN LANDAU
A history graduate,
he edited Rolling
Stones and produced
records prior to
becoming Bruce
Springsteins
manager

NigroKarlinSegalFeldstein&B
olno

Nigro Karlin Segal Feldstein &

Bolno has seen growth in
each of the past 25 years,
including a 10 percent uptick
in 2015.

These five executives are

among 26 partners at the
firm, whose clients are said
to include Drake and Pharrell
Williams (NKSFB declined to
confirm its roster).

Segal, who lives in Arcadia,

Calif., served three four-year
terms as the town's mayor,

SOLOMON SMALLWOOD
Owner/CEO
of TSG
Financial
Management
Manages
finances for
Justin
Bieber, Chris
Brown and
Usher

BILL ZYSBLAT
An accountant, he has
Handled Rolling Stones
Business since 1975.
RZO handles from
finances of global touring
to tax planning for the Stones
U2, Sting, Shania Twain etc

TROY CARTER
Started with Bad
Boy Records working
on The Notorious BIG
Secured television
Deal for Eve
He launched Lady
Gaga in 2007, breaking
up in 2013
Handles John Legend now

SCOOTER BRAUN
An Atlanta college dropout
discovered Bieber on
YouTube and introduced
him to Usher Ray
Got Bieber into movies eg
Believe & Never say Never
Handles The Wanted and
Carly Rae Jepsen

KEVIN LILES
Started as intern
at Def Jam and became
President in 1998
Transformed Def Jam
Artistes like Jay Z, Kanye
West, Ludacris into global
Brands
His KWL management handles
Trey Songz, Big Sean, Nelly ,
DAngelo etc

MAKING MONEY / REVENUE

STREAMS

WAY FORWARD

Limitless possibilities

Globalization

Working with other

talents globally

Marketing and
distribution

Brand extensions

CODA