Recently in the past weeks, I had been approached by bands asking about where, how, and the what-to-do-next questions on CD replication and distribution.
My presumption is that these questions were asked not because these bands don’t believe that the CD industry is dying but perhaps because they lack faith in online distribution. Or at least, they don’t understand the commercial and economic advantages of it completely.
I don’t blame them. This is Cebu and we are in the Philippines.
From what I have observed, it appears to be a bit more difficult to just digest the concept overnight of considering online distribution more than pressing CDs if one’s perspective and intention to sell music is limited only to a national audience.
But let me try and display in words the new basic platform in today’s behavior in music buying.
It is a fact that today’s fans do not buy albums in the same way as they did in the past decades. This is because today’s technology allows bands and fans to share or sell singles first before ever bringing the entire album out.
This not-so-new trade becomes an easy deal between the artist and fans.
While it is important in any endeavor to set goals (and foresight is king), it is also important to acknowledge that things change all the time. Because of the internet and media players like iPods and mobile phones, the buying habits of people changed with it.
The constant here however, is adhering to the idea of bringing forth one song at a time. Yes – one song at a time just as how the singles in the 60s and 70s were done in vinyl records.
Unless if you have a huge fanbase, music buyers generally remember songs not albums. Sometimes, they don’t even care about the artist at all.
So why spend money on pressing CDs if you can launch the entire album online? This way, you are making multiple ends meet – (1) you have an album, (2) you don’t spend that much, (3) it removes the trouble of shipping costs and labor, (4) and most importantly, you are allowing your fans the option to buy on a per song basis – a huge plus.
Another advantage with singles is that if you’re an unsigned band, you can now freely move around for gigs without having to carry CDs with you. Just play and tell the audience your songs – I repeat SONGS, not album – can be found online.
Or how about bringing a laptop in your gigs and have someone take charge. Tell the people who may be interested in your songs that they can have a free MP3 transfer to their media players.
Another option is by giving out CDs with say 3 of your songs for free in your gigs. Put the URLs in the CD jacket so people could check out the rest of your music online. Of course this involves cost.
There could be more innovative ideas. Be bold. Be brave. Be creative. Be always open to options. If one idea fails, move on to the next. If it succeeds, embrace it. I think this should be the indie mantra.
The consumer’s general priority today is to know first the value of what they hope to buy.
Globalization is about retail. Singles are retail goods from the album. Sell them piece by piece. Heck you can give these singles for free if you want to. Your fans will love it and you'll get the biggest smile at the end of the day.
Some may think that perhaps giving out your songs for free may seem like you are stealing your own music. Perhaps your fans will do the same. But just because people can steal music doesn’t mean you cannot sell them anymore.
Showing posts with label music business. Show all posts
Showing posts with label music business. Show all posts
Friday, October 10, 2008
Thursday, October 9, 2008
Ang ‘PAYO’ ni lo‘LA’ (My Grandmother's Advice)
Imagine this – a record label representative would go to a radio station, hands over the CD sampler of a new record to the DJ and says, “Maybe you can get me some airtime for this new talent.”
The CD in the plastic jewel box, is wrapped in a thin cardboard sheet with the name of the artist and the title of the soon-to-be-a-hit track. Mr. DJ would bring it close to his ear, shakes it a bit and hears that rattling sound of what it seems like sheets of paper – money.
“This is going to be a good hit this year,” the jock replies, without even bothering to listen to the song. Minutes later, the song made it on air. A week after, it’s on the station’s chart list.
The label rep moves on station after station doing practically the same thing. Maybe a few different creative approaches but the mission hasn’t changed. Two weeks after that, the song’s a big hit nationwide. But the song sucks.
This is a modern version using a CD sampler instead of the vinyl. But this was how it was in the 1960's.
Have you ever wondered why there are songs that are really annoying yet still made it to the charts? Guess what? There are some transactions in the music business that doesn’t require documentation such as receipts. All it takes is a healthy business relationship and an exchange of confident and assuring words.
If you still don’t get what I’m driving at here, let me spill it for you. While you, a songwriter, are writing an intellectual song believing that it can change the face of the music industry as we know it, there are those who are doing things to disprove your faith. These things they do are what is termed as payola.
Wikipedia defines payola as the illegal practice of payment or other inducement by record companies for the broadcast of recordings on music radio, in which the song is presented as being part of the normal day's broadcast.
It’s a crime. Everybody knows that. It’s like bribing your child’s grade school teacher some favors – financial or otherwise – so your kid can pass in class. That’s sick.
If a song was believed to be a hit, why do labels need to bribe for it? Oh yes of course… they have competitors and they are doing the same thing. If you can’t beat them, join them.
There are other means of exercising payola dealings. At some point in the music business history, labels hired third party entities – someone that has a good relationship with media and can set up a promotional program for them. These are called independent record promoters. They are, for a time referred to as “indies” (not to be confused with indie labels).
The presence of these people allows them to exercise payola without having any trace of the crime. There will be no documents and receipts. Every transaction is now slid off into the hands of the indie.
Payolas don’t have to be monetary. It could also come in the form of exchange deals. A radio station would give airtime in exchange of concert tickets, funding for a concert of the artist, etc.
Allow me to share accounts from people whom I’ve met in the music industry that had worked with and for the industry:
Case#1:
A friend of mine once worked for a major record label as sales executive for Visayas and Mindanao. One time, when I had the opportunity to visit him in his studio, we had a long and interesting exchange of stories.
He confided that giving each radio station P15,000 a month just to get a new track on regular airplay was part of his job (of course this job scope isn’t printed in his deliverables).
This was in the late 90’s. How many stations were in the VisMin region? These “money grease” are bound to be reflected against the artists’ royalty paychecks later.
Case#2:
There’s one band manager I know in Manila who said she was paying P35,000 to each radio station to get a track spinning on air. She also claimed that other managers managing indie bands are doing the same. This was between 2004 and 2005.
Case#3:
A friend of mine who used to be in a popular band confessed that these facts I mentioned above are true. He was with a band signed under a major record company. The band was very successful. The good thing was that he didn’t favor the business practices behind it. He was a witness to these crimes. It's just unfortunate that these crimes have no proof of billing.
Case#4:
The Big Four (Sony BMG, Warner, Universal, and EMI) are, ironically, the primary culprits. Why not? They practically own 60% of the entire broadcast network in the U.S. Below are some links about these cases:
EMI Settle Payola Allegations
EMI Agrees to Fine to Resolve Payola Case
Universal Music Settles Payola Probe
The good news is that there are moves to resolve these issues. But will it really end?
It’s ironic that the giants in the entertainment industry is going after other opportunists such as vendors of pirated CDs, Napster (the old-Napster case), iTunes, etc. Isn't it that they want to bring a song to the peak of its success?
It’s ironic that labels turn out unhappy with the effects of their success, isn't it?
It's like they want to rape the system but they don't want to be raped. As I said, there are no evidences - a rape case is brought to court without papers, only witnesses.
And let’s face it, when an attractive lady gets out of her house, she may not be in control of her fate anymore.
I personally don’t like this system. But it exists. You can’t see and feel it but you know that it’s happening. It’s sickening. I’m posting this not to discourage artists but to bring awareness to one of the greedy pursuits that are breathing through the system.
Ang ‘PAYO’ ni lo‘LA’? Just hope that the emergence of indie labels, self-music-publishing, and the internet will change all that. I’m sure there are better options in our hands just waiting to be uncovered. Perhaps, it is already happening as we speak.
The CD in the plastic jewel box, is wrapped in a thin cardboard sheet with the name of the artist and the title of the soon-to-be-a-hit track. Mr. DJ would bring it close to his ear, shakes it a bit and hears that rattling sound of what it seems like sheets of paper – money.
“This is going to be a good hit this year,” the jock replies, without even bothering to listen to the song. Minutes later, the song made it on air. A week after, it’s on the station’s chart list.
The label rep moves on station after station doing practically the same thing. Maybe a few different creative approaches but the mission hasn’t changed. Two weeks after that, the song’s a big hit nationwide. But the song sucks.
This is a modern version using a CD sampler instead of the vinyl. But this was how it was in the 1960's.
Have you ever wondered why there are songs that are really annoying yet still made it to the charts? Guess what? There are some transactions in the music business that doesn’t require documentation such as receipts. All it takes is a healthy business relationship and an exchange of confident and assuring words.
If you still don’t get what I’m driving at here, let me spill it for you. While you, a songwriter, are writing an intellectual song believing that it can change the face of the music industry as we know it, there are those who are doing things to disprove your faith. These things they do are what is termed as payola.
Wikipedia defines payola as the illegal practice of payment or other inducement by record companies for the broadcast of recordings on music radio, in which the song is presented as being part of the normal day's broadcast.
It’s a crime. Everybody knows that. It’s like bribing your child’s grade school teacher some favors – financial or otherwise – so your kid can pass in class. That’s sick.
If a song was believed to be a hit, why do labels need to bribe for it? Oh yes of course… they have competitors and they are doing the same thing. If you can’t beat them, join them.
There are other means of exercising payola dealings. At some point in the music business history, labels hired third party entities – someone that has a good relationship with media and can set up a promotional program for them. These are called independent record promoters. They are, for a time referred to as “indies” (not to be confused with indie labels).
The presence of these people allows them to exercise payola without having any trace of the crime. There will be no documents and receipts. Every transaction is now slid off into the hands of the indie.
Payolas don’t have to be monetary. It could also come in the form of exchange deals. A radio station would give airtime in exchange of concert tickets, funding for a concert of the artist, etc.
Allow me to share accounts from people whom I’ve met in the music industry that had worked with and for the industry:
Case#1:
A friend of mine once worked for a major record label as sales executive for Visayas and Mindanao. One time, when I had the opportunity to visit him in his studio, we had a long and interesting exchange of stories.
He confided that giving each radio station P15,000 a month just to get a new track on regular airplay was part of his job (of course this job scope isn’t printed in his deliverables).
This was in the late 90’s. How many stations were in the VisMin region? These “money grease” are bound to be reflected against the artists’ royalty paychecks later.
Case#2:
There’s one band manager I know in Manila who said she was paying P35,000 to each radio station to get a track spinning on air. She also claimed that other managers managing indie bands are doing the same. This was between 2004 and 2005.
Case#3:
A friend of mine who used to be in a popular band confessed that these facts I mentioned above are true. He was with a band signed under a major record company. The band was very successful. The good thing was that he didn’t favor the business practices behind it. He was a witness to these crimes. It's just unfortunate that these crimes have no proof of billing.
Case#4:
The Big Four (Sony BMG, Warner, Universal, and EMI) are, ironically, the primary culprits. Why not? They practically own 60% of the entire broadcast network in the U.S. Below are some links about these cases:
EMI Settle Payola Allegations
EMI Agrees to Fine to Resolve Payola Case
Universal Music Settles Payola Probe
The good news is that there are moves to resolve these issues. But will it really end?
It’s ironic that the giants in the entertainment industry is going after other opportunists such as vendors of pirated CDs, Napster (the old-Napster case), iTunes, etc. Isn't it that they want to bring a song to the peak of its success?
It’s ironic that labels turn out unhappy with the effects of their success, isn't it?
It's like they want to rape the system but they don't want to be raped. As I said, there are no evidences - a rape case is brought to court without papers, only witnesses.
And let’s face it, when an attractive lady gets out of her house, she may not be in control of her fate anymore.
I personally don’t like this system. But it exists. You can’t see and feel it but you know that it’s happening. It’s sickening. I’m posting this not to discourage artists but to bring awareness to one of the greedy pursuits that are breathing through the system.
Ang ‘PAYO’ ni lo‘LA’? Just hope that the emergence of indie labels, self-music-publishing, and the internet will change all that. I’m sure there are better options in our hands just waiting to be uncovered. Perhaps, it is already happening as we speak.
Which Is Better? CDs or Downloadable MP3s?
The very first medium used in music distribution and sold to the public was just music sheets in the 1800s. These sheets were sent out to entertainment production outfits and performed in variety shows called vaudevilles. More than a century later, music’s physical medium had evolved into plastic formats we commonly refer to as compact discs.
More than a decade today, it’s evolved into intangible digital downloads.
Now, a band from Cagayan de Oro emailed me a couple of weeks ago asking about my opinion on the pros and cons between CDs and downloadable MP3s. I decided to post a huge portion of that email below (verbatim):
Which would you rather prefer?
Artists selling their albums at a more expensive price with a superior CD quality (i.e. pressed CDs/printed CDs)?
or
Artists selling their albums at a least expensive price but with a lesser CD quality (i.e. CDRs/burned CDs) but with an album full of songs that would use up the entire 80min CDr?
My take for this one is that in the advent of MP3 players and Ipods, people usually just rip the CD's songs to MP3 formats and play it in their mp3 players, leaving the CD in their cabinets gathering dust. So in my opinion, less and less people will be using the CDs. So having a superior quality CD is no longer important if this would be the case. People would just rip it, transfer it in their Mp3 players.
I am asking this question because we have plans in releasing a new album. And we are thinking of using this line of positioning. More Songs for a lesser price but using CDrs only. Cds would be sold maybe around P150-200/CD. Compared to pressed CDs which are now being sold at P280-300/CD.
Answer : I don’t see the point why one should give out music of inferior quality. The listeners ergo the fans want good quality music. Period. Give them what is for them and what makes them happy. Why compromise the quality when you can provide the best?
Today, I think what is most important to the music fans is not the album but the songs. If you are a music collector, I’m sure you have experienced buying an album with 14 songs worth and only 1 or 2 fit in your eardrums. (Labels have learned this painfully over the years and yet they lose nothing because it's always charged back to the artists against their royalties).
A perfect example here is Extreme’s worldwide hit “More Than Words” in the late 80’s. When the song hit the airwaves, the album moved into music players and up the charts. The bad news was that the consumers discovered the chartbuster as the only good track in the album. In fact, the rest of the tracks didn’t “gel” with the single.
Buyers of that album returned the merchandise to the stores and the store owners shipped it back to the label's warehouse (some record stores even posted a note on their wall saying WE DO NOT ACCEPT RETURNS OF EXTREME ALBUM - it must've been that bad).
You see, before you even think about putting more songs in a CD, deciding between a pressed format and a burned CDR, think about the quality of your music inside and out first. Since ultimately, it's the fans who have the control in deciding on buying your songs (IF they like it), you now have an opportunity to understand how your music should be presented to them.
I understand that your band is also acting as your own record label. Since this is the case, one of the ways to build a strong and huge fanbase is to give your fans what they like to hear, not what you want them to have. You are right - a CD may collect dust in the end. But still, do not compromise quality.
Now people would just say why not purchase the song via download? I think if you download 1 song, it would cost you around P20-30/song. And as an artist, i still can't find a way to reconcile how we would be able to monitor the downloads and be assured that we are getting the right numbers from the dowloading service providers. But if we are selling the CDs, then we would be able to keep hold of our physical inventories and our number of units sold. And if we would be consuming the 80min CDr, then that would give us around 17-18 songs which if you would compute it by the price of the CD that we are selling, it would cost you something like P11-12 per song. So still very much cheaper than what the downloading service providers are giving.
Answer : The quality between CDs and music downloads are, unless all fans have trained ears, practically the same. In fact, no matter what medium – vinyl, CD, cassette tapes – the consumer’s experience is enjoyed because of the song, not because of the medium. The medium is just the material aspect being made available to the public at a time.
Whichever medium you choose to distribute, the consumer ultimately decides whether they like your song or not. It’s another decision for them whether to buy your songs or not. And then another decision whether to buy the entire album. Bottom line is it’s not your role to worry about how much the consumer can spend.
I sense that the issue here is more about financial investment. In which case, and if I am correct about this presumption, I’d recommend that you sell your music via TuneCore.com. Believe me, it works. Just make sure you read the FAQs religiously.
If you worry about inventories, believe me, it’s probably the most boring and the most gruesome task in any distribution business. That's what labels are for. It's one of their main services. Unless you are willing to compromise your time for creativity, you wouldn’t like it.
Another thing is that by producing CDs instead of just having it available for downloads, we are giving graphic designers/Artists a chance to promote their works by giving them an opportunity to design our album's packaging.
Answer : Hmmm… this is a good point to consider. Or maybe it would be more fun if the artists that work for you work on a voluntary or for-the-love-of-it basis instead of promising them promotional benefits. It can be difficult not to build expectations around your goals and vice versa so if you can, try to keep everyone away from this probable negative outcome.
So there… I guess my general answer is that it’s really up to you. When the CD medium was first introduced, there was resistance but eventually it caught up. Now, they are fast becoming obsolete (but maybe I’m wrong).
The evolution of music was from paper to tapes to vinyls to tapes to plastic compact discs to MP3s...
Today, professionally pressed CDs cost about P35,000 - P60,000, and maybe even more - just to make for 500 pcs excluding shipping cost (since you are in Cagayan de Oro).
While downloadable MP3s are apparently becoming the new music business model. No frills, no shipping hassles, less cost, etc. All you have to do is simply trust the website you are working with... now that's another issue isn't it?
More than a decade today, it’s evolved into intangible digital downloads.
Now, a band from Cagayan de Oro emailed me a couple of weeks ago asking about my opinion on the pros and cons between CDs and downloadable MP3s. I decided to post a huge portion of that email below (verbatim):
Which would you rather prefer?
Artists selling their albums at a more expensive price with a superior CD quality (i.e. pressed CDs/printed CDs)?
or
Artists selling their albums at a least expensive price but with a lesser CD quality (i.e. CDRs/burned CDs) but with an album full of songs that would use up the entire 80min CDr?
My take for this one is that in the advent of MP3 players and Ipods, people usually just rip the CD's songs to MP3 formats and play it in their mp3 players, leaving the CD in their cabinets gathering dust. So in my opinion, less and less people will be using the CDs. So having a superior quality CD is no longer important if this would be the case. People would just rip it, transfer it in their Mp3 players.
I am asking this question because we have plans in releasing a new album. And we are thinking of using this line of positioning. More Songs for a lesser price but using CDrs only. Cds would be sold maybe around P150-200/CD. Compared to pressed CDs which are now being sold at P280-300/CD.
Answer : I don’t see the point why one should give out music of inferior quality. The listeners ergo the fans want good quality music. Period. Give them what is for them and what makes them happy. Why compromise the quality when you can provide the best?
Today, I think what is most important to the music fans is not the album but the songs. If you are a music collector, I’m sure you have experienced buying an album with 14 songs worth and only 1 or 2 fit in your eardrums. (Labels have learned this painfully over the years and yet they lose nothing because it's always charged back to the artists against their royalties).
A perfect example here is Extreme’s worldwide hit “More Than Words” in the late 80’s. When the song hit the airwaves, the album moved into music players and up the charts. The bad news was that the consumers discovered the chartbuster as the only good track in the album. In fact, the rest of the tracks didn’t “gel” with the single.
Buyers of that album returned the merchandise to the stores and the store owners shipped it back to the label's warehouse (some record stores even posted a note on their wall saying WE DO NOT ACCEPT RETURNS OF EXTREME ALBUM - it must've been that bad).
You see, before you even think about putting more songs in a CD, deciding between a pressed format and a burned CDR, think about the quality of your music inside and out first. Since ultimately, it's the fans who have the control in deciding on buying your songs (IF they like it), you now have an opportunity to understand how your music should be presented to them.
I understand that your band is also acting as your own record label. Since this is the case, one of the ways to build a strong and huge fanbase is to give your fans what they like to hear, not what you want them to have. You are right - a CD may collect dust in the end. But still, do not compromise quality.
Now people would just say why not purchase the song via download? I think if you download 1 song, it would cost you around P20-30/song. And as an artist, i still can't find a way to reconcile how we would be able to monitor the downloads and be assured that we are getting the right numbers from the dowloading service providers. But if we are selling the CDs, then we would be able to keep hold of our physical inventories and our number of units sold. And if we would be consuming the 80min CDr, then that would give us around 17-18 songs which if you would compute it by the price of the CD that we are selling, it would cost you something like P11-12 per song. So still very much cheaper than what the downloading service providers are giving.
Answer : The quality between CDs and music downloads are, unless all fans have trained ears, practically the same. In fact, no matter what medium – vinyl, CD, cassette tapes – the consumer’s experience is enjoyed because of the song, not because of the medium. The medium is just the material aspect being made available to the public at a time.
Whichever medium you choose to distribute, the consumer ultimately decides whether they like your song or not. It’s another decision for them whether to buy your songs or not. And then another decision whether to buy the entire album. Bottom line is it’s not your role to worry about how much the consumer can spend.
I sense that the issue here is more about financial investment. In which case, and if I am correct about this presumption, I’d recommend that you sell your music via TuneCore.com. Believe me, it works. Just make sure you read the FAQs religiously.
If you worry about inventories, believe me, it’s probably the most boring and the most gruesome task in any distribution business. That's what labels are for. It's one of their main services. Unless you are willing to compromise your time for creativity, you wouldn’t like it.
Another thing is that by producing CDs instead of just having it available for downloads, we are giving graphic designers/Artists a chance to promote their works by giving them an opportunity to design our album's packaging.
Answer : Hmmm… this is a good point to consider. Or maybe it would be more fun if the artists that work for you work on a voluntary or for-the-love-of-it basis instead of promising them promotional benefits. It can be difficult not to build expectations around your goals and vice versa so if you can, try to keep everyone away from this probable negative outcome.
So there… I guess my general answer is that it’s really up to you. When the CD medium was first introduced, there was resistance but eventually it caught up. Now, they are fast becoming obsolete (but maybe I’m wrong).
The evolution of music was from paper to tapes to vinyls to tapes to plastic compact discs to MP3s...
Today, professionally pressed CDs cost about P35,000 - P60,000, and maybe even more - just to make for 500 pcs excluding shipping cost (since you are in Cagayan de Oro).
While downloadable MP3s are apparently becoming the new music business model. No frills, no shipping hassles, less cost, etc. All you have to do is simply trust the website you are working with... now that's another issue isn't it?
Wednesday, October 8, 2008
How Your Music Spins On The Table
In one Indieology series, I made a brief yet long rundown of all the groupings in the music business chopped down in three criteria. I’ll try to somehow recap what I have discussed so far to refresh and get a clearer view of how every person in the music business is tied to each other.
But this time, I will do it by describing a succession of events and I’d like to start from the back end. Take note that my focus is the song as this is what should "fly" (read Indieology #3).
Step 1: The Audition
A struggling songwriter Bebon writes a song called “Big Winner”, records a demo and sends it to Dico Music Inc.(DMI), a music publisher. If the publisher sees potential in the material, he may ask a lawyer to draft a contract and sends it to the songwriter. Bebon reviews the contract with his entertainment lawyer friend, finds the deal fair, signs it, and sends it back to DMI.
Step 2: The Licensing Agreement
Happy All Records, an independent record label just signed a new and promising band called Plastic Eyes and the label needs one more song to complete the band’s album. Enter DMI with Bebon’s demo, pitches it in and, fortunately for Bebon, the label executives and A&R liked it.
Since Plastic Eyes is doing an album, a Mechanical License Agreement is issued by Happy All Records and DMI’s entertainment lawyer reviews it. The lawyer finds the agreement fair and advices the publisher to take it. The contract is signed, the label pays an advanced royalty to the publisher and the latter pays the lawyer and taxes, and splits the net 50% to Bebon.
Step 3: The Production
The song is now in studio production. People who are involved are the record producer (the main man), the recording engineer, the musicians (or the band), the artist (or the singer), and sometimes the band manager. Everybody should get rewarded for a job well done.
Before an album is released to the media, the recordings must be mastered. This entails another process and there are specialized studios that do this. I’d like to skip this part since it’s actually a boring topic to talk about (but if you are really interested, I’d be happy to talk with you over a cup of coffee).
Step 4: Release Date
Now Happy all Records is ready to release “Big Winner” as Plastic Eyes’ carrier single and is preparing the schedule of activities. Press kits are made and sent out to the press for immediate press release. Podcasters, internet radios, physical radios, satellite radios and other media venues are sent with a radio edit version of the song for its world premiere.
At this point, I’d like to emphasize that the release date of the song is also the official date “Big Winner” is published. I repeat, the published date of the song is essentially the day it got launched into the public.
Step 5: Marketing and Promotion
A few days after it is launched, an agent from the label went to all the TV networks with a music video to support the product. Three weeks later, the video is topping the charts and so is the song in radio stations and internet. Now the entire country is going gaga over Plastic Eyes and “Big Winner” is played as the finale in the band’s concerts.
Soon, with the help of booking agents, Plastic Eyes, is now one of the most popular bands in the land. They are performing in afternoon variety shows, guesting in music channels, performing in concerts as opening acts for an established band, and a nationwide tour tied up with a product endorsement.
Because of the band’s successful turnout, Happy All Records, with the help of the independent promoters and booking agents, intend to keep them in that limelight until “Big Winner” starts moving down the charts.
Ok. I’ll stop here.
So the band became famous, and the song made it to No. 1 in various charts for months. But remember, “Big Winner” is not written by any member of Plastic Eyes. It’s a song administered by Dico Music Inc. on behalf of Bebon, the struggling songwriter.
Applying the Copyright Law, and considering that the song had succeeded to its full potential the entire year – radio airplay, movie soundtracks of the same title with different versions, TV commercials, music downloads, album sales and so on – Bebon gets to be the one paid.
Think of royalty as something that is paid to someone for doing something right the first time. And when I say “doing something right the first time”, it doesn’t only mean writing a good song alone. One must also believe, religiously in fact, that the Copyright Law actually works if you send it to the right channels – technically that is.
Right now, Bebon could be sitting pretty and counting his royalty earnings. Maybe in 5 years time, another label would license the song for another artist and he would be earning again from the same song. Two years after that, a bank may be interested in using “Big Winner” as its jingle. Three years after that, a rapper uses the chorus part for his works. Who knows?
He continues to write songs and keeps sending them to DMI and other music publishers as well, hoping that one of those tunes could spark another fanbase. Who knows?
Right now Bebon is happy.
But this time, I will do it by describing a succession of events and I’d like to start from the back end. Take note that my focus is the song as this is what should "fly" (read Indieology #3).
Step 1: The Audition
A struggling songwriter Bebon writes a song called “Big Winner”, records a demo and sends it to Dico Music Inc.(DMI), a music publisher. If the publisher sees potential in the material, he may ask a lawyer to draft a contract and sends it to the songwriter. Bebon reviews the contract with his entertainment lawyer friend, finds the deal fair, signs it, and sends it back to DMI.
Step 2: The Licensing Agreement
Happy All Records, an independent record label just signed a new and promising band called Plastic Eyes and the label needs one more song to complete the band’s album. Enter DMI with Bebon’s demo, pitches it in and, fortunately for Bebon, the label executives and A&R liked it.
Since Plastic Eyes is doing an album, a Mechanical License Agreement is issued by Happy All Records and DMI’s entertainment lawyer reviews it. The lawyer finds the agreement fair and advices the publisher to take it. The contract is signed, the label pays an advanced royalty to the publisher and the latter pays the lawyer and taxes, and splits the net 50% to Bebon.
Step 3: The Production
The song is now in studio production. People who are involved are the record producer (the main man), the recording engineer, the musicians (or the band), the artist (or the singer), and sometimes the band manager. Everybody should get rewarded for a job well done.
Before an album is released to the media, the recordings must be mastered. This entails another process and there are specialized studios that do this. I’d like to skip this part since it’s actually a boring topic to talk about (but if you are really interested, I’d be happy to talk with you over a cup of coffee).
Step 4: Release Date
Now Happy all Records is ready to release “Big Winner” as Plastic Eyes’ carrier single and is preparing the schedule of activities. Press kits are made and sent out to the press for immediate press release. Podcasters, internet radios, physical radios, satellite radios and other media venues are sent with a radio edit version of the song for its world premiere.
At this point, I’d like to emphasize that the release date of the song is also the official date “Big Winner” is published. I repeat, the published date of the song is essentially the day it got launched into the public.
Step 5: Marketing and Promotion
A few days after it is launched, an agent from the label went to all the TV networks with a music video to support the product. Three weeks later, the video is topping the charts and so is the song in radio stations and internet. Now the entire country is going gaga over Plastic Eyes and “Big Winner” is played as the finale in the band’s concerts.
Soon, with the help of booking agents, Plastic Eyes, is now one of the most popular bands in the land. They are performing in afternoon variety shows, guesting in music channels, performing in concerts as opening acts for an established band, and a nationwide tour tied up with a product endorsement.
Because of the band’s successful turnout, Happy All Records, with the help of the independent promoters and booking agents, intend to keep them in that limelight until “Big Winner” starts moving down the charts.
Ok. I’ll stop here.
So the band became famous, and the song made it to No. 1 in various charts for months. But remember, “Big Winner” is not written by any member of Plastic Eyes. It’s a song administered by Dico Music Inc. on behalf of Bebon, the struggling songwriter.
Applying the Copyright Law, and considering that the song had succeeded to its full potential the entire year – radio airplay, movie soundtracks of the same title with different versions, TV commercials, music downloads, album sales and so on – Bebon gets to be the one paid.
Think of royalty as something that is paid to someone for doing something right the first time. And when I say “doing something right the first time”, it doesn’t only mean writing a good song alone. One must also believe, religiously in fact, that the Copyright Law actually works if you send it to the right channels – technically that is.
Right now, Bebon could be sitting pretty and counting his royalty earnings. Maybe in 5 years time, another label would license the song for another artist and he would be earning again from the same song. Two years after that, a bank may be interested in using “Big Winner” as its jingle. Three years after that, a rapper uses the chorus part for his works. Who knows?
He continues to write songs and keeps sending them to DMI and other music publishers as well, hoping that one of those tunes could spark another fanbase. Who knows?
Right now Bebon is happy.
Tuesday, October 7, 2008
Who Are The People In Your Neighborhood? (Part 3)
I think of the music scene as like watching a movie. There are actors (equivalent to the artists), there’s the movie theater (the venue), the silver screen (the media), and then the ticket outlets (the stores). Of course the movie wouldn’t be made possible without the “middle men”, so there’s the executive producer (record label), the film company (the promoter and distributor), production coordinator (booking agent), and the actor’s manager (this is self explanatory).
Behind all these key players is still another level of other important people in the entertainment business that the general public, if they’re lucky, would see them very seldom. This is the back-end guys and the 2nd of cluster of people that the middle men deal with first off before any production happens and delivered to the front end – and that is you.
II. The Back End
The behind-the-scenes people in this business institution are those that are responsible in ensuring that all legal rights covered take place before a deal is made and brought out to the public. Legal rights? Yes, legal rights. Essentially, the back end of the music industry is tied up to the Copyright Law and lawyers.
Many many ages ago, lawmakers devised a way to protect owners with intangible properties by setting up the so called Copyright Law. Through the years, the face of the music business evolved and consequently the law was many times refined to suit the modern music industry particularly the emergence of the “new media” we know better as the internet technology.
But even with the modifications made on the Copyright Law, the song remains the same. And the basic idea in copyright ownership, its implications and applications remain in tact.
1) Songwriters
This is the starting line. A person writes a song or two and records a demo. In the old days when there were no record companies yet, songwriters write music and transcribe the notes on music sheets. As technology evolved, the invention of phonorecording (the technical term used for sound recordings) has prompted the industry to evolve with it as well.
Today, songwriters don’t necessarily need music sheets and may not even have to read or write musical notes although this skill can work to a huge advantage. Since phonorecordings are the favored medium in the modern time, many songwriters record their demos on recorders.
My friend Jude, does his demos on a laptop using a piano or electronic keyboards as his favored instrument (I do my initial demos with my celphone recorder). When the demos are ready, he'd send it to a music publisher.
2) Music Publishers
Contrary to what most artists think, the record companies are not exactly the major key players in the music industry. I have mentioned this before and I will say this again, labels are actually just investors granting a loan called advanced royalties to an artist. Behind every record label front is the music publisher. Who are these people?
The publisher is one who is entrusted by the songwriter partial ownership of a song and therefore shares that copyright with the author. They administer the copyright of the song, shop it to clients, consult lawyers, and most importantly collect license fees and royalties. Simply put, they are the ones doing business on behalf of the songwriter and all the messy paperwork. Certainly this is not something a songwriter would want to do.
I mentioned that one of the functions of a music publisher is to collect music license fees and royalties. By default, the split of the royalty shares is always 50/50 between the publisher and songwriter, both being copyright owners of the song. There are several types of music publishers but for now, I will limit it here. In future articles, I will try to explain what music licensing, royalties, other types of music publishers and how it all works altogether.
3) Entertainment Lawyers
Since the core of the music industry is deeply rooted on the lawful practice of using intellectual properties appropriately, lawyers are therefore part of the scene. To be more specific, these lawyers are called entertainment lawyers and in fact, the major record companies in the US today are, in one way or another, run by them.
One of the significant roles of an entertainment lawyer is legal consultation for contracts of artists that are about to be signed by a record company. Similarly, this lawyer can also give advices to a songwriter before signing a contract with a music publisher. In times of infringement cases, entertainment lawyers are the stars of the show.
Earlier I said that the back end is closely knitted to the law. Hence it is only logical to have lawyers on all sides of the fence – the publishers, record companies, artists and songwriters. I have talked to some practicing lawyers in Cebu and sadly, not many of them know this aspect of the law. I have learned that the entertainment business is a specialized field for an average lawyer to pursue.
4) Music Licensing Companies and Agents
Apart from the music publishing companies, there are also companies in the music business that specializes in music licensing. To briefly explain what licensing is, it means that before a song is used by say a movie producer, a music licensing contract is issued for them to sign. This will grant the movie producer permission to use the song in his film for a specified fee.
When a song is licensed for a movie, whether it’s the official soundtrack or just a music bed of a scene, the contract should at least contain the following:
There are many other licensing agreements that a songwriter can earn from and the terms vary for every type of music licensing contract. This particular agreement sample is called synchronization licensing.
5) Performance Royalty Organizations
If you haven’t heard of this type of organization yet, get a CD, open the album sleeve (the CD cover), and look for this acronym – FILSCAP (performance royalty organization or PRO in the Philippines that stands for Filipino Society of Composers Authors and Publishers). Its counterpart orgs in the U.S. are ASCAP, BMI, and SESAC.
These organizations collect royalty fees from various establishments that use music as part of their businesses. Radio stations (including audio streaming), podcasters, restaurants, film companies, TV networks, local TV stations, and all other venues that play music in public for the public, fall in this category.
By definition, anyone who plays a songwriter’s “property” to the public’s ear is technically liable for a royalty payment. Otherwise that would be infringement (I will also discuss this in future articles).
So technically speaking, if you happen to own a carenderia that plays music to the public, you are obligated to pay the necessary fees. However, in many cases, this wouldn’t be practical for the PRO since they are relatively small establishments to worry about. They would rather deal with the big fish – the relatively medium to large scale businesses that use music on a daily basis or at 24/7 rotation.
There are also other types of organizations that function as royalty collectors but I decided not to discuss them and just stick to the basics here.
6) Record Producers and Engineers
Not many bands in Cebu know this, and I am one to contest this claim. Record producers are being paid to produce a song or album with an artist, not the other way around. The one who funds the project is still a producer but they are specifically referred to as Executive Producers.
The record producer’s role is somewhat similar to a film director wherein he keeps the quality of the product at par with the best in the market and ensures that the said product is sellable to the public. His other role is to optimize the potential of the song and the artist's.
This description of a record producer is a little bit leaning towards business, isn’t it? Actually it should be. He/she is the key person that maintains the creative management of the production - to not go beyond what is “right” for the song. And because it’s a creative task, the producer works with the artist as co-author and sometimes musical arranger. His challenge being to materialize the creative ideas in a way that the engineer is able to translate technically - sort of like acting as an interpreter. Sometimes the sound engineer is the producer too.
At one time, I was asked by Insoy Niñal to “help” him with his songs. At the time, I didn’t know exactly what he wanted me to do, yet he gave me his demos. I took time and listened. To make a long story short, we ended up in the studio with me producing his songs with his band as the artist.
Apart from the agreed producer’s fee, we agreed on the condition that I will take full authority on the direction of his project from performance to quality (I attempted to improve the band’s style of playing including Insoy’s singing).
The only thing Insoy asked back was for me to keep the melody and the lyrics. We shook hands. We worked for months in the studio with Paul Cañada as the recording engineer. And a couple of more months after that, the self-titled debut album of Missing Filemon was born.
Behind all these key players is still another level of other important people in the entertainment business that the general public, if they’re lucky, would see them very seldom. This is the back-end guys and the 2nd of cluster of people that the middle men deal with first off before any production happens and delivered to the front end – and that is you.
II. The Back End
The behind-the-scenes people in this business institution are those that are responsible in ensuring that all legal rights covered take place before a deal is made and brought out to the public. Legal rights? Yes, legal rights. Essentially, the back end of the music industry is tied up to the Copyright Law and lawyers.
Many many ages ago, lawmakers devised a way to protect owners with intangible properties by setting up the so called Copyright Law. Through the years, the face of the music business evolved and consequently the law was many times refined to suit the modern music industry particularly the emergence of the “new media” we know better as the internet technology.
But even with the modifications made on the Copyright Law, the song remains the same. And the basic idea in copyright ownership, its implications and applications remain in tact.
1) Songwriters
This is the starting line. A person writes a song or two and records a demo. In the old days when there were no record companies yet, songwriters write music and transcribe the notes on music sheets. As technology evolved, the invention of phonorecording (the technical term used for sound recordings) has prompted the industry to evolve with it as well.
Today, songwriters don’t necessarily need music sheets and may not even have to read or write musical notes although this skill can work to a huge advantage. Since phonorecordings are the favored medium in the modern time, many songwriters record their demos on recorders.
My friend Jude, does his demos on a laptop using a piano or electronic keyboards as his favored instrument (I do my initial demos with my celphone recorder). When the demos are ready, he'd send it to a music publisher.
2) Music Publishers
Contrary to what most artists think, the record companies are not exactly the major key players in the music industry. I have mentioned this before and I will say this again, labels are actually just investors granting a loan called advanced royalties to an artist. Behind every record label front is the music publisher. Who are these people?
The publisher is one who is entrusted by the songwriter partial ownership of a song and therefore shares that copyright with the author. They administer the copyright of the song, shop it to clients, consult lawyers, and most importantly collect license fees and royalties. Simply put, they are the ones doing business on behalf of the songwriter and all the messy paperwork. Certainly this is not something a songwriter would want to do.
I mentioned that one of the functions of a music publisher is to collect music license fees and royalties. By default, the split of the royalty shares is always 50/50 between the publisher and songwriter, both being copyright owners of the song. There are several types of music publishers but for now, I will limit it here. In future articles, I will try to explain what music licensing, royalties, other types of music publishers and how it all works altogether.
3) Entertainment Lawyers
Since the core of the music industry is deeply rooted on the lawful practice of using intellectual properties appropriately, lawyers are therefore part of the scene. To be more specific, these lawyers are called entertainment lawyers and in fact, the major record companies in the US today are, in one way or another, run by them.
One of the significant roles of an entertainment lawyer is legal consultation for contracts of artists that are about to be signed by a record company. Similarly, this lawyer can also give advices to a songwriter before signing a contract with a music publisher. In times of infringement cases, entertainment lawyers are the stars of the show.
Earlier I said that the back end is closely knitted to the law. Hence it is only logical to have lawyers on all sides of the fence – the publishers, record companies, artists and songwriters. I have talked to some practicing lawyers in Cebu and sadly, not many of them know this aspect of the law. I have learned that the entertainment business is a specialized field for an average lawyer to pursue.
4) Music Licensing Companies and Agents
Apart from the music publishing companies, there are also companies in the music business that specializes in music licensing. To briefly explain what licensing is, it means that before a song is used by say a movie producer, a music licensing contract is issued for them to sign. This will grant the movie producer permission to use the song in his film for a specified fee.
When a song is licensed for a movie, whether it’s the official soundtrack or just a music bed of a scene, the contract should at least contain the following:
- Length of the song that will be used (in part or in whole)
- Number of times it is used in the film (especially if it’s the official soundtrack)
- Different versions of the same song (if applicable and this may merit a separate contract on mechanical license)
- Screening period (days, weeks, months, etc.)
- Screening hours per day
- Countries that the movie will be shown (and its respective venues)
- Post production collaterals (DVDs, video streaming, etc.)
There are many other licensing agreements that a songwriter can earn from and the terms vary for every type of music licensing contract. This particular agreement sample is called synchronization licensing.
5) Performance Royalty Organizations
If you haven’t heard of this type of organization yet, get a CD, open the album sleeve (the CD cover), and look for this acronym – FILSCAP (performance royalty organization or PRO in the Philippines that stands for Filipino Society of Composers Authors and Publishers). Its counterpart orgs in the U.S. are ASCAP, BMI, and SESAC.
These organizations collect royalty fees from various establishments that use music as part of their businesses. Radio stations (including audio streaming), podcasters, restaurants, film companies, TV networks, local TV stations, and all other venues that play music in public for the public, fall in this category.
By definition, anyone who plays a songwriter’s “property” to the public’s ear is technically liable for a royalty payment. Otherwise that would be infringement (I will also discuss this in future articles).
So technically speaking, if you happen to own a carenderia that plays music to the public, you are obligated to pay the necessary fees. However, in many cases, this wouldn’t be practical for the PRO since they are relatively small establishments to worry about. They would rather deal with the big fish – the relatively medium to large scale businesses that use music on a daily basis or at 24/7 rotation.
There are also other types of organizations that function as royalty collectors but I decided not to discuss them and just stick to the basics here.
6) Record Producers and Engineers
Not many bands in Cebu know this, and I am one to contest this claim. Record producers are being paid to produce a song or album with an artist, not the other way around. The one who funds the project is still a producer but they are specifically referred to as Executive Producers.
The record producer’s role is somewhat similar to a film director wherein he keeps the quality of the product at par with the best in the market and ensures that the said product is sellable to the public. His other role is to optimize the potential of the song and the artist's.
This description of a record producer is a little bit leaning towards business, isn’t it? Actually it should be. He/she is the key person that maintains the creative management of the production - to not go beyond what is “right” for the song. And because it’s a creative task, the producer works with the artist as co-author and sometimes musical arranger. His challenge being to materialize the creative ideas in a way that the engineer is able to translate technically - sort of like acting as an interpreter. Sometimes the sound engineer is the producer too.
At one time, I was asked by Insoy Niñal to “help” him with his songs. At the time, I didn’t know exactly what he wanted me to do, yet he gave me his demos. I took time and listened. To make a long story short, we ended up in the studio with me producing his songs with his band as the artist.
Apart from the agreed producer’s fee, we agreed on the condition that I will take full authority on the direction of his project from performance to quality (I attempted to improve the band’s style of playing including Insoy’s singing).
The only thing Insoy asked back was for me to keep the melody and the lyrics. We shook hands. We worked for months in the studio with Paul Cañada as the recording engineer. And a couple of more months after that, the self-titled debut album of Missing Filemon was born.
Who Are The People In Your Neighborhood? (Part 2)
In the last Indieology entry, I described the list of entities that are “closest” and most visible to you, the “consumer”. The artist, media, venues, and then the stores - all these elements are in a very close relationship brought in front of us by record labels in the hope that we would in turn, if we like the music of the artists, buy the CD or download their music at the end of the day.
II. The Middle Men
Before an artist makes that sale, his/her music has to be plugged first somewhere. Media does that via airplay, online streaming, press releases, album reviews, charts, etc. When the song picks up, a tour follows to promote the album and venues take centerstage. People are then expected to buy or download the music from the stores. Easy isn’t it?
But who are the people working behind the scenes? In this chapter, I will attempt to define the roles of the ones responsible for giving that necessary push for the artist in the music business. I classify them as the “middle men”. I’d like to start with the labels and work my way down to the liaison that makes the deals in the business.
1) Record Labels
I did mention that the record companies are usually the most visible entities in the music trading business as they are often seen as “key players” in bringing that artist the success he or she rightfully deserve. In fact, you can find the logos of the record companies printed on the inlays of CDs of your favorite artists.
The truth is, and as I mentioned this in another article, labels are actually just investors on the premise that they believe in an artist’s potential. The trade that they do for artists is somewhat similar to how banks approve loans to qualified applicants. These loans are called advanced royalties in this industry lingo.
Bands use that money to hire and pay fees to producers, sound engineers, recording studio time, management, themselves (of course), and sometimes even lawyers for legal advice on contracts.
After all the recording and mastering is done (usually for professional sessions, it takes about 5 to 9 months), the master harddrive is sent back to the record company for mass production and distribution. Again, the label spends for this.
The advance payment and all other costs must be recoupable. That means it is deductible from the artists initial sales of albums, and in some cases ticket sales, before any actual royalty is made and given back to the artist (assuming that the artist writes or co-writes the songs in the album).
Today, some successful managers of globally established bands think about advanced royalties differently. One manager commented that advanced royalties that are “loaned” to artists look more attractive to newer bands given the fact that record labels also help on the manufacturing, marketing and promotions, distribution, and even accounting which all of these things new bands know practically nothing about.
These managers are now opting to release the albums themselves independently, working directly with music publishers and their entertainment lawyers rather than signing a new five-year contract with a major label. It actually makes sense.
2) Distributors
The distribution department is probably one of the busiest people in all of the record company’s departments. Everyday their staff would make and receive calls, keep track of sales, forward sales reports to other departments such as accounting, etc.
Yet contrary to what most people who are in this business (but not entirely in the business) believe, distributors may not necessarily be run by the record company themselves. There are also companies that specialize on the business of distribution.
In fact, with the growing entrepreneurial spirit of the internet, many websites do a similar distribution service to an online store say iTunes or Amazon.com. Up Dharma Down’s album is, as of last note from their indie label manager, had their CDs distributed under a distribution company – not a record label in Manila outlets.
At this point, the first relationship between the four frontliners of the music scene and the label/distributor is established. I have intended to separate the label from the distributor to simply emphasize this point.
3) Promoters
Of course, just like any product, promotion must be integral in the marketing plans of an artist’s music and career. Who are the promoter’s prospects? Generally it’s media. Although sometimes the promoter’s task may extend up to concert venues and sometimes they would act as the booking agent.
Some labels may have an in-house agent to do the task for them. Lately, they even attempted to merge the tasks of a promoter, artist management, and booking agent. I know a couple of labels in Manila who practices this method.
It’s not necessarily a bad thing. In fact, it works to the label’s advantage. Not only does this save cost on salary, it also gives the company an assurance that everything is kept “within their reach”.
4) Booking Agents
The booking agent’s general scope of work is usually to assist the artist’s management on getting gigs – from interviews to concerts and the in betweens. They coordinate the schedules and get paid for the service.
Booking agents may not be common in the Philippines because the job of the manager and an agent tend to overlap most often. However, these people become significantly important for bands doing worldwide tours.
My observation is that some bands in this country call the person who is taking care of their career as booking agents. There were also instances when a band's extended member does bookings only and they call him/her the "manager". I didn’t care to ask why.
5) The Managers
Many bands in Cebu don’t have managers and that is a fact. If there are, I can only count them with one hand. Perhaps it’s because Cebu is a “big small town” and hiring a manager may not be practical plus it can only reduce the income of the artist (if there is any decent income at all to speak of).
However, a manager’s job can help a lot in an artist’s career because aside from developing an artist, he/she can do most, if not all of the tasks I mentioned above.
I’m not saying that the funding, distribution, marketing and promotion, and booking gigs would come from one person alone. Of course not. That would be suicide. A manager taps and coordinates with people or companies outside of his band zone to get things running for his talent. He/she must also be “well connected”.
It will always be an advantage if the person managing an artist’s career has business skills. But beware, there are also managers who cannot be trusted. Take it from me.
At this point, we have established a link between the front end and the middle men in the music scene. The labels and distributors bring the merchandise out front to the stores (TuneCore.com is a digital distributor that directly deals with artists or its representative). The promoters sell the “image of the artist” to the media. The agents and managers ensure of the artist’s schedules and activities.
In the next Indieology, I will be describing what happens at the back end and who are those involved in getting these middle men motivated to work.
At the moment, I’d like to note that to succeed, start your band small.
Get a “good” manager who knows and understands the music business. Someone who knows someone in the media, the copyright law, music publishing companies, business itself, and most importantly, someone you can really really trust.
The music indusrty is not just about business, it’s also about relationships.
II. The Middle Men
Before an artist makes that sale, his/her music has to be plugged first somewhere. Media does that via airplay, online streaming, press releases, album reviews, charts, etc. When the song picks up, a tour follows to promote the album and venues take centerstage. People are then expected to buy or download the music from the stores. Easy isn’t it?
But who are the people working behind the scenes? In this chapter, I will attempt to define the roles of the ones responsible for giving that necessary push for the artist in the music business. I classify them as the “middle men”. I’d like to start with the labels and work my way down to the liaison that makes the deals in the business.
1) Record Labels
I did mention that the record companies are usually the most visible entities in the music trading business as they are often seen as “key players” in bringing that artist the success he or she rightfully deserve. In fact, you can find the logos of the record companies printed on the inlays of CDs of your favorite artists.
The truth is, and as I mentioned this in another article, labels are actually just investors on the premise that they believe in an artist’s potential. The trade that they do for artists is somewhat similar to how banks approve loans to qualified applicants. These loans are called advanced royalties in this industry lingo.
Bands use that money to hire and pay fees to producers, sound engineers, recording studio time, management, themselves (of course), and sometimes even lawyers for legal advice on contracts.
After all the recording and mastering is done (usually for professional sessions, it takes about 5 to 9 months), the master harddrive is sent back to the record company for mass production and distribution. Again, the label spends for this.
The advance payment and all other costs must be recoupable. That means it is deductible from the artists initial sales of albums, and in some cases ticket sales, before any actual royalty is made and given back to the artist (assuming that the artist writes or co-writes the songs in the album).
Today, some successful managers of globally established bands think about advanced royalties differently. One manager commented that advanced royalties that are “loaned” to artists look more attractive to newer bands given the fact that record labels also help on the manufacturing, marketing and promotions, distribution, and even accounting which all of these things new bands know practically nothing about.
These managers are now opting to release the albums themselves independently, working directly with music publishers and their entertainment lawyers rather than signing a new five-year contract with a major label. It actually makes sense.
2) Distributors
The distribution department is probably one of the busiest people in all of the record company’s departments. Everyday their staff would make and receive calls, keep track of sales, forward sales reports to other departments such as accounting, etc.
Yet contrary to what most people who are in this business (but not entirely in the business) believe, distributors may not necessarily be run by the record company themselves. There are also companies that specialize on the business of distribution.
In fact, with the growing entrepreneurial spirit of the internet, many websites do a similar distribution service to an online store say iTunes or Amazon.com. Up Dharma Down’s album is, as of last note from their indie label manager, had their CDs distributed under a distribution company – not a record label in Manila outlets.
At this point, the first relationship between the four frontliners of the music scene and the label/distributor is established. I have intended to separate the label from the distributor to simply emphasize this point.
3) Promoters
Of course, just like any product, promotion must be integral in the marketing plans of an artist’s music and career. Who are the promoter’s prospects? Generally it’s media. Although sometimes the promoter’s task may extend up to concert venues and sometimes they would act as the booking agent.
Some labels may have an in-house agent to do the task for them. Lately, they even attempted to merge the tasks of a promoter, artist management, and booking agent. I know a couple of labels in Manila who practices this method.
It’s not necessarily a bad thing. In fact, it works to the label’s advantage. Not only does this save cost on salary, it also gives the company an assurance that everything is kept “within their reach”.
4) Booking Agents
The booking agent’s general scope of work is usually to assist the artist’s management on getting gigs – from interviews to concerts and the in betweens. They coordinate the schedules and get paid for the service.
Booking agents may not be common in the Philippines because the job of the manager and an agent tend to overlap most often. However, these people become significantly important for bands doing worldwide tours.
My observation is that some bands in this country call the person who is taking care of their career as booking agents. There were also instances when a band's extended member does bookings only and they call him/her the "manager". I didn’t care to ask why.
5) The Managers
Many bands in Cebu don’t have managers and that is a fact. If there are, I can only count them with one hand. Perhaps it’s because Cebu is a “big small town” and hiring a manager may not be practical plus it can only reduce the income of the artist (if there is any decent income at all to speak of).
However, a manager’s job can help a lot in an artist’s career because aside from developing an artist, he/she can do most, if not all of the tasks I mentioned above.
I’m not saying that the funding, distribution, marketing and promotion, and booking gigs would come from one person alone. Of course not. That would be suicide. A manager taps and coordinates with people or companies outside of his band zone to get things running for his talent. He/she must also be “well connected”.
It will always be an advantage if the person managing an artist’s career has business skills. But beware, there are also managers who cannot be trusted. Take it from me.
At this point, we have established a link between the front end and the middle men in the music scene. The labels and distributors bring the merchandise out front to the stores (TuneCore.com is a digital distributor that directly deals with artists or its representative). The promoters sell the “image of the artist” to the media. The agents and managers ensure of the artist’s schedules and activities.
In the next Indieology, I will be describing what happens at the back end and who are those involved in getting these middle men motivated to work.
At the moment, I’d like to note that to succeed, start your band small.
Get a “good” manager who knows and understands the music business. Someone who knows someone in the media, the copyright law, music publishing companies, business itself, and most importantly, someone you can really really trust.
The music indusrty is not just about business, it’s also about relationships.
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