csun digital music class - bfm digital
DESCRIPTION
This is the slide show to accompany my class lecture at CSUN on 10/23/13 and 10/24/13.TRANSCRIPT
![Page 1: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/1.jpg)
Pie Charts
![Page 2: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/2.jpg)
Pie Charts
![Page 3: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/3.jpg)
42 Ways to Make Money
SONGWRITER & COMPOSER REVENUE1. Publisher advance2. Mechanical Royalties3. Commissions4. Public Performance (PRO) Royalties5. Composing Original Works for Broadcast6. Synch Licenses7. Sheet Music Sales8. Ringtones Revenue9. ASCAPlus Awards Program10. Publisher Settlement
PERFORMER & RECORDING ARTIST REVENUE11. Salary as Member of Orchestra or Ensemble12. Shows/Performance Fees13. Record Label Advance14. Record Label Support15. Retail Sales16. Digital Sales17. Sales at Shows18. Interactive Service Payments19. Digital Performance Royalties20. AARC Royalties
Source: Future of Music Coalition
Digital Sales
![Page 4: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/4.jpg)
42 Ways to Make Money
PERFORMER & RECORDING ARTIST REVENUE(continued)21. Neighboring Rights Royalties22. AFM/Secondary Markets Fund23. AFM/Sound Recording Special Payments24. AFTRA Contingent Scale25. Label SettlementsSession Musician Revenue26. Session Musician/Sideman Fees for Studio Work27. Session Musician/Sideman Fees for Live Work28. AFM/AFTRA Payments
TEACHING & PRODUCING29. Music Teacher30. Producer31. Honoraria or Speakers Fees
Source: Future of Music Coalition
BRAND RELATED REVENUE32. Merchandise Sales33. Fan Club34. YouTube Partner Program35. Ad Revenue36. Persona Licensing37. Product Endorsements38. Acting Fees
![Page 5: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/5.jpg)
42 Ways to Make Money
FAN, CORPORATE, & FOUNDATION FUNDING 39. Fan Funding40. Sponsorship41. Grants
OTHER42. Arts Administrator
Source: Future of Music Coalition
![Page 6: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/6.jpg)
Digital Music is Social
PEOPLE WANT TO SHARE THEIR MUSIC
![Page 7: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/7.jpg)
WHO ARE YOU?
FREAK THIEF
• ARTISTS• COMPOSERS• PRODUCERS• MUSICIANS
• LABELS• PUBLISHERS• MANAGERS• AGENTS
![Page 8: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/8.jpg)
Before/After
1991 2013
• Yahoo• Netscape• MP3• Napster• Blog• File Sharing• Spice Girls
• Facebook• Youtube• Tweet• iTunes• Netflix• Justin Bieber
2001
WORDS WE DIDN’T KNOW
Now…
????
![Page 9: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/9.jpg)
Word Of The Decade
DISINTERMEDIATION
![Page 10: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/10.jpg)
• LABELS• PUBLISHERS• MANAGERS• AGENTS
• ARTISTS• COMPOSERS• PRODUCERS• MUSICIANS
WHO ARE YOU?
THIEFFREAK
![Page 11: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/11.jpg)
Digital Music Work Flow
![Page 12: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/12.jpg)
Distribution Process
Direct Marketing(optional)
Label/ArtistActivities
![Page 13: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/13.jpg)
Digital Stores
HUNDREDS MORE!
![Page 14: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/14.jpg)
What is the value of music?
Situational Pricing:Same Product…Different
Prices
= $5.00
= $0.35
= $1.50
20 oz bottle
SO WHAT IS THE VALUE OF THIS
BOTTLE OF COKE?
![Page 15: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/15.jpg)
What is the value of music?
= $0.99
= $0.30
= $.001
Warning!: Shameless self-promotion coming up!
SO WHAT IS THE VALUE OF THIS
SONG?
![Page 16: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/16.jpg)
Revenue Streams
![Page 17: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/17.jpg)
STREAMS– Previews– Full Length– Free– Ad-Supported– Subscription– Cloud– Radio
Digital Revenue Streams
DOWNLOADS– Permanent– Tethered– Variable Price– Premium– Upgrade– Dual– Ringtone
![Page 18: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/18.jpg)
Digital Revenue Streams
DOWNLOADSType Price RangePermanent $0.50 - $1.50/tkTethered $0.001 - $0.01/tkVariable Price $0.10 - $0.45/tkPremium $1.25 - $2.50/tkUpgrade $0.25 - $0.50/tkDual $0.79 - $2.50/tkRingtone $0.00 - $3.50/tk
![Page 19: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/19.jpg)
Digital Revenue Streams
STREAMSPrice Range:
$0.00000 - $0.010000
Spotify (per stream): Ad: ~$0.0010 - $0.0050Subscription: ~$0.0075Premium: ~$0.010
Youtube (per view): $0.0001 - $0.01Pandora (per stream): $0.0011
![Page 20: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/20.jpg)
Ownership vs Access
THE CLOUD STORAGE
Which is more important to you: • Access to 30 million tracks or Owning 3000?• Streaming or downloading? • Privacy or Sharing?
![Page 21: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/21.jpg)
Subscription Vs. Cloud
Subscription Services:• Pandora• Spotify• Slacker• Deezer• Rhapsody• Muve• WiMP• SiriusXM• Google• Youtube• Beats
Cloud Services• iTunes• Amazon• Google
![Page 22: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/22.jpg)
Pandora vs. Spotify
Pandora• ~1 million tracks• Play is limited by
DCMA rules (can’t play exactly what you want)
• Can’t make playlists• Not very social• No apps• US Only
Spotify• 30 million tracks• Play whatever you
want• Easily integrated with
your social media• Open Platform (lots of
apps)• Offline Version (with
Premium membership)• 23 countries
Which has more listeners??
![Page 23: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/23.jpg)
Listeners vs. Subscribers
Source: http://www.digitalmusicnews.com/permalink/2013/05/26/state
24 mil “listeners
72.7 mil “listeners
Why?
![Page 24: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/24.jpg)
iTunes Radio
iTunes Radio
• 20 million unique listeners in the first month!
• That’s almost 1/3 as many users as Pandora!
Why?
![Page 25: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/25.jpg)
Which Would You Want?
Creatives
Corporate/Jobs
Consumers
$0.99 (really $0.70)
$0.001/stream
X
X
X
![Page 26: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/26.jpg)
$0.99 (really $0.70)
$0.001/stream
X
X
X
X
What Is Your Career Path?
Creatives
Corporate/Jobs
Consumers
ROYALTIES SALARY
![Page 27: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/27.jpg)
How Do You Get There?
OLD PARADIGMLABELS DICTATED TO CONSUMERS
“It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” (Steve Jobs)
![Page 28: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/28.jpg)
How Do You Get There?
NEW PARADIGMCONSUMERS STEER THE SHIP
“Follow the money” (Mark Felt aka Deep Throat)
![Page 29: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/29.jpg)
NIN Story
CwF + RtB = $
Connect With Fans (CwF) + Reason To Buy (RtB) = The Business Model ($$$$)
(Source: Michael Masnick, Editor TechDirt)
“Before anyone can pay a royalty, someone has to pay attention.”- Ron Sobel
![Page 30: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/30.jpg)
Recommended Toolkit
Recommended Toolkit:MS Excel (2007 or newer) [1,048,576 rows vs. 65,356)
Dummies Guide to MS Excel Good Music Business Book
“Music Publishing – The Complete Guide” (Steve Winogradsky)“All You Need To Know About The Music Business” (Donald Passman)
File Transfer Program or ServiceYoutube/Facebook/Twitter Channel NameLarge Email InboxBillboard.biz (and print version)Music Blogs (e.g., Digital Music News, Hypebot, etc.)Paypal AccountConstant Contact or other Newsletter Program
![Page 31: CSUN Digital Music Class - BFM Digital](https://reader033.vdocuments.us/reader033/viewer/2022061201/547a015eb4af9fab248b46bb/html5/thumbnails/31.jpg)
A CLOSER LOOK
About Me http://about.me/stevencorn
Linked In https://www.linkedin.com/in/stevencorn
CMS http://www.cornmusicservices.com/
BFM Digital http://bfmdigital.com/
Steve's Blog http://bigfishmedia.typepad.com/thedigitallowdown/
Steve's Slideshare http://www.slideshare.net/scorn100
Twitter @digimusic4real
BFM Jazz http://www.bfmjazz.com
© 2014 Steven Corn – All Rights Reserved