1983-ish.
CD WAS PLANNED TO BE THE SUCCESSOR TO THE GRAMOPHONE RECORD
Initially: NOT RECORDABLE
CD PLAYERS
1983:reinvigorate record business:- high end audio file recordings- consumers re-purchase back catalogs
(beatles, rolling stones, marvin gaye…)
CD:
1983:reinvigorate record business:- high end audio file recordings- consumers re-purchase back catalogs
(beatles, rolling stones, marvin gaye…)- record companies become CATALOG focused.
- cost of promoting and signing new acts vs. cost of re-marketing proven catalogue.
CD:
1983:reinvigorate record business:- high end audio file recordings- consumers re-purchase back catalogs
(beatles, rolling stones, marvin gaye…)- record companies become CATALOG focused.
- cost of promoting and signing new acts vs. cost of re-marketing proven catalogue.
- price DOUBLES cost of albums/cassettes.
CD:
SYNCLAVIER II IN 1980.
FEATURES:
SAMPLING, 64 VOICE POLYPHONY, 32MB OF WAVEFORM RAM (EXPANDABLE TO 768), 32 OUTPUTS, MUSIC-NOTATION PRINTING, MULTITRACK SEQUENCING,
AND DIGITAL HARD-DISK RECORDING.
Sampling:
“borrow” from others..- sounds great!
- no need for musicians- no need for studios
publishing owned by major labels:- reshuffling of accounting in lawsuits- labels continue to adjust from being
record makers into ancillary units
Sampling:
“borrow” from others..- sounds great!
- no need for musicians- no need for studios
publishing owned by major labels:- reshuffling of accounting in lawsuits- labels continue to adjust from being
record makers into ancillary unitslegal departments:
- #1 growth industry in the music business
Sampling:
1981:changes record business:- additional promotion- visuals vs./in addition to: touring- spawns copycats:
- vh1- tnn- bet
MTV:
Size of the file:- mp3 vs. cd or dvd
changes record business:- unlike advent of cd… downloading is allowed.
Downloading:
Size of the file:- mp3 vs. cd or dvd
changes record business:- unlike advent of cd… downloading is allowed.
NO RESPONSE:
Downloading:
Size of the file:- mp3 vs. cd or dvd
changes record business:- unlike advent of cd… downloading is allowed.
NO RESPONSE:- mp3 file sharing 1993…- Napster started 1999…
Downloading:
Size of the file:- mp3 vs. cd or dvd
changes record business:- unlike advent of cd… downloading is allowed.
NO RESPONSE:- mp3 file sharing 1993…- Napster started 1999…- RIAA first suit: 2003.
Downloading:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS.
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN
1,200 STATIONS.
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN
1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN
1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN
1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS- LESS LOCAL NEWS.
The Telecommunications Act of 1996:
- LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN.
- THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN
1,200 STATIONS.- DROP IN THE NUMBER OF MINORITY STATION OWNERS- HOMOGENIZATION OF PLAY LISTS- LESS LOCAL NEWS.- MORE DIFFICULT FOR NEW ARTISTS TO GET AIRTIME ON COMMERCIAL RADIO
The Telecommunications Act of 1996:
FROM THE EARLY 1920S THROUGH THE EARLY 1950S, THE AMERICAN MOTION PICTURE INDUSTRY WAS CONTROLLED BY A FEW COMPANIES.
THE MOST POWERFUL OF THESE STUDIOS WERE THE FULLY INTEGRATED BIG FIVE STUDIOS: MGM, WARNER BROTHERS, 20TH CENTURY FOX, PARAMOUNT PICTURES, AND RKO.
THESE STUDIOS NOT ONLY PRODUCED AND DISTRIBUTED FILMS, BUT ALSO OPERATED THEIR OWN MOVIE THEATERS.
UNIVERSAL STUDIOS, COLUMBIA PICTURES, AND UNITED ARTISTS PRODUCED AND DISTRIBUTED FEATURE FILMS, BUT DID NOT OWN THEIR OWN THEATERS.
MediaMonopoly…VerticalIntegration:
VERTICAL EXPANSION (BUYING INTO INTEGRATION) CAN BE USED TO INCREASE SCALES AND TO GAIN MARKET POWER.
THE ACQUISITION OF DIRECTV BY NEWS CORPORATION IS AN EXAMPLE OF FORWARD VERTICAL EXPANSION. DIRECTV IS A SATELLITE TV COMPANY THROUGH WHICH NEWS CORPORATION CAN DISTRIBUTE MORE OF ITS MEDIA CONTENT:
NEWS, MOVIES, AND TELEVISION SHOWS.
THE ACQUISITION OF NBC UNIVERSAL BY COMCAST CABLE IS AN EXAMPLE OF BACKWARD VERTICAL INTEGRATION.
MediaMonopoly…VerticalIntegration:
IN UNITED STATES V. PARAMOUNT PICTURES, INC., THE SUPREME COURT ORDERED THE FIVE VERTICALLY INTEGRATED STUDIOS TO SELL OFF THEIR THEATER CHAINS.
MediaMonopoly:VerticalIntegration:
APPLE ITUNES: - owns store
- owns hardware- owns software
APPLE:DOES NOT MAKE CONTENT.
MediaMonopoly:VerticalIntegration:
PROMOTINGARECORD:
- artist. - record company.- promotion team.- radio stations.
- video team.- concerts… promotion team, agents, etc.
- musicians.
MusicCommunity:
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
This amount covered: Composer’s fee.
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
This amount covered: Composer’s fee. Musician’s payments (typically 30 musicians for 1 or 2
sessions).
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
This amount covered: Composer’s fee. Musician’s payments (typically 30 musicians for 1 or 2
sessions). Arranging and orchestration.
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
This amount covered: Composer’s fee. Musician’s payments (typically 30 musicians for 1 or 2
sessions). Arranging and orchestration. Union benefits, payroll taxes.
HistoryofMusicBudgets
In 1979 a typical music budget for a 60 minute prime time show was $35,000.
($104,117 adjusted for today's dollars)
This amount covered: Composer’s fee. Musician’s payments (typically 30 musicians for 1 or 2
sessions). Arranging and orchestration. Union benefits, payroll taxes. Studio costs.
AFMStrike
Confluence:- End of studio music departments:
- Copying- Orchestration- Studio costs
- Rise of technology:- Synthesizers- Home recording- Sampling
ThePackage
- Solution to troublesome AFM strike.
- Created by agents Mike Gorfaine and
Sam Schwartz along with Mike Post.
- Undercut AFM Strike.- Reconfigured TV and film music
economics.
ThePackageDeal
• Pre-1981: Composers fees were separate line items in budgets from:–musicians fees– conductors– orchestrators– studio costs
ThePackageDeal
• Pre-1981: Composers fees were separate line items in budgets from musicians fees, conductors, orchestrators, etc.
• Post-1981: Music budget cut by 50%, all expenses paid by composer, whose profit = what is left at the end.
ThePackage
- Composer is paid a fixed fee for the entire job, including recording expenses.
- Package dis-incentivizes composer from working with:- Musicians- Copyists- Contractors- Orchestrators- Recording Studios
ThePackage
- Born with AFM strike, 1981. - Mike Post approach the producers:
"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.”
ThePackage
- Born with AFM strike, 1981. - Mike Post approach the producers:
"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores
ThePackage
- Born with AFM strike, 1981. - Mike Post approach the producers:
"Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores- the AFM strike failed
ThePackage
- Born with AFM strike, 1981. - Mike Post approach the producers: "Give
me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” - Post delivered the scores- the AFM strike failed
- Post became the top earning TV composer of the last 40 years.
ThePackage
- Makes Composers Independent Contractors/Employers
- Constricts/Eliminates/Limits AFM:- Musicians- Copyists- Contractors- Orchestrators
ThePackage
- Makes Composers Independent Contractors/Employers
- Constricts/Eliminates/Limits AFM:- Musicians- Copyists- Contractors- Orchestrators
- Introduces a new way of working:
FREE!- composers, with no collective
bargaining, and no protection from a union, begin to work as such:
FREE!- composers, with no collective
bargaining, and no protection from a union, begin to work as such:- Free, unlimited demos… and…
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing- Free lyric writing
- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes
- Contractual clause that prevents budget over runs regardless of what changes are asked for
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing
- Free lyric writing
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing
- Free lyric writing- Consistently decreasing fees for
shows
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing
- Free lyric writing- Consistently decreasing fees for shows
- Non union buyout of musicians- 100% of the publishing
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing
- Free lyric writing- Consistently decreasing fees for shows
- Non union buyout of musicians- 100% of the publishing- Copyright ownership
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing
- Free lyric writing- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes
FREE!- Unlimited demo submissions
- Free composition- Free recording- Free arranging- Free singing- Free lyric writing
- Consistently decreasing fees for shows- Non union buyout of musicians- 100% of the publishing- Copyright ownership- Unlimited changes
- Contractual clause that prevents budget over runs regardless of what changes are asked for
TVMUSIC:
In 1979 a typical music budget for a 60 minute prime time show was $35,000 ($104,117 adjusted for inflation)…
TVMUSIC:
In 1979 a typical music budget for a 60 minute prime time show was $35,000 ($104,117 adjusted for inflation)…
In 2013 a typical music budget for a 60 minute prime time show is…
$14,000- an 87% overall drop.
TV:HOURPRIMETIME
Writers’ Guild of America minimums:Network Primetime 60 minute script (Courtesy of the WGA)
WGA: 129% of 1979Music: 13% of 1979
• 1979: $8,655 ($25,347 adjusted for 2011)
• 2011: $32,700
Music = 13%
WGA = 129%
0 20 40 60 80 100 120
19792010
TheEnd
- Spotify, Pandora, Youtube… whatever…- Musicians have no leverage
- No union- No association with strong unions (WGA, others)
- No precedents - No partnership with record labels
- Labels remain only entity with real power due to catalogs
- Composers, musicians, songwriters, producers, engineers…
- NO protection- Who benefits: