pmbc making money making music

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Post on 24-Apr-2015



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This is an overview from the Pacific Music Business Camp kickoff class that introduced students to some of the fundamental players, concepts and conventions within the music business.


  • 1. Whos Who? Dana Myers entertainment lawyer and criminal attorney, music manager, Pacific alumni Keith Hatschek program director, author, producer, engineer, musician
  • 2. Whats Wrong with This Graphic? Source: Nielsen/ Soundscan
  • 3. Out with the Old, In with the New Traditional record sales are only a small part of overall MUSIC industry today Some artists, songwriters, managers, concert promoters are all still making money how? Success no longer requires major corporate backing But it can be a useful add-on if done strategically (Examples: Macklemore & Death Cab)
  • 4. Why Clout Matters What is clout? Who has it? Who doesnt How to get it What it will allow you to do
  • 5. New Models/Metrics Amanda Palmer Kickstarter Jay-Z + Samsung Instant Platinum Justin Bieber Beliebers fanatic fans
  • 6. Sources of Income Live shows Have a Billboard BoxScore data Recorded music Merch Other
  • 7. Where Does the $$ Go? Solo artist, house concert, no band, use your parents car you keep 100% That is not the norm! Expense areas Manager Venue share Agent Attorney Sound & Lights Roadies Food, instruments, insurance, marketing, promotion, videos, et c. What else can you think of?
  • 8. Gross vs. Net Total revenue from a gig, album, tour, or other event is called the gross earnings What the artist puts in her/his pocket after all expenses have been paid is the net Many artists have earned millions and been forced into bankruptcy due to poor management, under what conditions artists are eventually paid Never be afraid to ask, What do you expect I will net from this opportunity?
  • 9. Live Revenue Splits Bruno Mars - $65 ticket Venue/Promoter = 38% ($24.70) Artist = 34% ($22.10) Ticketmaster = 10% ($6.50) Facility fee = 8% ($5.20) Opening act = 7% ($4.55) Taxes = 3% ($1.95)
  • 10. CD Sales Split Traditional retail J. Cole Born Sinner - #1 on Billboard 200 this week SRLP $16.98 (consumer pays) Published Price to Dealers $12.05 (Target pays) Price paid by Distributor $8.45 (UMGD pays) Label pays out $1.25 to artist $1.00 to songwriters Rest goes to pay off albums cost to produce and market (aka recoupment)
  • 11. Merch Madness Survey of class how much does stuff cost? $__ is a great price on a concert tee! Revenue split Sales tax withheld Venue share (for allowing you to sell it) Merch share (for bankrolling your inventory) Artist share what you get to keep (minus your merch table staff payroll)
  • 12. Forbes 2012 Top Earners Dr. Dre $110MM Roger Waters $88MM Elton John $80MM U2 $78MM Take That $61MM Bon Jovi $60MM Britney Spears $58MM Paul McCartney $57MM Taylor Swift $57MM Justin Bieber $55MM Toby Keith $55MM What does this mean to You?
  • 13. DIY Artist Model Do-It-Yourself (DIY) Artists take control of their own careers This means: Creative control Learning the business aspects Building relationships Learning by doing! (Make that CD, book a show, hand paint your t-shirts, make your EPK, etc.)
  • 14. DIY Benefits Youre the boss! You learn what works and why What doesnt work and how to improve You keep any earnings (but need to reinvest) Fun, rewarding, empowering
  • 15. Music Biz Camp Goals This week you will study and learn: Production techniques Concert production and marketing Social Media for artists PR and Marketing Copyrights and Wrongs protect your music Live Sound Careers in the Music Industry . . . And make new friends while having fun!