The Emergence of The New Music Industry

It’s Global, Generates A Lot Of Money & Is Based On Six Copyrights

There have been six fundamental changes to the music industry that have revolutionized and transformed the business.  It is vital that artists are fully aware of these changes in order to make the most money and pursue their passion on their own terms.

These six changes are:
1)   Music fans now buy and listen to music from digital music stores and services.
2)   There is unlimited shelf space where everything can be in stock at no detriment to anything else. 
3)   For no up front cost, there is unlimited inventory always available on demand as a perfect digital copy.
4)   With the launch of www.promusicrecords.com, there is no gatekeeper to placing a song on Apple, Amazon’s etc store or hard drive.
5)   Distribution of a release is now global and not restricted to just one country.
6)   Artists can market directly to their fans.

With these changes, gone are the days of needing to be able to negotiate a label and/or distributor deal agreement (provided you were lucky enough to get one). 
 
Instead, with self-distribution and access to marketing, the artist is now: The Label, The Performer, The Publisher and The Songwriter. While wearing all of these “four hats” at once, artists are now uniquely positioned to profit from the best possible contractual distribution terms and highest revenue generation via the sale, use, or streaming of their music. The challenge is that many artists don’t know what these rights are, or how to collect the money they’ve earned from these revenue streams. A comprehensive, streamlined, and completely inclusive infrastructure does not yet exist that enables every artist who is owed money to easily collect it.  However, there are solutions out there for artists, and it’s imperative that you understand these.

THE SIX COPYRIGHTS YOU MUST GET TO KNOW AND UNDERSTAND
The entire music industry is built on six legal copyrights.
The six copyrights are:

  • Reproduction
  • Derivatives & Samples
  • Public Display
  • Public Performance
  • Distribution
  • Digital Transmission



Money is made from music by either selling, licensing or using it –the sale of the music is the one that gets talked about the most. The others also generate a LOT of money for artists, performers and songwriters.  This money is made based on the USE of music as opposed to just the SALE of the music – in other words, music does not necessarily have to be sold to make the artist, songwriter, performer and label money.   Much of the money from these six copyrights is collected by entities located on every continent around the world called Performing Rights Organizations (PROs).  PROs tend to be not-for-profit or government controlled and/or mandated. Their function is to collect and distribute money owed to songwriters, labels and performers. The amount of money the writers are paid comes from federal laws in those countries that mandate entities MUST pay them for the USE of music. This has become increasingly important now that the music industry is global – with one click your music can be distributed, sold, shared, tracked and marketed around the world.

As one example, unless the songwriter agrees not to be paid, every single time a song is streamed legally for free on the Internet, money is owed to the songwriter. This money is paid to the PROs and sits there waiting to be claimed.

As another, every single time a song is played on the radio (either via the Internet or broadcast from an AM/FM transmitter tower) the songwriter, label and performer must get paid.   As an interesting twist, and to make a point, there is an exception to this rule – everywhere in the world the songwriter, performer and label get paid when a song is played on AM/FM radio EXCEPT for the United States. In the U.S., only the songwriter gets paid.  This means from radio play, there is money sitting in other parts of the world with a PRO for the label and performer.  If the label and performer are based in the U.S., they are not able to collect this money UNLESS there is someone in another country working on behalf of them to collect it. 

As yet another example, if you are a U.S.-based band and you write your own songs and use Pro Music Records to distribute your music into another country like iTunes Japan, each time your music sells in Japan, iTunes pays the Japanese PRO money for the “reproduction” of your song. This money is in addition to the money iTunes pays for the sale of the song. This money sits with the PRO until it is collected by the songwriter/publisher.  After a certain period of time, if it is not collected, it is given to other members of the PRO. It is vital for you to know about all of these potential revenue streams and how to collect on them around the world.

Major Artist Initiatives in 2011
I view it as Pro Music Record’s job to go into the world on behalf of its artists and help them plug into and collect all the money that exists for them.  This is a major initiative for us in 2011.  Over the next 90 days, we will be providing significant news and updates on how we intend on doing this for this new industry.

Also, in the next 45 days or so, we are rolling out a new accounting system that allows for even more transparency down to the one trillionth of a penny as well as even more advanced custom sales reports and free access to iTunes trending data.

A major education initiative is also being undertaken to provide the knowledge and information every artist should know.  To that end, we will continue to post a large amount of specific information on the blog as well as create more PDF booklets for free download. George Howard (former President of Rykodisc, current professor at Loyola) and Jeff Price (Founder of Tunecore) are embarking on a series of free to attend multi-hour seminars discussing in-depth the nuances and information around the six legal copyrights.

If you are attending South By Southwest, please make certain to join them for a free two and half hour seminar on:
The Six Legal Copyrights:
Friday March 18
2:00 – 4:30 PM
Room 8 (Third Floor)
Austin Convention Center
  
Artists today not only can take the power and control into their own hands, but they must do so.  This does not mean that you must go it alone; there are resources that you can avail yourself of in order to create and succeed on your own terms.  It is our mission to continue to work with you to further transform the industry and provides these resources.  Only by setting it free can the industry grow to its full potential. 

Stay tuned for the next transformation…Pro Music Records & Entertainment Media

Casting Call-Project Name: Antoine Carter “World Premiere” Music Video

Pro Music Records & Entertainment Media is interested in meeting with you for the opportunity to be the lead role for an up & coming Music Video for The Rising R&B Sensation “Antoine Carter” on our Independent Record Label. We are a very strong and reputable video/music production company who is looking to cast women from the age of 18 to 35 for various music videos as well as promotional work.  Check out our video services here.
General Information
Project Name: Antoine Carter “Wear Me Out” Music Video
Project Type: Music Video
Union Status: Non-Union
Role: Girlfriend
Project Rate: Compensation will be discussed once talent is selected upon experience.
Submissions Due By: 1/31/2011
Audition Information
Audition Dates: 1/31/2011
Audition Location: The Grande (Theatre Room)
4735 Sepulveda Blvd. Next to Sherman Oaks Galleria
Sherman Oaks CA 91403
Callback Information
Callback Dates: 02/01/2011
Callback Location: The Grande (Theatre Room)
4735 Sepulveda Blvd. Next to Sherman Oaks Galleria
Sherman Oaks CA 91403
 
Shoot Information
Shoot Dates: 02/11/2011, 02/12/2011
Shoot Times: 3:00pm-3:00am
Shoot Note: Wardrobe, meals, a copy of video and credit will be provided. **Note** No Nudity, but revealing attire will be required.
Shoot Location:  Santa Clarita, CA (San Fernando Valley Region)
Casting Information
Casting Company: Pro Music Records & Entertainment Media
Casting Director: Fiona Chavers
Casting Director Location: San Fernando Valley
Phone: (818) 971-9301
E-mail: info@promusicrecords.com

Project Notes
Pro Music Records is taking online submissions. Please include 2 photos, name and number as well as a portfolio if you have one. Send submission to: info@promusicrecords.com
Please submit your info( email, bio etc) a.s.a.p as roles will be filled swiftly on a first submitted first priority basis. 
If any of this applies to you and you think you’ve got that something special quality that adds and doesn’t take away from a potentially huge project submit your info and we’ll get back to you as swift as possible. Good day to you!
Pro Music Records & Ent. Media
Sherman Oaks, CA 91423
T: (818) 971-9301
www.promusicrecords.com

Big Box Retail-Physical CD Distribution is dead!!

By “Big Box Retail” (BBR), we’re really only referring to 2 companies: Walmart and Best Buy. Yes, that’s what the music industry has come to in 2010: Down to just 2 major companies, neither of which specialize in music (nor much care, as CDs are a low-margin item anyway), selling the CDs that used to make record companies, and some artists, very rich…..

Decades ago, Big Box Retail sold music as an afterthought, a loss-leader to get customers in the door and steer them towards bigger ticket items like stereo systems, TV’s, or a washer and dryer. By leveraging those big-ticket items, they discounted the CD to bare-bones pricing. This strategy, combined with the overall decline in CD sales, helped to drive big-chain record stores like Virgin, Tower, and Warehouse music out of business in just a few short years. Now, with no CD stores left to compete against except themselves, BBR are still using CDs as a loss leader, AND they’ve begun shrinking the shelf space that was once reserved for music. The simple formula of Major Record Label to Retail Record Store has all but collapsed.

This new reality has not escaped many veteran artists now compelled to bypass record labels completely and sell directly to Big Box. Artists like AC/DC, The Police, and others have offered their CDs exclusively to Walmart and Best Buy, respectively. And why not? With the state of the physical CD retail business, there is only one other possibility (okay, two if you count Target) outside of the “exclusive” retailer anyway. These artists have opted to skip the label, skip the record distributor, and simply ship CDs direct to one Big Box Retailer hub. Yet another nail in the major record label coffin…

So what’s it mean for music? Unfortunately for indie and emerging artists, this new landscape in retail does not add up to a favorable situation. Most indies don’t have the pull to approach BBR directly. And, with fewer outlets to sell a CD, and less labels and distributors to approach, selling a physical CD at a retail store has become that much more difficult. Despite all this, physical CDs still make up the 60% of music sold in the U.S., and although this percentage is falling every year, there are still a good number of consumers who will always prefer walking in a store to buy the CD. So does this mean in a couple more years you won’t be able to get the CD anywhere? Nah, don’t worry, guess which online retailer will fill this void? It’s www.thegoodzonline.com who will compete with the likes of Itunes.com and Amazon.com, whose tied with Walmart for overall sales (CD + digital) and right on the heels of Best Buy for CDs in the first half of 2010.

-Pro Music Records and Entertainment Media
www.promusicrecords.com

My Zimbio
Top Stories

Top 10 Mistakes Musicians and Bands Make Seeking a Career in Music

If you want to become successful in the music industry, there are many

things you need to know and do, but even if you get all that right,

you can prevent yourself from reaching big success by making

critical mistakes along the way (and there are many potential

mistakes one could make, when not being careful).

After coaching and mentoring many musicians and bands seeking a

career in music, the same patterns of false assumptions, problems

and mistakes appear over and over again. Here are my top 10! I hope

they help you too, by giving you insight on what to and not to do.

Mistake #10 – Not having a compelling image that is congruent with

your music. Most musicians (and bands) severely underestimate the

importance of their image. Yes, music is about ‘music’, but music

business success is about a total package that includes music,

image and visual stage show among other things that need to be

fully developed in a congruent way.

From basic to elaborate, we have highly skilled PHOTOGRAPHERS at all levels! Tell us what you DESIRE & your budget & PRO MUSIC RECORDS maximizes your look

to fit your targeted Audience!

Photo Package Rates: http://www.promusicrecords.com/photo.html

Graphic Design Rates: http://www.promusicrecords.com/web.html

Mistake #9 – Trying to ‘get your name out there’. Although this

seems to be a main goal of most musicians and bands, it is the

wrong approach to start with. Before trying to be seen and heard as

much as possible, it is often more important to focus on

‘converting’ the people who hear and see you into becoming actual

fans. This ‘conversion’ is the first key to your promotional

success, NOT getting seen or heard as much as possible.

Jump Start Your Music Promotion Here: www.promusicrecords.com/promotions.html

Mistake #8 – Believing that social media websites are the keys to

online music promotion for musicians and bands. Social media

websites are a tool. They are ONE piece of the online music

marketing puzzle. Music industry companies (record labels, artist

managers, booking agents, etc.) are far more interested in the

popularity of YOUR website, not how many friends you have at

MySpace, YouTube, Facebook or any other website that you do not own

and control. Want to impress the industry with your band’s

promotion? Build a website and then build your website traffic.

Custom Built Websites in Just 30 Days:

www.promusicrecords.com/web.html



Drive traffic to your site or webpage:

http://www.promusicrecords.com/marketing.html

Mistake #7 – Not investing enough time into building your music

career. Most musicians spend most of their time on music, but put

very little effort into the many other critical elements needed to

make it in the music business. If you are already a talented

musician, you should invest at least 50% of your time into starting

or advancing your music career. If you are still developing your

musical skills, you should still invest around 25% of your ‘music’

time into building a future music career.

Mistake #6 – Surrounding yourself with people who are negative,

lazy and lack ambition. If you are very serious about becoming a

professional musician and building a great career in music, then

you absolutely must surround yourself with like-minded musicians.

(This one alone is just sooooo important that I cannot stress it enough!)

Mistake #5 – Having merely mediocre live performing skills. Many

musicians, who are not yet in a good band, put off developing their

live performing and stage presence skills. This is a big reason why

talented musicians don’t get into really good bands that they

audition for. Your music may be good, but a live ‘show’ requires

more than great music. If people only wanted to hear the music,

they would listen to you at home. Both fans and record labels want

(and expect) to see a REAL show. Neglecting this area results in

talented musicians and bands becoming quickly forgotten.

If you have undeniable skills Please read more about this event:
http://www.promusicrecords.com/concert.html



Mistake #4 – Focusing on increasing the ‘quantity’ of fans instead

of the ‘intensity’ of your fans. The ‘number’ of fans you have

should always be your secondary focus (not your primary one) if you

want to become successful in the music industry. The fact is, it is

not the number of ‘fans’ that matters most, it’s the number of

FANATICS which will contribute more directly to your success (or

lack of it). This is particularly true in the beginning of a band’s

music career. Focus more effort on converting your existing fans

into raving fanatics. Learn to do this and the number of your

overall fans will increase through powerful word of mouth.

Mistake #3 – Not enough cash flow to support your music career.

Like it or not, it takes money to build a music career. Even if

other people/companies are paying for your record, tour support,

merchandise, etc. you still need to have the freedom to pursue

opportunities as they come. Sadly, many musicians miss

opportunities because they can’t afford to take advantage of

them. In addition to a decent income, you also need the flexibility

of being able to take time away from that income source to go into

the studio, go on tour, etc. That is why learning how to teach

guitar is such a great way to achieve both if you learn how to

become a highly successful guitar teacher.

Mistake #2 – Not enough depth in your music relationships. There’s

an old expression, “It’s not what you know, it’s who you know.” In

music this is often modified to, “It’s not who you know, it’s who

knows you.” The truth is, it’s not about either. The most important

aspect of connections within the music industry is how deep are the

current relationships you have now and will develop in the future.

You don’t want to simply know people or be known, you want people

who know you to have a real deep connection with you so that you

are always on the top of their mind when opportunities present

themselves. Ask yourself, “What can I do right now to deepen my

existing relationships further on an ongoing basis?”

Mistake #1 – Having a fundamental misunderstanding about what

record companies look for – and expect from new bands. This is a

huge topic, but in a nutshell it’s very useful to think of record

companies like a bank that lends money to people or small

businesses. Record companies make most of their decisions about

whom they will work with and what the terms will be in much the

same way that a bank will determine who they will loan money to and

what the terms of the loan will be. Both record companies and banks

basically want to see 3 things:

1. How much value do you bring to the deal right now.

2. How much risk do you bring with you right now.

3. How much potential value and risk might you bring to them in the

future after they invest in you.

If you want to buy a house, the bank wants to know a lot about the

specific house you want to buy and EVEN MORE about YOU. Record

companies are the exact same, they want to know about your music,

your talent and your band, but they also care as much (or more)

about YOU (and your band mates) as people. What about YOU makes a

record deal a good or bad investment for them.

To learn more about avoiding these big mistakes and building a successful

music career, take a look at our website www.promusicrecords.com

Pro Music Records primary purpose is to help independent artist and small to mid-sized labels increase their revenues and profits through the development of our easy-to-use, yet extremely powerful marketing software systems and processes that deliver effective, comprehensive online marketing solutions.

Much Love & As Always…. Grind and Don’t Stop, You Can Have Anything

in This World That You Want.. As Long As You Are Willing to Work Hard,

Kick-Ass And Stay Focused! Go Get It, The World is Yours For the Taking!

“Pictures” World Premiere Video- Commercial

Check out this commercial for the World Premiere Video-“Pictures” 04/28/2010 RSVP now for Antoine Carter’s World Premiere Video- “Pictures”… http://www.facebook.com/event.php?eid=109736325732049

THE CHALLENGES OF THE MUSIC INDUSTRY

1) The music industry has changed because of the internet. The days of music artists requiring record labels, magazines, radio stations, or MTV to become well-known are fading.

2) There are new models evolving and musicians are finding new ways to make a living, whether through fan-financed projects, donors, merchandise sales, sponsorships, or other innovative approaches. While this is empowering for musicians, it’s also overwhelming for them and music fans who want to discover new music.

3) With all these digital changes, the distribution power is shifting from record labels and record stores to online channels like http://www.apple.com/itunes , http://www.amazon.com , http://www.myspace.com , etc. But these are big, corporate entities, too. How much can really be different about who decides who should get attention? Does this defeat the purpose of having a new distribution channel in the internet? What does it mean for independent artists now and in the future and how we, as music fans, will discover new music?

4) As mainstream media outlets struggle with incoming advertising revenue, independent media outlets have sprung up, like music recommendation engines, podcasts, mp3 blogs, bloggers, iphone apps, email alerts, etc.

5) In general, most venture capital firms are interested in funding music-related projects that will increase in value so they can sell them and make a profit. There are numerous companies working without the support of venture capitalism such as http://www.reverbnation.com, http://www.rhapsody.com, and http://www.nimbit.com just to name a few. (As Brad Powell of Calabash Music and Microfundo recently said to me, if these three well-entrenched guys can’t get venture capital support, how will we? While discovery methods like http://www.pandora.com and http://www.last.fm have funding or corporate support, there are far more ventures that operate below the requirements of venture capital firms because they don’t yet have a large user base.

6) There is a growing gap between how musicians used to make a living (either wildly successful or just middle class) and how they are now relying on to make money, through live appearances, merch, licensing, mp3, etc., but ultimately we, as music fans, need to discover them before we can ever spend money with them and keep them going.

7) Instead of a few online corporations becoming the new record labels, wouldn’t the future be better for musicians and music fans if a wide variety of tools and technologies were available?

THE SOLUTION

1) Given the nature of the internet and technology, there are, and will continue to be, hundreds of new tools and technologies for music lovers to discover new music, but these sites and technologies need time to grow their audiences until they can be sustained by advertising, subscriptions, sponsorships, grants, merchandise sales, or whatever ways they can monetize their ideas, just as Pandora has done.

2) Like the start of an entirely new business economy, these developing channels need an initial source of funding that can help bloggers, podcasters, and developers of new technologies turn their part-time passions into full-time jobs. This will be a positive step toward altering the music “business” for independent musicians by sending music fans directly to the musicians themselves where they can sell music or merchandise. This is the business model that www.promusicrecords.com has built. With changes like this, there is a chance there can be middle-class musicians, instead of just the mega-rich and “starving artists.”

3) Instead of leaving it all to chance and having great ideas die on the vine, we, as music lovers, need the help of a handful of “guardian angel” musicians who were successful thanks to the old model and whose generous and philanthropic financial support will help new music start-ups develop new platforms, new models, and new technologies for the benefit of generations of music lovers to discover great music for the next 50 years….Please add your own suggestions of musicians or companies that would be generous of such a cause:





Music





Please vote for this blog if you like it.





Top Blogs


My Zimbio