SONG CONTEST BLOG

Seth Godin, best selling author and popular blogger, writes:

If you have a book to write, write it.  If you want to record an album, record it.  No need to wait for someone in a cubicle halfway across the country to decide if you’re worthy.

I think Seth is suggesting that, if you’re waiting for a so-called music biz whiz to tell you that your band rocks, you’re giving too much power to someone who doesn’t care about your music nearly as much as you do.

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Live Nation, the world’s largest producer of live concerts and the leading purveyor of the mega-deal (or 360 music deal), has become a music industry powerhouse and, as result, drawing and signing the most lucrative artists in today’s live music market , a la Nickelback and Madonna.  The LA-based live music behemoth sells more than 45 million concert tickets each year and, in music industry standards, considered a promotional sure-fire.  In many respects, the company operates as a music label should: developing professional artists of every caliber by providing a financial pipeline into every aspect of the artist’s ‘portfolio’.   In 2008, Live Nation organized and produced 16,000 concerts for 1,500 in 57 countries.

A citizen of the United Kingdom, Don immigrated to the United States from Australia, where he jump-started his career by doing record promotion for several labels, including Chess and Capitol Records. During that time, he was involved in the promotion of The Beatles, and was singularly recognized with the only Golden Apple Award ever presented by them for “outstanding promotion in launching Apple Records in the United States”. At Capitol, Don was also Manager of International A&R/Promotion, where he signed Little River Band, and Director of Merchandising and Advertising. When Capitol created a second label, EMI America Records, in 1978, Don became its Vice President of A&R. His credits at EMI America include Michael Johnson, Kim Carnes, Sheena Easton, Kate Bush, Sir Cliff Richard, J. Geils Band, and Kenny Rogers. In 1982, Don moved back to Capitol where he signed and helped guide a number of hit-making acts, including Heart, Joe Cocker, Freddy Jackson, Melba Moore, Steve Vai, Megadeth, WASP, and George Clinton. He was personally involved with the recording careers of Tina Turner, Bob Seger, Anne Murray, The Motels, Duran Duran, Power Station, Thomas Dolby, Ashford & Simpson, Billy Squier, and assisted in the emergence of Crowded House, Poison, The Smithereens, and Great White. In 1987, Don resigned from Capitol to join CBS/Sony as Senior Vice President of A&R, Epic Records, where he personally signed and worked with such acts as Celine Dion (via Sony Canada), Bad English (finding their #1 hit “When I See You Smile”), Iron Maiden, Basia, as well as bringing his expertise to bear on the careers of Cheap Trick (finding their #1 single “The Flame”), Cyndi Lauper, Gloria Estefan, REO Speedwagon, The Jacksons, and Europe. Under his direction, the Epic A&R staff also signed successful acts, including Living Colour, Indigo Girls, Allman Brothers Band, Alice Cooper, Social Distortion, Firehouse, Suicidal Tendencies, Front 2423, Ottmar Liebert and Joe Satriani. In 1993, Don created Drive Entertainment, a company with emphasis on classic artist and niche market catalog exploitation, where he compiled and packaged over 140 albums. Five years later, Don chose to reenter the broader-based music market and, to date, operates his own independent consultancy and music supervision company. We Are Listening is delighted to have Don on board!

The record industry, worth approximately $31 billion globally in 2006, is a large slice of the much broader and more than three times larger ‘music industry‘, worth more than $130 billion.  With record sales dipping and alternative revenue streams coming into significant play, a broader view of the music business, namely the live, gaming and film/television licensing, and publishing sectors, is warranted for budding professionals.  In spite of the bad rep, the record industry remains to be one of the most creatively oriented sectors in media with 20% of its revenues invested in the acquisition and development of new talent.  This is a staggering figure for R&D investment in intellectual property.  Although this investment is still being recouped from record sales, revenue goldmines are being discovered in other media sectors which are increasingly more prominent than the traditional retail sources. Recorded music has become a key influencer in the mobile industry and a pivotal consumer offering in $100 billion worth of broadband subscriptions in 2006. The live performance sector is growing rapidly and its promising, future effect on music merchandising and sponsorship remains to be seen.

While the record industry appears to be an exclusive club, every artist recording and, in one form or another, publishing music is, in fact, a part of it.  As music converges with other media, so does the record industry with other industries.  As such, as more and more artists produce and publish great new music, more opportunities arise for monetizing their copyright without the dependency on actual record sales.

Musicians typically hire music managers (also referred to as artist managers, band managers or, if they work beyond the sphere of music, talent managers) to oversee the creative and business aspects of their careers. Traditionally, music managers receive a commission anywhere from 10% – 20% of their clients’ gross income as opposed to a monthly retainer for their services.

Whereas some music managers are very much regarded part of the “family”, taking the managerial role because they were close to the artist or band from the beginning (and no one else wanted the job!), others are actively pursued for their music industry connections and business acumen.

Renowned music managers include Brian Epstein (The Beatles), who persuaded George Martin to listen to an early demo by the group; Paul McGuinness (U2), who has been with the group from the start of their successful career and also manages PJ Harvey, Art of Noise and several others; Simon Fuller (Spice Girls), also famed for his reality-driven Idol series across the world; Lou Pearlman (Backstreet Boys), who, aside from his music questionable music industry accolades, was exposed in 2006 for perpetuating one of the biggest and longest running fraudulent investment operations in American history.

Successful music managers have a keen sense for hiring the right booking agents, radio promoters, lawyers and other team players, and making new connections that may lead to new opportunities for their clients. Traditionally, music managers were most valued for their ability to put their clients’ demos in the hands of A&R executives at well financed record labels and negotiate the terms of record contracts. Since the convergence of music media with digital media, their role has changed somewhat and a new breed of young, dynamic music managers are emerging with extensive know-how in internet and technology marketing tools, allowing their clients to compete for attention on the web more so than on the ground and make their music available directly to the consumers without the aid of a label or distributor.

TuneCore, the do-it-yourself digital music distribution platform, landed $7 million in a recent round led by Opus Capital. The company offers immediate access into stores like iTunes, and poses serious competition to existing indie distribution companies like CD Baby.

Artists can distribute their albums or individual tracks across a number of digital music stores for under $30, and keep the royalties, a model that has yet to be tried and tested by the major digital distributors on behalf of long tail clients.