Welcome! - Amazon S3€¦ · Web viewI have spent my professional career in the entertainment and music business, starting with my own company in Nashville, Tennessee, helping industry

Monetizing EntertainmentStudent’s Study Guide

2017 VersionLarry Wacholtz

Edited byBeverly Schneller

© 2017 Taylor & Francis1


Table of Contents

WELCOME! 6

CHAPTER 1: THE PERFECT STORM 8

SUMMARY 8BUILDING YOUR PROFESSIONAL VOCABULARY 8CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 8JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 9FOR FURTHER LEARNING 9INSIDER’S CAREER TIP 9

CHAPTER 2: THE THREE WOWS 10


CHAPTER 3: THE RULES OF THE GAME 12

SUMMARY 12BUILDING YOUR PROFESSIONAL VOCABULARY 12CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 12JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 13FOR FURTHER LEARNING 13INSIDER’S CAREER TIP 13FIRST THREE CHAPTERS RECAP 13

CHAPTER 4: THE ENTERTAINMENT BUSINESS 15

SUMMARY 15BUILDING YOUR PROFESSIONAL VOCABULARY 15CHECK YOUR UNDERSTANDING OF KEY IDEAS IN THIS CHAPTER 15JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 16FOR FURTHER LEARNING 16INSIDER’S CAREER TIP 16

CHAPTER 5: THE SIGNIFICANCE OF NARRATION 18



CHAPTER 6: MUSIC PUBLISHING—WHAT’S THE DEAL? 21

SUMMARY 21BUILDING YOUR PROFESSIONAL VOCABULARY 21CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 21JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 22FOR FURTHER LEARNING 22INSIDER’S CAREER TIP 22RECAP OF INFORMATION FROM CHAPTERS 4–6 23

CHAPTER 7: RECORDING LIGHTNING IN A BOTTLE 24

SUMMARY 24BUILDING YOUR PROFESSIONAL VOCABULARY 24CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 24JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 25FOR FURTHER LEARNING 25INSIDER’S CAREER TIP 25RECORDING BUDGET WORKSHEET 26BID SHEET—GENERAL INFORMATION 27BID SHEET—PROJECTED EXPENSES—COST OF SHOW 28BID SHEET—PROJECTED TICKET SALES REVENUE 29BID SHEET—REVENUE FROM FOOD AND MERCHANDISE 30BID SHEET—PROFIT/LOSS PROJECTIONS 31

CHAPTER 8: THE LABEL BUSINESS—RECORDING BUDGETS 32


CHAPTER 9: ODDS OF THE GAME 35

SUMMARY 35BUILDING YOUR PROFESSIONAL VOCABULARY 35CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 35JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 36FOR FURTHER LEARNING 36INSIDER’S CAREER TIP 36CHAPTERS 7–9 SUMMARY OF KEY IDEAS 37

CHAPTER 10: PROMOTION/PUBLICITY AND MEDIA 38



CHAPTER 11: REPRESENTATION 41


CHAPTER 12: THE CONCERT AND EVENT BUSINESS 44

SUMMARY 44BUILDING YOUR PROFESSIONAL VOCABULARY 44CHECK YOUR UNDERSTANDING OF THE KEY IDEAS IN THIS CHAPTER 45JOURNAL ENTRY OR REFLECTIVE WRITING PROMPT 45FOR FURTHER LEARNING 45INSIDER’S CAREER TIP 45CHAPTERS 10–12 KEY POINTS 46


Welcome!

Welcome to Monetizing Entertainment: An Insider’s Handbook for Careers in the Entertainment & Music Industry, and welcome to my world!

Though we may never meet, I want you to know I wrote this book for you. I have spent my professional career in the entertainment and music business, starting with my own company in Nashville, Tennessee, helping industry people find new entertainment opportunities, and after some years as an entrepreneur, I became a full time faculty member at Belmont University, also in Nashville, where I have had the pleasure of teaching wonderful, talented, eager, and inquisitive students who want to be in the entertainment industry.

In the pages of this book, you will find what I hope will become a resource for you as you prepare to become part of this dynamic and fabulous field. The Study Guide, which you are about to start, is meant to help you focus on some of the key ideas and things you will want to learn thoroughly as you complete your reading of the book and your course of study. Each of the chapters in Monetizing Entertainment is outlined here through

A short summary; A list of key insider’s professional terms; A few content-based questions to help you recognize some of the main ideas of

the chapter; Two ways you can deepen your learning through taking a few minutes to

complete a journal entry and/or to initiate your research into a related topic; An insider’s “tip” which will aid you in seeing how the information in the chapter

has its place in the industry.

The accompanying website for students has some but not all of the information contained in this fully developed study guide, so I encourage you to use both to maximize your


understanding of the new entertainment and music industry and how to monetize entertainment.

While every author who writes a book would share my dream that you would keep your book and thumb it into shreds from rereading, I am going to be so bold as to you ask you do just that. Monetizing Entertainment is a handbook, and as such, it is as much of a textbook, full of facts, charts, and detailed information on the entertainment industry, as it is a manual for your future. The terms, examples, illustrations, and summaries of legal and professional information were all chosen to help you understand that the industry is a business that works on business models, laws, and financial principles and one that is constantly changing. To be successful in the industry, it is necessary to know these foundations and to use them to frame how you engage with industry executives, representation, creative teams, attorneys, and the talented people who make up the entertainment and music business.

Fasten your seat belts and let’s get started in learning the inner workings of entertainment and what you can do with your career in the industry!

Blessings, L

Larry WacholtzOctober 2016Nashville, Tennessee


Chapter 1: The Perfect Storm

Summary

How do changes in society and the business of entertainment impact your desire for a career in the industry?

Building Your Professional Vocabulary

Creative destruction Internet downloads Stealing (as an industry term) Innovation (from an industry perspective) Digital signals Digital devices Seeders Leechers BitTorrent Property (in the entertainment industry) Equity loss Consumer behavior Owner’s rights Copyrights.

Check Your Understanding of the Key Ideas in This Chapter

What is creative destruction and why is it called that? What role did Napster play in the current state of the entertainment industry? Why is downloading usually referred to as stealing in the industry? What is the impact of streaming on the music industry? Do you agree or disagree that the music industry is in trouble? Why or why not?

© 2017 Taylor & Francis

Chapter 1

The Perfect StormAn analysis of the "creative destruction" process of the traditional music and entertainment industry.

8

Journal Entry or Reflective Writing Prompt

How, based on your reading of Chapter 1, do you think you should prepare yourself to assume a career in the industry?

Write about an artist who has changed his or her brand or image. How did that work for them?

For Further Learning

Stephen Witt calls the kind of piracy he did an act on “an industrial scale.” Consider the impact of that on your favorite type of entertainment and take some time to discover the economic impact of that level of streaming or downloading on the career of an artist whose work you enjoy. This could include discovering how much money a musical act made on a concert, how many albums sold, how many endorsements signed, and so forth, or for a novelist or poet, the number of their works you can find “free” on Google Books or Google Scholar and how much money they or their publishers made in a recent fiscal year.

Acquaint yourself with the career of Cuban artist Tania Bruguera. How has she managed her artistic career and what do her life and work say about art in a communist society? Bruguera was born in Havana in 1968.

Insider’s Career Tip

You will have a better chance of succeeding in the entertainment and music industry if you read widely in such publications as Billboard, Variety, and Music Biz Worldwide, and sign up for the Dean’s List, a daily digest of news.

Use this space to write two or three questions you want to discuss or contribute to your class meetings on this chapter.


Chapter 2: The Three Wows

Summary

The basis of a successful entertainment product is its ability to be seen by the consumer as a “wow,” that is a product that speaks to the consumers’ emotions in a special way that they value uniquely and associate with that product. Within the industry, depending on the types of entertainment products, there are varying ways to create the wow, but the wow will be what the artists and the executives think about when deciding on what products and entertainment products to invest in. Even though the industry has undergone changes, there are still many opportunities to become a contributor, whether as an entertainer or an executive/leader, to the future of entertainment if you take the time to learn the history, the present, and the possible future of each of the entertainment industries.


A “wow” creative product Image Brand Value Filter.


What does it mean to have a wow in the entertainment industry? What are the most important first steps you should take to break into the business? What does it mean to have a “career timeline”? What is the biggest problem associated with lasting success?


Chapter 2

The Three WowsAn analysis of how the foundation of the entertainment industry is based on a: wow song, script, play, manuscript, etc. wow brand wow live show or production.

10

How does having knowledge and experience of the business, financial, and legal aspects of the entertainment industry potentially distinguish a wannabe from a person who has developed a career plan for a future in the industry?

What are the five features of the new business models we are experiencing in the industry today?

What are the future trends that we are watching in the industry today? How do you become valuable to the industry?


What are the ways that DIY has helped and hurt the entertainment industry? How would you describe the entertainment industry?


Consider what makes an entertainment a product a wow. For example, would you say that Shakespeare’s plays are a wow? Does the value of a wow change over time? Why and how?

To a certain degree, the idea of a wow is culturally driven. Take a moment to discover an artist from the global entertainment industry whose culture is different from your own. For example, what is the wow associated with the career of percussionist Yissy Garcia of Cuba or the French singer Edith Piaf?


Having talent that the entertainment industry will recognize is only the beginning of the process of becoming an artist with a career. Find ways to attend and become involved in entertainment activities to form a network of people who may be able to help you and to allow yourself to be seen as someone with potential value to an entertainment company. You don’t need to have an internship or co-op to get started. How about volunteering for a book drive or to hand out water bottles at a local 5K, where there are numerous corporate sponsors?



Chapter 3: The Rules of the Game

Summary

The need for and enforcement of copyright laws, which vary by country and form of governments, goes hand in hand with creativity. When we create something, we are naturally proud of it, and we know we own it, so we want to protect it and share it as we see fit. In the US, we use the website of the US Copyright Office for information about current laws, to access forms for copyright registration, and as a resource in understanding the six exclusive rights we have to our product once it is made into tangible form and thus, eligible to be copyrighted. Trademarks and patents are other ways our inventions are protected legally. Part of the creative destruction process is the impact of illegal downloads and streaming on copyrights and, further, the legal protection of safe harbors on the entertainment industry and creative people. While these have not stifled creativity, so far, their popularity and presences have made it harder for the entertainment industry to maintain its established sources of revenues, project profit and loss on investments, and anticipate the types of products that consumers will purchase.


Copyright Intellectual property Exclusive rights Value of a music publishing catalog Fixation process Safe harbor Fair use Certificate of Registration and a Certificate of Recordation Deposit copy.


What is the meaning of property in the entertainment and music business?


Chapter 3

The Rules of the GameAn analysis of the copyright law, safe harbors, and other laws pertaining to the business of entertainment.

12

What are the kinds of creative products that should be copyrighted? What is the history of the copyright laws we use in the United States? Over the years, for what reasons have the copyright laws changed? What does infringement mean and how is infringement handled legally in the US? What are the differences between copyrights, trademarks, patents, and service

marks? Do these have different levels of legal protection in the US or are they all treated the same way?

What are the artist’s six exclusive rights? How and from whom can the entertainment industry make money in the digital

download and streaming environments?


How will you protect your rights as a creative person or one who represents creative people?

What is the impact or potential impact of digitization on the idea of copyright?


What are the moral, ethical, and cultural significances of having copyright laws and exclusive rights for creators of entertainment products? Look up an example of a copyright, patent, or trademark infringement case to help you develop your response.

You will find information on careers in patent and trademark protection in the US government at https://oedci.uspto.gov/OEDCI/. Use this site as a way to learn more about what the people who enforce patents and trademarks value about the creative process as they have made this type of work their career.


Copyright law is key to creativity and to protecting your idea once it is in a tangible form. To be smart about navigating the world of copyright, you want to know the laws yourself so you can both hire smart when it comes to your legal representation team and protect yourself in the product development phases.

Circle © and the Circle ℗


First Three Chapters Recap


https://oedci.uspto.gov/OEDCI/

Create an outline reflective of the relationships between creative destruction, the creation of wow entertainment products, and the protection of created products. How do these pieces fit together?

Complete a diagram that illustrates how you show value to the industry through the processes of networking, building a creative team, and developing a career timeline.

Using a pro and con model, design a table that summarizes the impact of digital technology on the entertainment industry. What are the pluses and minuses and potential impact of digitization on the way we develop, consume, and protect creative works for entertainment?


Chapter 4: The Entertainment Business

Summary

My hope is you are starting to understand how important it is to know how business works. If you’re a creative person, then more than likely you’ll be starting your own entrepreneurial venture. If you’re seeking a career with one of the major studios or labels, management companies, and so forth, then you also understand how important it is to understand business principles, financial aspects of the business of entertainment, and how money works.


Business channels Revenue streams Target markets Ideal customer Value Representation Metadata Value proposition Entrepreneurship in the entertainment industry.

Check Your Understanding of Key Ideas in This Chapter

From a business standpoint, what is your value based on in the entertainment and music business?

What does it mean to be an entrepreneur in the entertainment and music business? Why would you start your own business? What are the main differences between creative careers, business careers, and

legal careers in the entertainment industry? What is meant by performance-based and performance-centered careers? Why is the entertainment business considered a balancing act?


Chapter 4

The Entertainment BusinessAn analysis of how the music industry is monetized through film, computer games, theater, and traditional and social media.

15

What sources of knowledge are needed to develop a comprehensive understanding of the entertainment industry?

What is the relationship between a wow product and the nine steps of business development?

How many different types of talent representation are found in the industry and what does each do?

What do publishers in the entertainment industry do? How are labels and film production companies similar and different? What are the basic aspects of promotion and publicity every person interested in

the entertainment industry should know? What is meant by the creative advantage in the entertainment and music industry? How will you know which type of business will be best for you?


What is the relationship between economics, competition, and culture in the entertainment and music business?

What is the value to you in knowing the nine steps in creating a business plan?


Phil Chess, who founded the Blues label Chess Records with his brother, passed away on October 19, 2016, at the age of 95. When asked about how he made it in the industry, he said, “I didn't know what I was doing.” To read about Chess, go to this link for his obituary: http://www.nytimes.com/2016/10/20/arts/music/phil-chess-dead. In light of his career, consider how he developed an operational business model and what the role of having a business plan is in determining potential for success in the industry.

The popularity of streaming with consumers is forcing changes in the business models of the recorded music and film industries. Take a look at this article and add your thoughts on how other aspects of the entertainment industry might be changing in a similar way to the thematic question posed here, and whether streaming music services are really the next step in labels: http://www.hypebot.com/hypebot/2016/10/are-streaming-services-labels-in-waiting.html


Starting out in the industry as an entrepreneur is challenging and has the potential to be rewarding. To have a shot at success, artists should develop a business plan, such as that found at LivePlan.com, which will give you an opportunity to write out what you know about your venture, how it will be funded, what your competition is and your competitive advantage, and how much money you will need to start and sustain the business. Too often, entrepreneurs miscalculate the amount of money they need to start a business by only concentrating on what it will take to cover the initial costs of launching the business. That is why it is important for you to review all the legal, financial, and business


http://www.liveplan.com/

information available at SBA.gov, a free and reliable guide to getting you started in your dream career. Industry insiders look to hire people who are both creative and well informed about the business of their business, so keep the scales balanced and manage your passion with sound business modeling.



http://www.sba.gov/

Chapter 5: The Significance of Narration

Summary

The creation of a wow product is how the process of producing a valued entertainment product starts with consumers. The wow product offers consumers a specific emotional experience that has more depth and lasts longer than a superficial like or dislike reaction. Executives in the entertainment industry use psychographic research to study how consumers respond to different types of creative products and to develop their artists’ images and brands. It is important for artists to be aware that people will think and react differently to their products, that marketing is based on metadata and psychographic research, and how to help themselves by crafting a pitch that will make their image and their product be seen as a wow.


Emotional impact Constructivism Psychographics Wow songs Professional organizations Pitch.


What happens to our brains on entertainment? What emotions do entertainment products have the ability to affect? What is a self-reflective statement and how does it matter in creating

entertainment products? In performing? In consuming entertainment? What sorts of ways have people developed to make creative products? What are

the instruments of creativity? What does authorship encompass in the entertainment industry?


Chapter 5

The Significance of NarrationAn analysis of how a wow story may provide a wow emotional experience for consumers.

18

Is there a difference between songwriting and professional songwriting? What is the creative representation circle? What are the three agendas of the entertainment industry? What do artists, fans,

and executives really want? Why would you join a professional organization as part of your professional

career plan?


How much can you plan for regarding the success of your product, yourself, or an act or artist you are promoting?

What happens when the “magic” happens between the consumer and the product?

For Further Learning This chapter told you a little about the career of L. Russell Brown. Look into his

career more to understand how he has survived the creative destruction of the music industry, what his network is, how he created and creates value in the entertainment industry, and what the significance of narration is in his music.

Think about a film, TV show, or computer game you enjoy. How do you tell a story or create a product that connects with the audience?


You have to knock on many doors in the industry before someone will open one or before you have the reputation to kick it in. Be receptive to feedback and suggestions about how to change and strengthen your creative products, find peer writing and songwriting partners, experiment with new tools and processes to see if you can take yourself and your audience to the next level of entertainment, and remember the emotional connections that create the wow between product and consumer is not an accident. Psychographic research and metadata are important in determining the accuracy of your business plan.




Resilience

20

Chapter 6: Music Publishing—What’s the Deal?

Summary

Knowing what kind of deal to sign will make the difference between likely success and the potential for failure as an artist. Your deal is your first and most important shot in getting the kind of business arrangement you want right. You need a smart, ethical creative team to advise you, but you need to know how the deals, revenue splits, and shares and other ways to make your creative hobby into a career work. In the end, only you are really responsible for setting up the conditions for long-term career success.


Filter systems Wannabes License Royalty

SplitShare

Work made for hire or work for hire Value Single-song contract Staff deal Co-publishing deal Administrative Shark deal Controlled composition clause Catalog valuation.


Why is a filtering system needed in the entertainment industry?


Chapter 6

Music Publishing—What's the Deal?An analysis of the different types of songwriter/music publisher deals including royalties, licensing, and copyright ownership.

21

What are the commonly recognizable bases for executive decisions in the entertainment industry?

What is meant by negotiation points in an artist’s deal? What are the five types of music publishing and songwriting deals? What are the types of licenses for entertainment products? How do the people involved in the business deals make money? What is the NMPA and what function does it serve in the music publishing

business? What is the function of the GMR? What does a songwriter’s paycheck depend upon?


Is it necessary for the tension between wannabes and those with professional representation to be resolved for the entertainment industry to thrive in the next decades?

Who would be on your dream team for representation in your field in entertainment? Who is the best of the best and how would you tell them what your value is to get them to represent you?


Think about how you would use the three-step pitch process to get your creative product before the right industry executive. Where will you go to find models for effective pitches?

Oftentimes in interviews, artists will reveal how they experienced their publishing deal or more simply, how they got their first break. Identify an artist whose work you enjoy and find out how that person got his or her start. In looking at their story, what suggestions do you have that might have given them a stronger or more efficient start? For example, here is an link to an article in the popular magazine, Marie Claire, about Madonna and how she was discovered: http://www.marieclaire.co.uk/uncategorised/madonna-biography-119458.


The best example of how the music business is a business is seen in the artists’ deals and negotiations that enable the industry to bring a product to consumers. The wrong deal leaves the artist with little to no chance of earning the money they might. It is important to know and write into your contracts all the negotiated points you need at the outset and to know what the various types of licenses are for reusing your product. The wow product can have as many lives as a cat if you have a best-selling single, a strong-selling album, and adaptations into commercials, soundtracks for films and video games, and heck, maybe a whole musical or stage show built around the narrative of your song! Aim high so you won’t be on the low end of the profit from your creative work.



Recap of Information from Chapters 4–6

Create a flow chart, using the nine steps of the business model plan, to solidify your understanding of how to bring your creative product to the attention of the right industry executives. Remember to estimate the costs fully.

Although you may have done this before, especially if you write poetry or songs, find a short news story that you believe has potential as a new entertainment product, convert it into a poem, song lyric, or synopsis for TV show, novel, or video game, and mock it up using the three steps in the pitch process. Ask yourself what it needs to become a wow and match that to the financial projections you need to bring the product to market in the business plan.

Create a table that shows the different types of recording deals and their splits and shares.


Chapter 7: Recording Lightning in a Bottle

Summary

The creative and the business sides of the industry come together in the recording studio. The recording session involves a range of creative team players from the headliner or the band, to the producer, audio engineers, session musicians, and vocalists. Recording is a technical and an electrical process that combines the skills of the audio engineer with the vision of the producer, under the watchful eye of the AFM and SAG-AFTRA to monitor rates and scales, to create lightning in a bottle.


Entrepreneurship Creativity Recording process Audio engineering Producers Royalty artists Background vocalists Mix down Master Pickup pattern Effects Scales and rates.


What is the current version of this remark by Thomas Alva Edison: “I find out what the world needs. Then I go ahead and try to invent it”?

How does the career of Edison show you the possible interconnectedness of creativity, business, and entrepreneurship?

What are the desirable qualities of entertainment industry team members who “fit in”?


Chapter 7 Recording Lightning in a Bottle

An analysis of how inventions and devices have created opportunities in the music and entertainment business.

24

What do producers do in the entertainment industry? What do audio engineers contribute to the creative process in the development of

entertainment products? What is a royalty artist? What are basic tracks and what part do they play in the recording process? What is the relationship of overdubbing to mix down? What are the different types of recording sessions? Why do you need to know recording industry rate scales and the professional

affiliations of your recording personnel? Who are the members of the recording team?


How can the sounds of recording, audio, vocal, and video influence your emotional connections with an entertainment product?

What is the value of making music, telling a story, or drawing a picture, even if it is not monetizable?


The Wrecking Crew is a film about what is likely the most famous group of musicians and recording personnel in the twentieth century. Watch the film available through Netflix and make notes on the dynamics of the sessions portrayed, as that is how you can see the desired qualities of a professional team at work.

In an earlier chapter, you read about the work of Susanne Langer on the relationship of music to emotions. What can you find out through research about how sound influences us cognitively as well as emotionally? Is managing sound in a recording studio more aesthetic or more a part of the strategic process of developing a product for consumers?


The entertainment industry is made up of teams of people who, though they have common workplace titles, perform varying roles in relationship to the entertainment product development activity. Learn the roles in the professional networks and in the unions to fully understand who does what, and if you don’t hear something mentioned you think is important in the recording studio or in the deal-making part of the business, ask. But, ask politely!


You can use this worksheet in Chapters 7 and 8 to practice monetization.


Recording Budget Worksheet

Recording Team

Responsibilities Union Basic Tracks10am–1pm

Overdubbing2–5pm6–9pm

Mix Down10pm–1am

Totals

Producer

Audio EngineerMusicians

Artist (vocal)

BGVs

Studio

MiscCartagePer-diemTape/disc

Totals


Bid Sheet—General Information

Bid Sheet General InformationName of the Artists (you want to hire)

Agent (who represents the act)

Date of ShowBeginning & Ending Time of PerformancePublic or Private ShowBilling

1.2.3. Private [] Public [] Other []4. Headliner [] Other []

Note: The General Information is the raw information required by the booking agent to determine the basic information of dates, times, and acts the promoter is seeking to hire.Promoter (company buying services of talent)

Promoter/Company WebsiteAddressPhone NumberEmail Address

Signatory (person signing contract): Print Name:

Note: Anyone can “claim” to be a promoter. Thus, the promoter part of the Bid Sheet provides information to the booking agent and manager to help them determine the financial solvency, history, key people, and general information about the company before they even consider an offer.

Venue (place where the concert is to be staged)

Name of Venue WebsiteAddressPhone NumberEmail Address

Contact Name (Manager of Venue & Events) Print Name:

Note: Where the act performs needs to “fit” the image and perceived “status” of the act. Also important are security, sound and light quality, dates, the reputation of the venue management, and other performances in (by the same act) nearby venues, that are or may be booked in the near future.

Production Company (production of show)

Name of Production Company WebsiteAddressPhone NumberEmail Address

Contact Name (Manager of Production) Print Name:Note: Production companies are often hired to “put on the show” even if the venue is an IATSE crew for load in and out, sound and lighting. The production also needs to “fit” the image and perceived “status” of the act. Security, sound and light quality, and production company reputation, personnel, and management are important. Managers prefer to work with production companies that have provided excellent show productions in the past with their acts.


Bid Sheet—Projected Expenses—Cost of Show

Bid Sheet Projected Expenses (Cost of Show)Pre-show Expenses Show Expenses Production Expenses Post-show ExpensesAdvertising$_____________

Major Artist$_____________

Piano Rental$_____________

Stage Manager$_____________

Sponsoring Station (Ads & Comp Tickets)$_____________

Opening Act

$_____________

Piano Tuner

$_____________

Rider

$_____________IATSE CrewLoad In

$_____________

Security[] Police[] T-shirt[] Private$_____________

Catering

$_____________

IATSE CrewLoad Out

$_____________Ticketmaster$_____________

Ticket Takers (show)$_____________

Chair Rental$_____________

Clean-Up$_____________

Ticket Printing$_____________

Ushers (show)$_____________

Electrician & Power$_____________

Credit Card Fees$_____________

Ticket Sellers$_____________

Box Office$_____________

Riggers$_____________

Housing (Acts)$_____________

Promoter BusinessLegal:Administration:$_____________

Dressing Room

$_____________

Forklift Operator

$_____________

Limo:

Other:$_____________

Damage Deposit$_____________

Medical (on Standby)$_____________

Equipment Rental$_____________

Transportation$_____________

Insurance

$_____________

IATSE CrewOperation of Super Troopers & Audio$_____________

Barricade Rental

$_____________

Personal Bond

$_____________Licenses & PermitsASCAP/BMI &SESAC:City:State:$_____________

Fireman (as required by codes)

$_____________

Rental of Super Troopers &Lighting

$_____________

Taxes:Federal:State:Local:

$_____________Total $ Total $ Total $ Total $Projected ExpensesPre-show $ __________Show $ __________Production $ __________Post-show $ __________Total Cost $ __________

Total Projected Expenses

$

The actual bid sheet helps the promoter project the total cost of putting on the show (talent, venue, advertisement, insurance, bond, IATSE crew, riders expenses, etc., and then the information gathered helps the promoter and booking agent project a realistic “deal” for both based on projected expenses and revenue. Everything is negotiable, yet instead of trying to “score a huge profit by shafting the other guy,” wise booking agents and promoters will attempt to establish long-term relationships that will provide future profitable events and opportunities.


Bid Sheet—Projected Ticket Sales Revenue

Bid Sheet Projected Ticket Sales (Revenue)

Type of Ticket # 1 Type of Ticket # 2 Type of Ticket # 3 Type of Ticket # 4% of Venue ______ % of Venue ______ % of Venue ______ % of Venue ______Advanced [] Premium [] Group [] Day of Show [] Student Discount [] Comp (Free) [] Other []Number of Seats________________Ticket Price$_______________

100% gross $ _______80% gross $ _______50% gross $ _______

Advanced [] Premium [] Group [] Day of Show [] Student Discount [] Comp (Free) [] Other []Number of Seats________________Ticket Price$_______________






Projected Revenue from Ticket SalesRevenue Tickets@ 100% Sold

Revenue Tickets@ 80% Sold

Revenue Tickets@ 50% Sold

Ticket # 1 $__________Ticket # 2 $__________Ticket # 3 $__________Ticket # 4 $__________

Gross $ _____________


Gross $ _____________


Gross $ _____________

Projected Gross from Ticket Sales @ 100% Sold

Total Gross (100%)

$Projected Gross from Ticket Sales @ 80% Sold

Total Gross (80%)

$Projected Gross from Ticket Sales @ 50% Sold

Total Gross (50%)

$The projected ticket sales part of the bid sheet is the responsibility of the promoter. Smart promoters research the act using BDS for radio airplay, SoundScan for actual unit sales in their specific markets, Big Champaign for legal and P2P downloads (a sign of how popular the act might be), and other mass media and new media sources. Then, they scale the house (ticket prices for various sections of venue seating) based on their perception of “how hot the act is” (the emotional connection of the fans to the artist).


Bid Sheet—Revenue from Food and MerchandiseBid Sheet Project Revenue Food Commissions and Merchandise

Food Commissions[] Venue receives 100%[] Promoter receives 100%[] Artist receives 100%[] Splits

Split PercentagesPrice (− Cost) _____________% Promoter ___ = ____ per Tic% Artist ___ = ____ per Tic% Venue ___ = ____ per Tic

Totals

$______$______$______

Soft Drinks [] Hard Drinks [] Popcorn [] Candy [] Hot Dogs [] Pizza [] Other []

Merchandise/Other[] Venue receives 100%[] Promoter receives 100%[] Artist receives 100%[] Splits

Split PercentagesPrice (− Cost) _____________% Promoter ___ = _____ per Tic% Artist ___ = _____ per Tic% Venue ___ = _____ per Tic

Totals

$______$______$______

T-shirts [] Posters [] Clothes [] CD’s [] Hats []Other []

Projected Revenue from Other Sources (if any)Food Commissions(if any) $ ____________

Added Gross at 100% _____________Added Gross at 80 % _____________Added Gross at 50 % _____________

Merchandise(if any) $ ____________

Added Gross at 100% _____________Added Gross at 80 % _____________Added Gross at 50 % _____________

Projected Gross from Food Commissions and Merchandise @ 100% of tickets sold

Total Gross (100%)

$Projected Gross from Food Commissions and Merchandise @ 80% of tickets sold

Total Gross (80%)

$Projected Gross from Food Commissions and Merchandise @ 50% of tickets sold

Total Gross (50%)

$Promoters usually negotiate additional revenue sources (money) from food commissions (hot dogs, soft drinks, etc.), the rights and processes for fulfillment companies to sell merchandise, and the act’s obligated requirement to hang branding advertisements from corporate sponsorship deals (posters and signs behind the performing act or in the venues). Promoters negotiate between the act, venue, and themselves for some portion of the additional revenue. Often the food revenues go to the venue and most or all of the merchandise goes to the act. However, a powerful promoter can negotiate a better deal, if they are establishing a tour instead of a single date, and yet it still depends on the power of the act, booking agent, and manager.


Bid Sheet—Profit and Loss ProjectionsProfit and Loss Projections100% Sold OutRevenueTickets $__________Other $__________

Total $__________

(Minus)Expenses −$__________

$

80% Sold OutRevenueTickets $__________Other $__________

Total $__________


$

50% Sold OutRevenueTickets $__________Other $__________

Total $__________


$The profit and loss part of the bid sheet shows the promoter their projected profits (or losses) based on the total revenues minus the total expenses based on the number of ticket buyers tied to the prices consumers paid at 100% sellout, 80% of venue, and 50% of venue. Let the negotiation with the booking agent begin!


Chapter 8: The Label Business—Recording Budgets

Summary

Remember the business of the business is business. And a big part of the business is the teamwork and costs of the teamwork. This chapter has focused on the recording budgets and the people who need to be paid as part of the professional creative team. The record labels, once you learn their business structures, are streamlined and efficient and each part of the label teams knows what it takes to bring the wow product to a multitude of consumers on a variety of platforms. As a person new to the industry, you want to know who the players are and how it all works together, and never take your eyes off the bottom line.


Talking machines and talkies Binary code Analog recording Digital recording Record label Artist and repertoire (A&R) department Artist development Promotion Publicity Mashups Lead musician Side musician Cartage and per diem.


What is the significance of the star system in the entertainment industry?


Chapter 8

The Label Business—Recording BudgetsAn analysis of how musical tracks (and other entertainment products) are created and financed.

32

What can you learn from the history of the major recording labels and how they were founded?

How do digital and analog recordings work? Is one presumed better than another and why?

What are the typical professional departments in a record label business? How do these parts communicate with one another? What do they do in common and what do they do distinctly? What does artist development mean? How are promotion and publicity similar and different? How do sales and marketing work together with retail outlets to make products

available to consumers? How is streaming affecting delivery of products to consumers? What goes on in a recording session? What should you be prepared to pay for in a budget for a recording session, and

how will you know how much the session should cost?


You have read in the last two chapters about historical figures who changed the entertainment industry. What were the problems they were trying to solve with their inventions and patented processes?

What makes a star in the entertainment industry? What makes a star with consumers?


Gone with the Wind, It’s a Wonderful Life, How the Grinch Stole Christmas, and the Charlie Brown TV seasonal shows are generations old by now. What makes them still marketable today? Look into how they were first marketed and how they are marketed now. What can you learn from those promotion and publicity campaigns?

In the past, recording budgets were greater for superstars than for new artists because the executives had to guess about how much money they would make once the recording deal was made. When the star was new, there was no track record, so the labels had to pay for the minimum to see if the new star would get a buzz. In the film industry, the budgets are much larger, and the window of success is about two weeks for both. Why do executives want to spend money on new products, and what is relationship of the actual costs of product production and the anticipated profits? Why are the marketing budgets, on the other hand, less for superstars than for new talent in development?


Think about your favorite entertainment product and how you have downloaded, purchased, or otherwise enjoyed the product. What did you pay for the album, the song,


the concert ticket? This is how the industry makes money today on the sales of your emotional connection to the product. How much do you think you have paid to keep listening to this song? This is how the recording budget is made. Similarly, how about your favorite films: Love Actually, Ratatouille, Elf, you name it. The stakes are even higher with a film budget, but the monetizing of your emotions needs to be the same for the products to have sustainable profits.



Chapter 9: Odds of the Game

Summary

The history of the major labels’ transformations in response to changes in the entertainment industry is instructive. Up and coming as well as established artists need to understand the business situations in which the labels find themselves, and be alert to the types of deals and deal memos they are signing. The deal memo is an agreement between the label and the artist that indicates who owns what and at what percentage, and covers all monetizable elements of the artist’s image, brand, and creativity, and how present and future earnings will be distributed.


Buzz Sellable Economy of scale Profit and loss (P&L) statement Affiliate label Indie label Vanity label PBL Deal memo Deal points Recoupment deal 360 deal Package fee Points.


What are the traditional ways new talent is discovered, and why might wannabes have a hard time being discovered in the same or similar ways?

What have the three major recording labels done to stay alive in a shrinking marketplace for record albums?


Chapter 9

Odds of the GameAn analysis of the financial risks and executive decisions that need to be considered before acts are signed and products and shows are created.

35

Under the traditional business model, how did labels make money? What does a 360 deal do for an artist and for the label? What are the benefits of signing with one of the major labels? What are affiliate labels? Why are vanity labels a risk for artists? If a label is going to survive, what does it need to do? What are its business

functions and responsibilities? What are steps you can take to attract enough positive attention to make a label

want to sign you? How is a pitch memo different from a deal memo? What roles do your representation team play when you are in the process of

signing with a label? What are deal points? Why are there so many types of deals in the entertainment industry between

artists and industry?


What do you think might be the future of music labels based on the stories of the three majors provided in this chapter?

Why might executives in the global entertainment industry benefit from knowing the GDP, national population, per capita income, and levels of education and health care in countries where they have offices and/or plan to market and sell their products?


Most of the time we tend to focus our attention in the entertainment industry on the performing talent or the stars we go to see. Take some time to learn the stories of legendary industry leaders like Sam Phillips, Bob Crewe, and Jimmy Bowen and compare the nature of the industry in which they worked to the type of industry we have today. Who are the people “behind” your favorite acts and what are they facing in the current business climate, which may be the result of or even pointing to a new form of the perfect storm?

What is the impact of streaming and illegal downloading on the value of a recording deal? Is it realistic to expect the deals to have constant value?


Your representation team, especially your personal manager and your attorney, is essential in advising you about the best deals you can make, depending on the type of product you are pitching. It is important for you to know the language of the deals and their essential characteristics to avoid the potential consequences of letting your passions outstrip your business sense.



Chapters 7–9 Summary of Key Ideas

Create a timeline of the major inventions that changed the recording or film industries, or create one on the rise and growth of video games. What might be a link between these inventions and innovations, and what was going on in the world politically, socially, or economically at the time?

Perform a market analysis on the career of an artist seen now as a success. What does it appear their management and representation teams did to put that artist before the public well enough to get from buzz to profits?

Summarize the information in Chapter 9 about the deals into a pro-con and impact table that you can use as a learning tool to be sure you know the similarities, differences, and impact on your career of each one.


Chapter 10: Promotion/Publicity and Media

Summary

Promotion/publicity and media are key to attracting consumers to your products. Throughout this chapter you have seen the many choices that labels and industry executives have in determining the best ways to make entertainment products to the public through combinations of media from social media to print media and to the most traditional of all, radio. In addition, it is important for artists to factor in the costs of publicity when they are developing their deals, as the impacts of streaming and digital downloads are decreasing revenue, while they appear to increase an artist’s visibility. Market research, such as Nielsen provides, into who uses certain types of media outlets to discover entertainment is essential in making decisions about the best value for transforming the buzz into bucks.


Risk Risk management All-ins Day parts FCC Rack jobbers One-stops PI advertising Black box European High Court Buzz angle.



Chapter 10

Promotion/Publicity and MediaAn analysis of the marketing plans consisting of promotion, publicity, and distribution of products and shows and their corresponding budgets.

38

With whom do the owners of creative works need to network to get their products to consumers?

What does it cost per type of industry to launch a new product? What does it mean to say, “Everything is tied to everybody else doing their jobs at

a wow level”? What resources does an industry executive have to help shape their decision-

making processes? What goes into building a brand from a financial perspective? What does a traditional media marketing plan entail? Why has that had to be

changed? How is it that print magazines, even in digital formats, still influence the

entertainment industry, both at the consumer and the executive levels? What does Sound Exchange do? What are some of the unresolved issues with both old and new business models

being used in the same industry? What does monetizing entertainment really mean today?


How has digital media changed the manner in which products may be marketed and publicized?

What is radio’s “secret”? Why does it still work for promotion and new music discovery?


The film industry offers examples for us of executive decisions, which have been hugely successful, and some that have failed miserably. Assuming that success is as good a teacher as failure, find an example of a film that really, really worked and one that really, really failed, and compare their promotion and publicity in the media. Given the media campaigns, were the outcomes of success and failure predictable in some way that perhaps someone else missed?

Research the career of Garrison Keillor. What does his story as an entrepreneur tell you about how he has monetized entertainment?



If you are familiar with the trade publications and traditional and emerging media channels, and know the consumer preferences of your target market, you may be an active and value participant in the development and promotion, publicity, marketing, and distribution of your own products. Instead of being passive and waiting for your representation team to tell you what they think is best, be a partner in the process and get more from them and more of what you want for your hard work.



Wow Product

Promotion

Publicity

Profitablity

40

Chapter 11: Representation

Summary

The example of Courtney Love reminds us that entertainment is a business, and an artist needs to be informed about how the business works to avoid any misunderstandings and confusion regarding expectations for making money and for representation. Representation is a complex network of specialists who have the best interests of their businesses and professions in mind first, so it is necessary for the artist to know that monetizing talent is more than showing up with a wow brand, a wow song, and a wow live performance.


Career team Personal manager Artist manager Tour manager Talent agent Booking agent Business manager Goals Options Commissions Revenue—gross vs. net Stage names CAA ICM UTAWME.


What expectations did it seem Courtney Love had for her band and her representation?


Chapter 11

RepresentationAn analysis of personal, business, touring managers, and booking and talent agents.

41

How is it possible for an artist to misunderstand representation and the business of entertainment?

What are advances and how are they distributed? What is the artist’s financial responsibility in the recording deal and how is it

determined? What sort of risk does the industry take in producing any entertainment product? What is the recoupment model? What happens in a 360 deal financially? Why would artists not want to perform under their own name? What is the relationship between fame, finance, and business decisions? What is a strategic management plan and who is involved in making sure it

happens? What are the differences between artist managers and personal managers? What is the power of attorney clause in an entertainer’s contract? What is the difference between gross and net revenue?


What does the complex example of Courtney Love teach you about how to think critically about what you need to know, ask, and be aware of if you are going to succeed in the entertainment industry?

What are your first-, third-, and fifth-year goals right now?


There are many resources on the entertainment industry online you can find through an Internet search. To let you see the kind of information openly available to people interested in careers in the industry, look at http://www.artistmanagementresource.com/ and consider its relationship to the information provided in this chapter.

Also on the Internet, visit the websites of the Creative Artists Agency (CAA), the International Creative Management firm (ICM), United Talent Agency (UTA), and WME (William Morris Endeavor Entertainment) to learn more about what talent agencies offer an artist and to get a handle on the global entertainment and talent acquisition processes.


The number one mistake artists make is not understanding their financial obligations in the artist development and product development processes. The number two mistake is not taking the time to understand and research the roles of their representation options, and as such, not realizing what their team can and cannot do.



http://www.artistmanagementresource.com/


Chapter 12: The Concert and Event Business

Summary

Like everything else in the entertainment industry, touring and live performances, whether you are a headliner, a band, or an author, requires a network of qualified and creative representation to get you where you need to be and to enable you to make money on your product. The bid sheet is key in determining the costs of public performance. The music festival business is continuing to grow, as more consumers want to follow their favorite artists from the computer to the concert stage. If you have a wow product, you may end up a huge success, as we have seen with Phantom of the Opera. The musical, based on a 1909 novel has, as of October 2016, played in 35 countries after its stage premiere in London on October 9, 1986, and is still in performance today (http://www.thephantomoftheopera.com/ustour/).


The creative circle The representation circle The production circle Straight guarantee Guarantee plus percentage of gate or the net Guarantee plus bonus Virtual corporations Riders Bid sheets


Chapter 12

The Concert and Event BusinessAn analysis of the concert, touring, and event business including bid sheets, riders, venues, ticketing, and profit and loss statements.

44

http://www.thephantomoftheopera.com/ustour/

Scaling the house.


The foundation of the industry is based on what type of creative product? What are the three parts of the creative circle and what does each do for the act or

talent? What determines how much money each member of the creative circle will see? Who are other players in the entertainment industry we call “associated”? What is the impact of the worldwide events business on the entertainment

industry’s economics? What is the role of the bid sheet in managing a live event? What fiscal items are addressed on the bid sheet? What does scaling the house mean, and how does that contribute to the economy

of scale for a live entertainment event? Who are the significant owners and managers of the live event venues? Why do awards shows matter in the reputation of the creative circle?


What is the impact of the new business models on live events and on touring? How do you prepare yourself to be a part of the live events and touring aspects of

the industry?


To understand the scope of festivals, look at this listing and see if you can anticipate how performing as an opening act or on the main stages would propel any acts’ career in a different direction: https://www.musicfestivalwizard.com/festival-guide/us-festivals/ .

Thinking back over the role emotions play in our desire to be entertained and in our desire for entertainment, what ways do live concerts, book festivals, and events such as Comic-Con monetize consumers’ emotions that benefit not just the consumers, but also the entire network of the entertainment industry?


The creative representation circle is formed to support the artist who can produce the wow product. Besides the marketing, publicity, and promotion of the brand, image, and product through retail outlets, the entertainment industry relies on direct connections with fans through large- and small-scale public events as a revenue stream. When thinking about gross vs. net, and revenue vs. risk, it is essential to have the touring and live performance expenses, provided on the bid sheet, carefully worked out in time for artists and their teams to review and project what it will cost to stand up a show so they will know how to best scale the house for maximum revenue.


https://www.musicfestivalwizard.com/festival-guide/us-festivals/


Chapters 10–12 Key Points

Assume you have a product you want to promote. Design a schematic showing where and how you will place the product using elements of the business plan model discussed in Chapter 4.


WOW product

Production

Creative

Representation

46

Compose a tip sheet for artists to help them understand the do’s and don’ts of their representation team’s responsibilities.

Complete a bid sheet for a show you would like to stand up. How much will it cost you to put on the show, and how will you manage risk and your gross vs. net revenue opportunities?

Additional notes and thoughts about what you have learned


Documents

Welcome! - Amazon S3€¦ · Web viewI have spent my professional career in the entertainment and music business, starting with my own company in Nashville, Tennessee, helping industry